Appliance Labeling Rule

FEDERAL TRADE COMMISSION

16 CFR Part 305

Appliance Labeling Rule

AGENCY: Federal Trade Commission.

ACTION: Final rule revision.

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SUMMARY: The Federal Trade Commission's Appliance Labeling 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 January 5, 1995.\1\

\1\60 FR 1773.

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

February 17, 1995. 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.\2\ 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 intended to be revised periodically on the basis of updated

information provided by DOE.

\2\44 FR 66466. Since its promulgation, the rule has been

amended four 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), and certain lamp products (59 FR 25176, May 13,

1994). Obligations under the rule concerning fluorescent lamp

ballasts, lighting products, and plumbing products are not affected

by the cost figures in this notice.

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On January 5, 1995, 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 labeling and

catalog sales of products covered by the Commission's rule and/or EPCA

are as follows:

For 1995 Submissions of Data Under Section 305.8 of the

Commission's Rule

Manufacturers no longer need to use the DOE cost figures in

complying with the data submission requirements of section 305.8 of the

rule. Pursuant to recent amendments to the rule, which were published

on July 1, 1994\3\ (with extended compliance dates published on

December 8, 1994),\4\ the estimated annual operating cost is no longer

the primary energy usage descriptor for refrigerators, refrigerator-

freezers, freezers, clothes washers, dishwashers, and water heaters.

Under the amendments, the energy usage and the ranges of comparability

for those product categories must be expressed in terms of estimated

annual energy consumption (kilowatt-hour use per year for electricity,

therms per year for natural gas, or gallons per year for propane and

oil). Thus, the 1995 (and all subsequent) data submissions under

section 305.8 for these product categories (which are to enable the

Commission to publish ranges of comparability) must be made in terms of

estimated annual energy consumption, for the determination of which the

DOE cost figures are unnecessary. The 1995 (and all subsequent)

submissions also must be made in terms of the new product sub-

categories created by the above-mentioned amendments. The energy

efficiency energy usage descriptors for the other products covered by

the rule (room air conditioners, furnaces, boilers, central air

conditioners, heat pumps, and pool heaters) are unaffected by the

amendments mentioned above. The annual data submission requirements for

those products, which are not based on the DOE cost figures, will

continue to be in terms of energy efficiency (although submissions for

room air conditioners, furnaces, and boilers must be made in terms of

the new product sub-categories created by the amendments). For

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

\3\59 FR 34014.

\4\59 FR 63688.

Fluorescent lamp ballasts................................... Mar. 1.

Clothes washers............................................. Mar. 1.

Water heaters............................................... May 1.

Furnances................................................... May 1.

Room air conditioners....................................... May 1.

Pool Heaters................................................ May 1.

Dishwashers................................................. June 1.

Central air conditioners.................................... July 1.

Heat pumps.................................................. July 1.

Refrigerators............................................... Aug. 1.

Refrigerator-freezers....................................... Aug. 1.

Freezers.................................................... Aug. 1.

For Labeling and Catalog Sales of Products Covered by the Commission's

Rule

The July 1, 1994, amendments will 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). These secondary [[Page 9296]] estimated annual operating

cost disclosures must be based on the 1995 DOE cost figures published

in this notice. The labels must also disclose, under the secondary

estimated annual operating cost disclosure, the fact that the estimated

annual operating cost is based on the appropriate 1995 DOE energy cost

figure. Manufacturers of the above-mentioned products must make these

disclosures on the labels required by the amendments and in catalogs

beginning ninety days after the Commission publishes new energy

consumption ranges of comparability based on the 1995 submissions

required by Sec. 305.8. They must continue to use the 1995 DOE cost

figures in the manner just described until the Commission publishes new

ranges of comparability based on future annual submissions of estimated

annual energy consumption data. At that time, these manufacturers must

use the then-current DOE energy cost figures when they prepare new

labels in response to the new energy consumption ranges of

comparability. When 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. As in the past, products that have been

properly labeled prior to the effective date of any range modification

need not be relabeled.

For Energy Cost 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 Appliance Labeling Rule (clothes dryers, television sets,

kitchen ranges and ovens, and space heaters) must use the 1995

representative average unit costs for energy in all operating cost

representations beginning May 18, 1995.

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 (1995)

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Dollars per

Type of energy In common terms As required by DOE test million

procedure Btu\1\

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Electricity............................ 8.67 cents/kWh23............ $0.0867/kWh................. $25.41

Natural Gas............................ 63.0 cents/therm4 or $6.49/ 0.00000630/Btu.............. 6.30

MCF56.

No. 2 heating oil...................... 1.008/gallon7............... 0.00000727/Btu.............. 7.27

Propane................................ 0.985/gallon8............... 0.00001079/Btu.............. 10.79

Kerosene............................... 1.094/gallon9............... 0.00000810/Btu.............. 8.10

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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, 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 equivalance 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. 95-4010 Filed 2-16-95; 8:45 am]

BILLING CODE 6750-01-M