77862 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

3. Access the Government Printing 

Office’s Web page at: http://

www.gpo.gov/fdsys/. 

Copies may also be obtained by 

sending a request (identified by notice, 

amendment, or docket number of this 

rulemaking) to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. 

B. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

(SBREFA) requires FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. 

A small entity with questions regarding 

this document may contact its local 

FAA official, or the person listed under 

the FOR FURTHER INFORMATION CONTACT

section at the beginning of the preamble. 

To find out more about SBREFA on the 

Internet, visit: http://www.faa.gov/

regulations_policies/rulemaking/sbre_

act/. 

List of Subjects in 14 CFR Part 91 

Air traffic control, Aircraft, Airmen, 

Airports, Aviation safety, Freight, 

Ukraine. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of Title 14, Code of 

Federal Regulations as follows: 

PART 91—GENERAL OPERATING AND 

FLIGHT RULES 

■ 1. The authority citation for part 91 is 

revised to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 1155, 

40101, 40103, 40105, 40113, 40120, 44101, 

44111, 44701, 44704, 44709, 44711, 44712, 

44715, 44716, 44717, 44722, 46306, 46315, 

46316, 46504, 46506–46507, 47122, 47508, 

47528–47531, 47534, articles 12 and 29 of the 

Convention on International Civil Aviation 

(61 Stat. 1180), (126 Stat. 11). 

■ 2. Revise § 91.1607 to read as follows: 

§ 91.1607 Special Federal Aviation 

Regulation No. 113—Prohibition Against 

Certain Flights in the Simferopol (UKFV) 

and the Dnipropetrovsk (UKDV) Flight 

Information Regions (FIRs). 

(a) Applicability. This Special Federal 

Aviation Regulation (SFAR) applies to 

the following persons: 

(1) All U.S. air carriers and U.S. 

commercial operators; 

(2) All persons exercising the 

privileges of an airman certificate issued 

by the FAA, except such persons 

operating U.S.-registered aircraft for a 

foreign air carrier; and 

(3) All operators of U.S.-registered 

civil aircraft, except where the operator 

of such aircraft is a foreign air carrier. 

(b) Flight prohibition. Except as 

provided in paragraphs (c) and (d) of 

this section, no person described in 

paragraph (a) of this section may 

conduct flight operations in the 

Simferopol (UKFV) FIR or the 

Dnipropetrovsk (UKDV) FIR. 

(c) Permitted operations. This section 

does not prohibit persons described in 

paragraph (a) of this section from 

conducting flight operations in either or 

both of the Simferopol (UKFV) and the 

Dnipropetrovsk (UKDV) FIRs, provided 

that such flight operations are 

conducted under a contract, grant, or 

cooperative agreement with a 

department, agency, or instrumentality 

of the U.S. government (or under a 

subcontract between the prime 

contractor of the department, agency, or 

instrumentality, and the person subject 

to paragraph (a)), with the approval of 

the FAA, or under an exemption issued 

by the FAA. The FAA will process 

requests for approval or exemption in a 

timely manner, with the order of 

preference being: First, for those 

operations in support of U.S. 

government-sponsored activities; 

second, for those operations in support 

of government-sponsored activities of a 

foreign country with the support of a 

U.S. government department, agency, or 

instrumentality; and third, for all other 

operations. 

(d) Emergency situations. In an 

emergency that requires immediate 

decision and action for the safety of the 

flight, the pilot in command of an 

aircraft may deviate from this section to 

the extent required by that emergency. 

Except for U.S. air carriers and 

commercial operators that are subject to 

the requirements of 14 CFR parts 119, 

121, 125, or 135, each person who 

deviates from this section must, within 

10 days of the deviation, excluding 

Saturdays, Sundays, and Federal 

holidays, submit to the nearest FAA 

Flight Standards District Office (FSDO) 

a complete report of the operations of 

the aircraft involved in the deviation, 

including a description of the deviation 

and the reasons for it. 

(e) Expiration. This SFAR will remain 

in effect until October 27, 2015. The 

FAA may amend, rescind, or extend this 

SFAR as necessary. 

Issued under authority provided by 49 

U.S.C. 106(f), 40101(d)(1), 40105(b)(1)(A), 

and 44701(a)(5), in Washington, DC, on 

December 19, 2014. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2014–30365 Filed 12–24–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 732, 736, 738, 740, 744, 

and 774 

[Docket No. 141027899–4899–01] 

RIN 0694–AG34 

Corrections and Clarifications to the 

Export Administration Regulations 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is correcting certain 

provisions of the Export Administration 

Regulations (EAR) that were amended in 

past rulemakings appearing in the 

Federal Register between November 5, 

2007 and October 14, 2014. This final 

rule makes corrections to certain 

provisions to ensure consistency and 

clarity in the regulations. In addition, 

this final rule makes other corrections to 

the EAR to fix typographical errors to 

ensure that the regulations accurately 

reflect the revisions intended by these 

past rulemakings. 

DATES: This rule is effective December 

29, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Timothy Mooney, Regulatory Policy 

Division, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–2440, Fax: (202) 482– 

3355, Email: rpd2@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Bureau of Industry and Security 

(BIS) is correcting certain provisions of 

the Export Administration Regulations 

(EAR) that were amended in past 

rulemakings appearing in the Federal 

Register between November 5, 2007 and 

October 14, 2014. In total, this final rule 

makes corrections and clarifications for 

thirteen final rules that amended the 

EAR during this time period. This final 

rule corrects these provisions to 

accurately reflect the revisions intended 

by these past rulemakings. These final 

rulemakings consist of the following: 

Revisions to the Commerce Control List: 

Imposition of Controls on Integrated 

Circuits, Helicopter Landing System 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 77863 

Radars, Seismic Detection Systems, and 

Technology for IR Up-Conversion 

Devices, October 14, 2014 (79 FR 

61571); Russian Sanctions: Addition of 

Persons to the Entity List and 

Restrictions on Certain Military End 

Uses and Military End Users, September 

17, 2014 (79 FR 55608); Corrections and 

Clarifications to the Export 

Administration Regulations; Correction, 

August 18, 2014 (79 FR 48660); Russian 

Oil Industry Sanctions and Addition of 

Person to the Entity List, August 6, 2014 

(79 FR 45675); Wassenaar Arrangement 

2013 Plenary Agreements 

Implementation: Commerce Control 

List, Definitions, and Reports; and 

Extension of Fly-by-Wire Technology 

and Software Controls, August 4, 2014 

(79 FR 45288); Corrections and 

Clarifications to the Export 

Administration Regulations; 

Conforming Changes to the EAR Based 

on Amendments to the International 

Traffic in Arms Regulations, June 5, 

2014 (79 FR 32612); Revisions to the 

Export Administration Regulations 

(EAR): Control of Spacecraft Systems 

and Related Items the President 

Determines No Longer Warrant Control 

Under the United States Munitions List 

(USML), May 13, 2014 (79 FR 27417); 

Revisions to the Export Administration 

Regulations (EAR) To Make the 

Commerce Control List Clearer, October 

4, 2013 (78 FR 61874); Revisions to the 

Export Administration Regulations: 

Military Vehicles; Vessels of War; 

Submersible Vessels, Oceanographic 

Equipment; Related Items; and 

Auxiliary and Miscellaneous Items That 

the President Determines No Longer 

Warrant Control Under the United 

States Munitions List, July 8, 2013 (78 

FR 40892); Implementation of the 

Understandings Reached at the 2012 

Australia Group (AG) Plenary Meeting 

and the 2012 AG Intersessional 

Decisions; Changes to Select Agent 

Controls, June 5, 2013 (78 FR 33692); 

Revisions to the Export Administration 

Regulations: Initial Implementation of 

Export Control Reform, April 16, 2013 

(78 FR 22660); Export and Reexport 

Controls to Rwanda and United Nations 

Sanctions Under the Export 

Administration Regulations, July 23, 

2012 (77 FR 42973); and December 2006 

Wassenaar Arrangement Plenary 

Agreement Implementation: Categories 

1, 2, 3, 5 Part I, 6, 7, 8, and 9 of the 

Commerce Control List; Wassenaar 

Reporting Requirements; Definitions; 

and Statement of Understanding on 

Source Code, November 5, 2007 (72 FR 

62524). 

The corrections and clarifications are 

described in the order in which they 

appear in the EAR. 

Section 732.1(d)(1)(v). This final rule 

makes a correction for the steps 

overview in § 732.1(d)(1)(v)(General 

Prohibition Five (End-Use End-User)) to 

correct a typographical error. The final 

rule revises this paragraph to remove 

the phrase ‘‘end-user or end-users’’ and 

add in its place the intended phrase 

‘‘end uses or end users.’’ 

General Order No. 5 in Supplement 

No. 1 to part 736. In Supplement No. 1 

to part 736 under General Order No. 5, 

this final rule makes a correction to 

paragraph (e)(3) (Prior commodity 

jurisdiction determinations) to add a 

reference to 9x515 ECCNs. The 

transition guidance described in General 

Order No. 5 also applies to 9x515 

ECCNs, but paragraph (e)(3), because it 

includes a reference to the ‘‘600 series,’’ 

but omits a reference to the 9x515 

ECCNs, could lead someone to make an 

incorrect inference that paragraph (e)(3) 

is not intended to apply to 9x515 

ECCNs. Therefore, to make this 

paragraph (e)(3) clearer to the public, 

this final rule adds a reference to 9x515 

ECCNs, which was inadvertently 

omitted in a past final rulemaking. This 

correction will also make the regulatory 

text of paragraph (e)(3) consistent with 

past regulatory guidance provided 

regarding the scope of General Order 

No. 5, including the applicability of 

paragraph (e)(3) of the general order. 

Section 738.2(a). This final rule 

corrects an outdated reference in 

§ 738.2(a) for Category 9 of the 

Commerce Control List in Supplement 

No. 1 to Part 774. The reference in 

§ 738.2 paragraph (a) refers to the old 

name of Category 9 (Propulsion 

Systems, Space Vehicles and Related 

Equipment), which was used in the EAR 

until November 4, 2007, but is no longer 

used. The final rule corrects the 

reference to use the current name of 

Category 9 (Aerospace and Propulsion). 

Section 740.20(d)(2). BIS is correcting 

a provision of the EAR that was 

previously amended by two final rules 

appearing in the Federal Register on 

June 5, 2014 (79 FR 32612) and on May 

13, 2014 (79 FR 27417), and was again 

amended in an August 18, 2014 (79 FR 

48660) final rule that made correcting 

amendments to these two final rules. 

One instruction in the August 18, 2014 

rule was incorrect because it did not 

specify that the two sentences at the end 

of paragraph (d)(2) to be revised were at 

the end of the introductory text of 

paragraph (d)(2), which resulted in the 

wrong two sentences being revised. 

Because of the incorrect instruction, the 

two sentences in paragraph (d)(2)(viii) 

were revised instead of the intended last 

two sentences of the introductory text of 

paragraph (d)(2). This final rule corrects 

paragraph (d)(2) to accurately reflect the 

revision intended by the August 18 rule 

and to add back into the EAR paragraph 

(d)(2)(viii) that was not intended to be 

revised or removed in the August 18 

rule. 

Section 744.1(a). In § 744.1 (General 

Provisions) under paragraph (a) that 

describes the scope of part 744, this 

final rule adds two sentences at the end 

of paragraph (a) to provide references to 

§§ 744.21 and 744.22, including 

providing brief descriptions regarding 

the scope of these two sections of part 

744. This clarification was not in 

response to any particular rule, but 

rather was identified by BIS as a helpful 

conforming change to this section of 

part 744 to make the public better aware 

of the scope of this part of the EAR. 

Section 744.21(e) (License review 

standards). This final rule removes the 

term ‘‘transfer’’ and adds in its place the 

more specific and intended term 

‘‘transfer (in-country)’’ in three places in 

paragraph (e). The scope of the license 

requirements under this section extends 

to exports, reexports and transfers (incountry), so this change to paragraph (e) 

was needed to conform to the other 

parts of this section. 

Section 744.21(f) (Military end use). 

This final rule reinserts text in 

§ 744.21(f) that was inadvertently 

removed in an earlier rule. Specifically, 

the April 16, 2013 (78 FR 22660) rule 

inadvertently deleted the last sentence 

in paragraph (f), but BIS did not realize 

the sentence had been deleted until 

reviewing the incorporation for the 

September 17, 2014 (79 FR 55608) rule 

described in the last paragraph. This 

final rule corrects the deletion by 

adding the inadvertently deleted 

sentence back to the end of paragraph 

(f), which previously stated, ‘‘‘military 

end use’ also means deployment of 

items classified under ECCN 9A991 as 

set forth in Supplement No. 2 to Part 

744.’’ 

ECCN 0A617. This final rule revises 

ECCN 0A617 to remove the term ‘‘not’’ 

in the Related Controls paragraph (9) in 

the List of Items Controlled section 

because it is not needed and creates 

potential confusion. Related Control 

paragraph (9), which provides a related 

control reference for certain fuel cells 

includes a reference to defense articles 

‘‘not’’ on the USML. However, because 

all defense articles are on the USML, the 

inclusion of the term ‘‘not’’ before the 

phrase ‘‘on the USML’’ was incorrect 

and caused confusion for certain 

members of the public because they 

were aware that all defense articles are 

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77864 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

on the USML, so the Related Controls 

paragraph was inconsistent with their 

understanding of the USML and CCL. 

These people, who contacted BIS, 

correctly noted that the inclusion of the 

term ‘‘not’’ was not needed or intended 

under this Related Controls paragraph. 

ECCN 0A919. This final rule corrects 

ECCN 0A919 to remove the ‘‘UN’’ 

control from the Reason for Control 

paragraph in the License Requirements 

section. An earlier rule published in 

July 23, 2012 (77 FR 42973) removed the 

UN Control from the ‘‘Control(s)’’ 

paragraph in the License Requirement 

section. Although the intent of the 

amendatory instruction pertaining to 

that ECCN entry was that all references 

to the UN control in the License 

Requirement section were to be 

removed, the instruction did not 

explicitly reference the Reasons for 

Control paragraph. Consequently, the 

reference to ‘‘UN’’ remained in the 

Reason for Control paragraph of the 

ECCN, notwithstanding the fact that the 

ECCN was not controlled for UN reasons 

as of July 23, 2012. 

ECCNs 1C992, 3A229, 3A231, 3A232, 

6A991, 8A992, and 8D999. To conform 

to the Reason for Control paragraph in 

new ECCN 0A998 that includes a 

reference to ‘‘Foreign policy,’’ this rule 

corrects the Reason for Control 

paragraph of these other seven ECCNs 

included in the August 6, 2014 (79 FR 

45675) rule to adopt a common way of 

referencing the license requirements in 

§ 746.5. The Reason for Control 

paragraph in 8D999 included the term 

‘‘N/A,’’ so this rule also corrects that 

Reason for Control paragraph by 

removing ‘‘N/A’’ and adding in its place 

‘‘Foreign policy,’’ so all eight of the 

ECCNs that reference § 746.5 will use 

the same way to reference that Reason 

for Control. 

ECCN 2B352. This final rule revises 

the introductory text of items paragraph 

f in the List of Items Controlled section 

of ECCN 2B352 to correct a misspelled 

term. This final rule removes the 

incorrect term ‘‘flowing’’ and adds in its 

place the correct term ‘‘following.’’ 

Category 5 Part 2—‘‘Information 

Security.’’ Category 5 Part 2 is amended 

by revising paragraph b of Note 3. This 

amendment was inadvertently omitted 

from the 2013 Wassenaar Arrangement 

Implementation rule published on 

August 4, 2014 (79 FR 45302), although 

the amendment was described in the 

preamble. ‘Executable software’ is 

added to Note 3, as well as a Technical 

Note to define ‘executable software’ as 

‘‘software’’ in executable form, from an 

existing hardware component excluded 

from 5A002 by the Cryptography Note. 

A Note is also added after the Technical 

Note that states, ‘‘‘Executable software’ 

does not include complete binary 

images of the ‘‘software’’ running on an 

end-item.’’ 

ECCN 5A002. This final rule revises 

the Related Controls paragraph (1) in the 

List of Items Controlled section to 

remove redundant text in paragraph (1) 

that repeats the text of Related Controls 

paragraph (2) and (3) in the regulations, 

but is not intended in ECCN 5A002. 

Therefore, this final rule removes that 

redundant text from Related Controls 

paragraph (1). This final rule also 

revises the ‘‘items’’ paragraph in the List 

of Items Controlled section of ECCN 

5A002 to reinsert paragraph (a)(1) a. to 

5A002 Note (a). This paragraph (a)(1) a. 

to 5A002 Note (a) was not intended to 

be removed from the EAR. However, the 

paragraph no longer appears in the 

regulations, so this final rule adds this 

paragraph back into the 5A002 Note (a). 

This final rule also makes two other 

revisions to the ‘‘items’’ paragraph of 

5A002 to make corrections to the 

regulations for inconsistencies that BIS 

identified between the regulations and 

past EAR rulemakings. Specifically, this 

final rule revises 5A002 Note (d) 

Technical Note to delete the phrase ‘‘the 

term,’’ capitalize the term ‘‘Money 

transactions’’ and add the phrase ‘‘in 

5A002 Note (d).’’ This final rule also 

revises ‘‘items’’ paragraph (b) in the List 

of Items Controlled section by 

reinserting the text of ‘‘items’’ paragraph 

(b) that was not intended to be revised 

in the regulations, but was inadvertently 

revised when the text for another ECCN 

was revised. Specifically, when ‘‘items’’ 

paragraph (b) was revised in ECCN 

5A992 in the October 4, 2013 rule (78 

FR 61874) the same revision was made 

in the regulations to ECCN 5A002.b, 

although the October 4, 2013 rule did 

not revise ECCN 5A002.b. 

ECCN 5E002. This final rule makes a 

correction to the placement of the 

Related Definitions paragraph in ECCN 

5E002 to ensure consistency between 

the regulations and past rulemakings. 

This final rule removes the Related 

Definitions paragraph in the License 

Requirements section of 5E002 and adds 

that same Related Definitions paragraph 

after the Related Controls paragraph in 

the List of Items Controlled section. The 

text of the Related Controls paragraph is 

not changed, only the paragraph’s 

location in the ECCN is changed for 

consistency with where Related 

Controls paragraphs appear in ECCNs 

on the CCL. 

ECCN 6A998. This final rule revises 

the heading of ECCN 6A998 to remove 

the word major and add quotation 

marks around the defined term 

‘‘component.’’ This change is made for 

consistency with a past rulemaking that 

had made this same change to 6A998. 

ECCN 8A992. This final rule removes 

the UN control that was inadvertently 

added back into 8A992 in a rule 

published August 6, 2014 (79 FR 

45675). The UN control had been 

recently removed in a rulemaking 

published on June 4, 2014 (79 FR 

32612), but the August 6, 2014 rule did 

not take the removal into account and 

added the UN control back into this 

ECCN. 

ECCN 9A012. This final rule makes a 

correction to List of Items Controlled 

section of ECCN 9A012 to add an 

‘‘items’’ paragraph heading. The ‘‘items’’ 

paragraph heading was inadvertently 

removed in a previous rulemaking, so 

this rule corrects this error by adding in 

the intended ‘‘items’’ paragraph heading 

in the List of Items Controlled section. 

ECCN 9A610. This final rule revises 

the items paragraph y.30 in the List of 

Items Controlled section of ECCN 9A610 

to clarify the meaning of the exclusion 

from this paragraph. Specifically, this 

final rule moves the placement of the 

phrase ‘‘other than electronic items or 

navigation equipment’’ and sets these 

exclusion criteria from 9A610.y.30 off 

with commas to make it clearer that 

commodities described in this phrase 

are not classified under 9A610.y.30, but 

rather most likely under 9A610.x. 

ECCN 9A991. This final rule revises 

ECCN 9A991.d to remove the phrase 

‘‘subject to the controls of 9A991.a or 

.b.’’ This clarification is made because 

9A991.d is intended to be a ‘‘specially 

designed’’ catch-all for any ‘‘parts’’ or 

‘‘components’’ ‘‘specially designed’’ for 

aircraft, not elsewhere specified (n.e.s.) 

and is not intended to be limited to 

those ‘‘aircraft’’ identified in 9A991.d 

(i.e., 9A991.a or .b). Prior to reviewing 

9A991, the analysis of the CCL must 

include reviewing the ‘‘600 series,’’ 

which includes an analysis of ECCN 

9A610 (See Commerce Control List 

Order of Review in Supplement No. 4 to 

part 774). This clarification in the text 

of 9A991.d in no way changes the scope 

of any other ECCN on the CCL and is 

only intended to clarify that when 

reviewing the CCL for an aircraft part or 

component n.e.s on the CCL, an analysis 

of 9A991 must be conducted before 

determining an aircraft part or 

component is designated as EAR99. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as amended by 

Executive Order 13637 of March 8, 

2013, 78 FR 16129 (March 13, 2013) and 

as extended by the Notice of August 7, 

2014, 79 FR 46959 (August 11, 2014), 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 77865 

has continued the Export 

Administration Regulations in effect 

under the International Emergency 

Economic Powers Act. BIS continues to 

carry out the provisions of the Export 

Administration Act, as appropriate and 

to the extent permitted by law, pursuant 

to Executive Order 13222. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This final rule, which is a 

consolidation of corrections and 

clarifications of final rules published 

between November 5, 2007 and October 

14, 2014, as well other corrections and 

clarifications to the EAR to ensure 

consistency between the regulations and 

past EAR rulemakings, has been 

determined to be not significant for 

purposes of Executive Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves collections previously 

approved by OMB under control 

number 0694–0088, Simplified Network 

Application Processing System, which 

includes, among other things, license 

applications and carries a burden 

estimate of 43.8 minutes for a manual or 

electronic submission. Total burden 

hours associated with the PRA and 

OMB control number 0694–0088 are not 

expected to increase as a result of this 

rule. You may send comments regarding 

the collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by email to Jasmeet_K._

Seehra@omb.eop.gov, or by fax to (202) 

395–7285. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Department finds that there is 

good cause under 5 U.S.C. 553(b)(B) to 

waive the provisions of the 

Administrative Procedure Act requiring 

prior notice and the opportunity for 

public comment because they are either 

unnecessary or contrary to the public 

interest. The following revisions are 

non-substantive or are limited to ensure 

consistency with past rulemakings, and 

thus prior notice and the opportunity 

for public comment is unnecessary. 

Sections 740.20(d)(2), 744.21(f), 

Category 5 Part 2—‘‘Information 

Security’’ for paragraph b of Note 3, and 

ECCNs 0A919, 5A002, 5E002 and 9A012 

were revised to make corrections to the 

EAR that resulted from mistakes or 

other ambiguity in amendatory 

instructions in past rulemakings. 

Section 738.2(a) was revised to correct 

an outdated EAR cross reference, and 

ECCNs 6A998 and 8A992 were revised 

to reinsert text that was inadvertently 

removed or revised in a subsequent 

rulemaking. Section 732.1(d)(1)(v) and 

ECCNs 0A617, 1C992, 2B352, 3A229, 

3A231, 3A232, 6A991, 8A992, and 

8D999 were revised to correct 

typographical errors or to make other 

non-substantive corrections or 

clarifications to the EAR text. In 

addition to the revisions above, BIS 

makes changes to its regulations to 

provide guidance on existing 

interpretations of current EAR 

provisions, and thus prior notice and 

the opportunity for public comment is 

contrary to the public interest. These 

changes include the revisions to General 

Order No. 5 in Supplement No. 1 to part 

736, §§ 744.1(a) and 744.21(e) and 

ECCNs 9A610 and 9A991. These 

revisions are important to get in place 

as soon as possible so the public will be 

aware of the correct text and meaning of 

current EAR provisions. 

BIS finds good cause to waive the 30- 

day delay in effectiveness under 5 

U.S.C. 553(d)(3). As mentioned 

previously, the revisions made by this 

rule consist of both technical 

corrections and clarifications that need 

to be in place as soon as possible to 

avoid confusion by the public regarding 

the intent and meaning of changes to the 

EAR. 

Because a notice of proposed 

rulemaking and an opportunity for 

public comment are not required to be 

given for these amendments by 5 U.S.C. 

553, or by any other law, the analytical 

requirements of the Regulatory 

Flexibility Act, 5 U.S.C. 601 et seq., are 

not applicable. 

List of Subjects 

15 CFR Parts 732 and 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Parts 736 and 738 

Exports. 

15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, parts 732, 736, 738, 740, 

744, 774 of the Export Administration 

Regulations (15 CFR parts 730 through 

774) are revised to read as follows: 

PART 732—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 732 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 

3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 

FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 

of August 7, 2014, 79 FR 46959 (August 11, 

2014). 

§ 732.1 [Amended] 

■ 2. Section 732.1 is amended in 

paragraph (d)(1)(v) by removing the 

phrase ‘‘end-user or end-users’’ and 

adding in its place the phrase ‘‘end uses 

or end users’’. 

PART 736—[AMENDED] 

■ 3. The authority citation for 15 CFR 

part 736 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 2151 note; E.O. 

12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 

950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 

Comp., p. 219; E.O. 13026, 61 FR 58767, 3 

CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 

44025, 3 CFR, 2001 Comp., p. 783; E.O. 

13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 

168; Notice of May 7, 2014, 79 FR 26589 

(May 9, 2014); Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014); Notice of 

November 7, 2014, 79 FR 67035 (November 

12, 2014). 

■ 4. Supplement No. 1 to part 736 is 

amended by revising paragraph (e)(3) to 

read as follows: 

SUPPLEMENT NO. 1 TO PART 736— 

GENERAL ORDERS 

* * * * * 

(e) * * * 

* * * * * 

(3) Prior commodity jurisdiction 

determinations. If the U.S. State 

Department has previously determined 

that an item is not subject to the 

jurisdiction of the ITAR and the item 

was not listed in a then existing ‘‘018’’ 

series ECCN (for purposes of the ‘‘600 

series’’ ECCNs) or in a then existing 

ECCN 9A004.b or related software or 

technology ECCN (for purposes of the 

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77866 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

9x515 ECCNs), then the item is per se 

not within the scope of a ‘‘600 series’’ 

ECCN or a 9x515 ECCN. If the item was 

not listed elsewhere on the CCL at the 

time of such determination (i.e., the 

item was designated EAR99), the item 

shall remain designated as EAR99 

unless specifically enumerated by BIS 

or DDTC in an amendment to the CCL 

or to the USML, respectively. 

* * * * * 

PART 738—[AMENDED] 

■ 5. The authority citation for 15 CFR 

part 738 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 

seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

§ 738.2 [Amended] 

■ 6. Section 738.2 is amended in 

paragraph (a) by removing the phrase 

‘‘Propulsion Systems, Space Vehicles 

and Related Equipment’’ and adding in 

its place the phrase ‘‘Aerospace and 

Propulsion’’. 

PART 740—[AMENDED] 

■ 7. The authority citation for 15 CFR 

part 740 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; 

E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 

p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

■ 8. Section 740.20 is amended: 

■ a. By revising the last two sentences 

of the introductory text of paragraph 

(d)(2) and transferring the bracketed text 

between those two sentences to the end 

of the introductory text; 

■ b. By removing the last sentence of 

paragraph (d)(2)(vii)(C) and the 

bracketed text that follows it; and 

■ c. By adding paragraph (d)(2)(viii). 

The revisions and additions read as 

follows: 

§ 740.20 License Exception Strategic 

Trade Authorization (STA). 

* * * * * 

(d) * * * 

* * * * * 

(2) Prior Consignee Statement. * * * 

In addition, paragraph (d)(2)(vii) is 

required for all transactions in ‘‘600 

series’’ items and paragraph (viii) of this 

section is required for transactions in 

‘‘600 series’’ items if the consignee is 

not the government of a country listed 

in Country Group A:5 (See Supplement 

No. 1 to part 740 of the EAR). Paragraph 

(d)(2)(viii) is also required for 

transactions including 9x515 items. 

[INSERT NAME OF CONSIGNEE]: 

* * * * * 

(viii) Agrees to permit a U.S. 

Government end-use check with respect 

to the items. 

[INSERT NAME AND TITLE OF 

PERSON SIGNING THIS DOCUMENT, 

AND DATE DOCUMENT IS SIGNED]. 

* * * * * 

PART 744—[AMENDED] 

■ 9. The authority citation for 15 CFR 

part 744 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 

U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 

1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 

3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 

FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 

44025, 3 CFR, 2001 Comp., p. 783; E.O. 

13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 

786; Notice of January 21, 2014, 79 FR 3721 

(January 22, 2014); Notice of August 7, 2014, 

79 FR 46959 (August 11, 2014); Notice of 

September 17, 2014, 79 FR 56475 (September 

19, 2014); Notice of November 7, 2014, 79 FR 

67035 (November 12, 2014). 

■ 10. Section 744.1 is amended by 

adding two sentences to the end of 

paragraph (a)(1) to read as follows: 

§ 744.1 General provisions. 

(a)(1) * * * Section 744.21 imposes 

restrictions for exports, reexports and 

transfers (in-country) of specified items 

for certain ‘military end uses’ in the 

People’s Republic of China (PRC) or for 

a ‘military end use’ or ‘military end 

user’ in Russia or Venezuela. Section 

744.22 imposes restrictions on exports, 

reexports and transfers to persons 

whose property and interests in 

property are blocked pursuant to 

Executive Orders 13310, 13448, or 

13464. 

* * * * * 

■ 11. Section 744.21 is amended: 

■ a. By removing the term ‘‘transfer’’ 

wherever it appears and adding in its 

place the term ‘‘transfer (in-country)’’ in 

paragraph (e)(1); and 

■ b. By adding a sentence to the end of 

paragraph (f). 

The addition reads as follows: 

§ 744.21 Restrictions on Certain ‘Military 

end uses’ in the People’s Republic of China 

(PRC) or for a ‘Military end use’ or ‘Military 

end user’ in Russia or Venezuela. 

* * * * * 

(f) * * * ‘Military end use’ also 

means deployment of items classified 

under ECCN 9A991 as set forth in 

Supplement No. 2 to Part 744. 

* * * * * 

PART 774—[AMENDED] 

■ 12. The authority citation for 15 CFR 

part 774 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 

seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

Supplement No. 1 to Part 774 

[Amended] 

■ 13. In Supplement No. 1 to part 774: 

■ a. Category 0, Export Control 

Classification Number (ECCN) 0A617 is 

amended by removing the term ‘‘not’’ 

from Related Controls paragraph (9) in 

the List of Items Controlled section. 

■ b. Category 0, Export Control 

Classification Number (ECCN) 0A919 is 

amended by removing the term ‘‘UN’’ 

from the Reason for Control paragraph 

in the License Requirements section. 

■ c. Export Control Classification 

Numbers (ECCN) 1C992, 3A229, 3A231, 

3A232, and 6A991 are amended by 

adding the term ‘‘Foreign policy’’ at the 

end of the Reason for Control 

paragraphs in the License Requirements 

sections. 

■ d. Category 2, Export Control 

Classification Number (ECCN) 2B352 is 

amended by removing the term 

‘‘flowing’’ and adding in its place the 

term ‘‘following’’ in the introductory 

text of Items paragraph f in the List of 

Items Controlled section. 

■ 14. In Supplement No. 1 to Part 774, 

Category 5, Part 2—‘‘Information 

Security’’, is amended by revising 

paragraph b. of Note 3 to read as 

follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

CATEGORY 5— 

TELECOMMUNICATIONS AND 

‘‘INFORMATION SECURITY’’ 

* * * * * 

Part 2—‘‘INFORMATION SECURITY’’ 

* * * * * 

Note 3: * * * 

* * * * * 

b. Hardware components or 

‘executable software’, of existing items 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 77867 

described in paragraph a. of this Note, 

that have been designed for these 

existing items, and meeting all of the 

following: 

1. ‘‘Information security’’ is not the 

primary function or set of functions of 

the component or ‘executable software’; 

2. The component or ‘executable 

software’ does not change any 

cryptographic functionality of the 

existing items, or add new 

cryptographic functionality to the 

existing items; 

3. The feature set of the component or 

‘executable software’ is fixed and is not 

designed or modified to customer 

specification; and 

4. When necessary, as determined by 

the appropriate authority in the 

exporter’s country, details of the 

component or ‘executable software’, and 

details of relevant end-items are 

accessible and will be provided to the 

authority upon request, in order to 

ascertain compliance with conditions 

described above. 

Technical Note: For the purpose of the 

Cryptography Note, ‘executable software’ 

means ‘‘software’’ in executable form, from 

an existing hardware component excluded 

from 5A002 by the Cryptography Note. 

Note: ‘Executable software’ does not 

include complete binary images of the 

‘‘software’’ running on an end-item. 

* * * * * 

■ 15. In Supplement No. 1 to Part 774, 

Category 5, Part 2—‘‘Information 

Security’’, Export Control Classification 

Number (ECCN) 5A002 is amended: 

■ a. By revising Related Controls 

paragraph (1) in the List of Items 

Controlled section; 

■ b. By adding paragraph (a)(1) a. to 

5A002 Note (a); 

■ c. By revising 5A002 Note (d) 

Technical Note; and 

■ d. By revising Items paragraph b. in 

the List of Items Controlled section. 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

5A002 ‘‘Information security’’ systems, 

equipment and ‘‘components’’ therefor, 

as follows (see List of Items Controlled) 

* * * * * 

List of Items Controlled 

Related Controls: (1) ECCN 5A002.a 

controls ‘‘components’’ providing the 

means or functions necessary for 

‘‘information security.’’ All such 

‘‘components’’ are presumptively 

‘‘specially designed’’ and controlled by 

5A002.a. * * * 

Items: 

Note: * * * 

(a) * * * 

(1) * * * 

a. The cryptographic capability is 

restricted for use in equipment or 

systems excluded from 5A002 by Note 

4 in Category 5—Part 2 or entries (b) to 

(i) of this Note, and cannot be 

reprogrammed for any other use; or 

* * * * * 

(d) * * * 

Technical Note: ‘Money transactions’ in 

5A002 Note (d) includes the collection and 

settlement of fares or credit functions. 

* * * * * 

b. Systems, equipment, application 

specific ‘‘electronic assemblies’’, 

modules and integrated circuits, 

designed or modified to enable an item 

to achieve or exceed the controlled 

performance levels for functionality 

specified by 5A002.a that would not 

otherwise be enabled. 

■ 16. In Supplement No. 1 to Part 774, 

Category 5, Part 2—‘‘Information 

Security’’, Export Control Classification 

Number (ECCN) 5E002 is amended by 

removing the Related Definitions 

paragraph in the License Requirements 

section and adding a Related Definitions 

paragraph after the Related Controls 

paragraph in the List of Items Controlled 

section to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

5E002 ‘‘Technology’’ as follows (see List 

of Items Controlled) 

* * * * * 

List of Items Controlled 

Related Controls: * * * 

Related Definitions: N/A 

* * * * * 

■ 17. In Supplement No. 1 to part 774, 

Category 6—Sensors and Lasers, Export 

Control Classification Number (ECCN) 

6A998 is amended by revising the 

heading to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

6A998 Radar systems, equipment and 

major ‘‘components,’’ n.e.s., and 

‘‘specially designed’’ ‘‘components’’ 

therefor, as follows (see List of Items 

Controlled). 

* * * * * 

Supplement No. 1 to Part 774 

[Amended] 

■ 18. In Supplement No. 1 to part 774, 

Category 8–Marine, Export Control 

Classification Number (ECCN) 8A992 is 

amended: 

■ a. By removing the term ‘‘UN’’ from 

the Reason for Control paragraph and 

removing the UN entry in the License 

Requirements table; and 

■ b. By adding the term ‘‘Foreign 

policy’’ at the end of the Reason for 

Control paragraph in the License 

Requirements section. 

Supplement No. 1 to Part 774 

[Amended] 

■ 19. In Supplement No. 1 to part 774, 

Category 8—Marine, Export Control 

Classification Number (ECCN) 8D999 is 

amended by removing the term ‘‘N/A’’ 

adding in its place the term ‘‘Foreign 

policy’’ at the end of the Reason for 

Control paragraph in the License 

Requirements section. 

Supplement No. 1 to Part 774 

[Amended] 

■ 20. In Supplement No. 1 to part 774, 

Category 9—Aerospace and Propulsion, 

Export Control Classification Number 

(ECCN) 9A012 is amended by adding 

undesignated paragraph heading 

‘‘Items:’’ between the Related 

Definitions paragraph and paragraph a. 

in the List of Items Controlled section. 

■ 21. In Supplement No. 1 to part 774, 

Category 9—Aerospace and Propulsion, 

Export Control Classification Number 

(ECCN) 9A610 is amended by revising 

Items paragraph y.30 in the List of Items 

Controlled section to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

9A610 Military aircraft and related 

commodities, other than those 

enumerated in 9A991.a (see List of 

Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Items: 

* * * * * 

y.30. ‘‘Parts,’’ ‘‘components,’’ 

‘‘accessories,’’ and ‘‘attachments,’’ other 

than electronic items or navigation 

equipment, for use in or with a 

commodity controlled by ECCN 

9A610.h. 

■ 22. In Supplement No. 1 to part 774, 

Category 9—Aerospace and Propulsion, 

Export Control Classification Number 

(ECCN) 9A991 is amended by revising 

Items paragraph d. in the List of Items 

Controlled section to read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

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77868 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

1 44 FR 66466 (Nov. 19, 1979) (Rule’s initial 

promulgation). 

2 42 U.S.C. 6294. EPCA also requires the 

Department of Energy (DOE) to develop test 

procedures that measure how much energy 

appliances use, and to determine the representative 

average cost a consumer pays for different types of 

energy. 

3 77 FR 15298 (Mar. 15, 2012) (initiation of 

regulatory review). The Commission currently has 

another open proceeding related to light bulb 

coverage. See 76 FR 45715 (Aug. 1, 2011) (proposed 

expanded light bulb coverage). 

4 16 CFR 305.10. 

5The amendments also make a non-substantive 

correction to section 305.7(a) and (b), which 

references DOE procedures for measuring 

refrigerator and freezer capacity. The Association of 

Home Appliance Manufactures identified this issue 

in their recent comment (#569–00014). In Appendix 

L, the amendments also update the refrigeratorfreezer and clothes washer prototype labels and 

reinsert the current sample ceiling fan label, which 

was inadvertently removed by recent amendments. 

6 In response to the SNPRM, the Commission 

received 17 comments from organizations and 

individuals. Six of these addressed the heating and 

cooling issues discussed in this document. See 

http://www.ftc.gov/policy/public-comments/

initiative-569. The comments addressing issues 

discussed in this Notice include: American Public 

Gas Association (APGA) (#569–00012), American 

Gas Association (AGA) (#569–00013), AirConditioning, Heating, and Refrigeration Institute 

(AHRI) (#569–00016), Earthjustice (on behalf of 

several energy efficiency groups) (#569–00017), 

Goodman Global, Inc., (#569–00008), Laclede Gas 

(#569–00011), and Nicholas (#569–0003). 

7 78 FR 8362 (Feb. 6, 2013). 

8 78 FR at 8365. 

9American Public Gas Ass’n v. DOE, No. 11–1485 

(D.C. Cir. filed Dec. 23, 2011) (DE.#1433580, May 

1, 2013) and (DE.# 1489805, Apr. 24, 2014). 10The settlement did not affect DOE regional 

standards (or FTC labels) for split system and single 

9A991 ‘‘Aircraft,’’ n.e.s., and gas 

turbine engines not controlled by 9A001 

or 9A101 and ‘‘parts’’ and 

‘‘components,’’ n.e.s. (see List of Items 

Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Items: 

* * * * * 

d. ‘‘Parts’’ and ‘‘components,’’ 

‘‘specially designed’’ for ‘‘aircraft,’’ 

n.e.s. 

* * * * * 

Dated: December 18, 2014. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2014–30019 Filed 12–24–14; 8:45 am] 

BILLING CODE 3510–33–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 305 

[3084–AB15] 

Energy and Water Use Labeling for 

Consumer Products Under the Energy 

Policy and Conservation Act (Energy 

Labeling Rule) 

AGENCY: Federal Trade Commission 

(‘‘FTC’’ or ‘‘Commission’’). 

ACTION: Final rule. 

SUMMARY: Consistent with proposed 

amendments published in a June 18, 

2014 Supplemental Notice of Proposed 

Rulemaking (SNPRM), the Commission 

updates its label requirements for 

heating and cooling equipment and 

removes information from furnace labels 

about regional conservation standards. 

DATES: The amendments published in 

this document will become effective on 

April 6, 2015. 

ADDRESSES: Relevant portions of the 

proceeding, including this document, 

are available at the Commission’s Web 

site, www.ftc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Hampton Newsome, (202) 326–2889, 

Attorney, Division of Enforcement, 

Bureau of Consumer Protection, Federal 

Trade Commission, 600 Pennsylvania 

Avenue NW., Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Commission issued the Energy 

Labeling Rule (‘‘Rule’’) in 1979,1

pursuant to the Energy Policy and 

Conservation Act of 1975 (EPCA).2 The 

Rule requires energy labeling for major 

home appliances and other consumer 

products to help consumers compare 

competing models. When first 

published, the Rule applied to eight 

categories: Refrigerators, refrigeratorfreezers, freezers, dishwashers, water 

heaters, clothes washers, room air 

conditioners, and furnaces. The 

Commission subsequently expanded the 

Rule’s coverage to include central air 

conditioners, heat pumps, plumbing 

products, lighting products, ceiling fans, 

and televisions. The Commission is 

separately reviewing the entire Rule.3

The Rule requires manufacturers to 

attach yellow EnergyGuide labels for 

many of the covered products and 

prohibits retailers from removing the 

labels or rendering them illegible. In 

addition, the Rule directs sellers, 

including retailers, to post label 

information on Web sites and in paper 

catalogs from which consumers can 

order products. EnergyGuide labels for 

covered products contain three key 

disclosures: Estimated annual energy 

cost (for most products); a product’s 

energy consumption or energy 

efficiency rating as determined from 

Department of Energy (DOE) test 

procedures; and a comparability range 

displaying the highest and lowest 

energy costs or efficiency ratings for all 

similar models. For energy cost 

calculations, the Rule specifies national 

average costs for applicable energy 

sources (e.g., electricity, natural gas, oil) 

as calculated by DOE. Under the Rule, 

the Commission periodically updates 

comparability range and annual energy 

cost information.4 The Commission 

updates the range information based on 

manufacturer data submitted pursuant 

to the Rule’s reporting requirements. 

II. Updates to Heating and Cooling 

Labels 

Summary: The Commission amends 

its label requirements for heating and 

cooling equipment consistent with 

proposed amendments in a 

Supplemental Notice of Proposed 

Rulemaking (SNPRM) published on 

June 18, 2014 (79 FR 34642). As detailed 

below, these amendments update labels 

for furnaces and boilers, including range 

information, remove information on 

furnace labels about regional standards, 

and remove mandatory capacity 

disclosures for all heating and cooling 

equipment.5 The Commission will 

address other matters discussed in the 

June 18, 2014 SNPRM in a future 

notice.6

Background: The Commission issued 

revised heating and cooling equipment 

labels in 2013 to provide installers and 

consumers with information about new 

regional standards issued by DOE for 

some of those products.7 The new FTC 

labels for split-system and singlepackage central air conditioners, gas 

furnaces, and non-weatherized mobile 

home furnaces included information 

about compliance with the regional 

standards in the form of statements and 

maps illustrating regions where specific 

models can be installed under the DOE 

rules. The new labels also included a 

Web site link, model number, and 

capacity information for all furnaces 

and central air conditioners (regardless 

of whether subject to regional or 

uniform national standards) to help 

consumers access DOE-generated cost 

information online.8

However, following issuance of the 

new FTC requirements, a legal 

settlement vacated the DOE regional 

furnace standards.9 Because the 

Commission tied implementation for the 

new labels (including labels for 

products subject to uniform national 

standards) to the DOE regional 

standards dates, the settlement had the 

effect of postponing indefinitely the 

FTC label updates for most gas furnaces, 

oil furnaces, boilers, and electric 

furnaces.10

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