[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Proposed Rules]
[Pages 17492-17494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8471]



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FEDERAL TRADE COMMISSION
16 CFR Part 460


Trade Regulation Rule; Labeling and Advertising of Home 
Insulation

AGENCY: Federal Trade Commission.

ACTION: Proposed rule and request for public comments.

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SUMMARY: The Federal Trade Commission (the ``Commission'') is 
requesting public comments about the overall costs and benefits and the 
continuing need for its Trade Regulation Rule Concerning the Labeling 
and Advertising of Home Insulation (the ``R-value Rule'' or ``Rule''), 
16 CFR part 460, as well as whether the Rule, if retained, should be 
amended to include new test procedures or specific requirements for new 
products, as a part of its systematic review of all current Commission 
regulations and guides. In addition, the Commission seeks comments on 
whether to adopt a non-substantive amendment to the Rule that would 
permit the use of an additional test procedure to determine the R-
values of home insulation products. All interested persons are hereby 
given notice of the opportunity to submit written data, views and 
arguments concerning the Commission's review of the R-value Rule and 
the proposed non-substantive amendment.

DATES: Written comments will be accepted until June 6, 1995.

ADDRESSES: Comments should be directed to: Secretary, Federal Trade 
Commission, Room H-159, Sixth Street and Pennsylvania Avenue NW., 
Washington, DC 20580. Comments about the R-value Rule should be 
identified as ``R-value Rule, 16 CFR part 460--Comment.''

FOR FURTHER INFORMATION CONTACT:
Kent C. Howerton, Attorney, Federal Trade Commission, Room S-4631, 
Sixth Street and Pennsylvania Avenue NW., Washington, DC 20580, 
telephone (202) 326-3013, FAX (202) 326-3259.

SUPPLEMENTARY INFORMATION: 

I. Introduction

    The Commission requests public comments about the overall costs and 
benefits of the R-value Rule, and its overall regulatory and economic 
impact, as well as whether the Rule should be updated to included new 
test procedures or specific requirements for [[Page 17493]] new 
products, as a part of it systematic review of all current Commission 
regulations and guides. In addition, the Commission proposes adopting a 
non-substantive amendment to the Rule that would allow use of an 
additional test procedure to determine the R-value of home insulation 
products. The Commission also solicits comments concerning the proposed 
non-substantive amendment.

II. Background

    The Commission promulgated the R-value Rule under Section 18 of the 
FTC Act in 1979. The Rule became effective on September 30, 1980. Among 
other things, the Rule requires that manufacturers disclosed the R-
value (``thermal performance'') of each one insulation product, based 
on tests conducted according to one of four specified American Society 
of Testing and Materials (``ASTM'') test procedures.\1\ When the 
Commission promulgated the Rule, it determined that ASTM R-value test 
procedures C-177, C-236, and C-518 were highly accurate and 
reproducible steady-state methods for determining the R-values of home 
insulation products. 44 FR 50218, at 50226 note 189. In the original 
Rule, the Commission stated that it also would accept the use of C-976 
once it was adopted as an ASTM test procedure. ASTM adopted C-976 in 
1982. The Rule, therefore, now officially recognizes tests using any of 
these four test procedures.

    \1\The test procedures are ASTM C-177 and ASTM C-518 (which use 
hot and cold ``plates'' to determine R-values for homogeneous 
``mass'' insulation products, like fiberglass batts and loose-fill 
cellulose), and ASTM C-236 and ASTM C-976 (which use ``hot boxes'' 
to determine R-values for heterogeneous insulation systems, like 
multi-panel aluminum foil products and insulation systems).
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    The Commission conducted a review of the rule under the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., in 1984. During the review, the 
Commission solicited comments on whether the Rule had had a significant 
economic impact (costs and benefits) on a substantial number of small 
businesses, whether there was a continuing need for the Rule, and what 
changes, if any, should be made to the Rule to minimize the economic 
effect on small entities. 49 FR 22104 (1984). Based upon the comments 
submitted, the Commission determined that it had no basis to conclude 
that the R-value Rule had a significant economic impact upon a 
substantial number of small entities. The Commission determined not to 
amend the Rule following the Regulatory Flexibility Act review. 50 FR 
13246, at 13247 (1985).
    Since the Rule was promulgated, the Commission has brought 12 
actions to enforce its provisions.\2\ The Commission also has granted 
three partial or conditional exemptions relating to specific 
provisions, issued one Advisory Opinion allowing use of an alternative 
testing procedure, and adopted three non-substantive amendments (one 
that allowed manufactures to add to their insulation fact sheets 
specific information required by other government agencies; a second, 
in response to an industry request, that adopted a revised settled 
density test procedure for loose-fill cellulose insulation; and a third 
that adopted revised versions of the ASTM R-value test procedures).

    \2\The Commission has brought seven civil penalty actions 
against manufacturers, one against a testing laboratory, and three 
against retailers. It also has brought one consumer redress action 
against a professional installer.
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III. Regulatory Review Program

    The Commission has determined, as part of its oversight 
responsibilities, to review all current Commission rules and guides 
periodically. These reviews seek information about the costs and 
benefits of the Commission's rules and guides and their regulatory and 
economic impact. The information obtained will assist the Commission in 
identifying rules and guides that warrant modification or recision.
    At this time, therefore, the Commission solicits comments on, among 
other things, the economic impact of and the continuing need for the R-
value Rule, possible conflict between the Rule and state, local or 
other federal laws, and the effect on the Rule of any technological, 
economic, or other industry changes. No Commission determination on the 
need for or the substance of the Rule should be inferred from this 
request for comments.

IV. Non-Substantive Amendment

    The Commission has received a petition from Mr. Ronald S. Graves, 
Research Staff Member, Materials Analysis Group, at Martin Marietta 
Energy Systems, Inc. (``Petition'').\3\ The petition requests that the 
Commission include an additional (fifth) ASTM R-value test procedure 
(`` ASTM Standard Test Method for Steady-State Thermal Transmission 
Properties by Means of the Thin-Heater Apparatus,'' ASTM C-1114-92), as 
an approved test method for compliance with Section 460.5(a) of the R-
value Rule.\4\ The test method is under the jurisdiction of ASTM 
Committee C-16 on Thermal Measurements (which is the Committee 
responsible for the other R-value test procedures required by the R-
value Rule), and is the direct responsibility of Subcommittee C16.30 on 
Thermal Measurements. Mr. Graves is the Chairman of the Thin Heater 
Task Group within C16.30 that meets semiannually to maintain and keep 
C-1114 current.

    \3\Martin Marietta Energy Systems, Inc., operates Oak Ridge 
National Laboratory (``ORNL'') as a contractor for the U.S. 
Department of Energy.
    \4\The Petition, plus attachments, have been placed on the 
public record of the R-value Rule and can be inspected at the 
Commission's Public Reference Room, room 130, Sixth and Pennsylvania 
Ave., NW, Washington, DC.
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    According to the Petition, tests conducted in 1983 and 1990 on two 
standard reference materials (``SRMs'') obtained from the National 
Institute of Standards and Technology show apparent thermal 
conductivity values for the SRMs to be within the most probable 
uncertainty of <plus-minus>1.2 percent between 25  deg.C (77  deg.F) 
and 50  deg.C (132  deg.F). The Petition states that results with 
single-sided heat flow up or down and double-sided heat flow agreed to 
<plus-minus>0.2 percent. It asserts that these test results at ORNL\5\ 
demonstrate that ASTM C-1114-92 is an appropriate test procedure for 
obtaining accurate apparent thermal conductivity values on insulation 
products.

    \5\The testing apparatus used at ORNL is referred to as the 
Unguarded Thin Heater Apparatus (``UTHA'').
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    The accuracy of the ASTM C-1114-92 test procedure, therefore, 
appears to rate favorably compared to the accuracy of the other ASTM R-
value test procedures the Commission has adopted under the R-value 
Rule. Evidence in the original rulemaking proceeding demonstrated that, 
if properly performed: (1) Measurements under C-177 could achieve 
results within <plus-minus>2 percent of the specimen's actual thermal 
value, and a precision of one percent or better is normally attained; 
(2) measurements under C-518 should come within at least <plus-minus>5 
percent of absolute accuracy, with a reproducibility rate of 
<plus-minus>2 percent; and (3) measurements under C-236 can measure 
thermal resistance values within <plus-minus>2 percent of absolute 
accuracy. See 44 FR 50218, at 50226 note 189.
    Thus, the Commission is considering adopting a non-substantive 
amendment to Sec. 460.5 of the Rule, 16 CFR 460.5(a), to include ASTM 
C-1114-92 as an optional, but not required, test procedure for 
determining the R-values of home insulation products. Because the 
amendment would not impose any new obligations upon parties covered by 
the Rule (but merely would recognize the use of an additional, 
optional, R-value test procedure), and because the apparent accuracy of 
the test procedure [[Page 17494]] compares favorably to the test 
procedures already required by the Rule (so the amendment likely would 
not lessen consumer protection),\6\ the proposed amendment appears to 
be non-substantive under Section 18(d)(2)(B) of the FTC Act, 15 U.S.C. 
57a(d)(2)(B). Because the amendment appears to be non-substantive, the 
Commission believes that it does not need to solicit public comment or 
follow the lengthy rulemaking proceedings that would be required for a 
substantive amendment to the rule. On the other hand, because the 
Commission is soliciting comments as part of its regulatory review of 
the Rule, the Commission has determined in its discretion to solicit 
comments on the proposed amendment.

    \6\The test procedure already is recognized by the industry as 
an accurate and appropriate test procedure, having been adopted as 
an official ASTM procedure after going through ASTM's consensus 
approval process.
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IV. Solicitation of Comments

A. Regulatory Review

    As part of its on-going regulatory review program for all its rules 
and guides, the Commission solicits public comments on the following 
questions:

(1) Is there a continuing need for the R-value Rule?
    (a) What benefits has the Rule provided to purchasers of the 
products or services affected by the Rule?
    (b) Has the Rule imposed costs on purchasers?
(2) What changes, if any, should be made to the Rule to increase the 
benefits of the Rule to purchasers?
    (a) How would these changes affect the costs the Rule imposes on 
firms subject to its requirements?
(3) What significant burdens or costs, including costs of compliance, 
has the Rule imposed on firms subject to its requirements?
    (a) Has the Rule provided benefits to such firms?
(4) What changes, if any, should be made to the Rule to reduce the 
burdens or costs imposed on firms subject to its requirements?
    (a) How would these changes affect the benefits provided by the 
Rule?
(5) Does the Rule overlap or conflict with other federal, state, or 
local laws or regulations?
(6) Since the Rule was issued, what effects, if any, have changes in 
relevant technology or economic conditions had on the Rule?

    In addition to the questions raised above, the Commission solicits 
comments on the following issues. First, should the Rule be revised to 
require the use of different test procedures or specifications than 
those currently specified for certain types of products? In addition to 
specifying R-value test procedures, the Rule currently specifies 
procedures that must be followed in preparing specimens of certain 
types and forms of home insulation for testing under the R-value test 
procedures.\7\ The Rule also contains specific requirements for 
determining the R-values of reflective home insulation products (which 
perform as thermal insulation only when installed as a system with one 
or more air spaces).\8\ The Commission thus solicits comments 
concerning whether the Rule should be amended to specify different or 
additional test procedures or specifications for insulation products 
specifically addressed in the Rule.

    \7\For loose-fill cellulose insulation, the R-value tests must 
be conducted on test specimens prepared at the product's long-term, 
or settled, density, determined according to paragraph 8 of ASTM C-
739-88 (``Standard Specification for Cellulosic Fiber (Wood-Base) 
Loose-Fill Thermal Insulation,'' approved Oct. 25, 1988, published 
April 1989). For loose-fill mineral wool insulation, the R-value 
tests must be conducted on test specimens that fully reflect the 
effect of settling on the product's R-value. For polyurethane, 
polyisocyanurate, and extruded polystyrene insulation, the R-value 
tests must be conducted on test specimens that fully reflect the 
effect of aging on the product's R-value, for example, specimens 
aged according to the procedure in paragraph 4.6.4 of General 
Services Administration (GSA) Specification HH-I-530A, or another 
reliable procedure.
    \8\For single sheet reflective foil home insulations, the Rule 
allows manufacturers to determine R-value according to two options: 
By conducting R-value tests according to ASTM C-236-87 or ASTM C-
976-82; or by measuring the emissivity (reflectivity) of the product 
according to ASTM E-408 (or another test method that provides 
comparable results), and then determining the R-value for the 
measured emissivity level, and the air space and direction of heat 
flow for the intended application, using the tables in the most 
recent edition of the American Society of Heating, Refrigerating, 
and Air-Conditioning Engineers' (ASHRAE) handbook (using the R-value 
shown for 50  deg.F, with a temperature differential of 30  deg.F).
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    Second, are the insulation products for which the Rule does not 
sufficiently address product-specific issues relating to testing or 
preparation of test specimens? As noted, in some instances the Rule 
provides particular procedures to be followed in preparing specimens 
for R-value testing where the Commission found there was post-
installation effects (e.g., settling of loose-fill insulation products, 
aging of certain cellular plastics insulation products) that need to be 
considered. During the period since the Commission promulgated the 
Rule, additional home insulation products designed to slow down heat 
flow have been developed and automatically have been covered by the 
Rule. However, because these products did not exist when the Rule was 
issued, the Rule currently contains no specific test specimen 
preparation provisions for these new products. The Commission, 
therefore, solicits comments on whether the Rule should be revised to 
specify the manner in which specimens of new products should be 
prepared for R-value testing to ensure that R-values and related 
information are accurate and based on uniform standards.

B. Non-Substantive Amendment

    The Commission solicits comments concerning the Petition and the 
Commission's proposal to adopt a non-substantive amendment to the Rule 
that would recognize ASTM C-1114-92 as an acceptable test method for 
determining the R-value of home insulation products under Section 460.5 
of the R-value Rule, 16 CFR 460.5. Interested parties are invited to 
submit any data or other information relevant to whether the Commission 
should adopt the proposed amendment.

List of Subjects in 16 CFR Part 460

    Advertising, Incorporation by reference, Insulation, Labeling, 
Trade practices.

    Authority: 15 U.S.C. 41 et seq.

    By the direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-8471 Filed 4-5-95; 8:45 am]
BILLING CODE 6750-01-M