Labeling and Advertising of Home Insulation: Trade Regulation Rule, 31258-31276 [05-10683]

Agencies

• FEDERAL TRADE COMMISSION

[Federal Register Volume 70, Number 103 (Tuesday, May 31, 2005)]
[Rules and Regulations]
[Pages 31258-31276]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-10683]



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Part IV





Federal Trade Commission





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16 CFR Part 460



Labeling and Advertising of Home Insulation: Trade Regulation Rule; 
Final Rule

Federal Register / Vol. 70, No. 103 / Tuesday, May 31, 2005 / Rules 
and Regulations

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FEDERAL TRADE COMMISSION

16 CFR Part 460


Labeling and Advertising of Home Insulation: Trade Regulation 
Rule

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``Commission'') amends its Trade 
Regulation Rule Concerning the Labeling and Advertising of Home 
Insulation (``R-value Rule'' or ``Rule'') to streamline and increase 
the benefits of the Rule to consumers and sellers, minimize its costs, 
and respond to the development and utilization of new technologies to 
make American homes more energy efficient and less costly to heat and 
cool. This document provides background on the R-value Rule and this 
proceeding; discusses the public comments the Commission received; and 
describes the amendments the Commission is making based on the record.

DATES: These amendments will become effective November 28, 2005. The 
incorporation by reference of certain publications listed in this rule 
is approved by the Director of the Federal Register as of November 28, 
2005.

ADDRESSES: Requests for copies of this document are available from: 
Public Reference Branch, Room 130, Federal Trade Commission, 600 
Pennsylvania Avenue, NW., Washington, DC 20580. The complete record of 
this proceeding is also available at that address. Relevant portions of 
the proceeding, including this document, are available at https://
www.ftc.gov.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889, 
Division of Enforcement, Bureau of Consumer Protection, Federal Trade 
Commission, 600 Pennsylvania Avenue, NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Overview of the Rule
    A. Products Covered
    B. Parties Covered
    C. Basis for the Rule
    D. Requirements of the Rule
III. Procedural History
IV. Section-by-Section Description of Final Amendments
V. Discussion of Comments and Final Amendments
    A. Disclosing Thermal Performance of Non-Residential Insulations
    B. Performance of Insulations in Actual Use
    C. Disclosing R-values That Account for Factors Affecting R-
value
    1. Aging of Cellular Plastics Insulation
    2. Loose-fill and Stabilized Insulations
    a. Settling
    b. Self-supported Spray Applied Cellulose Insulations
    c. Initial Installed Thickness
    D. Other Testing Requirements
    1. Test Temperature Differential
    2. Tolerance
    3. Determining the Thermal Performance of Reflective Insulations
    E. Other Disclosure Issues
    1. Disclosures on Labels and Fact Sheets
    a. Disclosures for Batt, Blanket, and Boardstock Insulations
    b. Required Disclosures for Loose-fill Insulations
    i. R-value Disclosures
    ii. Initial Installed Thickness
    c. Disclosures for Urea-based Foam Insulations
    2. Disclosures in Advertising and Other Promotional Materials
    3. Disclosures by Installers or New Home Sellers
    4. Disclosures by Retailers
    F. Amendments to Update References to ASTM Standards
    G. Comments on New Products
    H. Effective Date of Amendments
VI. Regulatory Analysis and Regulatory Flexibility Act
VII. Paperwork Reduction Act
VIII. Final Rule Language

I. Introduction

    The R-value Rule specifies substantiation and disclosure 
requirements for thermal insulation products used in the residential 
market, and prohibits certain claims unless they are true.\1\ The 
primary disclosure required is the insulation product's ``R-value.'' R-
value is the numerical measure of the ability of an insulation product 
to restrict the flow of heat and, therefore, to reduce energy costs--
the higher the R-value, the better the product's insulating ability. To 
assist consumers, the Rule requires sellers (including insulation 
manufacturers, professional installers, new home sellers, and 
retailers) to disclose the insulation product's R-value and related 
information, before retail sale, based on uniform, industry-adopted 
standards.\2\ This information enables consumers to evaluate how well a 
particular insulation product is likely to perform, to determine 
whether the cost of the insulation is justified, and to make 
meaningful, cost-benefit based purchasing decisions among competing 
products.
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    \1\ The Commission promulgated the R-value Rule on August 29, 
1979 under section 18 of the Federal Trade Commission Act (``FTC 
Act''), 15 U.S.C. 57a. The Rule became effective on September 30, 
1980. See Final Trade Regulation Rule (``Statement of Basis and 
Purpose'' or ``SBP''), 44 FR 50218 (1979).
    \2\ Home insulation sellers should be aware that additional 
Commission rules or guides may also apply to them. For example, the 
Commission's Rules concerning Disclosure of Written Consumer Product 
Warranty Terms and Conditions, and the Pre-sale Availability of 
Written Warranty Terms, 16 CFR parts 701 and 702, specify 
requirements concerning warranties; the Commission's Guides for the 
Use of Environmental Marketing Claims, 16 CFR part 260, address the 
application of section 5 of the FTC Act, 15 U.S.C. 45, to 
environmental advertising and marketing claims (e.g., claims 
concerning the amount of recycled material a product contains). 
Further, section 5 of the FTC Act declares that unfair or deceptive 
acts or practices are unlawful, and requires that advertisers and 
other sellers have a reasonable basis for advertising and other 
promotional claims before they are disseminated. See Deception 
Policy Statement, Letter from the Commission to the Honorable John 
D. Dingell, Chairman, Committee on Energy and Commerce, U.S. House 
of Representatives (Oct. 14, 1983), reprinted in Cliffdale Assocs., 
Inc., 103 F.T.C. 110 (1984); Statement of Policy on the Scope of the 
Consumer Unfairness Jurisdiction, Letter from the Commission to the 
Honorable Wendell H. Ford, Chairman, Consumer Subcommittee, 
Committee on Commerce, Science, and Transportation, U.S. House of 
Representatives, and the Honorable John C. Danforth, Ranking 
Minority Member, Consumer Subcommittee, Committee on Commerce, 
Science and Transportation, U.S. Senate (Dec. 17, 1980), reprinted 
in International Harvestor Co., 104 F.T.C. 949 (1984); and Policy 
Statement Regarding Advertising Substantiation, 49 FR 30999 (1984), 
reprinted in Thompson Medical Co., 104 F.T.C. 839 (1984).
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II. Overview Of The Rule

A. Products Covered

    The R-value Rule covers all ``home insulation products.'' Under the 
Rule, ``insulation'' is any product mainly used to slow down the flow 
of heat from a warmer area to a cooler area, for example, from the 
heated inside of a house to the outside during the winter through 
exterior walls, attic, floors over crawl spaces, or basement. ``Home 
insulation'' includes insulation used in all types of residential 
structures. The Rule automatically covers new types or forms of 
insulation marketed for use in the residential market, whether or not 
the Rule specifically refers to them. The Rule does not cover pipe 
insulation, or any type of duct insulation except for duct wrap. The 
Rule does not cover insulation products sold for use in commercial 
(including industrial) buildings. It does not apply to other products 
with insulating characteristics, such as storm windows or storm doors.
    Home insulation includes two basic categories: ``mass'' insulations 
and ``reflective'' insulations. Mass insulations reduce heat transfer 
by conduction (through the insulation's mass), convection (by air 
movement within and through the air spaces inside the insulation's 
mass), and radiation. Reflective insulations (primarily aluminum foil) 
reduce heat transfer when installed facing an airspace by increasing 
the thermal resistance of the airspace and reducing radiative heat 
transfer. Within these basic categories,

[[Page 31259]]

home insulation is sold in various types (``type'' refers to the 
material from which the insulation is made, e.g., fiberglass, 
cellulose, polyurethane, aluminum foil) and forms (``form'' refers to 
the physical form of the product, e.g., batt, dry-applied loose-fill, 
spray-applied, boardstock, multi-sheet reflective).

B. Parties Covered

    The Rule applies to home insulation manufacturers, professional 
installers, retailers who sell insulation to consumers for do-it-
yourself installation, and new home sellers (including sellers of 
manufactured housing). It also applies to testing laboratories that 
conduct R-value tests for home insulation manufacturers or other 
sellers who use the test results as the basis for making R-value claims 
about home insulation products.

C. Basis for the Rule

    The Commission issued the R-value Rule to prohibit, on an industry-
wide basis, specific unfair or deceptive acts or practices. When it 
issued the Rule, the Commission found that the following acts or 
practices were prevalent in the home insulation industry and were 
deceptive or unfair, in violation of section 5 of the FTC Act, 15 
U.S.C. 45: (1) Sellers had failed to disclose R-values, and caused 
substantial consumer injury by impeding the ability of consumers to 
make informed purchasing decisions; (2) the failure to disclose R-
values, which varied significantly among competing home insulation 
products of the same thickness and price, misled consumers when they 
bought insulation on the basis of price or thickness alone; (3) sellers 
had exaggerated R-values, often failing to take into account factors 
(e.g., aging, settling) known to reduce thermal performance; (4) 
sellers had failed to inform consumers about the meaning and importance 
of R-value; (5) sellers had exaggerated fuel bill savings that 
consumers could expect, and often failed to disclose that savings will 
vary depending on the consumer's particular circumstances; and (6) 
sellers had falsely claimed that consumers would qualify for tax 
credits through the purchase of home insulation, or that products had 
been ``certified'' or ``favored'' by federal agencies. (44 FR at 50222-
50224).

D. Requirements of the Rule

    The Rule requires that manufacturers and others who sell home 
insulation determine and disclose each product's R-value and related 
information (e.g., thickness, coverage area per package) on package 
labels and manufacturers' fact sheets. R-value ratings vary among 
different types and forms of home insulations and among products of the 
same type and form. The Rule requires that R-value claims to consumers 
about specific home insulation products be based on R-value test 
procedures that measure thermal performance under ``steady-state'' 
(i.e., static) conditions.\3\ Mass insulation products may be tested 
under any of the test methods the Rule specifies. The tests on mass 
insulation products must be conducted on the insulation material alone 
(excluding any airspace). Reflective insulation products must be tested 
according to tests that can determine the R-values of insulation 
systems (such as those that include one or more air spaces). The tests 
must be conducted at a mean temperature of 75 [deg]F.
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    \3\ Section 460.5 of the Rule requires that the R-values of home 
insulation products be based on one of the test procedures specified 
in the Rule. Most of the test procedures in the Rule specify 
American Society for Testing and Materials (``ASTM'') standards.
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    When it promulgated the Rule, the Commission found that certain 
factors, such as aging or settling, affect the thermal performance of 
home insulation products. (44 FR at 50219-50220, 50227-50228). To 
ensure that R-value claims take these factors into account, the Rule 
mandates that the required R-value tests for polyurethane, 
polyisocyanurate, and extruded polystyrene insulation products be 
conducted on test specimens that fully reflect the effect of aging, and 
for loose-fill insulation products on test specimens that fully reflect 
the effect of settling.
    Specific disclosures must be made: (1) By manufacturers on product 
labels and manufacturers' fact sheets; (2) by professional installers 
and new home sellers on receipts or contracts; and (3) by 
manufacturers, professional installers, and retailers in advertising 
and other promotional materials (including those on the Internet) that 
contain an R-value, price, thickness, or energy-saving claim, or 
compare one type of insulation to another. Manufacturers and other 
sellers must have a ``reasonable basis'' for any energy-saving claims 
they make.\4\
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    \4\ Although the Rule does not specify how energy-saving claims 
must be substantiated, the Commission explained that scientifically 
reliable measurements of fuel use in actual houses or reliable 
computer models or methods of heat flow calculations would meet the 
reasonable basis standard. (44 FR at 50233-50234). Sellers other 
than manufacturers can rely on the manufacturer's claims unless they 
know or should know that the manufacturer does not have a reasonable 
basis for the claims.
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III. Procedural History

    On April 6, 1995, as part of its ongoing regulatory review program, 
the Commission solicited public comments about the economic impact of 
and current need for the R-value Rule.\5\ (60 FR 17492). At the same 
time, the Commission solicited comments on a petition (``Petition'') 
from Ronald S. Graves, who at that time was a Research Staff Member, 
Materials Analysis Group, Martin Marietta Energy Systems, Inc. (which 
operated Oak Ridge National Laboratory (``ORNL'') for the U.S. 
Department of Energy (``DOE'')). The Petition requested that the 
Commission approve an additional (fifth) ASTM R-value test procedure as 
an optional test procedure for determining the R-value of home 
insulation under the Rule.
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    \5\ The Commission previously reviewed the Rule in 1985 under 
the Regulatory Flexibility Act, 5 U.S.C. 610, to determine the 
economic impact of the Rule on small entities. Based on that review, 
the Commission determined that: There was a continuing need for the 
Rule; there was no basis to conclude that the Rule had a significant 
economic impact on a substantial number of small entities; there was 
no basis to conclude that the Rule should be amended to minimize its 
economic impact on small entities; the Rule did not generally 
overlap, duplicate, or conflict with other regulations; and 
technological, economic, and other changes had not affected the Rule 
in any way that would warrant amending the Rule. (50 FR 13246).
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    Based on the comments in response to the 1995 Notice, the 
Commission determined that there was a continuing need for the Rule, 
published its determination to retain it, and adopted the test method 
suggested by Mr. Graves and several technical, non-substantive 
amendments to allow the use of the most current testing procedures 
available and to streamline the Rule.\6\ (61 FR 13659, at 13659-13662, 
13665 (March 28, 1996)). In 1999, the Commission published an Advance 
Notice of Proposed Rulemaking (``ANPR'') proposing limited amendments 
and requesting comments on other issues related to the Rule. (64 FR 
48024 (Sept. 1, 1999)).
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    \6\ These amendments: (1) Revised Sec.  460.5 of the Rule to 
allow the use of an additional ASTM test procedure as an optional, 
but not required, test procedure to determine the R-value of home 
insulation; (2) revised Sec.  460.5 to require the use of current, 
updated versions of other ASTM R-value test methods cited in the 
Rule; (3) added an Appendix summarizing the exemptions from specific 
requirements of the Rule that the Commission previously granted for 
certain classes of persons covered by the Rule; and (4) revised 
Sec.  460.10 of the Rule to cross-reference the Commission's 
enforcement policy statement for foreign language advertising in 16 
CFR 14.9 and deleted the previous Appendix to the Rule because it 
merely repeated the text of 16 CFR 14.9.
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    Based on information obtained in response to the ANPR, on July 15, 
2003, the Commission published a Notice of

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Proposed Rulemaking (``NPR'') requesting comment on proposed amendments 
to the rule. (68 FR 41872). The proposed amendments were designed to: 
(1) Require disclosure of the same R-value information for all types of 
loose-fill insulation products; (2) specify the use of current ASTM or 
other recognized procedures for preparing R-value test specimens of 
spray-applied insulations and for conducting R-value tests of 
reflective insulation products; (3) require manufacturers of loose-fill 
insulation to provide installers with information about the initial 
installed thickness required to yield certain R-values; (4) delete 
specific disclosure requirements for urea formaldehyde insulation; (5) 
eliminate affirmative disclosure requirements for radio ads; and (6) 
exempt retailers from certain disclosure requirements (i.e., making 
available to consumers separate manufacturers' fact sheets) under 
certain circumstances.
    The NPR also discussed numerous additional issues raised by 
commenters in response to the ANPR. These issues included whether the 
Commission should revise the Rule to: (1) Cover additional products 
(i.e., residential pipe and duct insulations, and insulation sold for 
use in commercial buildings); (2) require the disclosure of in-use 
performance values, as opposed to values based on laboratory tests 
under static, uniform conditions, or of the performance of building 
systems; (3) adopt additional test specimen preparation requirements to 
account for various factors that affect R-values; (4) adopt additional 
or updated testing requirements; and (5) revise the disclosure 
requirements for manufacturers' labels and fact sheets, advertisements 
and other promotional materials, and for professional installers, new 
home sellers, and retailers. The NPR explained why the Commission did 
not propose amending the Rule to address these issues. The NPR also 
raised specific questions for comment to provide the Commission with 
additional information on the issues.

IV. Section-by-Section Description of Final Amendments

    The following is a brief summary of the amendments to the R-value 
Rule the Commission is adopting in response to the comments received. 
The Commission believes that these amendments will help to update and 
improve the Rule to ensure that it continues to prohibit, on an 
industry-wide basis, specific unfair or deceptive acts or practices the 
Commission has previously identified.

Section 460.1 (What This Regulation Does)

    Penalties: The Commission is amending the monetary penalty amount 
from $10,000 to $11,000 to reflect the current requirements of Sec.  
1.98 of the Commission's rules, which in turn, reflect statutory 
changes to the Commission's authority to obtain civil penalties (see 15 
U.S.C. section 45(m)(1)(A)). This is a technical, conforming change.

Section 460.5(a) (R-value Tests)

    Temperature Differential: The Commission is amending Sec.  460.5, 
R-value Tests, to specify that tests conducted under Sec.  460.5(a) 
must be done with a temperature differential of 50[deg] F plus or minus 
10[deg] F in addition to the mean temperature requirement currently in 
the Rule [see section V.D.1. of this document].
    Update Test Procedures: The Commission is updating references for 
many of the test procedures incorporated into the Rule. The affected 
procedures are listed in section V.F. of this document. In addition, 
the references to ASTM C 236-89 and ASTM C 976-90 have been eliminated 
and replaced with ASTM C 1363-97, ``Standard Test Method for the 
Thermal Performance of Building Assemblies by Means of a Hot Box 
Apparatus.''

Section 460.5(a)(3) (R-value Tests)

    Loose-Fill Settling: The Commission is amending Sec.  460.5(a)(3) 
to eliminate the obsolete reference to the Government Services 
Administration (``GSA'') specifications for measuring the settling of 
loose-fill insulation and to insert language indicating that industry 
members must take into account the effects of settling on the R-value 
for loose-fill mineral wool, self-supported spray-applied cellulose and 
stabilized cellulose products [see section V.C.2. of this document].

Section 460.5(a)(4) (R-value Tests)

    Tests for Spray-Applied Cellulose Insulation: The Commission is 
adding a new paragraph, Sec.  460.5(a)(4), which requires that tests 
for self-supported spray-applied cellulose be conducted at the settled 
density determined pursuant to ASTM C 1149-02 (``Self-supported Spray 
Applied Cellulosic Thermal Insulation'') [see section V.C.2. of this 
document].

Section 460.5(a)(5) (R-value Tests)

    Loose-Fill Initial Installed Thickness: A new provision (Sec.  
460.5(a)(5)) requires loose-fill insulation manufacturers to determine 
initial installed thickness for their product pursuant to ASTM C 1374-
03, ``Standard Test Method for Determination of Installed Thickness of 
Pneumatically Applied Loose-Fill Building Insulation,'' for R-values of 
13, 19, 22, 30, 38, 49, and any other R-values provided on the 
product's label pursuant to Sec.  460.12 [see section V.C.2.c. of this 
document].

Section 460.5(b) and Section 460.5(c) (R-value Tests)

    The sections applicable to reflective insulations have been 
reorganized and amended as follows:
    Tests for Single Sheet Aluminum Foil Systems: Section 460.5(c) is 
redesignated as Sec.  460.5(b) and amended to require that single sheet 
systems of aluminum foil be tested under ASTM C 1371-04a [see section 
V.D.3. of this document].
    Tests for Multiple Sheet Aluminum Foil Systems: Section 460.5(b) is 
redesignated as Sec.  460.5(c) and amended to indicate that aluminum 
foil systems with more than one sheet, and single sheet systems of 
aluminum foil that are intended for applications that do not meet the 
conditions specified in the tables in the most recent edition of the 
ASHRAE Handbook, must be tested with ASTM C 1363-97, ``Standard Test 
Method for the Thermal Performance of Building Assemblies by Means of a 
Hot Box Apparatus,'' in a test panel constructed according to ASTM C 
1224-03, ``Standard Specification for Reflective Insulation for 
Building Applications,'' and under the test conditions specified in 
ASTM C 1224-03. Further, to obtain the R-value from the results of 
those tests, sellers must use the formula specified in ASTM C 1224-03. 
This amendment eliminates the references to ASTM C 236-89 and ASTM C 
976-90 that are currently applicable to these products [see section 
V.D.3. of this document].

Section 460.5(d) (R-value Tests)

    Insulation Material With Foil Facings and Air Space: Section 
460.5(d)(1) is amended to eliminate references to ASTM C 236-89 and 
ASTM C 976-90 and replace them with ASTM C 1363-97, ``Standard Test 
Method for the Thermal Performance of Building Assemblies by Means of a 
Hot Box Apparatus'' [see section V.D.3. of this document].

Section 460.5(e) (R-value Tests)

    Incorporation by Reference: A new paragraph (e) is added to 
consolidate information regarding incorporation by reference approvals 
provided by the Office of the Federal Register [see section V.F. of 
this document].

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Section 460.8

    R-Value Tolerances for Manufacturers: The Rule's tolerance 
provision is amended to clarify that manufacturers of home insulation 
are prohibited from selling individual specimens of insulation with an 
R-value more than 10% below the R-value shown in a label, fact sheet, 
ad, or other promotional material for that insulation [see section 
V.D.2. of this document].

Section 460.12 (Labels)

    Labels for Batts and Blankets: The Commission is amending the 
paragraph at Sec.  460.12(b)(1) to indicate that it applies to batts 
and blankets of any type, not just to those made of mineral fiber [see 
section V.E.1.a. of this document].
    Loose-Fill Labels: The Commission is amending Sec.  460.12 to 
eliminate certain information requirements on charts for loose-fill 
cellulose insulation. The amendment requires charts for all forms of 
loose-fill insulation to show the minimum thickness, maximum net 
coverage area, number of bags per 1,000 square feet, and minimum weight 
per square foot at R-values of 13, 19, 22, 30, 38, and 49. The 
amendment also requires the labels for loose-fill insulation to display 
initial installed thickness information, determined pursuant to ASTM C 
1374, ``Standard Test Method for Determination of Installed Thickness 
of Pneumatically Applied Loose-Fill Building Insulation,'' which 
installers must use for loose-fill products [see section V.E.1.b. of 
this document].

Section 460.13 (Fact Sheets)

    Urea-Based Foam Insulations: Section 460.13 is amended to eliminate 
the requirements related to urea-based foam insulation [see section 
V.E.1.c. of this document].

Section 460.14 (How Retailers Must Handle Fact Sheets)

    Retailers' Responsibilities for Fact Sheets: The Commission is 
amending this section to exempt retailers from making fact sheets 
available to customers, if they display insulation packages (containing 
the same information required in fact sheets) on the sales floor where 
insulation customers are likely to notice them [see section V.E.4. of 
this document].

Section 460.17 (What Installers Must Tell Their Customers)

    Initial Installed Thickness: This section is amended to require 
installers to provide customers with initial installed thickness 
information for loose-fill insulation [see section V.C.2.c. of this 
document].

Sections 460.18 (Insulation Ads) and 460.19 (Savings Claims)

    Affirmative Disclosures for Radio Ads: The Commission is 
eliminating the affirmative disclosure requirements for radio ads in 
Sec. Sec.  460.18 and 460.19 [see section V.E.2. of this document].
    Urea-Based Foam Insulations: Section 460.18 is amended to eliminate 
paragraph (e) which addresses urea-based insulation [see section 
V.E.1.c. of this document].

Section 460.23(a) (Other Laws, Rules, and Orders)

    The Commission amends paragraph (a) to correct a typographical 
error.

V. Discussion of Comments and Final Amendments

    The Commission received 16 comments in response to the NPR.\7\ 
These comments and the final amendments are discussed below:
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    \7\ AFM Corporation; ASTM International; Advanced Foil Systems, 
Inc. (``AFS''); Cellulose Insulation Manufacturers Association 
(``CIMA''); ConsultMort, Inc. (``ConsultMort''); Expanded 
Polystyrene Molders Association (``EPSMA''); Extruded Polystyrene 
Foam Alliance (``XPSA''); U.S. Green Fiber (late-filed comment); 
Honeywell Chemicals; Insulation Contractors Association of America 
(``ICAA''); North American Insulation Manufacturers Association 
(``NAIMA'') (including initial comment and late-filed comment); 
Pactiv Building Products; Polyisocyanurate Insulation Manufacturers 
Association (``PIMA''); R&D Services, Inc. (including initial 
comment and late-filed comment); Rockwool International; and Spray 
Polyurethane Foam Alliance (``SPFA''). These comments are on the 
public record and are available online at www.ftc.gov/energy. Paper 
versions are also available for public inspection in accordance with 
the Freedom of Information Act, 5 U.S.C. 552, and the Commission's 
Rules of Practice, 16 CFR 4.11, at the Consumer Response Center, 
Public Reference Section, Room 130, Federal Trade Commission, 600 
Pennsylvania Avenue, NW., Washington, DC. The comments are organized 
under the Labeling and Advertising of Home Insulation Rule (``The R-
value Rule''), Matter No. R811001.
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A. Disclosing Thermal Performance of Non-Residential Insulations

Background
    In the NPR, the Commission indicated that it did not plan to extend 
the Rule to cover the sales of insulation products in the commercial 
market. (68 FR at 41876-41877). The Commission pointed out that 
professionals in the commercial field have greater knowledge than 
residential customers. In addition, there was no evidence indicating 
unfair and deceptive practices are prevalent in these markets. 
Accordingly, the Commission found that the potential benefits to 
commercial users would not justify the additional burdens that an 
extension of the Rule would impose.
Comments
    Two commenters urged the Commission to reconsider expanding the 
Rule's coverage to include insulation sold for commercial and 
industrial use. XPSA (pp. 4-5) recommended that the issue be reserved 
for a separate rulemaking in the future. XPSA believes that building 
professionals and architects mostly rely on manufacturers' claims and 
fact sheet information when preparing specifications involving 
foundation, wall or roof systems and do not necessarily understand the 
issue of long-term R-value. XPSA believes it is nearly impossible for 
an architect or specifier to keep up to date with the technical data 
underlying such R-value claims. Rockwool (p. 1) also supported the 
Rule's extension suggesting that the increased uniformity from such a 
change would be beneficial.
Discussion
    For reasons detailed in the NPR, the Commission continues to 
believe that it is not appropriate to extend the Rule to the commercial 
or industrial market. The Commission will continue to consider 
developments in the market and has not foreclosed the possibility of 
revisiting this issue in the future. The Commission will continue to 
address concerns in this area as they arise pursuant to its general 
authority under the FTC Act.

B. Performance of Insulations in Actual Use

Background
    In the ANPR, the Commission discussed earlier comments relating to 
seasonal factors and other variables that can affect the R-value of 
insulation products in actual use. (64 FR at 48027). Specifically, 
previous commenters identified factors that affect performance in 
attics during winter conditions and stated that the Rule does not 
sufficiently account for these factors. Some comments pointed to ORNL 
research that demonstrates a reduction in R-value of very low-density 
fibrous insulations installed in open or vented attics when the 
temperature difference between the heated area of a home and its cold 
attic becomes particularly great. This can occur during the most severe 
winter conditions in some portions of the United States. In the NPR, 
the Commission indicated that it did not plan to amend the Rule to 
address these concerns but explained that sellers may use advertising 
to distinguish their product's performance from others. (68 FR at 
41877-41879).

[[Page 31262]]

Comments
    Although the Commission did not specifically invite comments on 
this issue, two industry members submitted comments disagreeing with 
the Commission's position in the NPR. Both CIMA (p. 2) and Rockwool 
urged that the Rule be amended to account for the performance of 
insulation material in very cold climates. Rockwool acknowledged that 
the technical issues involved are very complex, but suggested that the 
Rule require insulations to be marked with a warning, ``Do not use 
below X [deg]F.'' Rockwool explained that this ``cut off'' temperature 
could be calculated by a simple equation or measured according to ASTM 
practice. CIMA suggested that the Commission specifically acknowledge 
the existence of this phenomenon and require manufacturers to provide 
cold weather design information for their products. According to CIMA, 
ASTM C 1373 (``Standard Practice for Determination of Thermal 
Resistance of Attic Insulation Systems Under Simulated Winter 
Conditions'') can be used to assess the effect of cold weather on 
actual installed R-value. CIMA indicated that the State of Minnesota 
requires insulation manufacturers to provide cold weather design 
information for their products.
    The Commission notes that, in response to the ANPR, NAIMA and PIMA 
opposed amendments to the Rule addressing the insulation performance at 
high temperature differentials. (See 68 FR 41877-41878). NAIMA 
contended that it would be impossible to specify new requirements to 
take these factors into account. It also believed that such disclosures 
would create consumer confusion rather than clarity. NAIMA asserted 
that past analysis on this issue suggests that very low temperatures 
rarely last long enough to result in significant energy loss or 
economic cost. Both NAIMA and PIMA indicated that ASTM C 1373 lacks 
application to a real home setting where conditions are variable and 
unpredictable.
Discussion
    As discussed in detail in the NPR, the Commission understands that 
there are variables for which the uniform test methods specified in the 
Rule may not account, such as the design characteristics and 
geographical location of the building, the specific application in 
which the product is installed, outside and inside temperatures, air 
and moisture movement, installation technique, and others. (68 FR at 
41877-41879). The Commission believes that accounting for variables 
(such as low temperature performance) in the Rule's requirements would 
significantly complicate both compliance and communication to 
consumers, without necessarily providing a commensurate level of 
benefit. Accordingly, the Commission again has concluded that the Rule 
should not be expanded to address on-site variables that might affect 
insulation performance.
    Manufacturers and other sellers may voluntarily provide to 
consumers additional, truthful, substantiated information voluntarily 
to consumers about the manner in which their products (or their 
competitors' products) perform in actual use. If a product exhibits 
better performance at high temperature differentials than competing 
products, the manufacturer may provide that information to consumers as 
long as the claims are truthful and substantiated and otherwise 
consistent with the Rule.

C. Disclosing R-Values That Account for Factors Affecting R-Value

1. Aging of Cellular Plastics Insulations
Background
    Certain types of cellular plastics insulations (polyurethane, 
polyisocyanurate, and extruded polystyrene boardstock insulations) are 
manufactured in a process that results in a gas other than normal air 
being incorporated into voids in the products. This gas gives the 
product an initial R-value that is higher than it would have if the 
product contained normal air. The aging process causes the R-value of 
these insulations to decrease over time as the gas is replaced by 
normal air through diffusion. The length of this process depends on 
whether the product is faced or unfaced, the permeability of the 
facing, the thickness of the product, and other factors.
    The current Rule addresses this aging process by requiring that R-
value tests be performed on specimens that ``fully reflect the effect 
of aging on the product's R-value.'' Section 460.5(a)(1) of the Rule 
allows the use of the ``accelerated aging'' procedure in paragraph 
4.6.4 of GSA Purchase Specification HH-I-530A (which was in effect at 
the time the Commission promulgated the Rule) as a permissible ``safe 
harbor'' procedure, but also allows manufacturers to use ``another 
reliable procedure.'' (See 44 FR at 50227-50228). The ``accelerated'' 
procedure was designed to age these insulations in a shorter period 
than they would age under normal usage conditions. Under the 
``accelerated aging'' method in the GSA specification, test specimens 
are aged for 90 days at 140 [deg]F dry heat.
    GSA amended its specification in 1982 to allow the use of an 
optional aging procedure (in addition to the ``accelerated'' method) 
under which test specimens are aged for six months (``180 days'') at 73 
[deg]F  4 [deg]F and 50%  5% relative humidity 
(with air circulation to expose all surfaces to the surrounding 
environmental conditions). An industry group, the Roof Insulation 
Committee of the Thermal Insulation Manufacturers Association (``RIC/
TIMA''), specified the use of similar conditions in a technical 
bulletin it adopted at about the same time. In response to GSA and RIC/
TIMA adopting the alternative 180-day aging procedure, the Commission's 
staff advised home insulation sellers that the alternative procedure 
appeared to be reliable and could be used to age cellular plastics 
insulations. The staff cautioned, however, that manufacturers of 
insulations faced with materials that significantly retard aging may 
need to age test specimens for a longer period of time, and that the 
staff would consider whether the alternative procedure was acceptable 
for specific products on a case-by-case basis.\8\
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    \8\ See, e.g., staff opinion letter dated May 5, 1983, to 
Manville Corporation. GSA thereafter rescinded its specification 
(along with other insulation specifications) and now requires that 
federally purchased insulations comply with ASTM insulation material 
specifications.
---------------------------------------------------------------------------

    As discussed in the NPR, some industry members have urged the 
Commission to incorporate two relatively new ``slicing and scaling'' 
test procedures into the Rule. (See 68 FR 41879-41882). These 
procedures are ASTM C 1303-00 ``Estimating the Long-Term Change in the 
Thermal Resistance of Unfaced Rigid Closed Cell Plastic Foams by 
Slicing and Scaling Under Controlled Laboratory Conditions'' and CAN/
ULC-S 770 ``Standard for Determination of Long Term Thermal Resistance 
of Closed Cell Thermal Insulating Foams.'' Unlike the traditional 
accelerated aging tests, these newer procedures use specimens of 
reduced thickness (i.e., slices of material) to measure the effects of 
aging. The measurements for these slices are then coupled with a 
scaling factor to estimate the R-value of full thickness boards. 
According to ASTM C 1303-00, the test is designed to avoid problems 
identified with the accelerated aging tests, namely that elevated 
temperatures may not significantly accelerate the aging process and 
that these higher temperatures may damage the cellular structure of 
these foams. ASTM C 1303-00 applies only to unfaced, homogenous 
materials. Its Canadian counterpart,

[[Page 31263]]

CAN/ULC S770, applies to permeably-faced polyisocyanurate (polysio), 
polyurethane, and extruded polystyrene foam plastic insulations.
    The comments submitted in response to the Commission's ANPR 
identified disagreements within the industry regarding the 
incorporation of ASTM C 1303 in the Rule. Some critics believe the 
relatively narrow scope of the test was a continuing concern while 
others criticized its cost and efficacy. In contrast, supporters argued 
it would improve the accuracy of the R-values calculated for products 
it covers.
    In the NPR, the Commission did not propose to amend Sec.  
460.5(a)(1) of the Rule to require the use of ASTM C 1303 for 
homogeneous, unfaced, rigid closed cell polyurethane, polyisocyanurate, 
and extruded polystyrene insulations. Because ASTM C 1303 applies only 
to unfaced, homogenous material, the Commission observed that similar 
products (e.g., insulation boards with paper facing) would have to 
continue to be tested under the older approach (the 180-day accelerated 
aging test). In essence, because it was unclear whether C 1303 is 
sufficiently broad and adequately developed, the Commission concluded 
it did not warrant incorporation into the Rule. Nevertheless, the NPR 
sought comments on this issue asking, in particular, about the scope of 
these standards and their likely impact on products sold in the 
residential market.
    Although the Commission did not propose to incorporate ASTM C 1303 
into the Rule, it proposed to amend the Rule to require tests for aging 
other types of polyurethane, polyisocyanurate, and extruded polystyrene 
insulation. These tests include ASTM C 1029-96 (``Standard 
Specification for Spray-Applied Rigid Cellular Polyurethane Thermal 
Insulation''), ASTM C 591-94 (``Unfaced Preformed Rigid Cellular 
Polyisocyanurate Thermal Insulation''), and ASTM C 578-95 (``Standard 
Specification for Rigid, Cellular Polystyrene Thermal Insulation'').\9\ 
For all other polyurethane, polyisocyanurate, and extruded polystyrene 
insulation subject to aging but not specifically covered by one of the 
procedures listed above, the NPR proposed that industry members use the 
procedure in paragraph 4.6.4 of GSA Specification HH-I-530A or another 
reliable procedure. The Commission sought comment on whether 
incorporating these procedures into the Rule would be appropriate and 
whether these procedures raise concerns like those associated with ASTM 
C 1303, as discussed above.
---------------------------------------------------------------------------

    \9\ The Commission did not propose to require ASTM C 1289 
(``Faced Rigid Cellular Polyisocyanurate Thermal Insulation Board'') 
as suggested by some commenters. The current version of this test 
procedure, ASTM C 1289-02, requires the use of the Canadian test 
procedure for aging (S770), which appears in C 1289 as an annex. 
Because the Commission did not propose to include C 1303 (or S 770) 
in the Rule at this time, the Commission refrained from proposing to 
require the same or equivalent aging procedure through C 1289.
---------------------------------------------------------------------------

Comments
    The comments on aging tests for cellular plastic insulations reveal 
continued divisions among industry members. Some commenters urged the 
Commission to incorporate the newer slicing and scaling tests (i.e., 
ASTM C 1303-00 or Can/ULC-S 770), while others urged the Commission not 
to do so because of concerns with the adequacy and scope of the new 
procedures. As for the additional procedures (ASTM C 578, C 1029, and C 
591) proposed by the Commission, one commenter questioned their 
inclusion in the Rule because they contain the traditional accelerated 
aging tests (i.e., the 90 or 180-day tests).
    Commenters urging the inclusion of ASTM C 1303 or CAN/ULC S770 in 
the Rule contended that the older accelerated aging methods, presently 
required by the Rule, are outdated and fail to provide accurate 
information about the effects of aging on R-value.\10\ One commenter 
suggested that existing requirements have created inconsistencies in 
testing and data reporting.\11\ Some of these commenters supported the 
adoption of CAN/ULC S770 while others urged the use of ASTM C 1303. 
Those advocating CAN/ULC S770 believe it will reduce confusion and 
provide a uniform method for all cellular plastics manufacturers.\12\ 
Advocates of ASTM C 1303 argued that it is an appropriate method to use 
for plastics insulation, and its scientific basis has been established 
for decades.\13\
---------------------------------------------------------------------------

    \10\ AFM (p. 1); Rockwool (p. 1); and EPSMA (pp. 1-2).
    \11\ EPSMA (pp. 1-2).
    \12\ EPSMA (pp. 1-2); Honeywell (pp. 2-3); and AFM (p. 1). AFM 
stated, however, that the Rule should not require this procedure for 
foam plastics or non-permeable faced insulations because these 
materials do not exhibit aging.
    \13\ Rockwool (pp. 1-2); and R&D (pp. 1-2). According to R&D, 
the new test stems from twenty years of expensive government and 
industrial research. R&D recommended that the Commission specify a 
time period or product life span for reporting R-values pursuant to 
the test. R&D also noted that although the test is expensive, it has 
to be conducted only once for a specific product design.
---------------------------------------------------------------------------

    One commenter recommended that the Commission designate CAN/ULC 
S770 as an ``alternate method'' for all permeably faced and unfaced 
foam insulation. Like other advocates of the Canadian test, this 
commenter believes the procedure provides a significant, technically 
supported improvement over the 180-day test. Polyisocyanurate 
manufacturers currently use this test for permeably faced 
polyisocyanurate boards, some of which are sold in the residential 
market. In addition, the Canadian test is now an annex to ASTM C1289-02 
(``Standard Specification for Faced Rigid Cellular Polyisocyanurate 
Thermal Insulation Board'') for permeably-faced polyisocyanurate 
insulation products. Accordingly, this commenter supports the 
incorporation of ASTM C 1289 into the Rule.\14\
---------------------------------------------------------------------------

    \14\ PIMA urged the Commission to adopt the Canadian test 
despite its limited coverage to unfaced products. In contrast, XPSA 
(pp. 4-5) opposed the adoption of the current version ASTM C 1289 
due to its incorporation of CAN/ULC S770. PIMA (p. 18) did not 
support adding ASTM C 1303 to the Rule because this test method, 
which is limited to unfaced material, does not apply to most 
insulation products used in the market today. PIMA explained that 
polyiso products always have facings, either permeable (organic or 
glass facers) or impermeable (aluminum foil facers or facers with 
gas barriers).
---------------------------------------------------------------------------

    Several commenters opposed any amendments that would require use of 
C 1303 or S770 either as a requirement or as an ``alternative method.'' 
These commenters agreed with the Commission's decision not to adopt 
these tests at this time.\15\ They noted ongoing efforts to reexamine 
these newer tests and recommended that the FTC retain existing 
requirements until ASTM C 1303 and Canadian standard CAN/ULC S770 gain 
broader acceptance and are widely considered to be technically 
sound.\16\ One commenter (ConsultMort) opposed the incorporation of 
ASTM C 1303 because it applies only to unfaced homogeneous materials, 
does not take into account all relevant factors, and does not establish 
a specific time frame for making product comparisons. The slicing and 
scaling methods, in ConsultMort's view, are better left to research, 
engineering and systems design professionals who are

[[Page 31264]]

qualified to consider the exceptions referenced in these procedures.
---------------------------------------------------------------------------

    \15\ NAIMA (p. 3); XPSA (pp. 4-5); ConsultMort; and Pactiv (pp. 
1-2). SPFA (pp. 1-2) cautioned against the improper use of the ASTM 
C-1303 and S770 procedures for spray polyurethane foam because there 
is no data to indicate these methods accurately predict aged R-
values for that product.
    \16\ See discussion in NPR at 68 FR 41881. Pactiv (pp. 1-2) 
stated that an ASTM Task Group is working to resolve various 
technical issues associated with ASTM C 1303. Pactiv also said that 
the CAN/ULC S770 Task Group has revised S770 to provide information 
about a positive bias associated with the method. Pactiv concluded 
that there is still significant work to be done on both tests. XPSA 
(pp. 2-3) also stated that bias issues related to S770 are under 
examination by industry members and emphasized that such issues 
should be fully addressed before the test is incorporated into the 
Rule.
---------------------------------------------------------------------------

    Several commenters addressed the new tests' potential impact on the 
R-values of products commonly sold in the residential market. According 
to one commenter, ASTM C 1303 and CAN/ULC S770 cover products that 
encompass only a small percentage of residential products.\17\ Another 
commenter reported that the various tests yield minimal differences in 
values for permeably faced polyiso boards at up to one inch thickness, 
but differences are apparent in thicker products.\18\ The comments also 
suggested that the costs for performing C 1303 or S770 are significant, 
running about $5,000 to $6,000 per sample and that only two or three 
third-party test laboratories are capable of performing them.\19\
---------------------------------------------------------------------------

    \17\ XPSA (pp. 2-3). Pactiv (pp. 1-2).
    \18\ PIMA (p. 17).
    \19\ XPSA (p. 2); and Pactiv (p. 2). PIMA (p. 17), however, 
asserted that C 1303 is twice as expensive to perform as S770.
---------------------------------------------------------------------------

    Several commenters also addressed the other aging tests the 
Commission proposed. These procedures, ASTM C 578, C 1029, and C 591, 
incorporate the traditional accelerated aging tests. NAIMA supported 
their incorporation, contending they are sufficiently developed to 
justify their incorporation and reflect testing improvements that will 
provide consumers with accurate information.\20\ R&D Services (pp. 1-
2), however, took issue with the three proposed tests. It stated that 
none of them are adequate for determining the long-term thermal 
resistance of the products covered because, in part, the time period 
for aging in these tests is not sufficient. In addition, R&D argued 
that C 1029 does not have specific controls on aging and testing. R&D 
also commented that ASTM C 1289, a test which applies to 
polyisocyanurate boards, is not adequate for determining long-term 
thermal resistance for these products if they have permeable facers.
---------------------------------------------------------------------------

    \20\ NAIMA (pp. 3-4) also noted that because the GSA 
Specification HH-I-530A referenced in the Rule is no longer 
available, the Commission should not continue to use it as an R-
value test standard.
---------------------------------------------------------------------------

Discussion
    The Commission has considered the comments received on the issue of 
aging and determined not to amend the Rule with respect to this issue. 
Accordingly, the Commission is not adding any new tests governing the 
aging of cellular plastics to the Rule. The comments demonstrate that 
significant disagreement continues to exist regarding the newer long-
term aging tests (ASTM C 1303 and CAN/ULC S770). The Commission 
understands that these tests are intended to address limitations with 
the traditional methods. The Commission does not believe, however, that 
requiring the use of these new methods is appropriate at this time. The 
comments highlight many concerns about the tests, including accuracy 
issues (potential bias in test results) and the need for more 
development with regard to the tests' specificity. In addition, several 
commenters suggested that their incorporation would have limited impact 
on the claimed R-value for products commonly sold in the residential 
market because the tests would make a difference in reported R-values 
for only a portion of the cellular plastic boards available. The 
Commission understands that the existing requirements do not specify 
uniform procedures under which cellular plastics insulation products 
must be tested. As a result, the Rule allows manufacturers of different 
products to base their R-values on different aging procedures and 
therefore they may not be fully comparable. The Commission recognizes 
that new slicing and scaling methods have the potential to improve the 
accuracy of required R-value disclosures. It is premature, however, to 
mandate the use of these tests as legal requirements until ongoing work 
on them is completed and existing problems are resolved. At the same 
time, the Commission does not find that these newer tests (ASTM C1303 
and CAN/ULC S770) are ``unreliable'' under the Rule (despite the need 
for improvements). Therefore, industry members already using them may 
continue to do so, and others may use them if they choose. The 
Commission will continue to monitor efforts in this area as more 
research is conducted and the existing standards are further developed 
and may revisit this matter in the future.\21\
---------------------------------------------------------------------------

    \21\ The Commission understands that GSA Specification HH-I-530A 
may have limited availability. the R-value Rule, however, only 
references one paragraph which states: ``4.6.4 Thermal conductivity. 
The thermal conductivity of insulation board shall be determined by 
the guarded hot plate method described in ASTM C 177 or by the heat 
flow method described in ASTM C 518. Tests shall be conducted on a 
1-inch thick product at a mean temperature of 75 degrees F (23.8 
degrees C) after 30 days and 90 days of conditioning at 140 degrees 
F (60 degrees C) dry heat.''
---------------------------------------------------------------------------

    In addition, the Commission has decided not to include the three 
additional test procedures contained in the proposed rule, ASTM C 
578,\22\ C 1029, and C 591 for particular product types. Incorporation 
of the proposed tests would codify the traditional aging methods for 
specific products covered by these tests. This could limit the ability 
of manufacturers of these products to use newer, improved tests in the 
future. Accordingly, the Commission has determined not to amend the 
Rule with regard to aging tests at this time.
---------------------------------------------------------------------------

    \22\ The 2003 version of ASTM C 578 directs the use of a 90 or 
180 day aging period but also states that ASTM C 1303 may be used if 
the blowing agent is intended to be retained for longer than 180 
days.
---------------------------------------------------------------------------

    Similarly, the Commission has decided not to amend the Rule to 
require ASTM C 1289 for polyisocyanurate boards, which includes a 
version of CAN/ULC S770 as an annex. Although some industry members 
currently use this procedure for certain product types (namely, 
permeably faced polyisocyanurate boards), the Commission believes it 
would be inappropriate to require its use under the Rule (whether by 
itself or as part of another test or standard) and sees little benefit 
from identifying it as an alternative method in the Rule text at this 
time.
2. Loose-Fill and Stabilized Insulations
    In the original rulemaking proceeding, the Commission determined 
that all dry-applied loose-fill insulation products tend to settle 
after installation in open (or unconfined) areas such as attics. (44 FR 
at 50228). Settling reduces the product's thickness, increases its 
density, and affects its total R-value. The amount of settling depends 
on several factors, including the raw materials and manufacturing 
process used, and the installer's application techniques (which affect 
the insulation's initial thickness and density).
    To ensure that claims made to consumers are based on long-term 
thickness and density after settling, Sec.  460.5(a)(2) of the Rule 
requires that the R-value of dry-applied loose-fill home insulations be 
determined at their ``settled density.'' Manufacturers of dry-applied 
loose-fill cellulose insulation for attic applications must test and 
disclose the R-value (as well as coverage area and related information) 
at the long-term, settled density determined according to paragraph 8 
of ASTM C 739, commonly referred to as the ``Blower Cyclone Shaker'' 
(``BCS'') test.\23\ Due to the lack of a consensus-based test procedure 
for the settled density of loose-fill mineral-fiber insulation, the 
Rule requires that industry members base the R-values for this product 
type on long-term thickness and density after settling, but does not 
specify how to determine a specimen's density. Since the Commission 
promulgated the Rule, new forms of

[[Page 31265]]

home insulation products have been introduced including ``stabilized'' 
cellulose and self-supported spray-applied cellulosic insulation.
---------------------------------------------------------------------------

    \23\ ``Standard Specification for Cellulosic Fiber Loose-Fill 
Thermal Insulation'' (ASTM C 739).
---------------------------------------------------------------------------

a. Settling
    In the NPR, the Commission addressed several issues related to the 
settling of loose-fill insulation in attics and stated it intended to 
retain the requirement that industry members use the BCS test to 
determine the settled density of cellulose loose-fill. (68 FR 41882-
41886). The Commission proposed to update the current reference to ASTM 
C 739 in Sec.  460.5(a)(2) to reflect the most current version (which 
is now the 2003 version). The Commission also stated that manufacturers 
who can demonstrate that the BCS procedure is inappropriate for their 
products can apply for an exemption that would allow them to determine 
their product's settled density under a more appropriate method (the 
exemption procedures are found in the Appendix to 16 CFR part 460).
    Section 460.5(a)(2) of the Rule does not specify procedures for 
determining the settled density of loose-fill mineral fiber insulation 
products but instead requires that R-values for dry-applied loose-fill 
mineral fiber insulations be based on tests that take the adverse 
effects of settling into account. The Commission indicated in the ANPR 
that ORNL studies conducted during the 1980's demonstrate that certain 
loose-fill mineral fiber insulation products can settle following 
installation, resulting in a reduction of R-value. (64 FR at 48033). 
The settling results differed in amount and effect, depending on the 
type of mineral fiber insulations studied (e.g., fiberglass versus rock 
wool products).
    In the NPR, the Commission did not propose any specific test for 
measuring the settling of this insulation type because there is no 
consensus standard available. In its comments on the NPR, R&D (p. 3) 
asserted that a settled density test for fiberglass and rock wool 
insulations is needed to address the settling that is known to occur. 
The Commission understands R&D's concerns and reiterates that industry 
members must have a reasonable basis for their R-value claims and take 
into account the effects of settling when applicable. Although the 
Commission cannot require industry members to develop consensus 
standards, it will monitor practices and R-value claims related to 
settling.
    The NPR proposed, however, to amend the Rule to eliminate the 
reference to an unnamed, future GSA procedure in Sec.  460.5(a)(3) 
because GSA never issued such a procedure. The Commission also proposed 
to amend the Rule to specify that tests for self-supported, spray-
applied cellulose insulation and stabilized cellulose must be done on 
samples that fully reflect the effect of settling on the products' R-
value. The Commission received four comments favoring these amendments 
and none opposing. The Commission has incorporated these amendments 
into the final rule (see Sec.  460.5(a)(3)).
b. Self-Supported Spray Applied Cellulose Insulation
Background
    Self-supported spray applied cellulose insulations are generally 
sprayed onto walls, and are able to support themselves as applied. Such 
insulations are most often used on exposed walls. In the NPR, the 
Commission proposed to require the use of ASTM C 1149 (``Standard 
Specification for Self-Supported Spray Applied Cellulosic Thermal 
Insulation'') for this type of insulation. The procedures in paragraph 
5.1 of ASTM C 1149 require the use of the manufacturer's recommended 
equipment, procedures, and maximum thickness when preparing test 
specimens. The Commission solicited comments regarding this proposed 
requirement.
Comments
    The Commission received four comments favoring the proposed 
requirement related to self-supported spray applied cellulose 
insulation. Three commenters \24\ supported the incorporation of ASTM C 
1149 into the Rule but suggested replacing the term ``settled density'' 
with the term ``density'' because the former term is not applicable to 
this product. NAIMA (p. 4) agreed with the proposal to require ASTM C 
1149 but urged the Commission also to address the impact of settling on 
wet cellulose.\25\ It also suggested moisture problems may degrade the 
settled density of the cellulose insulation and, thus, affect R-value. 
NAIMA strongly recommended that the Commission require each cellulose 
manufacturer to provide consumers with reliable drying guidelines since 
this issue directly impacts R-value and settled density.
---------------------------------------------------------------------------

    \24\ R&D (p. 2); CIMA (p. 1); and PIMA (p. 8).
    \25\ In initial comments and a late-filed comment (March 26, 
2004), NAIMA submitted information suggesting that insulation 
installed in walls without proper drying times may lead to faster 
corrosion, more mold, and lower R-values.
---------------------------------------------------------------------------

Discussion
    The Commission has reviewed the comments and has decided to amend 
the Rule by adding Sec.  460.5(a)(4) to require the use of ASTM C 1149 
(``Standard Specification for Self-Supported Spray Applied Cellulosic 
Thermal Insulation'') for deriving the R-value of such insulation. The 
Commission agrees with the commenters that this is an appropriate 
method to apply to these products. The term ``settled'' has been 
eliminated from this part as it does not apply to this material. The 
Commission has also considered NAIMA's concerns regarding moisture and 
has decided not to amend the Rule with regard to this issue. The 
Commission is not willing to prescribe detailed requirements in this 
area absent further information and the opportunity for other industry 
members to address specific proposals on this issue. Further, if 
moisture damage is a problem if the material is not properly installed, 
manufacturers should provide installation instructions as a matter of 
good practice.\26\
---------------------------------------------------------------------------

    \26\ In the NPR, the Commission did not propose any specific 
test methods for determining the long-term density of stabilized 
cellulose insulation, a product usually used in attic applications. 
(68 FR 41884-41885). One commenter, R&D (p. 3), suggested that the 
Commission require the use of ASTM C 1497-01 (``Standard 
Specification for Cellulosic Fiber Stabilized Thermal Insulation'') 
for determining the R-value for stabilized cellulose insulation. 
Because the Commission did not seek comment on this method, we 
decline to include it in the final amendments. The Commission, 
however, agrees with R&D that this test appears to be an appropriate 
method to apply in deriving R-values for this type of insulation.
---------------------------------------------------------------------------

c. Initial Installed Thickness
Background
    As discussed in the NPR, the Commission is aware of industry 
concerns about the installation of loose-fill insulation. (68 FR 41891-
41893). For loose-fill insulations, the Rule currently requires: (1) 
That each manufacturer determine the R-value of its home insulation 
product at settled density and construct coverage charts showing the 
minimum settled thickness, minimum weight per square foot, and coverage 
area per bag for various total R-values; and (2) that installers 
measure the area to be covered and install the number of bags (and 
weight of insulation material) indicated on the product's coverage 
chart for the total R-value desired. The Insulation Contractors 
Association of America (``ICAA'') has long believed that the Rule's 
requirements make it very difficult for contractors to ensure that they 
have installed the correct amount of insulation. (68 FR at 41891-
41893). In the NPR, the Commission

[[Page 31266]