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'')

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's Appliance Labeling Rule (``the

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 November 18, 1996.\1\

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\1\ 61 FR 58679.

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

7, 1997. 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 to be revised periodically on the basis of updated information

provided by DOE.

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\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 November 18, 1996, 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.

How and when industry members must use (and not use) revised Table

1 in calculating cost disclosures for labeling and catalog sales is

explained in detail in the paragraphs below. In sum:

Manufacturers of refrigerators, refrigerator-freezers,

freezers, clothes washers, dishwashers, water heaters, and room air

conditioners are not permitted to use the DOE Cost figures published

today to calculate the secondary operating cost figures on labels for

their products until the Commission publishes new ranges of

comparability for those products.

Manufacturers of refrigerators, refrigerator-freezers,

freezers, clothes washers, dishwashers, and water heaters have no need

for the DOE cost figures for making data submissions under 305.8. The

energy use information they must submit and use as primary energy use

descriptors on labels for these products is now in terms of energy

consumption, not operating cost.

Industry members must use the 1997 DOE cost figures

published today to calculate operating cost representations in catalogs

that are drafted and printed after May 6, 1997.

Beginning May 6, 1997, manufacturers of clothes dryers,

television sets, kitchen ranges and ovens, and space heaters must use

the 1997 representative average unit costs for energy in all operating

cost representations.

For Labeling of Products Covered by the Commission's Rule \3\

Manufacturers of covered products are not permitted to use the

National Average Representative Unit Costs published today on labels

for their products until the Commission

[[Page 5317]]

publishes new ranges of comparability for those products.

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\3\ The July 1, 1994, amendments 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 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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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, $1.054 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.\4\ 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.

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\4\ 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), and again on September

16, 1996 (61 FR 48620), the Commission announced that the 1994

ranges for storage-type water heaters would continue to remain in

effect.

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Manufacturers of refrigerators, refrigerator-freezers, freezers,

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 (8.67 cents per kilowatt-

hour for electricity, 63 cents per therm for natural gas, $1.008 per

gallon for No. 2 heating oil, and 98.5 cents per gallon for propane)

that were in effect when the current (1995) ranges of comparability for

these products were published.\5\ Manufacturers of refrigerators,

refrigerator-freezers, freezers, 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, room air conditioners, or refrigerators, refrigerator-

freezers, and freezers 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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\5\ The 1995 DOE cost figures were published by DOE on January

5, 1995 (60 FR 1773), and by the Commission on February 17, 1995 (60

FR 9296). 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 refrigerators, refrigerator-freezers,

freezers, and room air conditioners were published on November 13,

1995 (60 FR 56945). On September 16, 1996 (61 FR 48620), the

Commission announced that the 1995 ranges for heat pump water

heaters and room air conditioners would continue to remain in

effect. On October 28, 1996 (61 FR 55563), the Commission announced

that the 1995 ranges for refrigerators, refrigerator-freezers, and

freezers would continue to remain in effect.

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Manufacturers of clothes washers, dishwashers, and instantaneous

water heaters must continue to base the required secondary operating

cost disclosures on labels on the 1996 National Average Representative

Unit Costs for electricity (8.6 cents per kilowatt-hour), natural gas

(62.6 cents per therm), propane (90 cents per gallon), and/or heating

oil (92 cents per gallon) that were published by DOE on January 19,

1996,\6\ and by the Commission on February 14, 1996,\7\ and that were

in effect when the 1996 ranges of comparability for these products were

published.\8\

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\6\ 61 FR 1366.

\7\ 61 FR 5679.

\8\ The current ranges for clothes washers were published on

June 13, 1996 (61 FR 29939); the current ranges for dishwashers and

instantaneous water heaters were published on September 16, 1996 (61

FR 48620).

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For 1997 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 Sec. 305.8 of the

Rule. Pursuant to amendments to the Rule published on July 1, 1994 \9\

(with extended compliance dates published on December 8, 1994),\10\ 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 1997 (and all subsequent) data submissions under 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, not cost. The energy efficiency 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.

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\9\ 59 FR 34014.

\10\ 59 FR 63688.

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For convenience, the annual dates for data submission are repeated

here:

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

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

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

Furnaces................................... 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 Energy Cost Representations Respecting Covered Products in Catalogs

Energy cost representations in catalogs that are drafted and

printed while the 1997 cost figures are in effect must be derived using

the 1997 energy costs beginning May 6, 1997.

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, 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 1997 representative average unit costs for energy in all operating

cost representations beginning May 6, 1997.

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.

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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, 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 (1997)

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Dollars per

Type of energy In commonly used terms As required by DOE test million Btu

procedure \1\

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Electricity.............................. 8.31 cents/kWh \2\ \3\..... $0.0831/kWh................ $24.35

Natural Gas.............................. 61.2 cents/therm \4\ or 0.00000612/Btu............. 6.12

$6.43/MCF \5\ \6\.

No. 2 heating oil........................ 0.99/gallon \7\............ 0.00000714/Btu............. 7.14

Propane.................................. 0.98/gallon \8\............ 0.00001073/Btu............. 10.73

Kerosene................................. 1.16/gallon \9\............ 0.00000859/Btu............. 8.59

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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 1,028 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. 97-2802 Filed 2-4-97; 8:45 am]

BILLING CODE 6750-01-M