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”), 66307-66314 [05-21817]
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Federal Register / Vol. 70, No. 211 / Wednesday, November 2, 2005 / Proposed Rules
requirements for Air Force, Navy, and
Marine aircraft operating over the
Falcon Bombing Range. Specifically, R–
5601F would provide additional
maneuvering area needed for aircraft
conducting training in adjacent
restricted areas R–5601B and R–5601C
which are located over the West Range
Target Area and the Falcon Bombing
Range, respectively. This action would
also enhance Fort Sill’s ability to host
joint training.
The Proposal
At the request of the U.S. Army, the
FAA is proposing an amendment to
Title 14 Code of Federal Regulations (14
CFR) part 73 to establish R–5601F
adjacent to and north of R–5601B and
R–5601C. Establishment of the new
restricted area would provide additional
airspace needed to support new high
angle air-to-ground training
requirements for Air Force, Navy, and
Marine aircraft operating over the
Falcon Bombing Range and would
enhance Fort Sill’s ability to host joint
training.
The FAA has determined that this
proposed regulation only involves an
established body of technical
regulations for which frequent and
routine amendments are necessary to
keep them operationally current.
Therefore, this proposed regulation: (1)
Is not a ‘‘significant regulatory action’’
under Executive Order 12866; (2) is not
a ‘‘significant rule’’ under Department of
Transportation (DOT) Regulatory
Policies and Procedures (44 FR 11034;
February 26, 1979); and (3) does not
warrant preparation of a regulatory
evaluation as the anticipated impact is
so minimal. Since this is a routine
matter that will only affect air traffic
procedures and air navigation, it is
certified that this proposed rule, when
promulgated, will not have a significant
economic impact on a substantial
number of small entities under the
criteria of the Regulatory Flexibility Act.
Environmental Review
This proposal will be subjected to an
environmental analysis in accordance
with FAA Order 1050.1E,
‘‘Environmental Impacts: Policies and
Procedures,’’ prior to any FAA final
regulatory action.
List of Subjects in 14 CFR Part 73
Airspace, Prohibited areas, Restricted
areas.
PART 73—SPECIAL USE AIRSPACE
FEDERAL TRADE COMMISSION
1. The authority citation for part 73
continues to read as follows:
16 CFR Part 305
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
§ 73.56
[Amended]
2. Section 73.56 is amended as
follows:
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R–5601F
Fort Sill, OK (New)
Boundaries. Beginning at lat. 34°46′24″ N.,
long. 98°52′00″ W.; thence clockwise via
the 49 NM arc of SPS VORTAC to lat.
34°47′00″ N., long. 98°51′00″ W.; to lat.
34°43′46″ N., long. 98°49′55″ W.; thence
clockwise via the 46 NM arc of SPS
VORTAC to lat. 34°45′03″ N., long.
98°29′46″ W.; to lat. 34°46′15″ N., long.
98°25′01″ W.; to lat. 34°47′00″ N., long.
98°17′46″ W.; to lat. 34°46′45″ N., long.
98°17′01″ W.; to lat. 34°46′06″ N., long.
98°17′01″ W.; to lat. 34°46′06″ N., long.
98°21′01″ W.; to lat. 34°43′45″ N., long.
98°21′01″ W.; to lat. 34°43′30″ N., long.
98°21′21″ W.; to lat. 34°43′30″ N., long.
98°35′40″ W.; to lat. 34°45′00″ N., long.
98°40′31″ W.; to lat. 34°42′15″ N., long.
98°50′01″ W.; to the point of beginning.
Excluding that airspace: (1) Below 5500
feet MSL beginning at lat. 34°44′28″ N.,
long. 98°46′16″ W.; thence clockwise via
the 46 NM arc of SPS VORTAC to lat.
34°45′09″ N., long. 98°30′57″ W.; to lat.
34°43′30″ N., long. 98°30′00″ W.; to lat.
34°43′30″ N., long. 98°35′40″ W.; to lat.
34°45′00″ N., long. 98°40′31″ W.; to lat.
34°43′09″ N., long. 98°46′56″ W.; to the
point of beginning; and, (2) below 3500 feet
MSL within a 1 NM radius of lat. 34°46′46″
N., long. 98°17′46″ W.
Designated altitudes. 500 feet AGL to FL 400.
Times of Designation. Sunrise to 2200 local
time, Monday–Friday; other times by
NOTAM.
Controlling Agency. FAA, Fort Worth
ARTCC.
Using Agency. Commanding General, United
States Army Field Artillery Center
(USAFACFS), Fort Sill, OK.
*
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Issued in Washington, DC, October 27,
2005.
Edith V. Parish,
Manager, Airspace and Rules.
[FR Doc. 05–21878 Filed 11–1–05; 8:45 am]
BILLING CODE 4910–13–P
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RIN 3084–AB03
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
(FTC or Commission).
ACTION: Advance notice of proposed
rulemaking; request for comment.
AGENCY:
SUMMARY: Section 137 of the Energy
Policy Act of 2005 requires the
Commission to conduct a rulemaking to
examine the effectiveness of current
energy efficiency labeling requirements
for consumer products issued pursuant
to the Energy Policy and Conservation
Act. In response to that directive, the
Commission is seeking comments on the
effectiveness of the Appliance Labeling
Rule and suggestions for improvements
to the energy labeling program. The
Commission is also requesting
comments about the overall costs and
benefits of the Rule and its overall
regulatory and economic impact as a
part of the Commission’s systematic
review of all its regulations and guides.
DATES: Comments must be received by
January 13, 2006.
ADDRESSES: Interested parties are
invited to submit written comments.
Comments should refer to ‘‘Energy
Labeling, Project No. R511994’’ to
facilitate the organization of comments.
A comment filed in paper form should
include this reference both in the text
and on the envelope, and should be
mailed to the following address: Federal
Trade Commission/Office of the
Secretary, Room H–135 (Annex O), 600
Pennsylvania Avenue, NW.,
Washington, DC 20580. The FTC is
requesting that any comment filed in
paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington area
and at the Commission is subject to
delay due to heightened security
precautions. Comments containing
confidential material must be filed in
paper form, must be clearly labeled
‘‘Confidential,’’ and must comply with
Commission Rule 4.9(c).1
1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
The Proposed Amendment
In consideration of the foregoing, the
Federal Aviation Administration
proposes to amend 14 CFR part 73 as
follows:
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Federal Register / Vol. 70, No. 211 / Wednesday, November 2, 2005 / Proposed Rules
Comments filed in electronic form
should be submitted by clicking on the
following Web link: https://
secure.commentworks.com/ftcenergylabeling and following the
instructions on the Web-based form. To
ensure that the Commission considers
an electronic comment, you must file it
on the Web-based form at the https://
secure.commentworks.com/ftcenergylabeling Web link. You may also
visit https://www.regulations.gov to read
this advance notice of proposed
rulemaking, and may file an electronic
comment through that Web site. The
Commission will consider all comments
that regulations.gov forwards to it.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments received by the
Commission, whether filed in paper or
in electronic form, will be considered by
the Commission, and will be available
to the public on the FTC Web site, to the
extent practicable, at https://www.ftc.gov.
As a matter of discretion, the FTC makes
every effort to remove home contact
information for individuals from public
comments it receives before placing
those comments on the FTC Web site.
More information, including routine
uses permitted by the Privacy Act, may
be found in the FTC’s privacy policy, at
https://www.ftc.gov/privacy.htm.
FOR FURTHER INFORMATION CONTACT:
Hampton Newsome, Attorney, (202)
326–2889, Division of Enforcement,
Federal Trade Commission, 601 New
Jersey Avenue, NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Energy Policy Act of 2005
Section 137 of the Energy Policy Act
of 2005 amends the Energy Policy and
Conservation Act of 1975 (EPCA) 2 to
require the Commission to initiate a
rulemaking to consider ‘‘the
effectiveness of the consumer products
labeling program in assisting consumers
in making purchasing decisions and
improving energy efficiency.’’ As part of
this effort, the Act directs the
Commission to consider ‘‘changes to the
labeling rules (including categorical
labeling) that would improve the
effectiveness of consumer product
labels.’’ The Act gives the Commission
90 days to initiate the rulemaking and
two years to complete it. To implement
this directive, the Commission is
seeking comments on the effectiveness
applicable law and the public interest. See 16 CFR
4.9(c).
2 42 U.S.C. 6291 et seq.
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of the FTC’s energy labeling regulations
for consumer products, generally
referred to as the Appliance Labeling
Rule (16 CFR part 305).
II. Energy Policy and Conservation Act
Labeling Requirements
Section 324 of EPCA requires the FTC
to prescribe labeling rules for the
disclosure of estimated annual energy
cost or alternative energy consumption
information for a variety of products
covered by the statute, including home
appliances (e.g., refrigerators,
dishwashers, air conditioners, and
furnaces), lighting, and plumbing
products.3 EPCA requires that labels for
covered appliances disclose the
estimated annual operating cost of such
products, as determined by the
Department of Energy (DOE) test
procedures (42 U.S.C. 6294(c)).4 The
Commission, however, may require a
different measure of energy
consumption if DOE determines that the
cost disclosure is not technologically
feasible, or the Commission determines
such a disclosure is not likely to assist
consumers in making purchasing
decisions or is not economically
feasible. Section 324(c) also requires
that the label contain information about
the range of estimated annual operating
costs (or energy consumption) for
covered products. The Commission may
also require the disclosure of energy
information found on the label in any
printed material displayed or
distributed at the point of sale. In
addition, the Commission may direct
manufacturers to provide additional
energy-related disclosures on the label
(or information shipped with the
product) including instructions for the
maintenance, use, or repair of the
covered product.
3 42 U.S.C. 6294. For most appliance products,
the Commission must prescribe labeling rules
unless it determines that labeling is not
technologically or economically feasible (42 U.S.C.
6294(a)(1)). For central air conditioners, heat
pumps, furnaces, and clothes washers, the statute
requires labeling unless the Commission finds that
labeling is not technologically or economically
feasible or is not likely to assist consumers in
making purchasing decisions (42 U.S.C.
6294(a)(2)(A)). Pursuant to § 6294(a)(1), the
Commission determined not to require labeling for
television sets, kitchen ranges, ovens, clothes
dryers, humidifiers, dehumidifiers, and certain
home heating equipment other than furnaces. See
44 FR 66466, 66468–66469 (Nov. 19, 1979).
4 Section 323 of EPCA (42 U.S.C. 6293) directs
DOE to develop test procedures for major
household appliances. Manufacturers must follow
these test procedures to determine their products’
compliance with DOE’s energy conservation
standards (required by § 325 of EPCA), and to
derive the energy consumption or efficiency values
to put on required labels.
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III. FTC’s Appliance Labeling Rule
The Commission’s Appliance
Labeling Rule implements the
requirements of EPCA by directing
manufacturers to disclose energy
information about major household
appliances. This information enables
consumers to compare the energy use or
efficiency of competing models.5 When
initially published in 1979,6 the Rule
applied to eight appliance categories:
refrigerators, refrigerator-freezers,
freezers, dishwashers, water heaters,
clothes washers, room air conditioners,
and furnaces. Since then, the
Commission has expanded the Rule’s
coverage to include central air
conditioners, heat pumps, fluorescent
lamp ballasts, plumbing products,
lighting products, and pool heaters and
some other types of water heaters.7
Under the Rule, manufacturers must
disclose specific energy consumption or
efficiency information about their
products at the point of sale in the form
of an ‘‘EnergyGuide’’ label affixed to
each unit. The information on the
EnergyGuide label also must appear in
catalogs and on internet sites from
which covered products can be ordered.
The Rule directs manufacturers to
derive the information from
standardized tests issued by DOE.
Required labels for appliances must
also include a ‘‘range of comparability’’
(published by the Commission) that
shows the highest and lowest energy
consumption or efficiencies for all
similar appliance models. These ranges
of comparability are intended to help
consumers determine how a specific
model compares to others available in
the market. Labels for most appliances
must provide the product’s estimated
annual operating cost. Manufacturers
must calculate these costs using
national average cost figures for energy
(e.g., electricity, natural gas, etc.)
published by DOE. In addition to the
required EnergyGuide labels,
manufacturers of furnaces, central air
conditioners, and heat pumps must
provide cost information for their
products in either fact sheets or an
industry directory.
The Rule contains very specific
requirements for the content and format
of the EnergyGuide labels.
Manufacturers cannot place any
information on the label other than that
5 More information about the Rule can be found
at https://www.ftc.gov/appliances.
6 44 FR 66466 (Nov. 19, 1979).
7 See 52 FR 46888 (Dec. 10, 1987) (central air
conditioners); 59 FR 49556 (Sept. 28, 1994) (pool
heaters); 54 FR 28031 (July 5, 1989) (fluorescent
lamp ballasts); 58 FR 54955 (Oct. 25, 1993) (certain
plumbing products); and 59 FR 25176 (May 13,
1994) (lighting products).
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specifically allowed by the Rule. In
2000, the Commission issued an
exemption allowing manufacturers to
include the ‘‘Energy Star’’ logo on the
EnergyGuide label for covered
appliances (65 FR 17554 (Apr. 30,
2000)). Energy Star is a voluntary
labeling program that identifies high
efficiency products. The Environmental
Protection Agency (EPA) and DOE
administer the Energy Star program.8
The Commission’s Rule contains
certain reporting requirements which
direct manufacturers for most covered
products to file reports with the FTC
annually and when they begin
manufacturing new models. These
reports must contain the estimated
annual energy consumption or energy
efficiency ratings for the appliances
derived from tests performed pursuant
to the DOE test procedures (16 CFR
305.8(b)). Pursuant to section 305.10,
the Commission publishes new ranges
of comparability if an analysis of the
new information indicates that the
upper or lower limits of the ranges have
changed by more than 15%. Otherwise,
the Commission publishes a statement
each year that the prior ranges remain
in effect for the next year.
The Rule has different labeling
requirements for consumer products
other than appliances (see 16 CFR
305.11(d), (e), & (f)). For example,
manufacturers of fluorescent lamp
ballasts and certain tube-type
fluorescent bulbs must disclose an
encircled ‘‘E’’ on ballasts and on
luminaires containing ballasts, as well
as on packaging. The ‘‘E’’ signifies
compliance with DOE minimum
efficiency standards. Manufacturers of
showerheads, faucets, toilets, and
urinals must disclose water usage
information on the products, packaging
and labeling. Manufacturers of certain
incandescent bulbs, spot and flood
bulbs, and screw-base compact
fluorescent bulbs must disclose, on
packaging, the light output in lumens,
energy used in watts, voltage, average
life, and number of bulbs. They also
must explain how purchasers can select
the most energy efficient bulb for their
needs.
IV. Issues and Questions for Comment
As directed by the Energy Policy Act
of 2005, the Commission is publishing
this notice to seek comment on the
effectiveness of the current appliance
labeling requirements. The Commission
has outlined below some specific issues
and questions related to the current
labeling program. These issues include
the overall effectiveness of existing
8 See
https://www.energystar.gov.
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labeling requirements, the need for a
new label design, and the benefits and
costs of alternative label formats. The
Commission is also seeking comments
on other issues such as the energy
descriptors used on current labels and
energy disclosures for products not
generally sold in showrooms. The
Commission invites interested persons
to submit written comments on any
issue of fact, law or policy that may bear
upon the FTC’s current labeling
requirements. All comments should be
filed as prescribed in the ADDRESSES
section above, and must be received on
or before January 13, 2006. After
examining the comments received, the
Commission will determine whether to
propose for comment any specific
amendments to the current
requirements.
A. Effectiveness of Labeling Program
The original EnergyGuide label
created by the Commission in 1979
contained three energy-related
disclosures for most covered products:
(1) The estimated annual operating cost
of the model, (2) the range of operating
costs for similar models displayed in the
form of a bar graph, and (3) a grid which
provided the operating cost of the model
at different energy costs. In 1994, the
Commission revised the label so that
energy use or efficiency (as opposed to
operating cost) appears as the primary
descriptor on the label.9 The revised
labels continued to display cost
information (for most products), but the
cost figures were moved to the bottom
half of the label. As part of the 1994
review of the Rule, the Commission
conducted consumer research and made
certain format changes to the
EnergyGuide label as a result. These
changes enhanced the appearance of the
range and bar graph on the label in an
effort to reduce consumer confusion (see
Figure 1). The Commission has not
conducted any consumer research about
the effectiveness of the label or
alternative formats since adopting those
changes in 1994, and the same
EnergyGuide label has been in use since
that time.
In August 2002, the American Council
for an Energy Efficient Environment
(ACEEE) released a report that
summarized research it had conducted
9 The Commission concluded that the use of
operating cost as the primary descriptor was not
likely to assist consumers. It found, among other
things, that changes in national average energy costs
necessitated frequent changes to ranges of
comparability which, in turn, could yield
inconsistent cost information in showrooms. See 53
FR 22106, 22110 (Jun. 13, 1988) and 58 FR 12818,
12827 (Mar. 5, 1993).
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66309
on the EnergyGuide label’s efficacy.10
The research included manufacturer
and consumer interviews, consumer
focus groups, a mall intercept survey,
and a simulated shopping experiment.
According to ACEEE’s report, the
interviews and focus groups suggested
that consumers are familiar with the
EnergyGuide but their use of the label
appears to be low. According to these
interviews and focus groups, consumers
found the label to be overly ‘‘wordy,
cluttered, and complex.’’ ACEEE
concluded that the EnergyGuide ‘‘can be
redesigned to improve consumer
comprehension, encourage wider use of
the label, and motivate consumers to
consider energy use when purchasing a
labeled appliance.’’ 11
ACEEE’s 2002 report also examined
several different formats and graphical
elements for the EnergyGuide label. The
ACEEE report considered various
categorical labels (i.e., those using a step
ranking system such as stars or letters to
indicate relative energy use) and
continuous labels (i.e., those containing
a bar graph or similar item which
displays information on a continuous
scale without discrete ranks or
categories). Among other things, the
report recommended the adoption of a
‘‘categorical’’ label based on a star
system (e.g., one to five stars). Various
types of categorical labels are used in
Europe, Australia, Brazil, Thailand, and
other countries (see sample European
Label at Figure 2).12 According to
ACEEE, the research suggested that
categorical labels ‘‘are easy to use and
quick to decipher.’’ Of the continuous
label designs considered, ACEEE found
that the bar graph with visible marks
denoting the graph’s scale ‘‘appears
most promising.’’ 13 ACEEE’s report
found that most consumers preferred
categorical labels over bar graphs and
other ‘‘continuous’’ label designs.
To facilitate the Commission’s efforts
to consider the effectiveness of the
10 Thorne, Jennifer and Egan, Christine, ‘‘An
Evaluation of the Federal Trade Commission’s
EnergyGuide Label: Final Report and
Recommendations,’’ ACEEE, August 2002
[hereinafter ‘‘ACEEE 2002 Report’’]. The Report was
funded in part by DOE, EPA, and other
organizations. It is available online at https://
aceee.org/pubs/a021full.pdf. The Commission has
not determined what, if any, reliance it will place
on the ACEEE’s report (or any other labeling study)
during this proceeding.
11 Id. at v–vi.
12 See Wiel, Stephen, and McMahon, James E.,
‘‘Energy-Efficiency Labels and Standards: A
Guidebook for Appliances, Equipment, and
Lighting, 2nd Edition,’’ Collaborative Labeling and
Appliance Standards Program (CLASP), 2005.
13 The ACEEE report contains a sample label with
such a bar graph (pp. vi and 27–28) in addition to
many other sample labels featuring various bar
graph and categorical designs. See https://aceee.org/
pubs/a021full.pdf.
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Federal Register / Vol. 70, No. 211 / Wednesday, November 2, 2005 / Proposed Rules
existing labeling program, we request
that commenters consider the following
questions: 14
1. Do any recent reports, studies, or
research provide data with which to
estimate the benefits and costs of
current consumer appliance energy
labeling programs in the United States?
In particular, have any such studies
examined the effectiveness of the
EnergyGuide label and alternative
formats and approaches? Are there any
recent studies from other countries that
would be helpful for the Commission to
consider?
2. How should the Commission
measure the ‘‘effectiveness’’ of the
appliance labeling program ‘‘in assisting
consumers in making purchasing
decisions’’? For example, should
effectiveness be measured by consumer
comprehension of specific label
elements, consumer preference for
different labels, the impact of labels on
product choice, or other means?
3. How effective is the EnergyGuide
label in providing consumers with
useful, accurate information about the
energy consumption or energy
efficiency of covered products? What is
the net benefit of the current
EnergyGuide labels? Can appliance
energy labels be modified to increase
the net benefits of consumer energy
labeling programs in the United States?
4. What is the effectiveness of the
current EnergyGuide label in improving
energy efficiency?
5. What has been the impact of the
Energy Star program on the
effectiveness of the EnergyGuide label
and its usefulness for consumers?
6. Would changes to the current label
design and format significantly improve
or have a significant impact upon the
effectiveness of the labels? How is the
effectiveness of the EnergyGuide label
affected by factors unrelated to label
design (e.g., consumer priorities)?
7. What changes, if any, should be
made to the current appearance of the
EnergyGuide label (content, size, format,
color, graphical presentation, etc.)?
8. Should the FTC change the
EnergyGuide label to require a
categorical design such as a star based
label? Would a categorical design yield
benefits for consumers? What would be
the costs of implementing a categorical
label system? How would the benefits of
such a system compare to the costs?
9. Do commenters have views about
the design, methodology, conclusions,
14 Where
appropriate, the Commission requests
enough detail about data, study design, statistical
analysis, and findings to enable the FTC to
understand the methodology that was used to
conduct the analysis.
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or other aspects of the ACEEE 2002
report?
10. Would a categorical label design
significantly improve energy efficiency?
Would consumers interpret a categorical
label as an indicia of product quality
instead of energy performance or
efficiency?
11. What criteria would the FTC need
to use to assign a star rating to various
models in specific product categories
(i.e., criteria for a product to receive five
stars, one star, etc.)? Would the stars be
based on the DOE minimum efficiency
standards, the range of energy
consumption for models in a particular
class, or some other measure? How
would a star-based categorical label
depict the required ranges? For
example, would the lowest rating (i.e.,
one star) apply to the least efficient
products in a product class category
regardless of the number of products in
the class and the efficiency of those
products relative to DOE standards?
12. Would a categorical label require
the FTC to make judgments about the
relative energy efficiency of products in
the market? If so, what information
would the Commission need to make
such judgments? How would it obtain
the necessary information? What would
be the costs of making such
determinations?
13. Would a star based EnergyGuide
label be duplicative of the Energy Star
program? Would the star based label
cause consumer confusion given the
existence of the Energy Star program?
14. Section 305.19 of the Rule
contains an exemption which allows
manufacturers to place the Energy Star
logo on the EnergyGuide label for
qualified products. Under the
exemption, the Energy Star logo must be
placed ‘‘above the comparability bar in
the box that contains the applicable
range of comparability.’’
Should the Commission consider
changes to that exemption (e.g., changes
to the placement of the logo on the
label)?
15. In addition to considering the
categorical label as required by the
Energy Policy Act of 2005, should the
Commission consider other formats or
graphical representations for the
EnergyGuide label? Are there
improvements that can be made to the
current bar graph design in the
EnergyGuide label?
B. Energy Descriptors For Various
Products
Currently, EnergyGuide labels for
most products provide information on
the energy use (or efficiency) of the
model, the range of energy use (or
efficiency) in the market, and an
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estimated annual operating cost. The
product labels display different energy
information depending on the product.
For example, refrigerator labels contain
energy use information in the form of
kilowatt-hours per year while room air
conditioners display energy efficiency
information through an Energy
Efficiency Ratio (EER). In addition,
labels for central air conditioning units,
heat pumps, furnaces, and pool heaters
do not contain cost information.
To aid the Commission in considering
possible Rule changes for this issue, we
request that commenters consider the
following questions:
1. Are the current energy descriptors
understandable to consumers? What
changes, if any, should be made to the
energy descriptors used on the
EnergyGuide label?
2. Should the FTC consider requiring
estimated annual operating costs as the
primary descriptor on EnergyGuide
labels in lieu of energy consumption or
energy efficiency information? What are
the costs and benefits of requiring
operating costs as the primary
descriptor?
3. Should the Commission consider
different energy descriptors for existing
products? For instance, should the
clothes washer label disclose the
model’s efficiency rating using the
measure currently required by DOE (the
‘‘Modified Energy Factor’’) instead of
the product’s annual energy
consumption?
C. Disclosures for Central Air
Conditioning, Heat Pumps, and
Furnaces
The Commission is also interested in
current labeling requirements for
products that generally do not appear in
showrooms where consumers can
compare labels on competing models.
Such products include central air
conditioning units, heat pumps, and
furnaces.15 The Commission seeks
comment on whether there are
alternatives to labeling that would more
effectively communicate energy
efficiency information to consumers for
such products. Although the Rule
requires manufacturers to disclose
energy information for these products
through means other than labels, such
as fact sheets and directories (see 16
CFR 305.11(b)), it is unclear whether
such methods provide helpful
information for consumers. Fact sheets
contain detailed information that may
15 See, e.g., 44 FR at 66470 (Nov. 19, 1979) (‘‘The
majority of furnace purchases are made either in the
consumer’s home or as part of the consumer’s
purchase of a home. As a result, few consumers
have an opportunity to see a display model before
the furnace is installed.’’).
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not be easy to understand such as cost
charts, regional heating and cooling
maps, and equations related to the
energy performance. In addition, most
industry members provide cost
information in industry directories
instead of preparing fact sheets. It is
unclear whether consumers normally
consult these industry directories in
making their purchasing decisions. To
aid the Commission in evaluating these
existing requirements, the Commission
seeks information on the following
questions:
1. How do consumers generally
receive information about the energy
efficiency of central air conditioners,
heat pumps, and furnaces?
2. Are EnergyGuide labels on central
air conditioners, heat pumps, and
furnaces assisting consumers in their
purchasing decisions? If not, should the
Commission consider an alternative
method of ensuring that consumers have
access to useful efficiency information
for these products?
3. Should the Commission consider
changes to the current fact sheet
requirements for central air
conditioners, heat pumps, and furnaces?
4. Are there any alternative or
additional forms of information (such as
brochures, catalogs, or information
sheets) that the FTC could require at the
point of sale that would help consumers
in making their purchasing decisions for
these products?
D. Reporting Requirements
Section 326(b) of EPCA requires
manufacturers to notify the Commission
of new models they produce and also
directs them to file an annual report
with energy consumption information
about their products. The annual report
information is available on the FTC Web
site at https://www.ftc.gov/
appliancedata. To aid the Commission
in considering possible changes to the
Rule’s reporting requirements, we
request that commenters consider the
following questions:
1. What changes, if any, should be
made to the specific information
covered by existing reporting
requirements in the Rule? Would such
changes improve the effectiveness of the
labeling program for consumers?
2. Is there additional product
information that the FTC should
require, consistent with its statutory
authority, in reports from
manufacturers? What are the costs and
benefits of requiring such additional
information? Are there reporting
requirements that the FTC should
eliminate from the Rule (consistent with
current statutory requirements)?
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E. Annual Revisions to the Ranges of
Comparability
As discussed above, the EnergyGuide
label must contain a range of
comparability that shows the highest
and lowest energy consumption or
efficiencies for all similar appliance
models. EPCA does not specify when
the Commission must change the
ranges, but states it cannot do so ‘‘more
often than annually.’’ 42 U.S.C. 426(c).
The Commission’s regulations indicate
that the FTC will revise ranges annually,
if appropriate (16 CFR 305.10). For some
products, such as dishwashers, the
Commission has changed the applicable
ranges several times over the last few
years. When the Commission changes
the ranges, manufacturers must amend
their labels to reflect the new ranges and
update the operating costs on the labels
using a new national average cost of
electricity. Frequent range changes can
cause the labels on different models in
the same showroom to display
inconsistent range and cost information
because the models on display may
have been manufactured at different
times. This may be confusing to
consumers. Frequent range revisions
also impose a burden on manufacturers
because they must change their product
labels. To aid the Commission in
considering possible Rule changes for
this issue, we request that commenters
consider the following questions:
1. Are changes in the energy use of
products in the market significant
enough to warrant an examination of the
ranges of comparability every year?
2. Should the Commission consider
amending the Rule so that the FTC
examines the comparability ranges less
often than annually? If so, how often
should the Commission examine the
ranges? Would such a change affect the
effectiveness of the labeling program?
3. Are there ways to alleviate
potential consumer confusion caused
when certain product labels display
new range and cost information and
other models in the same showroom
have labels displaying old range and
cost information?
F. Lighting and Plumbing Products
What changes, if any, should be made
to existing labeling requirements for
lighting and plumbing products in 16
CFR part 305? What are the costs and
benefits of any proposed labeling
changes for lighting and plumbing
products?
V. Regulatory Review
The Commission conducts scheduled
reviews of its rules and guides in an
effort to seek information about their
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66311
costs and benefits and regulatory and
economic impact. The regulatory review
of the Appliance Labeling Rule had
been scheduled for 2008. The
Commission is combining that
scheduled regulatory review with the
present rulemaking required by the
Energy Policy Act of 2005. Accordingly,
in addition to the specific questions
listed above, the Commission is also
soliciting general comments on, among
other things, the economic impact of
and the continuing need for the Rule;
possible conflicts between the Rule and
State, local, or other Federal laws; and
the effect on the Rule of any
technological, economic or other
industry changes.
The Commission is interested in
receiving data, surveys and other
empirical evidence to support
comments submitted in response to this
notice. As part of the regulatory review,
the Commission is particularly
interested in receiving comments and
supporting data in response to the
following questions:
(A) What benefits, if any, has the Rule
provided to consumers of products
covered by the Rule?
(B) What changes, if any, should be
made to the Rule to increase the benefits
of the Rule to consumers? How would
these changes affect the costs the Rule
imposes on industry members?
(C) What significant burdens or costs,
if any, including costs of compliance,
has the Rule imposed on industry
members subject to its requirements?
Has the Rule provided benefits to such
industry members?
(D) What changes, if any, should be
made to the Rule to reduce the burdens
or costs imposed on industry members
subject to its requirements? How would
these changes affect the benefits
provided by the Rule?
(E) Does the Rule overlap or conflict
with other Federal, State, or local laws
or regulations?
(F) Since the Rule was issued, what
effects, if any, have changes in relevant
technology or economic conditions had
on the Rule?
(G) What significant burdens or costs,
if any, including costs of compliance,
has the Rule imposed on small
businesses subject to its requirements?
How do these burdens or costs differ
from those imposed on larger businesses
subject to the Rule’s requirements?
(H) What changes, if any, should be
made to the Rule to reduce the burdens
or costs imposed on small businesses?
How would these changes affect the
benefits of the Rule? Would such
changes adversely affect the competitive
position of larger businesses?
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(I) Are there any other costs or
benefits associated with the Rule?
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List of Subjects in 16 CFR Part 305
Advertising, Consumer protection,
Energy conservation, Household
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appliances, Labeling, Lamp products,
Penalties, Reporting and recordkeeping
requirements.
BILLING CODE 6750–01–P
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66312
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EP02NO05.062
Federal Register / Vol. 70, No. 211 / Wednesday, November 2, 2005 / Proposed Rules
66314
Federal Register / Vol. 70, No. 211 / Wednesday, November 2, 2005 / Proposed Rules
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 05–21817 Filed 11–1–05; 8:45 am]
because they are concerned only with
the administration of Privacy Act
systems of records within the
Department of Defense.
BILLING CODE 6750–01–C
Public Law 96–511, ‘‘Paperwork
Reduction Act’’ (44 U.S.C. Chapter 35)
It has been determined that Privacy
Act rules for the Department of Defense
impose no information requirements
beyond the Department of Defense and
that the information collected within
the Department of Defense is necessary
and consistent with 5 U.S.C. 552a,
known as the Privacy Act of 1974.
DEPARTMENT OF DEFENSE
Defense Contract Audit Agency
32 CFR Part 317
Privacy Act; Implementation
Defense Contract Audit
Agency.
ACTION: Proposed rule.
AGENCY:
SUMMARY: The Defense Contract Audit
Agency (DCAA) is proposing to update
the DCAA Privacy Act Program Rules,
32 CFR, Part 317, by deleting references
to a cancelled publication and by
adding guidance concerning the blanket
exemption for classified material.
DATES: Comments must be received on
or before January 3, 2006 to be
considered by this agency.
Send comments to Senior
Advisor, Defense Contract Audit
Agency, Information and Privacy, CM,
8725 John J. Kingman Road, Suite 2135,
Fort Belvoir, VA 22060–6201.
FOR FURTHER INFORMATION CONTACT: Ms.
Debbie Teer at (703) 767–1002.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Executive Order 12866, ‘‘Regulatory
Planning and Review’’
It has been determined that Privacy
Act rules for the Department of Defense
are not significant rules. The rules do
not (1) Have an annual effect on the
economy of $100 million or more or
adversely affect in a material way the
economy; a sector of the economy;
productivity; competition; jobs; the
environment; public health or safety; or
State, local, or tribal governments or
communities; (2) Create a serious
inconsistency or otherwise interfere
with an action taken or planned by
another Agency; (3) Materially alter the
budgetary impact of entitlements,
grants, user fees, or loan programs, or
the rights and obligations of recipients
thereof; or (4) Raise novel legal or policy
issues arising out of legal mandates, the
President’s priorities, or the principles
set forth in this Executive order.
Public Law 96–354, ‘‘Regulatory
Flexibility Act’’ (5 U.S.C. Chapter 6)
It has been determined that Privacy
Act rules for the Department of Defense
do not have significant economic impact
on a substantial number of small entities
VerDate Aug<31>2005
16:45 Nov 01, 2005
Jkt 208001
Section 202, Public Law 104–4,
‘‘Unfunded Mandates Reform Act’’
It has been determined that Privacy
Act rulemaking for the Department of
Defense does not involve a Federal
mandate that may result in the
expenditure by State, local and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
and that such rulemaking will not
significantly or uniquely affect small
governments.
Executive Order 13132, ‘‘Federalism’’
It has been determined that Privacy
Act rules for the Department of Defense
do not have federalism implications.
The rules do not have substantial direct
effects on the States, on the relationship
between the National Government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.
List of Subjects in 32 CFR Part 317
Privacy.
Accordingly, 32 CFR part 317 is
proposed to be amended as follows:
PART 317—DCAA PRIVACY ACT
PROGRAM
1. The authority citation for 32 CFR
part 317 continues to read as follows:
Authority: Pub. L. 93–579, 88 Stat. 1896 (5
U.S.C. 552a)
§ 317.4
[Amended]
2. Amend § 317.4 as follows:
a. Remove paragraph (c)(5).
b. Redesignate paragraphs (c)(6),
(c)(7), and (c)(8) as (c)(5), (c)(6), and
(c)(7).
3. Amend part 317 by adding § 317.7
as follows:
§ 317.7
Exemptions.
All systems of records maintained by
DCAA will be exempt from the
requirements of 5 U.S.C. 552a(d) and
(e)(4)(H) pursuant to 5 U.S.C. 552a(k)(1)
to the extent that the system contains
any information properly classified
under Executive Order 12958, that is
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required by the Executive Order to be
kept secret in the interest of national
defense or foreign policy. This
exemption, which may be applicable to
parts of all systems of records, is
necessary since certain record systems,
not otherwise specifically designated for
exemptions herein, may contain isolated
items of information which have been
properly classified.
Dated: October 27, 2005.
L.M. Bynum,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
[FR Doc. 05–21783 Filed 11–1–05; 8:45 am]
BILLING CODE 5001–06–M
POSTAL SERVICE
39 CFR Part 111
Bundling Flat-Size and Irregular Parcel
Mail—Bundle Integrity
Postal Service.
Proposed rule.
AGENCY:
ACTION:
SUMMARY: The Postal Service proposes
that mailers use two bands to secure all
bundles of presorted rate flat-size mail
and irregular parcels that are not
shrinkwrapped. This proposal would
remove the option to secure bundles up
to 1 inch thick with only one band.
DATES: We must receive your comments
on or before December 2, 2005.
ADDRESSES: Mail or deliver comments to
the Manager, Mailing Standards, U.S.
Postal Service, 475 L’Enfant Plaza SW.,
Rm. 3436, Washington, DC 20260–3436.
You may inspect and photocopy all
written comments between 9 a.m. and 4
p.m., Monday through Friday, at USPS
Headquarters Library, 11th Floor North,
475 L’Enfant Plaza SW., Washington,
DC 20260.
FOR FURTHER INFORMATION CONTACT: Bill
Chatfield at 202–268–7278.
SUPPLEMENTARY INFORMATION: We are
proposing a revision to Mailing
Standards of the United States Postal
Service, Domestic Mail Manual (DMM)
that would require mailers to use at
least two bands—one around the length
and one around the girth—when only
banding is used to secure bundles of
flat-size and irregular parcel mailpieces.
‘‘Bundle integrity’’—the ability of
bundles to remain intact—is crucial for
our new, high-speed Automated
Package Processing System (APPS).
Bundles with only one band tend to curl
up and allow mailpieces to escape the
bundle. When these or other bundles
break open, we lose the value of mailers’
presort, and we have to handle
individual pieces manually. Manual
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Agencies
[Federal Register Volume 70, Number 211 (Wednesday, November 2, 2005)]
[Proposed Rules]
[Pages 66307-66314]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21817]
=======================================================================
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FEDERAL TRADE COMMISSION
16 CFR Part 305
RIN 3084-AB03
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 (FTC or Commission).
ACTION: Advance notice of proposed rulemaking; request for comment.
-----------------------------------------------------------------------
SUMMARY: Section 137 of the Energy Policy Act of 2005 requires the
Commission to conduct a rulemaking to examine the effectiveness of
current energy efficiency labeling requirements for consumer products
issued pursuant to the Energy Policy and Conservation Act. In response
to that directive, the Commission is seeking comments on the
effectiveness of the Appliance Labeling Rule and suggestions for
improvements to the energy labeling program. The Commission is also
requesting comments about the overall costs and benefits of the Rule
and its overall regulatory and economic impact as a part of the
Commission's systematic review of all its regulations and guides.
DATES: Comments must be received by January 13, 2006.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``Energy Labeling, Project No. R511994'' to
facilitate the organization of comments. A comment filed in paper form
should include this reference both in the text and on the envelope, and
should be mailed to the following address: Federal Trade Commission/
Office of the Secretary, Room H-135 (Annex O), 600 Pennsylvania Avenue,
NW., Washington, DC 20580. The FTC is requesting that any comment filed
in paper form be sent by courier or overnight service, if possible,
because U.S. postal mail in the Washington area and at the Commission
is subject to delay due to heightened security precautions. Comments
containing confidential material must be filed in paper form, must be
clearly labeled ``Confidential,'' and must comply with Commission Rule
4.9(c).\1\
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\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See 16 CFR 4.9(c).
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[[Page 66308]]
Comments filed in electronic form should be submitted by clicking
on the following Web link: https://secure.commentworks.com/ftc-
energylabeling and following the instructions on the Web-based form. To
ensure that the Commission considers an electronic comment, you must
file it on the Web-based form at the https://secure.commentworks.com/
ftc-energylabeling Web link. You may also visit https://
www.regulations.gov to read this advance notice of proposed rulemaking,
and may file an electronic comment through that Web site. The
Commission will consider all comments that regulations.gov forwards to
it.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments received by the
Commission, whether filed in paper or in electronic form, will be
considered by the Commission, and will be available to the public on
the FTC Web site, to the extent practicable, at https://www.ftc.gov. As
a matter of discretion, the FTC makes every effort to remove home
contact information for individuals from public comments it receives
before placing those comments on the FTC Web site. More information,
including routine uses permitted by the Privacy Act, may be found in
the FTC's privacy policy, at https://www.ftc.gov/privacy.htm.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, (202) 326-
2889, Division of Enforcement, Federal Trade Commission, 601 New Jersey
Avenue, NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Energy Policy Act of 2005
Section 137 of the Energy Policy Act of 2005 amends the Energy
Policy and Conservation Act of 1975 (EPCA) \2\ to require the
Commission to initiate a rulemaking to consider ``the effectiveness of
the consumer products labeling program in assisting consumers in making
purchasing decisions and improving energy efficiency.'' As part of this
effort, the Act directs the Commission to consider ``changes to the
labeling rules (including categorical labeling) that would improve the
effectiveness of consumer product labels.'' The Act gives the
Commission 90 days to initiate the rulemaking and two years to complete
it. To implement this directive, the Commission is seeking comments on
the effectiveness of the FTC's energy labeling regulations for consumer
products, generally referred to as the Appliance Labeling Rule (16 CFR
part 305).
---------------------------------------------------------------------------
\2\ 42 U.S.C. 6291 et seq.
---------------------------------------------------------------------------
II. Energy Policy and Conservation Act Labeling Requirements
Section 324 of EPCA requires the FTC to prescribe labeling rules
for the disclosure of estimated annual energy cost or alternative
energy consumption information for a variety of products covered by the
statute, including home appliances (e.g., refrigerators, dishwashers,
air conditioners, and furnaces), lighting, and plumbing products.\3\
EPCA requires that labels for covered appliances disclose the estimated
annual operating cost of such products, as determined by the Department
of Energy (DOE) test procedures (42 U.S.C. 6294(c)).\4\ The Commission,
however, may require a different measure of energy consumption if DOE
determines that the cost disclosure is not technologically feasible, or
the Commission determines such a disclosure is not likely to assist
consumers in making purchasing decisions or is not economically
feasible. Section 324(c) also requires that the label contain
information about the range of estimated annual operating costs (or
energy consumption) for covered products. The Commission may also
require the disclosure of energy information found on the label in any
printed material displayed or distributed at the point of sale. In
addition, the Commission may direct manufacturers to provide additional
energy-related disclosures on the label (or information shipped with
the product) including instructions for the maintenance, use, or repair
of the covered product.
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\3\ 42 U.S.C. 6294. For most appliance products, the Commission
must prescribe labeling rules unless it determines that labeling is
not technologically or economically feasible (42 U.S.C. 6294(a)(1)).
For central air conditioners, heat pumps, furnaces, and clothes
washers, the statute requires labeling unless the Commission finds
that labeling is not technologically or economically feasible or is
not likely to assist consumers in making purchasing decisions (42
U.S.C. 6294(a)(2)(A)). Pursuant to Sec. 6294(a)(1), the Commission
determined not to require labeling for television sets, kitchen
ranges, ovens, clothes dryers, humidifiers, dehumidifiers, and
certain home heating equipment other than furnaces. See 44 FR 66466,
66468-66469 (Nov. 19, 1979).
\4\ Section 323 of EPCA (42 U.S.C. 6293) directs DOE to develop
test procedures for major household appliances. Manufacturers must
follow these test procedures to determine their products' compliance
with DOE's energy conservation standards (required by Sec. 325 of
EPCA), and to derive the energy consumption or efficiency values to
put on required labels.
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III. FTC's Appliance Labeling Rule
The Commission's Appliance Labeling Rule implements the
requirements of EPCA by directing manufacturers to disclose energy
information about major household appliances. This information enables
consumers to compare the energy use or efficiency of competing
models.\5\ When initially published in 1979,\6\ the Rule applied to
eight appliance categories: refrigerators, refrigerator-freezers,
freezers, dishwashers, water heaters, clothes washers, room air
conditioners, and furnaces. Since then, the Commission has expanded the
Rule's coverage to include central air conditioners, heat pumps,
fluorescent lamp ballasts, plumbing products, lighting products, and
pool heaters and some other types of water heaters.\7\
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\5\ More information about the Rule can be found at https://
www.ftc.gov/appliances.
\6\ 44 FR 66466 (Nov. 19, 1979).
\7\ See 52 FR 46888 (Dec. 10, 1987) (central air conditioners);
59 FR 49556 (Sept. 28, 1994) (pool heaters); 54 FR 28031 (July 5,
1989) (fluorescent lamp ballasts); 58 FR 54955 (Oct. 25, 1993)
(certain plumbing products); and 59 FR 25176 (May 13, 1994)
(lighting products).
---------------------------------------------------------------------------
Under the Rule, manufacturers must disclose specific energy
consumption or efficiency information about their products at the point
of sale in the form of an ``EnergyGuide'' label affixed to each unit.
The information on the EnergyGuide label also must appear in catalogs
and on internet sites from which covered products can be ordered. The
Rule directs manufacturers to derive the information from standardized
tests issued by DOE.
Required labels for appliances must also include a ``range of
comparability'' (published by the Commission) that shows the highest
and lowest energy consumption or efficiencies for all similar appliance
models. These ranges of comparability are intended to help consumers
determine how a specific model compares to others available in the
market. Labels for most appliances must provide the product's estimated
annual operating cost. Manufacturers must calculate these costs using
national average cost figures for energy (e.g., electricity, natural
gas, etc.) published by DOE. In addition to the required EnergyGuide
labels, manufacturers of furnaces, central air conditioners, and heat
pumps must provide cost information for their products in either fact
sheets or an industry directory.
The Rule contains very specific requirements for the content and
format of the EnergyGuide labels. Manufacturers cannot place any
information on the label other than that
[[Page 66309]]
specifically allowed by the Rule. In 2000, the Commission issued an
exemption allowing manufacturers to include the ``Energy Star'' logo on
the EnergyGuide label for covered appliances (65 FR 17554 (Apr. 30,
2000)). Energy Star is a voluntary labeling program that identifies
high efficiency products. The Environmental Protection Agency (EPA) and
DOE administer the Energy Star program.\8\
---------------------------------------------------------------------------
\8\ See https://www.energystar.gov.
---------------------------------------------------------------------------
The Commission's Rule contains certain reporting requirements which
direct manufacturers for most covered products to file reports with the
FTC annually and when they begin manufacturing new models. These
reports must contain the estimated annual energy consumption or energy
efficiency ratings for the appliances derived from tests performed
pursuant to the DOE test procedures (16 CFR 305.8(b)). Pursuant to
section 305.10, the Commission publishes new ranges of comparability if
an analysis of the new information indicates that the upper or lower
limits of the ranges have changed by more than 15%. Otherwise, the
Commission publishes a statement each year that the prior ranges remain
in effect for the next year.
The Rule has different labeling requirements for consumer products
other than appliances (see 16 CFR 305.11(d), (e), & (f)). For example,
manufacturers of fluorescent lamp ballasts and certain tube-type
fluorescent bulbs must disclose an encircled ``E'' on ballasts and on
luminaires containing ballasts, as well as on packaging. The ``E''
signifies compliance with DOE minimum efficiency standards.
Manufacturers of showerheads, faucets, toilets, and urinals must
disclose water usage information on the products, packaging and
labeling. Manufacturers of certain incandescent bulbs, spot and flood
bulbs, and screw-base compact fluorescent bulbs must disclose, on
packaging, the light output in lumens, energy used in watts, voltage,
average life, and number of bulbs. They also must explain how
purchasers can select the most energy efficient bulb for their needs.
IV. Issues and Questions for Comment
As directed by the Energy Policy Act of 2005, the Commission is
publishing this notice to seek comment on the effectiveness of the
current appliance labeling requirements. The Commission has outlined
below some specific issues and questions related to the current
labeling program. These issues include the overall effectiveness of
existing labeling requirements, the need for a new label design, and
the benefits and costs of alternative label formats. The Commission is
also seeking comments on other issues such as the energy descriptors
used on current labels and energy disclosures for products not
generally sold in showrooms. The Commission invites interested persons
to submit written comments on any issue of fact, law or policy that may
bear upon the FTC's current labeling requirements. All comments should
be filed as prescribed in the ADDRESSES section above, and must be
received on or before January 13, 2006. After examining the comments
received, the Commission will determine whether to propose for comment
any specific amendments to the current requirements.
A. Effectiveness of Labeling Program
The original EnergyGuide label created by the Commission in 1979
contained three energy-related disclosures for most covered products:
(1) The estimated annual operating cost of the model, (2) the range of
operating costs for similar models displayed in the form of a bar
graph, and (3) a grid which provided the operating cost of the model at
different energy costs. In 1994, the Commission revised the label so
that energy use or efficiency (as opposed to operating cost) appears as
the primary descriptor on the label.\9\ The revised labels continued to
display cost information (for most products), but the cost figures were
moved to the bottom half of the label. As part of the 1994 review of
the Rule, the Commission conducted consumer research and made certain
format changes to the EnergyGuide label as a result. These changes
enhanced the appearance of the range and bar graph on the label in an
effort to reduce consumer confusion (see Figure 1). The Commission has
not conducted any consumer research about the effectiveness of the
label or alternative formats since adopting those changes in 1994, and
the same EnergyGuide label has been in use since that time.
---------------------------------------------------------------------------
\9\ The Commission concluded that the use of operating cost as
the primary descriptor was not likely to assist consumers. It found,
among other things, that changes in national average energy costs
necessitated frequent changes to ranges of comparability which, in
turn, could yield inconsistent cost information in showrooms. See 53
FR 22106, 22110 (Jun. 13, 1988) and 58 FR 12818, 12827 (Mar. 5,
1993).
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In August 2002, the American Council for an Energy Efficient
Environment (ACEEE) released a report that summarized research it had
conducted on the EnergyGuide label's efficacy.\10\ The research
included manufacturer and consumer interviews, consumer focus groups, a
mall intercept survey, and a simulated shopping experiment. According
to ACEEE's report, the interviews and focus groups suggested that
consumers are familiar with the EnergyGuide but their use of the label
appears to be low. According to these interviews and focus groups,
consumers found the label to be overly ``wordy, cluttered, and
complex.'' ACEEE concluded that the EnergyGuide ``can be redesigned to
improve consumer comprehension, encourage wider use of the label, and
motivate consumers to consider energy use when purchasing a labeled
appliance.'' \11\
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\10\ Thorne, Jennifer and Egan, Christine, ``An Evaluation of
the Federal Trade Commission's EnergyGuide Label: Final Report and
Recommendations,'' ACEEE, August 2002 [hereinafter ``ACEEE 2002
Report'']. The Report was funded in part by DOE, EPA, and other
organizations. It is available online at https://aceee.org/pubs/
a021full.pdf. The Commission has not determined what, if any,
reliance it will place on the ACEEE's report (or any other labeling
study) during this proceeding.
\11\ Id. at v-vi.
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ACEEE's 2002 report also examined several different formats and
graphical elements for the EnergyGuide label. The ACEEE report
considered various categorical labels (i.e., those using a step ranking
system such as stars or letters to indicate relative energy use) and
continuous labels (i.e., those containing a bar graph or similar item
which displays information on a continuous scale without discrete ranks
or categories). Among other things, the report recommended the adoption
of a ``categorical'' label based on a star system (e.g., one to five
stars). Various types of categorical labels are used in Europe,
Australia, Brazil, Thailand, and other countries (see sample European
Label at Figure 2).\12\ According to ACEEE, the research suggested that
categorical labels ``are easy to use and quick to decipher.'' Of the
continuous label designs considered, ACEEE found that the bar graph
with visible marks denoting the graph's scale ``appears most
promising.'' \13\ ACEEE's report found that most consumers preferred
categorical labels over bar graphs and other ``continuous'' label
designs.
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\12\ See Wiel, Stephen, and McMahon, James E., ``Energy-
Efficiency Labels and Standards: A Guidebook for Appliances,
Equipment, and Lighting, 2nd Edition,'' Collaborative Labeling and
Appliance Standards Program (CLASP), 2005.
\13\ The ACEEE report contains a sample label with such a bar
graph (pp. vi and 27-28) in addition to many other sample labels
featuring various bar graph and categorical designs. See https://
aceee.org/pubs/a021full.pdf.
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To facilitate the Commission's efforts to consider the
effectiveness of the
[[Page 66310]]
existing labeling program, we request that commenters consider the
following questions: \14\
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\14\ Where appropriate, the Commission requests enough detail
about data, study design, statistical analysis, and findings to
enable the FTC to understand the methodology that was used to
conduct the analysis.
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1. Do any recent reports, studies, or research provide data with
which to estimate the benefits and costs of current consumer appliance
energy labeling programs in the United States? In particular, have any
such studies examined the effectiveness of the EnergyGuide label and
alternative formats and approaches? Are there any recent studies from
other countries that would be helpful for the Commission to consider?
2. How should the Commission measure the ``effectiveness'' of the
appliance labeling program ``in assisting consumers in making
purchasing decisions''? For example, should effectiveness be measured
by consumer comprehension of specific label elements, consumer
preference for different labels, the impact of labels on product
choice, or other means?
3. How effective is the EnergyGuide label in providing consumers
with useful, accurate information about the energy consumption or
energy efficiency of covered products? What is the net benefit of the
current EnergyGuide labels? Can appliance energy labels be modified to
increase the net benefits of consumer energy labeling programs in the
United States?
4. What is the effectiveness of the current EnergyGuide label in
improving energy efficiency?
5. What has been the impact of the Energy Star program on the
effectiveness of the EnergyGuide label and its usefulness for
consumers?
6. Would changes to the current label design and format
significantly improve or have a significant impact upon the
effectiveness of the labels? How is the effectiveness of the
EnergyGuide label affected by factors unrelated to label design (e.g.,
consumer priorities)?
7. What changes, if any, should be made to the current appearance
of the EnergyGuide label (content, size, format, color, graphical
presentation, etc.)?
8. Should the FTC change the EnergyGuide label to require a
categorical design such as a star based label? Would a categorical
design yield benefits for consumers? What would be the costs of
implementing a categorical label system? How would the benefits of such
a system compare to the costs?
9. Do commenters have views about the design, methodology,
conclusions, or other aspects of the ACEEE 2002 report?
10. Would a categorical label design significantly improve energy
efficiency? Would consumers interpret a categorical label as an indicia
of product quality instead of energy performance or efficiency?
11. What criteria would the FTC need to use to assign a star rating
to various models in specific product categories (i.e., criteria for a
product to receive five stars, one star, etc.)? Would the stars be
based on the DOE minimum efficiency standards, the range of energy
consumption for models in a particular class, or some other measure?
How would a star-based categorical label depict the required ranges?
For example, would the lowest rating (i.e., one star) apply to the
least efficient products in a product class category regardless of the
number of products in the class and the efficiency of those products
relative to DOE standards?
12. Would a categorical label require the FTC to make judgments
about the relative energy efficiency of products in the market? If so,
what information would the Commission need to make such judgments? How
would it obtain the necessary information? What would be the costs of
making such determinations?
13. Would a star based EnergyGuide label be duplicative of the
Energy Star program? Would the star based label cause consumer
confusion given the existence of the Energy Star program?
14. Section 305.19 of the Rule contains an exemption which allows
manufacturers to place the Energy Star logo on the EnergyGuide label
for qualified products. Under the exemption, the Energy Star logo must
be placed ``above the comparability bar in the box that contains the
applicable range of comparability.''
Should the Commission consider changes to that exemption (e.g.,
changes to the placement of the logo on the label)?
15. In addition to considering the categorical label as required by
the Energy Policy Act of 2005, should the Commission consider other
formats or graphical representations for the EnergyGuide label? Are
there improvements that can be made to the current bar graph design in
the EnergyGuide label?
B. Energy Descriptors For Various Products
Currently, EnergyGuide labels for most products provide information
on the energy use (or efficiency) of the model, the range of energy use
(or efficiency) in the market, and an estimated annual operating cost.
The product labels display different energy information depending on
the product. For example, refrigerator labels contain energy use
information in the form of kilowatt-hours per year while room air
conditioners display energy efficiency information through an Energy
Efficiency Ratio (EER). In addition, labels for central air
conditioning units, heat pumps, furnaces, and pool heaters do not
contain cost information.
To aid the Commission in considering possible Rule changes for this
issue, we request that commenters consider the following questions:
1. Are the current energy descriptors understandable to consumers?
What changes, if any, should be made to the energy descriptors used on
the EnergyGuide label?
2. Should the FTC consider requiring estimated annual operating
costs as the primary descriptor on EnergyGuide labels in lieu of energy
consumption or energy efficiency information? What are the costs and
benefits of requiring operating costs as the primary descriptor?
3. Should the Commission consider different energy descriptors for
existing products? For instance, should the clothes washer label
disclose the model's efficiency rating using the measure currently
required by DOE (the ``Modified Energy Factor'') instead of the
product's annual energy consumption?
C. Disclosures for Central Air Conditioning, Heat Pumps, and Furnaces
The Commission is also interested in current labeling requirements
for products that generally do not appear in showrooms where consumers
can compare labels on competing models. Such products include central
air conditioning units, heat pumps, and furnaces.\15\ The Commission
seeks comment on whether there are alternatives to labeling that would
more effectively communicate energy efficiency information to consumers
for such products. Although the Rule requires manufacturers to disclose
energy information for these products through means other than labels,
such as fact sheets and directories (see 16 CFR 305.11(b)), it is
unclear whether such methods provide helpful information for consumers.
Fact sheets contain detailed information that may
[[Page 66311]]
not be easy to understand such as cost charts, regional heating and
cooling maps, and equations related to the energy performance. In
addition, most industry members provide cost information in industry
directories instead of preparing fact sheets. It is unclear whether
consumers normally consult these industry directories in making their
purchasing decisions. To aid the Commission in evaluating these
existing requirements, the Commission seeks information on the
following questions:
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\15\ See, e.g., 44 FR at 66470 (Nov. 19, 1979) (``The majority
of furnace purchases are made either in the consumer's home or as
part of the consumer's purchase of a home. As a result, few
consumers have an opportunity to see a display model before the
furnace is installed.'').
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1. How do consumers generally receive information about the energy
efficiency of central air conditioners, heat pumps, and furnaces?
2. Are EnergyGuide labels on central air conditioners, heat pumps,
and furnaces assisting consumers in their purchasing decisions? If not,
should the Commission consider an alternative method of ensuring that
consumers have access to useful efficiency information for these
products?
3. Should the Commission consider changes to the current fact sheet
requirements for central air conditioners, heat pumps, and furnaces?
4. Are there any alternative or additional forms of information
(such as brochures, catalogs, or information sheets) that the FTC could
require at the point of sale that would help consumers in making their
purchasing decisions for these products?
D. Reporting Requirements
Section 326(b) of EPCA requires manufacturers to notify the
Commission of new models they produce and also directs them to file an
annual report with energy consumption information about their products.
The annual report information is available on the FTC Web site at
https://www.ftc.gov/appliancedata. To aid the Commission in considering
possible changes to the Rule's reporting requirements, we request that
commenters consider the following questions:
1. What changes, if any, should be made to the specific information
covered by existing reporting requirements in the Rule? Would such
changes improve the effectiveness of the labeling program for
consumers?
2. Is there additional product information that the FTC should
require, consistent with its statutory authority, in reports from
manufacturers? What are the costs and benefits of requiring such
additional information? Are there reporting requirements that the FTC
should eliminate from the Rule (consistent with current statutory
requirements)?
E. Annual Revisions to the Ranges of Comparability
As discussed above, the EnergyGuide label must contain a range of
comparability that shows the highest and lowest energy consumption or
efficiencies for all similar appliance models. EPCA does not specify
when the Commission must change the ranges, but states it cannot do so
``more often than annually.'' 42 U.S.C. 426(c). The Commission's
regulations indicate that the FTC will revise ranges annually, if
appropriate (16 CFR 305.10). For some products, such as dishwashers,
the Commission has changed the applicable ranges several times over the
last few years. When the Commission changes the ranges, manufacturers
must amend their labels to reflect the new ranges and update the
operating costs on the labels using a new national average cost of
electricity. Frequent range changes can cause the labels on different
models in the same showroom to display inconsistent range and cost
information because the models on display may have been manufactured at
different times. This may be confusing to consumers. Frequent range
revisions also impose a burden on manufacturers because they must
change their product labels. To aid the Commission in considering
possible Rule changes for this issue, we request that commenters
consider the following questions:
1. Are changes in the energy use of products in the market
significant enough to warrant an examination of the ranges of
comparability every year?
2. Should the Commission consider amending the Rule so that the FTC
examines the comparability ranges less often than annually? If so, how
often should the Commission examine the ranges? Would such a change
affect the effectiveness of the labeling program?
3. Are there ways to alleviate potential consumer confusion caused
when certain product labels display new range and cost information and
other models in the same showroom have labels displaying old range and
cost information?
F. Lighting and Plumbing Products
What changes, if any, should be made to existing labeling
requirements for lighting and plumbing products in 16 CFR part 305?
What are the costs and benefits of any proposed labeling changes for
lighting and plumbing products?
V. Regulatory Review
The Commission conducts scheduled reviews of its rules and guides
in an effort to seek information about their costs and benefits and
regulatory and economic impact. The regulatory review of the Appliance
Labeling Rule had been scheduled for 2008. The Commission is combining
that scheduled regulatory review with the present rulemaking required
by the Energy Policy Act of 2005. Accordingly, in addition to the
specific questions listed above, the Commission is also soliciting
general comments on, among other things, the economic impact of and the
continuing need for the Rule; possible conflicts between the Rule and
State, local, or other Federal laws; and the effect on the Rule of any
technological, economic or other industry changes.
The Commission is interested in receiving data, surveys and other
empirical evidence to support comments submitted in response to this
notice. As part of the regulatory review, the Commission is
particularly interested in receiving comments and supporting data in
response to the following questions:
(A) What benefits, if any, has the Rule provided to consumers of
products covered by the Rule?
(B) What changes, if any, should be made to the Rule to increase
the benefits of the Rule to consumers? How would these changes affect
the costs the Rule imposes on industry members?
(C) What significant burdens or costs, if any, including costs of
compliance, has the Rule imposed on industry members subject to its
requirements? Has the Rule provided benefits to such industry members?
(D) What changes, if any, should be made to the Rule to reduce the
burdens or costs imposed on industry members subject to its
requirements? How would these changes affect the benefits provided by
the Rule?
(E) Does the Rule overlap or conflict with other Federal, State, or
local laws or regulations?
(F) Since the Rule was issued, what effects, if any, have changes
in relevant technology or economic conditions had on the Rule?
(G) What significant burdens or costs, if any, including costs of
compliance, has the Rule imposed on small businesses subject to its
requirements? How do these burdens or costs differ from those imposed
on larger businesses subject to the Rule's requirements?
(H) What changes, if any, should be made to the Rule to reduce the
burdens or costs imposed on small businesses? How would these changes
affect the benefits of the Rule? Would such changes adversely affect
the competitive position of larger businesses?
[[Page 66312]]
(I) Are there any other costs or benefits associated with the Rule?
List of Subjects in 16 CFR Part 305
Advertising, Consumer protection, Energy conservation, Household
appliances, Labeling, Lamp products, Penalties, Reporting and
recordkeeping requirements.
BILLING CODE 6750-01-P
[GRAPHIC] [TIFF OMITTED] TP02NO05.061
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[[Page 66314]]
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 05-21817 Filed 11-1-05; 8:45 am]
BILLING CODE 6750-01-C