Rule Concerning Disclosures of Energy Consumption and Water Use Information About Certain Home Appliances and Other Products Required Under the Energy Policy and Conservation Act

FEDERAL TRADE COMMISSION

16 CFR Part 305

Rule Concerning Disclosures of Energy Consumption and Water Use

Information About Certain Home Appliances and Other Products Required

Under the Energy Policy and Conservation Act

AGENCY: Federal Trade Commission.

ACTION: Final rule revision.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission's Energy and Water Use Rule

requires that Table 1, in Sec. 305.9, which sets forth the

representative average unit energy costs for five residential energy

sources, be revised periodically on the basis of updated information

provided by the Department of Energy (``DOE'').

This document revises the table to incorporate the latest figures

for average unit energy costs as published by DOE in the Federal

Register on December 29, 1993.\1\

\1\58 FR 68901.

---------------------------------------------------------------------------

DATES: The revisions to Sec. 305.9(a) and Table 1 are effective

February 8, 1994. The mandatory dates for using these revised DOE cost

figures 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, then called the Appliance Labeling Rule

(44 FR 66466), in response to a directive in section 324 of the Energy

Policy and Conservation Act (``EPCA''), 42 U.S.C. 6201.\2\ The rule

requires the disclosure of energy efficiency or cost information on

labels and in retail sales catalogs for eight categories of appliances,

and mandates that these energy costs or energy 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 requirements of the rule.

As stated in Sec. 305.9(b), the Table is intended to be revised

periodically on the basis of updated information provided by DOE.

---------------------------------------------------------------------------

\2\Since its promulgation, the rule has been amended three times

to include new product categories--central air conditioners (52 FR

46888, Dec. 10, 1987), fluorescent lamp ballasts (54 FR 1182, Jan.

12, 1989), and certain plumbing products (58 FR 54955, Oct. 25,

1993). In accordance with a directive in the Energy Policy Act of

1992, Pub. L. 102-486 (October 24, 1992), the Commission imitated a

proceeding to amend the rule to include certain lamp products (58 FR

60147, Nov. 15, 1993).

---------------------------------------------------------------------------

On December 29, 1993, DOE published the most recent figures for

representative average unit energy costs. Accordingly, Table 1 is

revised to reflect these latest cost figures as set forth below.

The dates when use of the figures in revised Table 1 becomes

mandatory in calculating cost disclosures for use in reporting,

labeling and advertising products covered by the Commission's rule and/

or EPCA are as follows:

For 1994 Submissions of Data Under Sec. 305.8 of the Commission's

Rule

The new cost figures must be used in all 1994 cost submissions. For

convenience, the annual dates for data submission are repeated here:

Fluorescent lamp ballasts: March 1

Clothes washers: March 1

Water heaters: May 1

Furnaces: May 1

Room air conditioners: May 1

Dishwashers: June 1

Central air conditioners: July 1

Heat pumps: July 1

Refrigerators: August 1

Refrigerator-freezers: August 1

Freezers: August 1

For Labeling and Advertising of Products Covered by the Commission's

Rule

Using 1994 submissions of estimated annual costs of operation based

on the 1994 DOE cost figures, the staff will determine whether to

publish new ranges. Any products for which new ranges are published

must be labeled with estimated annual cost figures calculated using the

1994 DOE cost figures. If such new ranges are published, the effective

date for labeling new products will be ninety days after publication of

the ranges in the Federal Register. Products that have been labeled

prior to the effective date of any range modification need not be

relabeled. Advertising for such products will also have to be based on

the new costs and ranges beginning ninety days after publication of the

new ranges in the Federal Register.

Energy Usage Representations Respecting Products Covered by EPCA but

not by the Commission's Rule Manufacturers of products covered by

section 323(c) of EPCA, but not by the Energy and Water Use Rule

(clothes dryers, television sets, kitchen ranges and ovens, humidifiers

and dehumidifiers, pool heaters and space heaters) must use the 1994

representative average unit costs for energy in all representations

beginning May 9, 1994.

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 as

follows:

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, below, 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 (1994)

------------------------------------------------------------------------

Dollars per

Type of energy In common terms As required by DOE million

test procedure Btu\1\

------------------------------------------------------------------------

Electricity........ 8.41 cents/kWh\2\, $0.0841/kWh....... $24.65

\3\.

Natural Gas........ 60.4 cents/therm\4 $0.00000604/Btu... $6.04

\ or.

$6.22/MCF\5\,\6\..

No. 2 heating oil.. $1.054/gallon\7\.. $0.00000760/Btu... $7.60

Propane............ $0.983/gallon\8\.. $0.00001076/Btu... $10.76

Kerosene........... $1.133/gallon\9\.. $0.00000839/Btu... $8.39

------------------------------------------------------------------------

\1\Btu stands for British thermal unit.

\2\kWh stands for kilowatt hour.

\3\1kWh=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, 1 cubic foot of natural gas has an

energy equivalence of 1,030 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. 94-2823 Filed 2-7-94; 8:45 am]

BILLING CODE 6750-01-M