[Federal Register Volume 65, Number 74 (Monday, April 17, 2000)]
[Rules and Regulations]
[Pages 20352-20354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9527]


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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 figures for average unit energy 
costs as published by the Department of Energy (``DOE'') in the Federal 
Register on February 7, 2000. Table I sets for 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: The revisions to Sec. 305.9(a) are effective April 17, 2000. 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, DC 
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 Sec. 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 Sec. 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 February 7, 2000, DOE published the most recent figures for 
representative average unit energy costs (65 FR 5860). These energy 
cost figures are for manufacturers to use, in accordance with the 
guidelines that appear below, to calculate the required secondary 
annual operating cost figures at the bottom of required Energy Guides 
for refrigerators, refrigerator-freezers, freezers, dishwashers, 
clothes washers, water heaters, and room air conditioners. The energy 
cost figures also are for manufacturers of furnaces, boilers, central 
air conditioners, and heat pumps to use, also in accordance with the 
below guidelines, to calculate annual operating cost for required fact 
sheets. And, the cost figures are for use, in accordance with the 
guidelines, in approved industry directories listing these products.
    The DOE cost figures are not necessary for making data submissions 
to the Commission. The required energy use information that 
manufacturers of refrigerators, refrigerator-freezers, freezers, 
clothes washers, dishwashers, and water heaters must submit under 
Sec. 305.8 of the Rule is no longer operating cost; it is now energy 
consumption (kiloWatt-hour use per year for electricity, therms per 
year for natural gas, or gallons per year for propane and oil).
    Accordingly, Table 1 is revised to reflect these latest cost 
figures, as set forth below. The current and future obligations of 
manufacturers with

[[Page 20353]]

respect to the use of DOE's cost figures are as follows:

For Labeling of Refrigerators, Refrigerator-Freezers, Freezers, 
Clothes Washers, Dishwashers, Water Heaters, and Room Air 
Conditioners \2\

    Manufacturers of refrigerators, refrigerator-freezers, freezers, 
clothes washers, dishwashers, water heaters, and room air conditioners 
must use the National Average Representative Unit Costs published today 
on labels for their products only after the Commission publishes new 
ranges of comparability for those products that are based on today's 
cost figures. In the meantime, they must continue to use past DOE cost 
figures as follows:
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    \2\ 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 
operating 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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Storage-Type Water Heaters

    Manufacturers of storage-type water heaters must continue to use 
the 1994 DOE cost figures (8.41 cents per kilo Watt-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.\3\ 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. 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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    \3\ 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), on August 25, 1997 (62 FR 44890), again on August 28, 
1998 (63 FR 45941), and again on December 20, 1999 (64 FR 71019), 
the Commission announced that the 1994 ranges for storage-type water 
heaters would continue to remain in effect.
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Heat Pump Water Heaters and Room Air Conditions

    Manufacturers of 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 for 
electricity (8.67 cents per kilo Watt-hour) that were published by DOE 
on January 5, 1995 (60 FR 1773), and by the Commission on February 17, 
1995 (60 FR 9296), and that were in effect when the current (1995) 
ranges of comparability for these products were published.\4\ 
Manufacturers of 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 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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    \4\ 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 room air conditioners were published on 
November 13, 1995 (60 FR 56945). On September 16, 1996 (61 FR 
48620), again on August 25, 1997 (62 FR 44890), again on August 28, 
1998 (63 FR 45941), and again on December 20, 1999 (64 FR 71019), 
the Commission announced that the 1995 ranges for heat pump water 
heaters and room air conditioners would continue to remain in 
effect.
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Standard-Size Dishwashers

    Manufacturers of standard-size 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 kilo Watt-hour) and natural gas (61.2 cents per therm) that were 
published by DOE on November 18, 1996 (61 FR 58679), and by the 
Commission on February 5, 1997 (62 FR 5316), and that were in effect 
when the 1997 ranges of comparability for these products were 
published.\5\ 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 current ranges for standard-size dishwashers were 
published on August 25, 1997 (62 FR 44890). On August 28, 1998 (63 
FR 45941), and again on December 20, 1999 (64 FR 71019), the 
Commission announced that the 1997 ranges for standard-size 
dishwashers would continue to remain in effect.
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Compact-Size Dishwashers, Clothes Washers, and Gas-Fired 
Instantaneous Water Heaters

    Manufacturers of compact-size dishwashers, clothes washers, and 
gas-fired instantaneous water heaters must continue to base the 
required secondary operating cost disclosures on labels on the 1999 
National Average Representative Unit Costs for electricity (8.22 cents 
per kilo Watt-hour), natural gas (68.8 cents per therm), and propane 
(77 cents per therm) that were published by DOE on January 5, 1999 (64 
FR 487), and by the Commission on February 17, 1999 (64 FR 7783), and 
that were in effect when the 1999 ranges of comparability for these 
products were published.\6\ 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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    \6\ The current ranges of comparability for clothes washers were 
published on June 17, 1999 (64 FR 32403). The current ranges for 
compact-size dishwashers and gas-fired instantaneous water heaters 
were published on December 20, 1999 (64 FR 71019).
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Refrigerators, Refrigerator-Freezers, and Freezers

    Manufacturers of refrigerators, refrigerator-freezers, and freezers 
must continue to derive the operating cost disclosures on labels by 
using the 1998 National Average Representative Unit Costs (8.42 cents 
per kilo Watt-hour for electricity, 61.9 cents per therm for natural 
gas, 95 cents per gallon for No. 2 heating oil, and 95 cents per gallon 
for propane) that were published by DOE on December 8, 1997 (62 FR 
64574), and by the Commission on December 29, 1997 (62 FR 67560), and 
that were in effect when the current (1998) ranges of comparability for 
these products were published.\7\ 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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    \7\ The current (1998) ranges for refrigerators, refrigerator-
freezers, and freezers were published on December 2, 1998 (63 FR 
66428).
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For Operating Cost Information Relating to Central Air Conditioners 
and Heat Pumps Disclosed on Fact Sheets and in Industry Directories

    In the 2000 notice announcing whether there will be new ranges of 
comparability for central air conditioners and heat pumps, the 
Commission also will announce that operating cost disclosures for these 
products on fact sheets and in industry

[[Page 20354]]

directories must be based on the 2000 DOE cost figure for electricity 
beginning on the effective date of that notice.

For Operating Cost Representations Respecting Covered Products in 
Catalogs

    Operating cost representations in catalogs that are drafted and 
printed while the 2000 cost figures are in effect must be derived using 
the 2000 energy costs beginning July 17, 2000.

For Operating 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 2000 DOE energy costs in all operating cost representations 
beginning July 17, 2000.

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 to this paragraph 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 (2000)
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                                                                        As required by DOE test     Dollars per
             Type of energy                 In commonly used terms             procedure            million Btu
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Electricity.............................  8.03/ cents/kWh <SUP>2,3</SUP>.......  $0.0803/kWh...............          $23.53
Natural Gas.............................  68.8 cents/therm \4\ or     $0.00000688/Btu...........            6.88
                                           $7.07/MCF <SUP>5,6</SUP>.
No. 2 heating oil.......................  $1.09/gallon \7\..........  $0.00000786/Btu...........            7.86
Propane.................................  $.92/gallon \8\...........  $0.00001007/Btu...........           10.07
Kerosene................................  $1.14/gallon \9\..........  $0.00000844/Btu...........           8.44
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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.
\6\ For the purposes of this table, I 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. 00-9527 Filed 4-14-00; 8:45 am]
BILLING CODE 6750-01-M