[Federal Register Volume 88, Number 232 (Tuesday, December 5, 2023)]
[Notices]
[Pages 84330-84333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26602]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is 
seeking public comment on its proposal to extend for an additional 
three years the clearance from the Office of Management and Budget 
(``OMB'') for information collection requirements in the Energy 
Labeling Rule (``Rule''). That clearance expires on February 29, 2024.

DATES: Comments must be filed by February 5, 2024.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Energy Labeling Rule, 
PRA Comment, P145403,'' on your comment, and file your comment online 
at https://www.regulations.gov by following the instructions on the 
web-based form. If you prefer to file your comment on paper, mail your 
comment to the following address: Federal Trade Commission, Office of 
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), 
Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of 
Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 
<a href="/cdn-cgi/l/email-protection#81e9efe4f6f2eeece4c1e7f5e2afe6eef7"><span class="__cf_email__" data-cfemail="2e46404b595d41434b6e485a4d00494158">[email protected]</span></a>, (202) 326-2889.

SUPPLEMENTARY INFORMATION: 
    Title of Collection: Energy Labeling Rule (Rule), 16 CFR part 305.
    OMB Control Number: 3084-0069.
    Type of Review: Extension without change of currently approved 
collection.
    Affected Public: Private Sector: Businesses and other for-profit 
entities.
    Estimated Annual Burden Hours: 821,651.
    Estimated Annual Labor Costs: 24,690,012.
    Estimated Annual Non-labor Costs: $3,000,000.
    Abstract: The Energy Labeling Rule implements the Energy Policy and 
Conservation Act of 1975 (``EPCA'').\1\ The Rule establishes testing, 
reporting, recordkeeping, and labeling requirements for manufacturers 
of major household products (refrigerators, refrigerator-freezers, and 
freezers; dishwashers; clothes washers; water heaters; room air 
conditioners; furnaces; central air conditioners; heat pumps; pool 
heaters; fluorescent lamp ballasts; lamp products; plumbing fittings; 
plumbing fixtures; ceiling fans; consumer specialty lamps; and 
televisions). The requirements relate specifically to the disclosure of 
information relating to energy consumption and water usage. The Rule's 
testing and disclosure requirements enable consumers purchasing 
products to compare the efficiency or energy use of competing models. 
In addition, EPCA and the Rule require manufacturers to submit relevant 
data to the Commission regarding energy or water usage in connection 
with the products they manufacture. The Commission uses this data to 
compile ranges of comparability for covered appliances for publication 
in the Federal Register. These submissions, along with required records 
for testing data, may also be used in enforcement actions involving 
alleged misstatements on labels or in advertisements.
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    \1\ 42 U.S.C. 6294.
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    As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C. 
3506(c)(2)(A), the FTC is providing this opportunity for public comment 
before requesting that OMB extend the existing clearance for the 
information collection requirements contained in the Rule.

Burden Estimates

    Estimated annual hours burden: 821,651.
    The estimated hours burden imposed by Section 324 of EPCA and the 
Commission's Rule include burdens for testing (693,320 hours); 
reporting (2,646 hours); recordkeeping (807 hours); labeling (112,272 
hours); retail and online catalog disclosures (6,800 hours); and online 
label posting (5,806 hours). The total burden for these activities is 
821,651 hours (rounded to the nearest hour).
    The following estimates of the time needed to comply with the 
requirements of the Rule are based on census data, Department of Energy 
figures and estimates, general knowledge of manufacturing practices, 
and industry input and figures. Because the compliance burden falls 
almost entirely on manufacturers and importers (with a de minimis 
burden for retailers), burden estimates are calculated on the basis of 
the number of domestic manufacturers and/or the number of units shipped 
domestically in the various product categories.

A. Testing

    Under the Rule, manufacturers of covered products must test each 
basic model they produce to determine energy usage (or, in the case of 
plumbing fixtures, water consumption). The burden imposed by this 
requirement is determined by the number of basic models produced, the 
average number of units tested per model, and the time required to 
conduct the applicable test.
    Manufacturers need not subject each basic model to testing 
annually; they must retest only if the product design changes in such a 
way as to affect energy consumption. The staff estimates that the 
proportion of models tested each year ranges roughly between 10% and 
50% and that the actual percentage of basic models tested varies by 
appliance category. In addition, the majority of tests conducted are 
required by Department of Energy requirements; therefore, it is likely 
that only a small portion of the tests conducted is attributable to the 
Rule's requirements. Accordingly, the burden estimates are based on the 
assumption that 25% of all basic models are tested annually due to the 
Rule's requirements. Thus, the estimated testing burden for the various 
categories of products covered by the Rule is as follows: \2\
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    \2\ The following numbers reflect estimates of the basic models 
in the market and test burdens based on information collected by the 
Department of Energy or other sources. The actual basic model 
numbers will vary from year to year.

[[Page 84331]]



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                                                   Percentage of  Avg. number of    Labor hours    Total annual
    Category of manufacturer         Number of     models tested   units tested      per unit     testing burden
                                   basic models   (FTC required)     per model        tested           hours
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Refrigerators, Refrigerator-               9,703              25               4               4          38,812
 freezers, and Freezers.........
Dishwashers.....................           1,350              25               4               1           1,350
Clothes washers.................           1,364              25               4               2           2,728
Water heaters...................           3,936              25               2              24          47,232
Room air conditioners...........           1,844              25               4               8          14,752
Furnaces........................           5,894              25               2               8          23,576
Central A/C and Heat pumps......          11,911              25               2              24         142,932
Pool heaters....................             280              25               2              12           1,680
Fluorescent lamp ballasts.......             494              25               4               3           1,482
Lamp products...................          20,000              25              10               8         400,000
Plumbing fittings...............           3,000              25               2               2           3,000
Plumbing fixtures...............          45,111              25               1           .0833             939
Ceiling fans....................           9,572              25               3               1           7,179
Televisions.....................           3,274              25               2               2           3,274
Portable air conditioners.......             548              25               4               8           4,384
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                                  ..............  ..............  ..............  ..............         693,320
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B. Reporting

    The Rule requires that manufacturers of covered products ``shall 
submit annually a report for each model in current production 
containing the same information that must be submitted to the 
Department of Energy pursuant to 10 CFR part 429. In lieu of submitting 
the required information to the Commission as required by this section, 
manufacturers may submit such information to the Department of Energy 
via the CCMS at https://regulations.doe.gov/ccms as provided by 10 CFR 
429.12.'' 16 CFR 305.11. The Rule also requires manufacturers to 
furnish links to images of their EnergyGuide labels as part of these 
required annual reports. 16 CFR 305.11. Manufacturers must submit data 
to the FTC both when they begin manufacturing new models and annually. 
16 CFR 305.11; 42 U.S.C. 6296(b).
    Reporting burden estimates are based on information from industry 
representatives. Manufacturers of some products, such as appliances and 
HVAC equipment, indicate that, for them, the reporting burden is best 
measured by the estimated time required to report on each model 
manufactured, while others, such as makers of fluorescent lamp ballasts 
and lamp products, state that an estimated number of annual burden 
hours by manufacturer is a more meaningful way to measure. The figures 
below reflect these different methodologies as well as the varied 
burden hour estimates provided by manufacturers of the different 
product categories that use the latter methodology.
Appliances, HVAC Equipment, Pool Heaters, and Televisions
    Staff estimates that the average reporting burden for these 
manufacturers is approximately two minutes per basic model. Based on 
this estimate, multiplied by a total of 49,676 basic models of these 
products, the annual reporting burden for the appliance, HVAC 
equipment, and pool heater industry is an estimated 1,656 hours (2 
minutes x 49,676 models / 60 minutes per hour).
Fluorescent Lamp Ballasts, Lamp Products, and Plumbing Products
    The total annual reporting burden for manufacturers of fluorescent 
lamp ballasts, lamp products, and plumbing fixtures is based on the 
estimated average annual burden for each category of manufacturers, 
multiplied by the number of manufacturers in each respective category, 
as shown below:

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                                                                   Annual burden                   Total annual
                    Category of manufacturer                         hours per       Number of       reporting
                                                                   manufacturer    manufacturers   burden hours
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Fluorescent lamp ballasts.......................................               6              20             120
Lamp products...................................................              15              50             750
Plumbing products...............................................               1             120             120
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    The total reporting burden for industries covered by the Rule is 
2,646 hours annually (1,656 + 120 + 750 + 120).

C. Recordkeeping

    EPCA and the Rule require manufacturers to keep the data generated 
from the tests required by the Rule. As with reporting, burden is 
calculated by number of models for appliances, HVAC equipment, pool 
heaters, and televisions, and by number of manufacturers for 
fluorescent lamp ballasts, lamp products, and plumbing products.
Appliances, HVAC Equipment, Pool Heaters, and Televisions
    The recordkeeping burden for manufacturers of appliances, HVAC 
equipment, pool heaters, and televisions varies directly with the 
number of tests performed. Staff estimates total recordkeeping burden 
to be approximately 207 hours for these manufacturers, based on an 
estimated average of one minute per record stored (whether in 
electronic or paper format), multiplied by 12,419 tests \3\ performed 
annually (1 x 12,419 / 60 minutes per hour).
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    \3\ This is derived from 25% of 49,676 estimated models that are 
tested.
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Fluorescent Lamp Ballasts, Lamp Products, and Plumbing Products
    The total annual recordkeeping burden for manufacturers of 
fluorescent

[[Page 84332]]

lamp ballasts, lamp products, and plumbing fixtures is based on the 
estimated average annual burden for each category of manufacturers 
(derived from industry sources), multiplied by the number of 
manufacturers in each respective category, as shown below:

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                                                                   Annual burden                   Total annual
                    Category of manufacturer                         hours per       Number of     recordkeeping
                                                                   manufacturer    manufacturers   burden hours
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Fluorescent lamp ballasts.......................................               2              20              40
Lamp products...................................................              10              50             500
Plumbing fixtures...............................................             0.5             120              60
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    The total recordkeeping burden for industries covered by the Rule 
is 807 hours annually (207 + 40 + 500 + 60).

D. Labeling

    EPCA and the Rule require that manufacturers of covered products 
provide certain information to consumers through labels on covered 
products. The burden imposed by this requirement consists of (1) the 
time needed to prepare labels, and (2) the time needed to affix 
required labels.
    EPCA and the Rule specify the content, format, and specifications 
for the required labels, so manufacturers need only add the energy 
consumption figures derived from testing. In addition, most companies 
use automation to generate labels, and the labels do not change from 
year to year.
    Given these considerations, staff estimates that the time to 
prepare labels for covered products (all covered products except 
plumbing and fluorescent lamp products, which do not have separate 
labels) is no more than four minutes per basic model. In addition, 
staff estimates that, on average, manufacturers draft or revise labels 
for 25% of the total basic models each year. Based on Department of 
Energy data, staff has estimated that manufacturers offer approximately 
69,676 basic models of covered products. Based on these estimates, 
staff estimates that the approximate annual drafting burden involved in 
labeling covered products is 1,161 hours per year [69,676 (all basic 
models) x 25% x four minutes (drafting time per basic model) / 60 
(minutes per hour)].
    Based on input from industry representatives and trade 
associations, staff estimates that it takes approximately 4 seconds to 
affix labels to products for retail sales.\4\ Based on an average of 4 
seconds per unit, the annual burden for affixing labels to covered 
products is 111,111 hours [4 (seconds) x 100,000,000 (the estimated 
number of total products shipped for sale annually) divided by 3,600 
(seconds per hour)].\5\
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    \4\ Estimates from trade association members for labeling costs 
ranged from 1 second to 8 seconds. Staff has chosen a middle-ground 
estimate of 4 seconds, although due to improvements in automation, 
staff believes this estimate likely overstates the time spent 
labeling most covered products.
    \5\ Includes only those product categories, such as showroom 
appliances and heating and cooling equipment, that must have 
separate labels affixed to them.
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    The total labeling burden for all industries covered by the Rule is 
112,272 (1,161 + 111,111) annually.

E. Online and Retail Sales Catalog Disclosures

    The Rule requires that sellers offering covered products online or 
through retail sales catalogs (i.e., those publications from which a 
consumer can order merchandise) disclose online or in the catalog 
energy or water consumption for each covered product. Because this 
information is supplied by the product manufacturers, the burden on the 
retailer consists of incorporating the information into the online or 
catalog presentation.
    In the past, staff has estimated that there are 100 sellers who 
offer covered products through paper retail catalogs. While the Rule 
initially imposed a burden on catalog sellers by requiring that they 
draft disclosures and incorporate them into the layouts of their 
catalogs, paper catalog sellers now have substantial experience with 
the Rule and its requirements. Energy and water consumption information 
has obvious relevance to consumers, so sellers are likely to disclose 
much of the required information with or without the Rule. Accordingly, 
given the small number of catalog sellers, their experience with 
incorporating energy and water consumption data into their catalogs, 
and the likelihood that many of the required disclosures would be made 
in the ordinary course of business, staff believes that any burden the 
Rule imposes on these paper catalog sellers would be minimal.
    Staff estimates that there are approximately 400 online sellers of 
covered products who are subject to the Rule's catalog disclosure 
requirements. Staff estimates that these online sellers each require 
approximately 17 hours per year to incorporate the data into their 
online catalogs. This estimate is based on the assumption that entry of 
the required information takes 1 minute per covered product and an 
assumption that the average online catalog contains approximately 1,000 
covered products (based on a sampling of websites of affected 
retailers). Given that there is a great variety among sellers in the 
volume of products they offer online, it is very difficult to estimate 
such volume with precision. In addition, this analysis assumes that 
information for all 1,000 products is entered into the catalog each 
year. This assumption likely overstates the associated burden because 
the number of incremental additions to the catalog from year to year is 
likely to be much lower after initial start-up efforts have been 
completed. The total catalog disclosure burden for all industries 
covered by the Rule is 6,800 hours (400 sellers x 17 hours annually).

F. Online Label Posting

    The Rule require manufacturers to post images of their EnergyGuide 
and Lighting Facts labels online. Given approximately 69,676 total 
models (excluding plumbing and fluorescent lamp products, which do not 
have these labels) at an estimated five minutes per model, this 
requirement entails a burden of 5,806 hours.
    Estimated annual cost burden: $24,690,012 in labor costs and 
$3,000,000 in other non-labor costs.
    Labor costs: Staff derived labor costs by applying estimated mean 
hourly cost figures to the burden hours described above. In calculating 
the cost figures, staff assumes that test procedures are conducted by 
engineering technicians at an hourly rate of $32.10, and that 
recordkeeping and reporting, and labeling and marking, generally are 
performed by data entry personnel at an hourly rate of $18.97.\6\
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    \6\ These labor cost estimates are derived from the Bureau of 
Labor Statistics (``BLS'') figures in ``Table 1. National employment 
and wage data from the Occupational Employment and Wage Statistics 
survey by occupation, May 2022,'' available at https://www.bls.gov/news.release/ocwage.t01.htm.

[[Page 84333]]



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                                               Burden hours                                       Total annual
                  Activity                       per year      Wage category/mean hourly rate      labor cost
----------------------------------------------------------------------------------------------------------------
Testing.....................................         693,320  Engineering technicians                $22,255,572
                                                               ($32.10).
Reporting...................................           2,646  Data Entry/Information                      50,195
                                                               Processing ($18.97).
Recordkeeping...............................             807  Data Entry/Information                      15,309
                                                               Processing ($18.97).
Labeling....................................         112,272  Data Entry/Information                   2,129,800
                                                               Processing ($18.97).
Online and Catalog disclosures..............           6,800  Data Entry/Information                     128,996
                                                               Processing ($18.97).
Online Label Posting........................           5,806  Data Entry/Information                     110,140
                                                               Processing ($18.97).
                                             -------------------------------------------------------------------
                                              ..............  ...............................         24,690,012
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    Capital or Other Non-Estimated non-labor cost: $3,000,000.
    Manufacturers must incur the cost of procuring labels used in 
compliance with the Rule. Based on estimates of 100,000,000 units 
shipped annually, at an average cost of three cents for each label, the 
total (rounded) labeling cost is $3,000,000.
Request for Comment
    Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites 
comments on: (1) whether the disclosure and recordkeeping requirements 
are necessary, including whether the information will be practically 
useful; (2) the accuracy of our burden estimates, including whether the 
methodology and assumptions used are valid; (3) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(4) ways to minimize the burden of the collection of information.
    For the FTC to consider a comment, we must receive it on or before 
February 5, 2024. Your comment, including your name and your state, 
will be placed on the public record of this proceeding, including the 
https://www.regulations.gov website.
    You can file a comment online or on paper. Due to heightened 
security screening, postal mail addressed to the Commission will be 
subject to delay. We encourage you to submit your comments online 
through the https://www.regulations.gov website.
    If you file your comment on paper, write ``Energy Labeling Rule, 
PRA Comment, P145403,'' on your comment and on the envelope, and mail 
it to the following address: Federal Trade Commission, Office of the 
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by overnight service.
    Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that 
your comment does not include any sensitive or confidential 
information. In particular, your comment should not include any 
sensitive personal information, such as your or anyone else's Social 
Security number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure that your comment does not include 
any sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 
16 CFR 4.10(a)(2)--including, in particular, competitively sensitive 
information, such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must (1) be filed in paper form, (2) be clearly labeled 
``Confidential,'' and (3) comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted publicly at www.regulations.gov, we cannot redact or remove 
your comment unless you submit a confidentiality request that meets the 
requirements for such treatment under FTC Rule 4.9(c), and the General 
Counsel grants that request.
    The FTC Act and other laws that the Commission administers permit 
the collection of public comments to consider and use in this 
proceeding as appropriate. The Commission will consider all timely and 
responsive public comments that it receives on or before February 5, 
2024. For information on the Commission's privacy policy, including 
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-26602 Filed 12-4-23; 8:45 am]
BILLING CODE 6750-01-P


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