[Federal Register: April 30, 2004 (Volume 69, Number 84)]
[Rules and Regulations]
[Page 23650-23653]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap04-6]
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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.
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SUMMARY: The Federal Trade Commission (``Commission'') revises Table 1
in section 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
[[Page 23651]]
(``DOE'') in the Federal Register on January 27, 2004. Table 1 sets
forth the representative average unit energy costs for five residential
energy sources, which the Commission revises periodically on the basis
of updated information provided by DOE.
DATES: The amendments published in this document are effective April
30, 2004. 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. 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. Additional information about the Commission's
Appliance Labeling Rule can be found at http://www.ftc.gov/appliances.
I. Representative Average Unit Energy Costs
On January 27, 2004, DOE published the most recent figures for
representative average unit energy costs (69 FR 3907). 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 conditioners 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.\1\ The Commission
is revising Table 1 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:
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\1\ 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 (kilowatt-hour use per year for
electricity, therms per year for natural gas, or gallons per year
for propane and oil).
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A. Labeling of Refrigerators, Refrigerator-Freezers, Freezers, Clothes
Washers, Dishwashers, Water Heaters, and Room Air Conditioners \2\
Manufacturers must continue to use the DOE cost figures that were
published and in effect the year the ranges of comparability last
changed for the applicable covered product. The cost figures currently
applicable to each product category are detailed below. Manufacturers
must continue to use these figures until new ranges of comparability
for an applicable product are published by the Commission in the
future. For example, if the ranges of comparability for a given product
last changed in the year 2001, manufacturers should continue to use the
2001 DOE energy cost figures until the Commission announces otherwise.
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\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, 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.
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1. Refrigerators, Refrigerator-Freezers, and Freezers
Manufacturers of refrigerators, refrigerator-freezers, and freezers
must continue to derive the operating cost disclosures on labels by
using the 2001 Average Representative Unit Costs (8.29 cents per
kiloWatt-hour for electricity) published by DOE on March 8, 2001 (66 FR
13917), and by the Commission on May 21, 2001 (66 FR 27856), that were
in effect when the current 2001 ranges of comparability for these
products were published.\3\ Manufacturers must continue to use the
foregoing DOE cost figures until the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figure for electricity then in effect.
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\3\ The current (2001) ranges for refrigerators, refrigerator-
freezers, and freezers were published on November 19, 2001 (66 FR
57867). On November 23, 2003 (68 FR 65631), the Commission announced
that the 2001 ranges for these products would remain in effect.
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2. Room Air Conditioners
Manufacturers of room air conditioners must continue to derive the
operating cost disclosures on labels by using the 1995 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.\4\ Manufacturers of room air conditioners must
continue to use the 1995 DOE cost figures until the Commission
publishes new ranges of comparability and states that operating cost
disclosures must be based on the DOE cost figure for electricity then
in effect.
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\4\ The current (1995) ranges for room air conditioners were
published on November 13, 1995 (60 FR 56945). On June 27, 2003 (68
FR 38175), the Commission announced that the 2004 ranges for room
air conditioners would remain in effect.
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3. Storage-Type Water Heaters
Manufacturers of storage-type water heaters must continue to derive
the operating cost on labels using 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), that were in effect when the 1994 ranges of
comparability for storage-type water heaters were published.\5\
Manufacturers of storage-type water heaters must continue to use the
1994 DOE cost figures until the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figures for energy then in effect.
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\5\ 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 June 27, 2003 (68 FR 38175), the Commission announced
that the 1994 ranges for storage-type water heaters would remain in
effect.
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4. Heat Pump Water Heaters
Manufacturers of heat pump water heaters must continue to derive
the operating cost disclosures on labels by using the 2002 Average
Representative
[[Page 23652]]
Unit Costs for electricity (8.28 cents per kiloWatt-hour) that were
published by DOE on April 24, 2002 (67 FR 20104), and by the Commission
on June 7, 2002 (67 FR 39269), and that were in effect when the current
(2002) ranges of comparability for these products were published.\6\
Manufacturers of heat pump water heaters must continue to use the 2002
DOE cost figures until the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figure for electricity then in effect.
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\6\ The current (2002) ranges of comparability for heat pump
water heaters were published on June 24, 2002 (67 FR 42478). On June
27, 2003 (68 FR 38175), the Commission announced that the 1994
ranges for heat pump water heaters would remain in effect.
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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 Average Representative Unit Costs 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.\7\
Manufacturers must continue to use the 1999 DOE cost figures until the
Commission publishes new ranges of comparability and states that
operating cost disclosures must be based on the DOE cost figures for
natural gas and propane then in effect.
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\7\ The current ranges for gas-fired instantaneous water heaters
were published on December 20, 1999 (64 FR 71019). On June 27, 2003
(68 FR 38175), the Commission announced that the 1999 ranges for
gas-fired instantaneous water heaters would remain in effect.
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6. Dishwashers
Manufacturers of compact dishwashers must continue to base the
required secondary operating cost disclosures on labels on the 2002
Average Representative Unit Costs for electricity (8.28 cents per
kiloWatt-hour) and natural gas (65.6 cents per therm) that were
published by DOE on April 24, 2002 (67 FR 20104), and by the Commission
on June 7, 2002 (67 FR 39269), and that were in effect when the 2002
ranges of comparability for these products were published.
Manufacturers of standard dishwashers must base the disclosures of
estimated annual operating cost required at the bottom of EnergyGuide
labels for standard-sized dishwashers on the 2003 Representative
Average Unit Costs of Energy for electricity (8.41 cents per kiloWatt-
hour) and natural gas (81.6 cents per therm) that were published by DOE
on April 9, 2003 (68 FR 17361) and by the Commission on May 5, 2003 (68
FR 23584).\8\ Manufacturers of dishwashers must continue to use these
cost figures until the Commission publishes new ranges of comparability
and states that operating cost disclosures must be based on the DOE
cost figures for electricity and natural gas then in effect.
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\8\ The current ranges for compact dishwashers were published on
July 19, 2002 (67 FR 47443). The current ranges for standard
dishwashers were published on August 11, 2003 (68 FR 47449).
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7. Clothes Washers
Manufacturers of compact clothes washers must base the disclosures
of estimated annual operating cost required at the bottom of
EnergyGuide labels dfor standard-sized dishwashers on the 2003
Representative Average Unit Costs of Energy for electricity (8.41 cents
per kilowatt-hour) and natural gas (81.6 cents per therm) that were
published by DOE on April 9, 2003 (68 FR 17361) and by the Commission
on May 5, 2003 (68 FR 23584). Manufacturers of standard clothes washers
must continue to derive the operating cost disclosures on labels by
using the 2000 Average Representative Unit Costs for electricity (8.03
cents per kiloWatt-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.\9\ Manufacturers of clothes washers must continue to use the
2000 DOE cost figures until the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figures for electricity and natural gas then in effect.
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\9\ The current (2003) ranges of comparability for compact
clothes washers were published on November 24, 2003 (68 FR 65833).
The current (2000) ranges of comparability for standard clothes
washers were published on May 11, 2000 (65 FR 30351).
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B. Operating Cost Information for Central Air Conditioners and Heat
Pumps Disclosed on Fact Sheets and in Industry Directories
In the 2004 document 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 2003 DOE cost figure for electricity beginning on the effective
date of that document.
C. Operating Cost Representations for 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 2004 DOE energy costs in all operating cost representations
beginning July 29, 2004.
II. Administrative Procedure Act
The amendments published in this document involve routine,
technical and minor, or conforming changes to the Rule's labeling
requirements. These technical amendments merely provide a routine
change to the cost information in the Rule. Accordingly, the Commission
finds for good cause that public comment and a 30-day effective date
for these technical, procedural amendments are impractical and
unnecessary (5 U.S.C. 553(b)(A)(B) and (d)).
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.
These technical amendments merely provide a routine change to the cost
information in the 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.
IV. Paperwork Reduction Act
In a 1988 document (53 FR 22113), the Commission stated that the
Rule contains disclosure and reporting requirements that constitute
``information collection requirements'' as defined by 5 CFR 1320.7(c),
the regulation that implements the Paperwork Reduction Act.\10\ The
Commission noted that the Rule had been reviewed and approved in 1984
by the Office of Management and Budget (``OMB'') and assigned OMB
Control No.
[[Page 23653]]
3084-0068. OMB has extended its approval for its recordkeeping and
reporting requirements until September 30, 2004. The amendments now
being adopted do not change the substance or frequency of the
recordkeeping, disclosure, or reporting requirements and, therefore, do
not require further OMB clearance.
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\10\ 44 U.S.C. 3501-3520.
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List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
PART 305 [AMENDED]
0
Accordingly, 16 CFR Part 305 is amended as follows:
0
1. The authority citation for Part 305 continues to read as follows:
Authority: 42 U.S.C. 6294.
0
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 (2004)
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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............................. 8.60 [cent]/kWh 2, 3...... $0.0860/kWh............... 25.20
Natural Gas............................. 91.0 [cent]/therm \4\ or 0.00000910/Btu........... 9.10
$9.35/MCF \5,\ \6\.
No. 2 heating oil....................... $1.28/gallon \7\.......... 0.00000923/Btu........... 9.23
Propane................................. $1.23/gallon \8\.......... 0.00001346/Btu........... 13.46
Kerosene................................ $1.54/gallon \9\.......... 0.00001141/Btu........... $11.41
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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 1,027 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.
[FR Doc. 04-9847 Filed 4-29-04; 8:45 am]
BILLING CODE 6750-01-P