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”), 72872-72875 [2011-30436]
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Federal Register / Vol. 76, No. 228 / Monday, November 28, 2011 / Proposed Rules
Controlling agency. FAA, Minneapolis
ARTCC.
Using agency. U.S. Air Force, 119th
Operations Support Squadron, Hector
International Airport, Fargo, ND.
FEDERAL TRADE COMMISSION
R–5403D
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’’)
16 CFR Part 305
[RIN 3084–AB03]
Devils Lake, ND [New]
Boundaries. Beginning at lat. 47°35′39″ N.,
long. 98°15′00″ W.; to lat. 47°15′00″ N., long.
98°15′00″ W.; to lat. 47°15′00″ N., long.
99°15′00″ W.; to the point of beginning.
Designated Altitudes. 10,000 feet MSL to,
but not including, 12,000 feet MSL.
Time of designation. 0700–2200 daily, by
NOTAM 4 hours in advance; other times by
NOTAM.
Controlling agency. FAA, Minneapolis
ARTCC.
Using agency. U.S. Air Force, 119th
Operations Support Squadron, Hector
International Airport, Fargo, ND.
R–5403E
Devils Lake, ND [New]
Boundaries. Beginning at lat. 47°35′39″ N.,
long. 98°15′00″ W.; to lat. 47°15′00″ N., long.
98°15′00″ W.; to lat. 47°15′00″ N., long.
99°15′00″ W.; to the point of beginning.
Designated Altitudes. 12,000 feet MSL to,
but not including, 14,000 feet MSL.
Time of designation. 0700–2200 daily, by
NOTAM 4 hours in advance; other times by
NOTAM.
Controlling agency. FAA, Minneapolis
ARTCC.
Using agency. U.S. Air Force, 119th
Operations Support Squadron, Hector
International Airport, Fargo, ND.
R–5403F
Devils Lake, ND [New]
Boundaries. Beginning at lat. 47°35′39″ N.,
long. 98°15′00″ W.; to lat. 47°15′00″ N., long.
98°15′00″ W.; to lat. 47°15′00″ N., long.
99°15′00″ W.; to the point of beginning.
Designated Altitudes. 14,000 feet MSL to,
but not including, FL 180.
Time of designation. 0700–2200 daily, by
NOTAM 4 hours in advance; other times by
NOTAM.
Controlling agency. FAA, Minneapolis
ARTCC.
Using agency. U.S. Air Force, 119th
Operations Support Squadron, Hector
International Airport, Fargo, ND.
Issued in Washington, DC, on November
17, 2011.
Gary A. Norek,
Acting Manager, Airspace, Regulations and
ATC Procedures Group.
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[FR Doc. 2011–30495 Filed 11–25–11; 8:45 am]
BILLING CODE 4910–13–P
Federal Trade Commission
(FTC or Commission).
ACTION: Advance notice of proposed
rulemaking and public meeting
announcement.
AGENCY:
The Commission seeks
comment on disclosures to help
consumers, distributors, contractors,
and installers easily determine whether
a specific furnace, central air
conditioner, or heat pump meets the
applicable new Department of Energy
efficiency standard for the regions
where it will be installed. The
Commission seeks comment on the
content, location, and format of such
disclosures. As part of this effort, the
Commission staff will hold a public
meeting with the Department of Energy
to discuss possible disclosures.
DATES: Comments must be received by
January 10, 2012. The public meeting
will be held on December 16, 2011.
ADDRESSES: Interested parties may file a
comment online or on paper, by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Regional Labeling for
Heating and Cooling Equipment (16 CFR
Part 305) (Project No. P114202)’’ on
your comment, and file your comment
online at https://public.commentworks.
com/ftc/regional-disclosuresanpr, by
following the instructions on the webbased form. If you prefer to file your
comment on paper, mail or deliver your
comment to the following address:
Federal Trade Commission, Office of the
Secretary, Room H–113 (Annex H), 600
Pennsylvania Avenue NW., Washington,
DC 20580.
FOR FURTHER INFORMATION CONTACT:
Hampton Newsome, Attorney, (202)
326–2889, Division of Enforcement,
Federal Trade Commission, 600
Pennsylvania Avenue NW., Washington,
DC 20580.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Introduction
The Commission seeks comment on
new labeling requirements and other
disclosures for residential furnaces,
central air conditioners, and heat pumps
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(i.e., heating and cooling equipment) to
help consumers and industry members
install equipment with the efficiency
rating appropriate for their location
under new regional efficiency standards
issued by the Department of Energy
(DOE). These new standards impose
minimum efficiency levels which vary
by region for different types of
equipment.
To facilitate the development of such
disclosures, the Commission seeks
comment on their appropriate content,
location, and format. After considering
comments, the Commission will publish
specific proposed requirements for
comment and then publish final
disclosure requirements as amendments
to the Commission’s Appliance Labeling
Rule (16 CFR Part 305).
II. Background
The Commission’s Appliance
Labeling Rule, issued pursuant to the
Energy Policy and Conservation Act
(EPCA),1 requires energy labeling for
major household appliances and other
consumer products to help consumers
compare competing models.2 When first
published in 1979,3 the Rule applied to
eight appliance categories: refrigerators,
refrigerator-freezers, freezers,
dishwashers, water heaters, clothes
washers, room air conditioners, and
furnaces. Since 1979, the Commission
has expanded the Rule’s coverage to
include central air conditioners, heat
pumps, plumbing products, lighting
products, ceiling fans, certain types of
water heaters, and televisions.4 The
Rule requires manufacturers to attach
yellow EnergyGuide labels to all
covered furnaces, central air
conditioners, and heat pumps.5 The
Rule also prohibits retailers from
removing these labels or rendering them
illegible.6 In addition, sellers, including
retailers, must post label information on
Web sites and in paper catalogs from
which covered products can be
ordered.7
The EnergyGuide labels for heating
and cooling equipment contain two key
disclosures: (1) The product’s efficiency
1 42
U.S.C. 6291 et seq.
information about the Rule can be found
at https://www.ftc.gov/appliances.
3 44 FR 66466 (Nov. 19, 1979).
4 See 52 FR 46888 (Dec. 10, 1987) (central air
conditioners and heat pumps); 54 FR 28031 (Jul. 5,
1989) (fluorescent lamp ballasts); 58 FR 54955 (Oct.
25, 1993) (certain plumbing products); 59 FR 25176
(May 13, 1994) (lighting products); 59 FR 49556
(Sep. 28, 1994) (pool heaters); 71 FR 78057 (Dec.
26, 2006) (ceiling fans); and 76 FR 1038 (Jan. 6,
2011) (televisions).
5 See 42 U.S.C. 6302(a)(1) and 16 CFR 305.4(a)(1).
6 See 42 U.S.C. 6302(a)(2) and 16 CFR 305.4(a)(2).
7 See 42 U.S.C. 6296(a) and 16 CFR 305.20.
2 More
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Federal Register / Vol. 76, No. 228 / Monday, November 28, 2011 / Proposed Rules
rating,8 and (2) a ‘‘range of
comparability’’ showing the highest and
lowest ratings for all similar models.9
The Rule also specifies the label’s
format. For example, the label must be
yellow and feature the EnergyGuide
headline in a specific format and type.
Additionally, manufacturers cannot
place any information on the label other
than that specifically allowed by the
Rule.
The Rule also requires manufacturers
to provide distributors and installers
with energy information about their
furnaces, central air conditioners, and
heat pumps in paper or electronic form
(including internet-based access).10 In
turn, retailers, including installers, must
show this information to their
customers and let them read the
information before purchase.
III. DOE Regional Standards for
Heating and Cooling Equipment
On June 27, 2011,11 DOE published a
direct final rule notice promulgating
new efficiency standards for residential
furnaces, central air conditioners, and
heat pumps as authorized by the Energy
72873
Independence and Security Act of 2007
(EISA).12 DOE’s direct final rule became
effective on October 25, 2011.13 Unlike
existing DOE standards which impose
uniform, national efficiency levels, the
new standards for certain products vary
by region.14 As detailed in Tables 1 and
2, the DOE standards impose regional
efficiency standards for split air
conditioners, package air conditioners,
and gas furnaces (non-weatherized and
mobile home). The standards for other
covered heating and cooling equipment
are national.
TABLE 1—DOE REGIONAL EFFICIENCY STANDARDS FOR FURNACES
System type
North
Non-weatherized ............................
Mobile home gas ...........................
Non-weatherized ............................
Weatherized gas ............................
Mobile home oil-fired .....................
Weatherized oil-fired ......................
Electric ...........................................
90%
90%
83%
81%
75%
78%
78%
AFUE
AFUE
AFUE
AFUE
AFUE
AFUE
AFUE
Southeast
....................................
....................................
....................................
....................................
....................................
....................................
....................................
80%
80%
83%
81%
75%
78%
78%
AFUE
AFUE
AFUE
AFUE
AFUE
AFUE
AFUE
Southwest
....................................
....................................
....................................
....................................
....................................
....................................
....................................
80%
80%
83%
81%
75%
78%
78%
AFUE.
AFUE.
AFUE.
AFUE.
AFUE.
AFUE.
AFUE.
TABLE 2—DOE REGIONAL EFFICIENCY STANDARDS FOR CENTRAL AIR CONDITIONERS AND HEAT PUMPS
System type
North
Southeast
Southwest
Split-system air ..............................
13 SEER 15 ...................................
14 SEER .......................................
Split-system heat pumps ...............
Single package air conditioners .....
Single-Package Heat Pumps .........
Small-duct, high-velocity systems ..
Space-constrained
products—air
conditioners.
Space-constrained products—heat
pumps.
14
14
14
13
12
14 SEER/12.2 EER 16 <45,000
Btu/h.
14 SEER/8.2 HSPF.
14 SEER/11.0 EER.
14 SEER/8.0 HSPF.
13 SEER/7.7 HSPF.
12 SEER.
SEER/8.2 HSPF 17 ..................
SEER .......................................
SEER/8.0 HSPF ......................
SEER/7.7 HSPF ......................
SEER .......................................
12 SEER/7.4 HSPF ......................
14
14
14
13
12
SEER/8.2 HSPF ......................
SEER .......................................
SEER/8.0 HSPF ......................
SEER/7.7 HSPF ......................
SEER .......................................
12 SEER/7.4 HSPF ......................
12 SEER/7.4 HSPF.
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To promote compliance with these
new standards, DOE is developing an
EISA-directed enforcement plan which
will specify the responsibilities of
various entities (e.g., installers,
distributors, and manufacturers) to meet
the new standards and to make any
required disclosures.18 DOE must
complete this plan within 15 months
after issuance of the final regional
standards. To augment DOE’s
enforcement efforts, EISA grants states
the authority to enforce the regional
standards in Federal court.19
To help consumers and businesses
determine whether a product conforms
with the regional standards promulgated
by DOE, EISA directs the FTC to
develop new disclosures for furnaces,
central air conditioners, and heat
pumps. Specifically, the law requires
the Commission to ‘‘determine the
appropriate 1 or more methods for
disclosing information so that
consumers, distributors, contractors,
and installers can easily determine
whether a specific piece of equipment
that is installed in a specific building is
in conformance with the regional
standard that applies to the building.’’ 20
The statute also authorizes the
Commission to modify the Energy Guide
label or develop other disclosure
8 Efficiency ratings for these products include
annual fuel utilization efficiency (AFUE) for
furnaces, and seasonal energy efficiency ratio
(SEER) and heating performance seasonal factor
(HSPF) for central air conditioners and heat pumps.
9 16 CFR 305.13.
10 16 CFR 305.14.
11 76 FR 37408.
12 Public Law 110–140; 42 U.S.C. 6295(o)(6).
EISA amended EPCA to authorize separate regional
standards for these products.
13 See 76 FR 67037 (Oct. 31, 2011). Although
DOE’s final standards became effective on October
25, 2011, DOE is not requiring compliance until
later. Specifically, DOE will require
nonweatherized gas furnaces to comply by May 1,
2013; and weatherized gas furnaces and central air
conditioner and heat pump product classes to
comply by January 1, 2015.
14 42 U.S.C. 6295(o)(6)(B). The DOE standards
apply to three regions: The North, Southeast, and
Southwest. For furnaces, the standards are the same
for the southeastern and southwestern regions. The
Northern region encompasses Alaska, Colorado,
Connecticut, Idaho, Illinois, Indiana, Iowa, Kansas,
Maine, Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nebraska, New Hampshire,
New Jersey, New York, North Dakota, Ohio, Oregon,
Pennsylvania, Rhode Island, South Dakota, Utah,
Vermont, Washington, West Virginia, Wisconsin,
and Wyoming. The Southeastern region
encompasses Alabama, Arkansas, Delaware,
Florida, Georgia, Hawaii, Kentucky, Louisiana,
Maryland, Mississippi, North Carolina, Oklahoma,
South Carolina, Tennessee, Texas, Virginia, and the
District of Columbia. The Southwest includes
Arizona, California, New Mexico, and Nevada. 76
FR 37422.
15 Seasonal Energy Efficiency Rating.
16 Energy Efficiency Rating.
17 Heating Seasonal Performance Factor.
18 42 U.S.C. 6295(o)(6)(G).
19 Id.
20 42 U.S.C. 6295(o)(6)(H).
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IV. FTC Disclosures for Heating and
Cooling Equipment
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‘‘methods that make it easy for
consumers and installers to use and
understand at the point of
installation.’’ 21 The Commission must
complete this effort within 15 months of
DOE’s final publication of the regional
standards. To begin this effort, the
Commission requests comment on the
content, location, and format for the
new disclosure requirements.
The content of the new disclosures
must help consumers and industry
members avoid installing equipment in
violation of regional standards. The
Commission seeks suggestions for the
best disclosure content to meet this goal.
For example, such disclosures could
simply explain that a particular product
may or may not be installed in certain
regions:22
• [For split air conditioner systems
rated lower than 14 SEER]:
Federal law prohibits installation of
this unit in Alabama, Arizona,
Arkansas, California, Delaware, Florida,
Georgia, Hawaii, Kentucky, Louisiana,
Maryland, Mississippi, New Mexico,
Nevada, North Carolina, Oklahoma,
South Carolina, Tennessee, Texas,
Virginia, or the District of Columbia.
• [For split air conditioner systems
smaller than 45,000 Btu/h and rated
lower than 12.2 EER, split air
conditioner systems larger than or equal
to 45,000 Btu/h and rated lower than
11.7 EER, and single-package air
conditioner systems rated lower than
11.0 EER]:
Federal law prohibits installation of
this unit in Arizona, California, New
Mexico, or Nevada.
• [For non-weatherized gas furnaces
(including mobile home gas furnaces)
rated lower than 90% AFUE]:
Federal law prohibits the installation
of this unit in Alaska, Colorado,
Connecticut, Idaho, Illinois, Indiana,
Iowa, Kansas, Maine, Massachusetts,
Michigan, Minnesota, Missouri,
Montana, Nebraska, New Hampshire,
New Jersey, New York, North Dakota,
Ohio, Oregon, Pennsylvania Rhode
Island, South Dakota, Utah, Vermont,
Washington, West Virginia, Wisconsin,
or Wyoming.
• [For all other covered products]:
Federal law allows installation of this
unit in any U.S. state.
21 Id.
22 Efficiency ratings for central air conditioner
systems depend on the particular condenser and
evaporator coil paired to form the system.
Thousands of possible condenser and coil
combinations exist. Given the impracticality of
including all such combinations on a label, the
current EnergyGuide label discloses a condenser’s
efficiency rating when paired with the coil with
which it is most commonly sold. The current label
appears on the condenser only.
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These examples represent one possible
approach for providing the content of
the disclosures. Other possibilities
include providing more detailed
explanations of the standards or using
illustrations, such as a map of the U.S.
to indicate where the law prohibits
installation of certain equipment.23 The
Commission seeks comments on these
options and other possible disclosures.
Please address whether the label should
include additional information that may
be relevant to regional standards
compliance, such as the Energy
Efficiency Rating (EER) for central air
conditioners.24 Commenters should also
refer to the specific questions set forth
in section V.
Comments should also address the
location and format for the required
disclosures. For instance, the
EnergyGuide label could be revised to
include information about whether a
specific piece of equipment meets
standards for installation in a specific
region. Alternatively, the manufacturer
could provide the required disclosures
through other means such as product
nameplates, product packaging,
brochures, user manuals, Web sites, or
online databases. Such alternative
methods might provide more space than
the EnergyGuide labels for the
disclosure of detailed compliance
information. The disclosure format
could also involve a combination of
these approaches. For example, the
Energy Guide label could include a QR
(Quick Response) scan code to provide
mobile phone access to an online
database containing detailed product
information in addition to disclosures
on the label or elsewhere. The EPA
recently adopted such an approach for
new fuel economy labels on
automobiles.25 In addressing these
issues, commenters should also
consider the specific questions in
section V.
V. Issues and Questions for Comment
The Commission seeks general
comments on potential disclosure
methods to help consumers,
distributors, contractors, and installers
23 New ENERGY STAR logo specifications
adopted by the Environmental Protection Agency
use a U.S. map to communicate whether a product
meets the energy efficiency levels for that program.
https://www.energystar.gov/ia/partners/prod_
development/revisions/downloads/furnaces/
Furnaces_Final_V3_and_V4_Cover_Memo.pdf.
24 Currently, the EnergyGuide label for these
products only discloses the Seasonal Energy
Efficiency Rating (SEER). The SEER reflects a
model’s energy performance over a range of
temperature conditions while EER measures energy
performance at a single, high temperature.
25 https://yosemite.epa.gov/opa/admpress.nsf/
names/hq_2011-5-25_fueleconomylabel.
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easily determine whether residential
heating and cooling equipment meets
applicable regional efficiency standards.
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. Please provide details to
support your comments. We encourage
commenters to consider the questions
below when preparing comments.
(1) Content: What information is
necessary to inform consumers and
industry members whether equipment
complies with DOE-mandated regional
energy standards in a particular region?
Should the disclosures use images (e.g.,
a map of the U.S.) to illustrate the scope
of the regional standards? What changes
would be required to the EnergyGuide
label (e.g., EER disclosures) in addition
to disclosures specifically related to
regional standards?
(2) Location and Format: Should the
required disclosures appear on the label
affixed to the product, on packaging,
through point of sale materials, on the
Internet, or through some other means?
Should the disclosures appear in a
combination of these formats in
multiple locations? If so, which ones?
Should the FTC explore the use of QR
(Quick Response) scan codes to allow
installers and consumers to access
detailed information about the
equipment through mobile phones? If
the disclosures appear on the product
itself, should the Commission replace
the EnergyGuide label with permanent
disclosure on the product nameplate or
a similar location?
(3) Separate Disclosures: Should the
Commission develop separate
disclosures for furnaces, central air
conditioners, and heat pumps given
differences in the way these products
are rated on the EnergyGuide label and
how they are installed? Should the Rule
require separate disclosures for industry
members and consumers? Should the
Rule require different disclosures or
instructions for various industry
members such as distributors and
installers?
(4) Installer Requirements: What
changes, if any, should the Commission
make to the content and format of
disclosures installers must provide to
their customers?
(5) Database Information: Are there
existing databases the Commission
could use to help industry members and
consumers determine whether
equipment complies with the regional
energy standards, including the
efficiency ratings of specific compressor
and coil combinations for central air
conditioners?
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(6) Benefits: What benefits, if any, will
the new disclosures provide to
consumers? What evidence supports the
asserted benefits? What benefits, if any,
will the new disclosures provide to
industry members? What is the
magnitude of such benefits? What
evidence supports the asserted benefits?
(7) Costs: What costs, if any, would
the potential new disclosures impose on
businesses, and in particular on small
businesses such as installers? What
would be the magnitude of such costs?
What evidence supports the asserted
costs?
(8) Other Federal, State, or Local
Requirements: Would the new
disclosures overlap or conflict with
other federal, state, or local laws or
regulations? If so, how?
VI. Request for Comment
The Commission invites interested
persons to submit written comments on
any issue of fact, law, or policy that may
bear upon the proposals under
consideration. Please include
explanations for any answers provided,
as well as supporting evidence where
appropriate. After examining the
comments, the Commission will
determine whether to issue specific
amendments.
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before January 10, 2012. Write
‘‘Regional Labeling for Heating and
Cooling Equipment, (16 CFR Part 305)
(Project No. P114202)’’ on your
comment. Your comment—including
your name and your state—will be
placed on the public record of this
proceeding, including, to the extent
practicable, on the public Commission
Web site, at https://www.ftc.gov/os/
publiccomments.shtm. As a matter of
discretion, the Commission tries to
remove individuals’ home contact
information from comments before
placing them on the Commission Web
site.
Because your comment will be made
public, you are solely responsible for
making sure that your comment does
not include any sensitive personal
information, such as anyone’s Social
Security number, date of birth, driver’s
license number or other state
identification number or foreign country
equivalent, passport number, financial
account number, or credit or debit card
number. You are also solely responsible
for making sure that your comment does
not include any sensitive health
information, like medical records or
other individually identifiable health
information. In addition, do not include
any ‘‘[t]rade secret or any commercial or
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financial information which is obtained
from any person and which is privileged
or confidential,’’ as provided in Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2).
If you want the Commission to give your
comment confidential treatment, you
must file it in paper form, with a request
for confidential treatment, and you have
to follow the procedure explained in
FTC Rule 4.9(c), 16 CFR 4.9(c).26 Your
comment will be kept confidential only
if the FTC General Counsel, in his or her
sole discretion, grants your request in
accordance with the law and the public
interest.
Postal mail addressed to the
Commission is subject to delay due to
heightened security screening. As a
result, we encourage you to submit your
comments online, or to send them to the
Commission by courier or overnight
service. To make sure that the
Commission considers your online
comment, you must file it at https://
public.commentworks.com/ftc/regionaldisclosuresanpr, by following the
instructions on the web-based form. If
this Notice appears at https://www.
regulations.gov/#!home, you also may
file a comment through that Web site.
If you file your comment on paper,
write ‘‘Regional Labeling for Heating
and Cooling Equipment, (16 CFR Part
305) (Project No.114202)’’ on your
comment and on the envelope, and mail
or deliver it to the following address:
Federal Trade Commission, Office of the
Secretary, Room H–113 (Annex H), 600
Pennsylvania Avenue NW., Washington,
DC 20580. If possible, submit your
paper comment to the Commission by
courier or overnight service.
Visit the Commission Web site at
https://www.ftc.gov to read this Notice
and the news release describing it. The
FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before January 10, 2012. You can find
more information, including routine
uses permitted by the Privacy Act, in
the Commission’s privacy policy, at
https://www.ftc.gov/ftc/privacy.htm.
VII. Public Meeting Information
The Commission and DOE staff have
scheduled a public meeting to give
interested parties an opportunity to
26 In particular, the written request for
confidential treatment that accompanies the
comment must include the factual and legal basis
for the request, and must identify the specific
portions of the comment to be withheld from the
public record. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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provide their views on potential FTC
disclosures and the DOE enforcement
plan related to new regional standards
for furnaces, central air conditioners,
and heat pumps. The public meeting
will be held on December 16, 2011 at
DOE. DOE will provide details regarding
time, location, attendance and
participation at the meeting.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011–30436 Filed 11–25–11; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–109369–10]
RIN 1545–BJ33
Passive Activity Losses and Credits
Limited
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
This document contains
proposed regulations regarding the
definition of an ‘‘interest in a limited
partnership as a limited partner’’ for
purposes of determining whether a
taxpayer materially participates in an
activity under section 469 of the
Internal Revenue Code (Code). These
proposed regulations affect individuals
who are partners in partnerships.
DATES: Written or electronic comments
and requests for a public hearing must
be received by February 27, 2012.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–109369–10), Room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to: CC:PA:LPD:PR (REG–109369–
10), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW.,
Washington, DC, or sent electronically,
via the Federal eRulemaking Portal at
https://www.regulations.gov/(IRS REG109369-10).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Michala Irons, (202) 622–3050;
concerning submissions of comments
and requests for public hearing,
Oluwafunmilayo Taylor, (202) 622–7180
(not toll free numbers).
SUPPLEMENTARY INFORMATION:
SUMMARY:
E:\FR\FM\28NOP1.SGM
28NOP1
]]>Agencies
[Federal Register Volume 76, Number 228 (Monday, November 28, 2011)]
[Proposed Rules]
[Pages 72872-72875]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30436]
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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 and public meeting
announcement.
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SUMMARY: The Commission seeks comment on disclosures to help consumers,
distributors, contractors, and installers easily determine whether a
specific furnace, central air conditioner, or heat pump meets the
applicable new Department of Energy efficiency standard for the regions
where it will be installed. The Commission seeks comment on the
content, location, and format of such disclosures. As part of this
effort, the Commission staff will hold a public meeting with the
Department of Energy to discuss possible disclosures.
DATES: Comments must be received by January 10, 2012. The public
meeting will be held on December 16, 2011.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Regional Labeling for
Heating and Cooling Equipment (16 CFR Part 305) (Project No. P114202)''
on your comment, and file your comment online at https://public.commentworks.com/ftc/regional-disclosuresanpr, by following the
instructions on the web-based form. If you prefer to file your comment
on paper, mail or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex
H), 600 Pennsylvania Avenue NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, (202) 326-
2889, Division of Enforcement, Federal Trade Commission, 600
Pennsylvania Avenue NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Introduction
The Commission seeks comment on new labeling requirements and other
disclosures for residential furnaces, central air conditioners, and
heat pumps (i.e., heating and cooling equipment) to help consumers and
industry members install equipment with the efficiency rating
appropriate for their location under new regional efficiency standards
issued by the Department of Energy (DOE). These new standards impose
minimum efficiency levels which vary by region for different types of
equipment.
To facilitate the development of such disclosures, the Commission
seeks comment on their appropriate content, location, and format. After
considering comments, the Commission will publish specific proposed
requirements for comment and then publish final disclosure requirements
as amendments to the Commission's Appliance Labeling Rule (16 CFR Part
305).
II. Background
The Commission's Appliance Labeling Rule, issued pursuant to the
Energy Policy and Conservation Act (EPCA),\1\ requires energy labeling
for major household appliances and other consumer products to help
consumers compare competing models.\2\ When first published in 1979,\3\
the Rule applied to eight appliance categories: refrigerators,
refrigerator-freezers, freezers, dishwashers, water heaters, clothes
washers, room air conditioners, and furnaces. Since 1979, the
Commission has expanded the Rule's coverage to include central air
conditioners, heat pumps, plumbing products, lighting products, ceiling
fans, certain types of water heaters, and televisions.\4\ The Rule
requires manufacturers to attach yellow EnergyGuide labels to all
covered furnaces, central air conditioners, and heat pumps.\5\ The Rule
also prohibits retailers from removing these labels or rendering them
illegible.\6\ In addition, sellers, including retailers, must post
label information on Web sites and in paper catalogs from which covered
products can be ordered.\7\
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\1\ 42 U.S.C. 6291 et seq.
\2\ More information about the Rule can be found at https://www.ftc.gov/appliances.
\3\ 44 FR 66466 (Nov. 19, 1979).
\4\ See 52 FR 46888 (Dec. 10, 1987) (central air conditioners
and heat pumps); 54 FR 28031 (Jul. 5, 1989) (fluorescent lamp
ballasts); 58 FR 54955 (Oct. 25, 1993) (certain plumbing products);
59 FR 25176 (May 13, 1994) (lighting products); 59 FR 49556 (Sep.
28, 1994) (pool heaters); 71 FR 78057 (Dec. 26, 2006) (ceiling
fans); and 76 FR 1038 (Jan. 6, 2011) (televisions).
\5\ See 42 U.S.C. 6302(a)(1) and 16 CFR 305.4(a)(1).
\6\ See 42 U.S.C. 6302(a)(2) and 16 CFR 305.4(a)(2).
\7\ See 42 U.S.C. 6296(a) and 16 CFR 305.20.
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The EnergyGuide labels for heating and cooling equipment contain
two key disclosures: (1) The product's efficiency
[[Page 72873]]
rating,\8\ and (2) a ``range of comparability'' showing the highest and
lowest ratings for all similar models.\9\ The Rule also specifies the
label's format. For example, the label must be yellow and feature the
EnergyGuide headline in a specific format and type. Additionally,
manufacturers cannot place any information on the label other than that
specifically allowed by the Rule.
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\8\ Efficiency ratings for these products include annual fuel
utilization efficiency (AFUE) for furnaces, and seasonal energy
efficiency ratio (SEER) and heating performance seasonal factor
(HSPF) for central air conditioners and heat pumps.
\9\ 16 CFR 305.13.
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The Rule also requires manufacturers to provide distributors and
installers with energy information about their furnaces, central air
conditioners, and heat pumps in paper or electronic form (including
internet-based access).\10\ In turn, retailers, including installers,
must show this information to their customers and let them read the
information before purchase.
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\10\ 16 CFR 305.14.
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III. DOE Regional Standards for Heating and Cooling Equipment
On June 27, 2011,\11\ DOE published a direct final rule notice
promulgating new efficiency standards for residential furnaces, central
air conditioners, and heat pumps as authorized by the Energy
Independence and Security Act of 2007 (EISA).\12\ DOE's direct final
rule became effective on October 25, 2011.\13\ Unlike existing DOE
standards which impose uniform, national efficiency levels, the new
standards for certain products vary by region.\14\ As detailed in
Tables 1 and 2, the DOE standards impose regional efficiency standards
for split air conditioners, package air conditioners, and gas furnaces
(non-weatherized and mobile home). The standards for other covered
heating and cooling equipment are national.
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\11\ 76 FR 37408.
\12\ Public Law 110-140; 42 U.S.C. 6295(o)(6). EISA amended EPCA
to authorize separate regional standards for these products.
\13\ See 76 FR 67037 (Oct. 31, 2011). Although DOE's final
standards became effective on October 25, 2011, DOE is not requiring
compliance until later. Specifically, DOE will require
nonweatherized gas furnaces to comply by May 1, 2013; and
weatherized gas furnaces and central air conditioner and heat pump
product classes to comply by January 1, 2015.
\14\ 42 U.S.C. 6295(o)(6)(B). The DOE standards apply to three
regions: The North, Southeast, and Southwest. For furnaces, the
standards are the same for the southeastern and southwestern
regions. The Northern region encompasses Alaska, Colorado,
Connecticut, Idaho, Illinois, Indiana, Iowa, Kansas, Maine,
Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New
Hampshire, New Jersey, New York, North Dakota, Ohio, Oregon,
Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, Washington,
West Virginia, Wisconsin, and Wyoming. The Southeastern region
encompasses Alabama, Arkansas, Delaware, Florida, Georgia, Hawaii,
Kentucky, Louisiana, Maryland, Mississippi, North Carolina,
Oklahoma, South Carolina, Tennessee, Texas, Virginia, and the
District of Columbia. The Southwest includes Arizona, California,
New Mexico, and Nevada. 76 FR 37422.
Table 1--DOE Regional Efficiency Standards for Furnaces
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System type North Southeast Southwest
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Non-weatherized...................... 90% AFUE............... 80% AFUE............... 80% AFUE.
Mobile home gas...................... 90% AFUE............... 80% AFUE............... 80% AFUE.
Non-weatherized...................... 83% AFUE............... 83% AFUE............... 83% AFUE.
Weatherized gas...................... 81% AFUE............... 81% AFUE............... 81% AFUE.
Mobile home oil-fired................ 75% AFUE............... 75% AFUE............... 75% AFUE.
Weatherized oil-fired................ 78% AFUE............... 78% AFUE............... 78% AFUE.
Electric............................. 78% AFUE............... 78% AFUE............... 78% AFUE.
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Table 2--DOE Regional Efficiency Standards for Central Air Conditioners and Heat Pumps
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System type North Southeast Southwest
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Split-system air..................... 13 SEER \15\........... 14 SEER................ 14 SEER/12.2 EER \16\
<45,000 Btu/h.
Split-system heat pumps.............. 14 SEER/8.2 HSPF \17\.. 14 SEER/8.2 HSPF....... 14 SEER/8.2 HSPF.
Single package air conditioners...... 14 SEER................ 14 SEER................ 14 SEER/11.0 EER.
Single-Package Heat Pumps............ 14 SEER/8.0 HSPF....... 14 SEER/8.0 HSPF....... 14 SEER/8.0 HSPF.
Small-duct, high-velocity systems.... 13 SEER/7.7 HSPF....... 13 SEER/7.7 HSPF....... 13 SEER/7.7 HSPF.
Space-constrained products--air 12 SEER................ 12 SEER................ 12 SEER.
conditioners.
Space-constrained products--heat 12 SEER/7.4 HSPF....... 12 SEER/7.4 HSPF....... 12 SEER/7.4 HSPF.
pumps.
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To promote compliance with these new standards, DOE is developing
an EISA-directed enforcement plan which will specify the
responsibilities of various entities (e.g., installers, distributors,
and manufacturers) to meet the new standards and to make any required
disclosures.\18\ DOE must complete this plan within 15 months after
issuance of the final regional standards. To augment DOE's enforcement
efforts, EISA grants states the authority to enforce the regional
standards in Federal court.\19\
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\15\ Seasonal Energy Efficiency Rating.
\16\ Energy Efficiency Rating.
\17\ Heating Seasonal Performance Factor.
\18\ 42 U.S.C. 6295(o)(6)(G).
\19\ Id.
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IV. FTC Disclosures for Heating and Cooling Equipment
To help consumers and businesses determine whether a product
conforms with the regional standards promulgated by DOE, EISA directs
the FTC to develop new disclosures for furnaces, central air
conditioners, and heat pumps. Specifically, the law requires the
Commission to ``determine the appropriate 1 or more methods for
disclosing information so that consumers, distributors, contractors,
and installers can easily determine whether a specific piece of
equipment that is installed in a specific building is in conformance
with the regional standard that applies to the building.'' \20\ The
statute also authorizes the Commission to modify the Energy Guide label
or develop other disclosure
[[Page 72874]]
``methods that make it easy for consumers and installers to use and
understand at the point of installation.'' \21\ The Commission must
complete this effort within 15 months of DOE's final publication of the
regional standards. To begin this effort, the Commission requests
comment on the content, location, and format for the new disclosure
requirements.
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\20\ 42 U.S.C. 6295(o)(6)(H).
\21\ Id.
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The content of the new disclosures must help consumers and industry
members avoid installing equipment in violation of regional standards.
The Commission seeks suggestions for the best disclosure content to
meet this goal. For example, such disclosures could simply explain that
a particular product may or may not be installed in certain
regions:\22\
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\22\ Efficiency ratings for central air conditioner systems
depend on the particular condenser and evaporator coil paired to
form the system. Thousands of possible condenser and coil
combinations exist. Given the impracticality of including all such
combinations on a label, the current EnergyGuide label discloses a
condenser's efficiency rating when paired with the coil with which
it is most commonly sold. The current label appears on the condenser
only.
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[For split air conditioner systems rated lower than 14
SEER]:
Federal law prohibits installation of this unit in Alabama,
Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii,
Kentucky, Louisiana, Maryland, Mississippi, New Mexico, Nevada, North
Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, or the
District of Columbia.
[For split air conditioner systems smaller than 45,000
Btu/h and rated lower than 12.2 EER, split air conditioner systems
larger than or equal to 45,000 Btu/h and rated lower than 11.7 EER, and
single-package air conditioner systems rated lower than 11.0 EER]:
Federal law prohibits installation of this unit in Arizona,
California, New Mexico, or Nevada.
[For non-weatherized gas furnaces (including mobile home
gas furnaces) rated lower than 90% AFUE]:
Federal law prohibits the installation of this unit in Alaska,
Colorado, Connecticut, Idaho, Illinois, Indiana, Iowa, Kansas, Maine,
Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New
Hampshire, New Jersey, New York, North Dakota, Ohio, Oregon,
Pennsylvania Rhode Island, South Dakota, Utah, Vermont, Washington,
West Virginia, Wisconsin, or Wyoming.
[For all other covered products]:
Federal law allows installation of this unit in any U.S. state.
These examples represent one possible approach for providing the
content of the disclosures. Other possibilities include providing more
detailed explanations of the standards or using illustrations, such as
a map of the U.S. to indicate where the law prohibits installation of
certain equipment.\23\ The Commission seeks comments on these options
and other possible disclosures. Please address whether the label should
include additional information that may be relevant to regional
standards compliance, such as the Energy Efficiency Rating (EER) for
central air conditioners.\24\ Commenters should also refer to the
specific questions set forth in section V.
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\23\ New ENERGY STAR logo specifications adopted by the
Environmental Protection Agency use a U.S. map to communicate
whether a product meets the energy efficiency levels for that
program. https://www.energystar.gov/ia/partners/prod_development/revisions/downloads/furnaces/Furnaces_Final_V3_and_V4_Cover_Memo.pdf.
\24\ Currently, the EnergyGuide label for these products only
discloses the Seasonal Energy Efficiency Rating (SEER). The SEER
reflects a model's energy performance over a range of temperature
conditions while EER measures energy performance at a single, high
temperature.
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Comments should also address the location and format for the
required disclosures. For instance, the EnergyGuide label could be
revised to include information about whether a specific piece of
equipment meets standards for installation in a specific region.
Alternatively, the manufacturer could provide the required disclosures
through other means such as product nameplates, product packaging,
brochures, user manuals, Web sites, or online databases. Such
alternative methods might provide more space than the EnergyGuide
labels for the disclosure of detailed compliance information. The
disclosure format could also involve a combination of these approaches.
For example, the Energy Guide label could include a QR (Quick Response)
scan code to provide mobile phone access to an online database
containing detailed product information in addition to disclosures on
the label or elsewhere. The EPA recently adopted such an approach for
new fuel economy labels on automobiles.\25\ In addressing these issues,
commenters should also consider the specific questions in section V.
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\25\ https://yosemite.epa.gov/opa/admpress.nsf/names/hq_2011-5-25_fueleconomylabel.
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V. Issues and Questions for Comment
The Commission seeks general comments on potential disclosure
methods to help consumers, distributors, contractors, and installers
easily determine whether residential heating and cooling equipment
meets applicable regional efficiency standards. 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.
Please provide details to support your comments. We encourage
commenters to consider the questions below when preparing comments.
(1) Content: What information is necessary to inform consumers and
industry members whether equipment complies with DOE-mandated regional
energy standards in a particular region? Should the disclosures use
images (e.g., a map of the U.S.) to illustrate the scope of the
regional standards? What changes would be required to the EnergyGuide
label (e.g., EER disclosures) in addition to disclosures specifically
related to regional standards?
(2) Location and Format: Should the required disclosures appear on
the label affixed to the product, on packaging, through point of sale
materials, on the Internet, or through some other means? Should the
disclosures appear in a combination of these formats in multiple
locations? If so, which ones? Should the FTC explore the use of QR
(Quick Response) scan codes to allow installers and consumers to access
detailed information about the equipment through mobile phones? If the
disclosures appear on the product itself, should the Commission replace
the EnergyGuide label with permanent disclosure on the product
nameplate or a similar location?
(3) Separate Disclosures: Should the Commission develop separate
disclosures for furnaces, central air conditioners, and heat pumps
given differences in the way these products are rated on the
EnergyGuide label and how they are installed? Should the Rule require
separate disclosures for industry members and consumers? Should the
Rule require different disclosures or instructions for various industry
members such as distributors and installers?
(4) Installer Requirements: What changes, if any, should the
Commission make to the content and format of disclosures installers
must provide to their customers?
(5) Database Information: Are there existing databases the
Commission could use to help industry members and consumers determine
whether equipment complies with the regional energy standards,
including the efficiency ratings of specific compressor and coil
combinations for central air conditioners?
[[Page 72875]]
(6) Benefits: What benefits, if any, will the new disclosures
provide to consumers? What evidence supports the asserted benefits?
What benefits, if any, will the new disclosures provide to industry
members? What is the magnitude of such benefits? What evidence supports
the asserted benefits?
(7) Costs: What costs, if any, would the potential new disclosures
impose on businesses, and in particular on small businesses such as
installers? What would be the magnitude of such costs? What evidence
supports the asserted costs?
(8) Other Federal, State, or Local Requirements: Would the new
disclosures overlap or conflict with other federal, state, or local
laws or regulations? If so, how?
VI. Request for Comment
The Commission invites interested persons to submit written
comments on any issue of fact, law, or policy that may bear upon the
proposals under consideration. Please include explanations for any
answers provided, as well as supporting evidence where appropriate.
After examining the comments, the Commission will determine whether to
issue specific amendments.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before January 10,
2012. Write ``Regional Labeling for Heating and Cooling Equipment, (16
CFR Part 305) (Project No. P114202)'' on your comment. Your comment--
including your name and your state--will be placed on the public record
of this proceeding, including, to the extent practicable, on the public
Commission Web site, at https://www.ftc.gov/os/publiccomments.shtm. As a
matter of discretion, the Commission tries to remove individuals' home
contact information from comments before placing them on the Commission
Web site.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, such as anyone's Social Security
number, date of birth, driver's license number or other state
identification number or foreign country equivalent, passport number,
financial account number, or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, like medical records or other
individually identifiable health information. In addition, do not
include any ``[t]rade secret or any commercial or financial information
which is obtained from any person and which is privileged or
confidential,'' as provided in Section 6(f) of the FTC Act, 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). If you want the
Commission to give your comment confidential treatment, you must file
it in paper form, with a request for confidential treatment, and you
have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR
4.9(c).\26\ Your comment will be kept confidential only if the FTC
General Counsel, in his or her sole discretion, grants your request in
accordance with the law and the public interest.
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\26\ In particular, the written request for confidential
treatment that accompanies the comment must include the factual and
legal basis for the request, and must identify the specific portions
of the comment to be withheld from the public record. See FTC Rule
4.9(c), 16 CFR 4.9(c).
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Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online, or to send them to the Commission by courier or
overnight service. To make sure that the Commission considers your
online comment, you must file it at https://public.commentworks.com/ftc/regional-disclosuresanpr, by following the instructions on the web-
based form. If this Notice appears at https://www.regulations.gov/#!home, you also may file a comment through that Web site.
If you file your comment on paper, write ``Regional Labeling for
Heating and Cooling Equipment, (16 CFR Part 305) (Project No.114202)''
on your comment and on the envelope, and mail or deliver it to the
following address: Federal Trade Commission, Office of the Secretary,
Room H-113 (Annex H), 600 Pennsylvania Avenue NW., Washington, DC
20580. If possible, submit your paper comment to the Commission by
courier or overnight service.
Visit the Commission Web site at https://www.ftc.gov to read this
Notice and the news release describing it. The FTC Act and other laws
that the Commission administers permit the collection of public
comments to consider and use in this proceeding as appropriate. The
Commission will consider all timely and responsive public comments that
it receives on or before January 10, 2012. You can find more
information, including routine uses permitted by the Privacy Act, in
the Commission's privacy policy, at https://www.ftc.gov/ftc/privacy.htm.
VII. Public Meeting Information
The Commission and DOE staff have scheduled a public meeting to
give interested parties an opportunity to provide their views on
potential FTC disclosures and the DOE enforcement plan related to new
regional standards for furnaces, central air conditioners, and heat
pumps. The public meeting will be held on December 16, 2011 at DOE. DOE
will provide details regarding time, location, attendance and
participation at the meeting.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-30436 Filed 11-25-11; 8:45 am]
BILLING CODE 6750-01-P
