[Federal Register Volume 62, Number 248 (Monday, December 29, 1997)]
[Rules and Regulations]
[Pages 67560-67563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33686]


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FEDERAL TRADE COMMISSION

16 CFR Part 305


Rule Concerning Disclosures Regarding Energy Consumption and 
Water Use of Certain Home Appliances and Other Products Required Under 
the Energy Policy and Conservation Act (``Appliance Labeling Rule'')

AGENCY: Federal Trade Commission.

ACTION: Final rule revision.

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SUMMARY: The Federal Trade Commission (``Commission'') revises Table 1 
in section 305.9 of the Commission's Appliance Labeling Rule (``the 
Rule''), to incorporate the latest

[[Page 67561]]

figures for average unit energy costs as published by the Department of 
Energy (``DOE'') in the Federal Register on December 8, 1997. Table I 
sets forth the representative average unit energy costs for five 
residential energy sources, which the Commission revises periodically 
on the basis of updated information provided by DOE.

DATES: This rule is effective December 29, 1997. The mandatory dates 
for using these revised DOE cost figures in connection with the 
Appliance Labeling Rule are detailed in the Supplementary Information 
Section, below.

FOR FURTHER INFORMATION CONTACT: James Mills, Attorney, 202-326-3035 
Division of Enforcement, Federal Trade Commission, Washington, D.C. 
20580.

SUPPLEMENTARY INFORMATION: On November 19, 1979, the Federal Trade 
Commission issued a final rule in response to a directive in section 
324 of the Energy Policy and Conservation Act (``EPCA''), 42 U.S.C. 
6201.\1\ The Rule requires the disclosure of energy efficiency, 
consumption, or cost information on labels and in retail sales catalogs 
for eight categories of appliances, and mandates that the energy costs, 
consumption, or efficiency ratings be based on standardized test 
procedures developed by DOE. The cost information obtained by following 
the test procedures is derived by using the representative average unit 
energy costs provided by DOE. Table 1 in 305.9(a) of the Rule sets 
forth the representative average unit energy costs to be used for all 
cost-related requirements of the Rule. As stated in 305.9(b), the Table 
is to be revised periodically on the basis of updated information 
provided by DOE.
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    \1\ 44 FR 66466. Since its promulgation, the rule has been 
amended five times to include new product categories--central air 
conditioners (52 FR 46888, Dec. 10, 1987), fluorescent lamp ballasts 
(54 FR 1182, Jan. 12, 1989), certain plumbing products (58 FR 54955, 
Oct. 25, 1993), certain lamp products (59 FR 25176, May 13, 1994), 
and pool heaters and certain residential water heater types (59 FR 
49556, Sept. 28, 1994). Obligations under the rule concerning 
fluorescent lamp ballasts, lighting products, plumbing products and 
pool heaters are not affected by the cost figures in this notice.
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    On December 8, 1997, DOE published the most recent figures for 
representative average unit energy costs.\2\ Accordingly, Table 1 is 
revised to reflect these latest cost figures as set forth below.
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    \2\ 62 FR 64574.
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    How and when industry members must use (or not use) revised Table 1 
to calculate cost disclosures for labeling and catalog sales is 
explained in detail in the paragraphs below. In sum:
    <bullet> Manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, water heaters, and room air 
conditioners are not permitted to use the DOE cost figures published 
today to calculate the secondary operating cost figures on labels for 
their products until the Commission publishes new ranges of 
comparability for those products.
    <bullet> Manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, and water heaters have no need 
for the DOE cost figures for making data submissions under 305.8. The 
energy use information they must submit and use as primary energy use 
descriptions on labels for these products is now in terms of energy 
consumption, not operating cost.
    <bullet> Manufacturers of products covered by the Rule must use the 
1998 DOE cost figures published today to calculate operating cost 
representations in catalogs, point of sale literature and other point 
of sale representations, and advertisements that are drafted and 
printed after March 30, 1998.
    <bullet> Beginning March 30, 1998 manufacturers of clothes dryers, 
television sets, kitchen ranges and ovens, and space heaters must begin 
using the 1998 representative average unit costs for energy in all 
operating cost representations.

For Labeling of Products Covered by the Commission's Rule \3\

    Manufacturers of covered products are not permitted to use the 
National Average Representative Unit Costs published today on labels 
for their products until the Commission publishes new ranges of 
comparability for those products.
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    \3\ Sections 305.11(a)(5)(i)(H)(2) and (3) of the Rule (16 CFR 
305.11(a)(5)(i)(H)(2) and (3)) require that labels for 
refrigerators, refrigerator-freezers, freezers, clothes washers, 
dishwashers, water heaters, and room air conditioners contain a 
secondary energy usage disclosure in terms of an estimated annual 
operating cost (labels for clothes washers and dishwashers will show 
two such secondary disclosures--one based on operation with water 
heated by natural gas, and one on operation with water heated by 
electricity). The labels also must disclose, below this secondary 
estimated annual operating cost, the fact that the estimated annual 
operation cost is based on the appropriate DOE energy cost figure, 
and must identify the year in which the cost figure was published.
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    Manufacturers of storage-type water heaters must continue to use 
the 1994 DOE cost figures (8.41 cents per kilowatt-hour for 
electricity, 60.4 cents per therm for natural gas, $1.054 per gallon 
for No. 2 heating oil, and 98.3 cents per gallon for propane) in 
determining the operating cost disclosures on the labels on their 
products. This is because the 1994 DOE cost figures were in effect when 
the 1994 ranges of comparability for storage-type water heaters were 
published, and those 1994 ranges are still in effect for those 
products.\4\ Manufacturers of storage-type water heaters must continue 
to use the 1994 cost figures to calculate the estimated annual 
operating cost figures on their labels until the Commission publishes 
new ranges of comparability for storage-type water heaters.
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    \4\ The 1994 DOE cost figures were published by DOE on December 
29, 1993 (58 FR 68901), and by the Commission on February 8, 1994 
(59 FR 5699). The current (1994) ranges of comparability for 
storage-type water heaters were published on September 23, 1994 (59 
FR 48796). On August 21, 1995 (60 FR 43367), on September 16, 1996 
(61 FR 48620), and again on August 25, 1997 (62 FR 44890), the 
Commission announced that the 1994 ranges for storage-type water 
heaters will continue to remain in effect.
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    Manufacturers of refrigerators, refrigerator-freezers, freezers, 
heat pump water heaters, and room air conditioners must continue to 
derive the operating cost disclosures on labels by using the 1995 
National Average Representative Unit Costs (8.67 cents per kilowatt-
hour for electricity, 63 cents per therm for natural gas, $1.008 per 
gallon for No. 2 heating oil, and 98.5 cents per gallon for propane) 
that were in effect when the current (1995) ranges of comparability for 
these products were published.\5\ Manufacturers of refrigerators, 
refrigerator-freezers, freezers, heat pump water heaters, and room air 
conditioners must continue to use the 1995 DOE cost figures to 
calculate the operating cost disclosure disclosed on labels until the 
Commission publishes new ranges of comparability for refrigerators, 
refrigerator-freezers, freezers, heat pump water heaters, or room air 
conditioners based on future annual submissions of data. In the notice 
announcing the new ranges, the Commission also will announce that 
operating cost disclosures must be based on the DOE cost figure for 
electricity in effect at that time.
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    \5\The 1995 DOE cost figures were published by DOE on January 5, 
1995 (60 FR 1773), and by the Commission on February 17, 1995 (60 FR 
9296). The current (1995) ranges of comparability for heat pump 
water heaters were published on August 21, 1995 (60 FR 43367). The 
current (1995) ranges for refrigerators, refrigerator-freezers, 
freezers, and room air conditioners were published on November 13, 
1995 (60 FR 56945). On September 16, 1996 (61 FR 48620), and again 
on August 25, 1997 (62 FR 44890), the Commission announced that the 
1995 ranges for heat pump water heaters and room air conditions 
would continue to remain in effect. On October 28, 1996 (61 FR 
55563), the Commission announced that the 1995 rnages for 
refrigerators, refrigerator-freezes would continue to remain in 
effect.
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    Manufacturers of instantaneous water heaters must continue to base 
the required secondary operating cost disclosures on labels on the 1996 
National Average Representative Unit

[[Page 67562]]

 Costs for electricity (8.6 centers per kilowatt-hour), natural gas 
(62.6 cents per therm), propane (90 cents per gallon), and/or heating 
oil (92 cents per gallon) that were published by DOE on January 19, 
1996,\6\ and by the Commission on February 14, 1996,\7\ and that were 
in effect when the 1996 ranges of comparability for these products were 
published.\8\
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    \6\ 61 FR 1366.
    \7\ 61 FR 5679.
    \8\ The current ranges for instantaneous water heaters were 
published on September 16, 1996 (61 FR 48620). On August 25, 1997 
(62 FR 44890), the Commission announced that the 1996 ranges for 
instantaneous water heaters would continue to remain in effect.
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    Manufacturers of clothes washers and dishwashers must continue to 
base the required secondary operating cost disclosures on labels on the 
1997 National Average Representative Unit Costs for electricity (8.31 
cents per kilowatt-hour), natural gas (61.2 cents per therm), propane 
(98 cents per gallon), and/or heating oil (99 cents per gallon) that 
were published by DOE on November 18, 1996,\9\ and by the Commission on 
February 5, 1997,\10\ and that were in effect when the 1997 ranges of 
comparability for these products were published.\11\
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    \9\  61 FR 58679.
    \10\  62 FR 5316.
    \11\  The current (corrected) ranges for clothes washers were 
published on August 6, 1997 (62 FR 42209); the current ranges for 
dishwashers were published on August 25, 1997 (62 FR 44890).
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For 1997 Submissions of Data Under Section 305.8 of the 
Commission's Rule

    Manufacturers no longer need to use the DOE cost figures in 
complying with the data submission requirements of 305.8 of the Rule. 
Pursuant to amendments to the Rule published on July 1, 1994 \12\ (with 
extended compliance dates published on December 8, 1994 \13\), the 
estimated annual operating cost is no longer the primary energy usage 
descriptor for refrigerators, refrigerator-freezers, freezers, clothes 
washers, dishwashers, and water heaters. Under the amendments, the 
energy usage and the ranges of comparability for those product 
categories must be expressed in terms of estimated annual energy 
consumption (kilowatt-hour use per year for electricity, therms per 
year for natural gas, or gallons per year for propane and oil). Thus, 
the 1998 (and all subsequent) data submissions under 305.8 for these 
product categories (which are to enable the Commission to publish 
ranges of comparability) must be made in terms of estimated annual 
energy consumption, not cost. The energy efficiency descriptors for the 
other products covered by the Rule (room air conditioners, furnaces, 
boilers, central air conditioners, heat pumps, and pool heaters) are 
unaffected by the amendments mentioned above. The annual data 
submission requirements for those products, which are not based on the 
DOE cost figures, will continue to be in terms of energy efficiency.
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    \12\ 59 FR 34014.
    \13\ 59 FR 63688.
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    For convenience, the annual dates for data submission are repeated 
here:

Clothes washers: March 1
Water heaters: May 1
Furnaces: May 1
Room air conditioners: May 1
Pool Heaters: May 1
Dishwashers: June 1
Central air conditioners: July 1
Heat pumps: July 1
Refrigerator: August 1
Refrigerators-freezers: August 1
Freezers: August 1

For Energy Cost Representations Respecting Covered Products in Catalogs

    Energy cost representations in catalogs that are drafted and 
printed while the 1998 cost figures are in effect must be derived using 
the 1998 energy costs beginning March 30, 1998.

For Energy Cost Representations Respecting Products Covered by EPCA But 
Not by the Commission's Rule

    Manufacturers of products covered by section 323(c) of EPCA, 42 
U.S.C. 6293(c), but not by the Appliance Labeling Rule (clothes dryers, 
television sets, kitchen ranges and ovens, and space heaters) must use 
the 1998 DOE energy costs in all operating cost representations 
beginning March 30, 1998.

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
Regulatory Flexibility Act analysis (5 U.S.C. 603-604) are not 
applicable to this proceeding because the amendments do not impose any 
new obligations on entities regulated by the Appliance Labeling Rule. 
Thus, the amendments will not have a ``significant economic impact on a 
substantial number of small entities'' (5 U.S.C. 605). The Commission 
has concluded, therefore, that a regulatory flexibility analysis is not 
necessary, and certifies, under Section 605 of the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), that the amendments announced today 
will not have a significant economic impact on a substantial number of 
small entities.

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Reporting and recordkeeping requirements.

PART 305--[AMENDED]

    Accordingly, 16 CFR Part 305 is amended as follows:
    1. The authority citation for Part 305 continues to read:

    Authority: 42 U.S.C. 6294.

    2. Section 305.9(a) is revised to read as follows:


Sec. 305.9   Representative average unit energy costs.

    (a) Table 1 contains the representative unit energy costs to be 
utilized for all requirements of this part.

        Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (1998)        
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                                                                        As required by DOE test     Dollars per 
             Type of energy                 In commonly used terms             procedure            million Btu 
--------------------------------------------------------------------------------------------------------\1\-----
Electricity.............................  8.42 cents/kWh \2\ \3\....  $0.0842/kWh...............          $24.68
Natural Gas.............................  61.9 cents/therm \4\ or     $0.00000619/Btu...........            6.19
                                           $6.36/MCF \5\ \6\.                                                   
No. 2 heating oil.......................  $.95/gallon \7\...........  $0.00000685/Btu...........            6.85
Propane.................................  $0.95/gallon \8\..........  $0.00001039/Btu...........           10.39
Kerosene................................  $1.01/gallon \9\..........  $0.00000748/Btu...........            7.48
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\1\ Btu stands for British thermal unit.                                                                        
\2\ kWh stands for kilowatt hour.                                                                               
\3\ 1 kWh=3,412 Btu.                                                                                            
\4\ 1 therm=100,000 Btu. Natural gas prices include taxes.                                                      
\5\ MCF stands for 1,000 cubic feet.                                                                            

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\6\ For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,027 Btu.         
\7\ For the purposes of this table, 1 gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.     
\8\ For the purposes of this table, 1 gallon of liquid propane has an energy equivalence of 91,333 Btu.         
\9\ For the purposes of this table, 1 gallon of kerosene has an energy equivalence of 135,000 Btu.              

* * * * *
Donald S. Clark,
Secretary.
[FR Doc. 97-33686 Filed 12-24-97; 8:45 am]
BILLING CODE 6750-01-M