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 Federal Trade Commission 16 CFR Part 305
 AGENCY: Federal Trade Commission.
 ACTION: Final rule.
 SUMMARY: The Federal Trade Commission (“Commission”) revises Table 1 in § 305.9 of the Commission's Appliance Labeling Rule (“Rule”) to incorporate the latest figures for average unit energy costs as published by the Department of Energy (“DOE”) in the 
                        **Federal Register**
                         on March 8, 2001. Table 1 sets forth the representative average unit energy costs for five residential energy sources, which the Commission revises periodically on the basis of undated information provided by DOE. The Commission is also making two minor technical corrections to the Rule.
 DATES: The amendments published in this document are effective May 21, 2001. 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: Hampton Newsome, Attorney, 202-326-2889, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580; E-mail:hnewsome@ftc.gov.


SUPPLEMENTARY INFORMATION: On November 19, 1979, the 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 section 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 section 305.9(b), the Table is to be revised periodically on the basis of updated information provided by DOE. I. Representative Average Unit Energy Costs On March 8, 2001, DOE published the most recent figures for representative average unit energy costs (66 FR 13917). 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 EnergyGuides for refrigerators, refrigerator-freezers, freezers, dishwashers, clothes washers, water heaters, and room air conditioners. The energy cost figures also are for manufacturers of central air conditions and heat pumps to use, also in accordance with the below guidelines, to calculate annual operating cost for required fact sheets and 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 section 305.8 of the Rule is no longer operating cost; it is now energy consumption (kilo Watt-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 respect to the use of DOE's cost figures are as follows: A. 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: 1. Refrigerators, Refrigerator-Freezers, and Freezers Manufacturers of refrigerators, refrigerator-freezers, and freezers covered by Appendices A1, A2, A3, A4, 
                    ( print page 27857)
                    A5, A6, B1, B2, and B3 of 16 CFR part 305 must continue to derive the operating cost disclosures on labels by using the 1998 National Average Representative Unit Costs (8.42 cents per kiloWatt-hour for electricity) 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.[3]
                    
                     Manufacturers of refrigerator-freezers covered by Appendix A7 of 16 CFR Part 305 must continue to derive the operating cost disclosures on labels by using the 2000 National Average Representative Unit Costs (8.03 cents per kiloWatt-hour for electricity) that were published by DOE on February 7, 2000 (65 FR 5860), and by the Commission on April 17, 2000 (65 FR 20352), and that were in effect when the current (2000) ranges of comparability for these products were published.[4]
                    
                     Manufacturers must continue to use the foregoing DOE cost figures until the Commission publishes new ranges of comparability. 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. 2. Room Air Conditioners Manufacturers of 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 kiloWatt-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.[5]
                    
                     Manufacturers of 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 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. 3. Storage-Type Water Heaters Manufacturers of storage-type water heaters must continue to use the 1994 DOE cost figures (8.41 cents per kiloWatt-hour for electricity, 60.4 cents per therm for natural gas, $1.05 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.[6]
                    
                     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 figures for relevant energy types in effect at that time. 4. Heat Pump Water Heaters Manufacturers of heat pump water heaters must continue to derive the operating cost disclosures on labels by using the 2000 National Average Representative Unit Costs for electricity (8.03 cents per kiloWatt-hour) that were published by DOE on February 7, 2000 (65 FR 5860), and by the Commission on April 17, 2000 (65 FR 20352), and that were in effect when the current (2000) ranges of comparability for these products were published.[7]
                    
                     Manufacturers of heat pump water heaters must continue to use the 2000 DOE cost figures to calculate the operating cost disclosure on labels until the Commission publishes new ranges of comparability for heat pump water heaters 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 figures for electricity in effect at that time. 5. Gas-Fired Instantaneous Water Heaters Manufacturers of gas-fired instantaneous water heaters must continue to base the required secondary operating cost disclosures on labels on the 1999 National Average Representative Unit Cost for 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.[8]
                    
                     Manufacturers must continue to use the 1999 DOE cost figures to calculate the operating cost disclosure on labels until the Commission publishes new ranges of comparability for gas-fired instantaneous 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 figures for the relevant energy types in effect at that time. 6. 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 kiloWatt-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.[9]
                    
                     Manufacturers of standard-size dishwashers must continue to use the 1997 DOE cost figures to calculate 
                    ( print page 27858)
                    the operating cost disclosures on labels until the Commission publishes new ranges of comparability for standard-size dishwashers 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 the relevant energy types in effect at that time. 7. Compact-Size Dishwashers and Clothes Washers Manufacturers of compact-size dishwashers and clothes washers must continue to derive the operating cost disclosures on labels by using the 2000 National Average Representative Unit Costs for electricity (8.03 cents per kilo Watt-hour) and natural gas (68.8 cents per therm) that were published by DOE on February 7, 2000 (65 FR 5860), and by the Commission on April 17, 2000 (65 FR 20352), and that were in effect when the current (2000) ranges of comparability for these products were published.[10]
                    
                     Manufacturers of compact dishwashers and clothes washers must continue to use the 2000 DOE cost figures to calculate the operating cost disclosures on labels until the Commission publishes new ranges of comparability for compact-size dishwashers and clothes washers 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 figures for the relevant energy types in effect at that time. B. For Operating Cost Information Relating to Central Air Conditioners and Heat Pumps Disclosed on Fact Sheets and in Industry Directories In the 2001 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 directories must be based on the 2001 DOE cost figure for electricity beginning on the effective date of that notice. C. For Operating Cost Representation 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 2001 DOE energy costs in all operating cost representations beginning August 20, 2001. II. Minor, Technical Corrections to the Rule The Commission is amending two sections of the Rule that contain obsolete references to DOE's appliance testing requirements found in 10 CFR Part 430 (“DOE's Rule”). The current Commission Rule identifies 10 CFR 430.22 as the citation for DOE's test procedures covering a variety of appliances (see 16 CFR 305.5(a)). The correct reference is to section 430.23 of DOE's Rule. Similarly, the current Commission Rule identifies 10 CFR 430.23 as the citation for DOE's sampling procedures (see 16 CFR 305.6(a)). The correct reference is to section 430.24 of DOE's Rule. III. 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 305.5(a) is revised to read as follows: § 305.5
  (a) Procedures for determining the estimated annual energy consumption, the estimated annual operating costs, the energy efficiency ratings and the efficacy factors of covered products are those found in 10 CFR part 430, subpart B, in the following sections: (1) Refrigerators and refrigerator-freezers § 430.23(a). (2) Freezers—§ 430.23(b). (3) Dishwashers—§ 430.23(c). (4) Water heaters—§ 430.23(e). (5) Room air conditioners—§ 430.23(f). (6) Clothes washers—§ 430.23(j). (7) Central air conditioners and heat pumps—§ 430.23(m). (8) Furnaces—§ 430.23(n). (9) Pool Heaters—§ 430.23(p) (10) Fluorescent lamp ballasts—§ 430.23(q).
 3.Section 305.6(a) is revised to read as follows: § 305.6
  (a) For any covered product (except general service flouroscent lamps, medium base compact florescent lamps, and general service incandescent lamps, including incandescent reflector lamps), any representation with respect to or based upon a measure or measures of energy consumption incorporated into § 305.5 shall be based upon the sampling procedures set forth in § 430.24 of 10 CFR part 430, subpart B.
 4.Section 305.9(a) is revised to read as follows: § 305.9
  (a) Table 1, to this paragraph contains the representative unit energy costs to be utilized for all requirements of this part.
                            ( print page 27859) Table 1.—Representative Average Unit Costs of Energy for Five Residential Energy Sources (2001)
Type of energy
In commonly used terms
As required by DOE test procedure
Dollars per million Btu 1Electricity
8.29¢/kWh 2
                                     3
$0.0829/kWh
$24.30Natural Gas
83.7¢/therm 4
                                     or $8.63/MCF 5
                                     6
0.00000837/Btu
8.37No. 2 heating oil
$1.23/gallon 7
0.00000886/Btu
8.86Propane
$1.03/gallon 8
0.00001128/Btu
11.28Kerosene
$1.27/gallon 9
0.00000941/Btu
9.411
                                 Btu stands for British thermal unit.2
                                 kWh stands for kiloWatt hour.3
                                 1 kWh = 3,412 Btu.4
                                 therm = 100,000 Btu. Natural gas prices include taxes.5
                                 MCF stands for 1,000 cubic feet.6
                                 For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,031 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.
 By direction of the Commission. Donald S. Clark, Secretary,


# Footnotes

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. Back to Citation
 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, 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. Back to Citation
 3.
    
                         The current (1998) ranges for refrigerators, refrigerator-freezers, and freezers covered by Appendices, A1, A2, A3, A4, A5, A6, A8, B1, B2, and B3 were published on December 2, 1998 (63 FR 66428). On December 20, 1999 (64 FR 71019) and October 23, 2000 (65 FR 63201), the Commission announced that the 1998 ranges for these products would continue to remain in effect. Back to Citation
 4.
    
                         The current (2000) ranges for refrigerator-freezers covered by Appendix A7 were published on October 23, 2000 (65 FR 63201). Back to Citation
 5.
    
                         The current (1995) ranges for room air conditioners were published on November 13, 1995 (60 FR 56945). On September 16, 1996 (61 FR 48620), August 25, 1997 (62 FR 44890), August 28, 1998 (63 FR 45941), December 20, 1999 (64 FR 71019), and September 1, 2000 (65 FR 53163), the Commission announced that the 1995 ranges for room air conditioners would continue to remain in effect. Back to Citation
 6.
    
                         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), September 16, 1996 (61 FR 48620), August 25, 1997 (62 FR 44890), August 28, 1998 (63 FR 45941), December 20, 1999 (64 FR 71019), and September 1, 2000 (65 FR 53163), the Commission announced that the 1994 ranges for storage-type waters heaters would continue to remain in effect. Back to Citation
 7.
    
                         The current (2000) ranges of comparability for heat pump water heaters were published on September 1, 2000 (65 FR 53163). Back to Citation
 8.
    
                         The current ranges for gas-fired instantaneous water heaters were published on December 20, 1999 (64 FR 71019). On September 1, 2000 (65 FR 53165), the Commission announced that the 1999 ranges for gas-fired instantaneous water heaters would continue to remain in effect. Back to Citation
 9.
    
                         The current ranges for standard-size dishwashers were published on August 25, 1997 (62 FR 44890). On August 28, 1998 (63 FR 45941), December 20, 1999 (64 FR 71019), and September 1, 2000 (65 FR 53165), the Commission announced that the 1997 ranges for standard-size dishwashers would continue to remain in effect. Back to Citation
 10.
    
                         The current (2000) ranges of comparability for clothes washers were published on May 11, 2000 (65 FR 30351). on April 16, 2001 (66 FR 19389), the Commission announced that the 2000 ranges for clothes washers would continue to remain in effect. The current (2000) ranges of comparability for compact-size dishwashers were published on September 1, 2000 (65 FR 53165). Back to Citation


[FR Doc. 01-12676 Filed 5-18-01; 8:45 am] BILLING CODE 6750-01-M