Energy and Water Use Labeling for Consumer Products Under the Energy Policy and Conservation Act (“Energy Labeling Rule”), 19464-19467 [2014-07739]
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Federal Register / Vol. 79, No. 68 / Wednesday, April 9, 2014 / Rules and Regulations
This rule contains no Federal mandates,
as defined in Title II of UMRA, for State,
local, and Tribal governments or the
private sector. Therefore, this rule is not
subject to the requirements of sections
202 and 205 of UMRA.
Small Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA)
This rule is not a major rule under the
Small Business Regulatory Enforcement
Fairness Act of 1996, (Pub. L. 104–121,
SBREFA). Therefore, CCC is not
required to delay the effective date for
60 days from the date of publication to
allow for Congressional review.
Accordingly, this rule is effective on the
date of publication in the Federal
Register.
Federal Assistance Programs
The title and number of the Federal
Domestic Assistance Program found in
the Catalog of Federal Domestic
Assistance to which this rule applies is
Tobacco Transition Payment Program
—10.085.
Paperwork Reduction Act
These regulations are exempt from the
requirements of the Paperwork
Reduction Act (44 U.S.C. Chapter 35), as
specified in section 642 of Public Law
108–357 (7 U.S.C. 519a), which
provides that these regulations, which
are necessary to implement TTPP, be
promulgated and administered without
regard to the Paperwork Reduction Act.
E-Government Act Compliance
CCC is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
List of Subjects in 7 CFR Part 1463
Agriculture, Agricultural
commodities, Acreage allotments,
Marketing quotas, Price support
programs, Tobacco, Tobacco transition
payments.
mstockstill on DSK4VPTVN1PROD with RULES
For the reasons discussed in the
preamble, CCC amends 7 CFR part 1463
as follows:
Subpart A—Tobacco Transition
Assessments
FEDERAL TRADE COMMISSION
2. Amend § 1463.11 by revising
paragraphs (a) and (c) to read as follows:
RIN 3084–AB15
■
§ 1463.11
Appeals and judicial review.
(a) An entity may appeal any adverse
determination made under this subpart,
including with respect to the amount of
the assessment, by submitting a written
statement that sets forth the basis of the
dispute to Darlene Soto, Tobacco
Transition Assessment Program
Manager, U.S. Department of
Agriculture, 1400 Independence Avenue
SW., Room 3722, Mail Stop 0515,
Washington DC 20250–0514, within 30
business days of the date of receipt of
the notification by CCC of its
determination.
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(c) For any appeals filed after October
1, 2014, appellants must submit all
supporting documentation within 30
calendar days following the date of the
initial written appeal to CCC. Any
documents received after that time will
not be considered by the hearing officer.
(1) The final date that entities may file
an appeal is January 14, 2016.
(2) If 30 calendar days elapse
following receipt by CCC of the final
submission of supporting
documentation by an appellant with
respect to any appeal filed under this
section regarding an assessment
imposed on a domestic manufacturer or
importer of tobacco products, without a
final administrative decision by CCC,
then all administrative remedies
available to the appellant will be
deemed to be exhausted; except, if the
30th calendar day would fall on a
weekend day or federal holiday, then
the 30th calendar day will be deemed
the next business day following such
weekend day or federal holiday.
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Signed on April 3, 2014.
Juan M. Garcia,
Administrator, Farm Service Agency, and
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. 2014–07979 Filed 4–8–14; 8:45 am]
BILLING CODE 3410–05–P
PART 1463—2005–2014 TOBACCO
TRANSITION PROGRAM
1. The authority citation for part 1463
continues to read as follows:
■
Authority: 7 U.S.C. 518–519a, 714b, and
714c.
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16 CFR Part 305
Energy and Water Use Labeling for
Consumer Products Under the Energy
Policy and Conservation Act (‘‘Energy
Labeling Rule’’)
Federal Trade Commission
(FTC or Commission).
ACTION: Final rule.
AGENCY:
The Commission issues
conforming amendments to the Energy
Labeling Rule (‘‘Rule’’) to require a new
Department of Energy (DOE) test
procedure for televisions and establish
data reporting requirements for those
products.
SUMMARY:
The amendments are effective on
May 9, 2014.
ADDRESSES: Requests for copies of this
document should be sent to: Public
Reference Branch, Room 130, Federal
Trade Commission, 600 Pennsylvania
Avenue NW., Washington, DC 20580.
The complete record of this proceeding
is also available at that address.
Relevant portions of the proceeding,
including this document, are available
at https://www.ftc.gov.
FOR FURTHER INFORMATION CONTACT:
Hampton Newsome, (202) 326–2889,
Attorney, Division of Enforcement,
Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania
Avenue NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
DATES:
I. Background
The Commission’s Energy Labeling
Rule (Rule) (16 CFR part 305), issued
pursuant to the Energy Policy and
Conservation Act (EPCA), requires
energy labeling for major household
appliances and other consumer
products to help consumers compare
competing models. When first
published in 1979, the Rule applied to
eight product categories: refrigerators,
refrigerator-freezers, freezers,
dishwashers, water heaters, clothes
washers, room air conditioners, and
furnaces. The Commission has since
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.
The Rule requires manufacturers to
attach yellow EnergyGuide labels on
many of these products, and prohibits
retailers from removing the labels or
rendering them illegible. In addition,
the Rule directs sellers, including
retailers, to post label information on
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Web sites and in paper catalogs from
which consumers can order products.
EnergyGuide labels for covered
appliances must contain three key
disclosures: estimated annual energy
cost (for most products); a product’s
energy consumption or energy
efficiency rating as determined from
DOE test procedures; and a
comparability range displaying the
highest and lowest energy costs or
efficiency ratings for all similar
models.1 For energy cost calculations,
the Rule specifies national average costs
for applicable energy sources (e.g.,
electricity, natural gas, oil) as calculated
by DOE. The Rule sets a five-year
schedule for updating range of
comparability and average unit energy
cost information.2 The Commission
updates the range information based on
manufacturer data submitted pursuant
to the Rule’s reporting requirements.
II. Final Amendments
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The Commission issues conforming
amendments to revise the Rule’s
television testing and reporting
requirements in response to a new DOE
television test procedure published on
October 25, 2013 (78 FR 63823). The
Commission proposed these
amendments in a Notice published on
December 26, 2013 (78 FR 78305) and
received two comments.3 These
amendments will ensure the Rule’s
television labeling requirements are
consistent with EPCA, which mandates
that FTC labels reflect applicable DOE
test procedures.4
Background: When the Commission
first issued labeling requirements for
televisions in 2011 (76 FR 1038 (Jan. 6,
2011)), no DOE test procedure existed
for such products. Accordingly, the FTC
required manufacturers to use the
Environmental Protection Agency’s
(EPA’s) ENERGY STAR test procedure
to measure television energy use.
However, as discussed in several
previous Federal Register documents,
the Commission anticipated that
amendments would be necessary after
completion of the DOE test procedure.5
1 Where no ‘‘applicable’’ DOE test exists for
televisions, EPCA authorizes the Commission to use
‘‘adequate non-Department of Energy test
procedures’’ to obtain information for energy
disclosures. 42 U.S.C. 6294(a)(2)(I)(ii). During FTC’s
television labeling proceeding, DOE announced
plans to develop a new test procedure. 74 FR 53640,
53641 (Oct. 20, 2009).
2 16 CFR 305.10.
3 The comments can be found at https://
www.ftc.gov/policy/public-comments/initiative-539.
4 42 U.S.C. 6294(c).
5 For example, the Commission explained in 2011
that ‘‘[w]hen DOE completes its own rulemaking to
develop a television test procedure for use in that
agency’s efficiency standards program, the
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DOE recently completed its test
procedure, which manufacturers must
begin using on April 23, 2014.6
To conform the labeling rule to the
new DOE test procedure, the
Commission proposed three
amendments. First, it proposed
removing the Rule’s reference to the
ENERGY STAR test in section 305.5 and
replacing it with the DOE procedure.7
Second, the Commission proposed a
new reporting requirement for
televisions consistent with requirements
for most other labeled products, such as
refrigerators and clothes washers.8
Manufacturers would be allowed to
submit their new television data
through the DOE’s web-based reporting
tool, the Compliance and Certification
Management System (CCMS).9 To
ensure adequate time after April 23,
2014 for the first round of data reports,
the Commission proposed to set a May
1 date for annual submissions (section
305.8). After the Commission reviews
the new data, it will consider issuing
updated comparability ranges for
television labels.10 Finally, the
amendments update the definition of
‘‘television’’ in section 305.3 to
incorporate DOE’s definition of that
term and to limit labeling coverage to
the scope of DOE’s test procedure. For
the most part, DOE’s definition of
‘‘television’’ and the coverage of its test
procedure are consistent with FTC’s
current rule. However, DOE determined
not to cover very small models with
screen sizes of 15 inches or less in its
procedure because consumers often do
Commission will issue conforming amendments
consistent with EPCA’s requirements that the labels
use information from DOE test procedures when
such procedures are available.’’ 76 FR 1038, 1040
(Jan. 6, 2011). See also 78 FR 43974, 43975 (July
23, 2013); 78 FR 1779, 1780 (Jan. 9, 2013).
6 Any energy representation, including those
made on a label, for a covered product must fairly
reflect the results of a new DOE test procedure 180
days after that test’s issuance. See 42 U.S.C.
6293(c)(2). In its October 25, 2013 Rule, DOE
identified April 23, 2014 as the date for revised
representations.
7 EPCA gives Commission no discretion to retain
the ENERGY STAR procedure. 42 U.S.C.
6294(a)(2)(I).
8 The new DOE test procedure triggers EPCA’s
reporting provisions, which require manufacturers
to submit energy reports to the Commission derived
from DOE test procedures for all new models and
annually for models in current production. 42
U.S.C. 6296(b)(1) and (4). Consistent with the Rule’s
required reports for other covered products, the
content for the television reports in the final
amendments include brand name; model number;
screen size (diagonal in inches); power (in watts)
consumed in on mode, standby-passive mode, in
standby-active mode, low mode, and off mode; and
annual energy consumption (kWh/year) for each
basic model in current production. Currently, DOE
rules do not contain reporting provisions for
televisions.
9 See https://www.regulations.doe.gov/ccms.
10 Section 305.17 contains the television ranges.
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not use such devices as typical
televisions.11
Comments: The commenters did not
oppose the amendments. However, they
raised three minor issues.12 First, CEA
and Panasonic asked whether models
discontinued in the previous year
should be included in the initial 2014
data report. Second, Panasonic asked
whether manufacturers may report
energy use figures that are more
conservative (i.e., showing higher
energy use) than the test values. Finally,
CEA, though recognizing EPCA’s
mandate to tie television labeling to the
DOE test procedure, noted that the DOE
test procedure may not keep pace with
the market and thus may pose
challenges to the quality and credibility
of the EnergyGuide and ENERGY STAR
programs in the future.
Discussion: The Commission issues
the final amendments mostly as
proposed in the December 26, 2013
Proposed Rule. However, to ensure
manufacturers have adequate time to
submit reports this year, the
Commission has set the annual
reporting date for June 1, instead of May
1. In response to comments, the
Commission advises that the initial
2014 data submissions need only
include models currently in production,
and manufacturers should not include
test data for models already
discontinued. In addition, as discussed
in a final rule last year, the Commission
concurs with DOE guidance allowing
manufacturers to rate models more
conservatively than the tested
performance.13 Finally, while the FTC is
obligated to require the DOE test
procedure, the FTC staff will work with
DOE to identify the need for possible
test procedure changes should they
become necessary in the future.14
III. Paperwork Reduction Act
The current Rule contains
recordkeeping, disclosure, testing, and
reporting requirements that constitute
information collection requirements as
11 See 10 CFR 430.2 and App. H, sec. 1; 78 FR
at 63825–26. The amendments also delete obsolete
subparagraph 305.17(h), which contains specific
labeling directions for televisions of nine inches or
fewer.
12 CEA also provided comments on two issues
they had raised before the Commission earlier as
part of the ongoing regulatory review. See CEA
Comments (#560957–00012). In particular, the
commenters urged the Commission to allow
electronic (i.e., paperless) labeling and to eliminate
ranges of comparability on labels.
13 See 78 FR 2200, 2201 (Jan. 10, 2013) (FTC
guidance); 76 FR 12422, 12429 (Mar. 7, 2011) (DOE
policy); and 10 CFR 429.14(a)(2)(i) (DOE rules).
14 The Commission will address the CEA’s
broader concerns about electronic labeling and
comparability ranges separately as part of the
ongoing regulation review.
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defined by 5 CFR 1320.3(c), the
definitional provision within the Office
of Management and Budget (OMB)
regulations that implement the
Paperwork Reduction Act (PRA). OMB
has approved the Rule’s existing
information collection requirements
through February 29, 2016 (OMB
Control No. 3084–0069). The
Commission accounted for the burden
of testing and labeling televisions when
it first issued the labeling requirements
(76 FR 1038 (Jan. 6, 2011)). However,
the new DOE test procedure triggers
EPCA’s requirement that manufacturers
retest their televisions for any energy
representations made 180 days after
DOE publishes the test, including those
on the FTC label. This creates an
additional, one-time burden.
Accordingly, the Commission is
submitting these amendments to OMB
for review.
In issuing the television labels, FTC
staff estimated that 2,000 basic models
exist in the marketplace, that
manufacturers test two units per model,
and that testing requires one hour per
unit tested. Using these estimates, the
Commission expects the new testing
will require a one-time burden of 4,000
additional hours of burden. Annualized
over a 3-year PRA clearance cycle, this
one-time burden amounts to 1,333
hours. Assuming further that this testing
will be implemented by electrical
engineers, and applying an associated
hourly wage rate of $44.14 per hour,
labor costs for testing would annualized
total of $58,839.15 In addition, the
amendments would increase the Rule’s
reporting requirements. Staff estimates
that the average reporting burden for
these manufacturers is approximately
two minutes per basic model to enter
information into DOE’s online database.
Based on this estimate, multiplied by an
estimated total of 2,000 basic television
models, the annual reporting burden for
manufacturers is an estimated 67 hours
(2 minutes × 2,000 models ÷ 60 minutes
per hour). Assuming further that these
filing requirements will be implemented
by data entry workers at an hourly wage
rate of $15.11 per hour, the associated
labor cost for recordkeeping would be
approximately $1,012 per year.16 Any
non-labor costs associated with the
amendments are likely to be minimal.
15 See Bureau of Labor Statistics, U.S. Department
of Labor, Occupational Employment and Wages—
May 2012, Table 1 (National employment and wage
data from the Occupational Employment Statistics
survey by occupation, May 2012), available at:
https://www.bls.gov/news.release/ocwage.t01.htm.
16 See id.
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IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601–612, requires that the
Commission provide an Initial
Regulatory Flexibility Analysis (IRFA)
with a Proposed Rule and a Final
Regulatory Flexibility Analysis (FRFA),
if any, with the Final Rule, unless the
Commission certifies that the Rule will
not have a significant economic impact
on a substantial number of small
entities.17
The Commission does not anticipate
that the Final Rule will have a
significant economic impact on a
substantial number of small entities.
Consistent with past analysis (76 FR at
1049), the Commission estimates that
these new requirements will apply to
about 30 product manufacturers. Out of
these companies, the Commission
expects that no manufacturers qualify as
small businesses.18 Furthermore, the
Commission does not expect that the
requirements specified in the Final Rule
will have a significant economic impact
on these entities.
Although the Commission certified
under the RFA that the amendments
would not, if promulgated, have a
significant economic impact on a
substantial number of small entities, the
Commission has determined,
nonetheless, that it is appropriate to
publish an FRFA in order to explain the
impact of the amendments on small
entities as follows:
A. Statement of the Need for, and
Objectives of, the Amendments
The Commission is proposing
amendments to conform the Rule to a
recently published DOE test procedure
for televisions.
B. Issues Raised by Comments in
Response to the IRFA
The Commission did not receive any
comments specifically related to the
impact of the final amendments on
small businesses. The Commission did
not receive any comments from the
Small Business Administration in
response to the proposed rule.
C. Estimate of Number of Small Entities
to Which the Amendments Will Apply
Under the Small Business Size
Standards issued by the Small Business
Administration, television
manufacturers qualify as small
businesses if they have fewer than 1,000
employees (for other household
appliances the figure is 500 employees)
17 5
U.S.C. 603–605.
also 78 FR at 63838 (DOE’s conclusion that
no television manufacturers qualify as small
businesses).
18 See
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or if their sales are less than $8.0
million annually. The Commission
believes that no manufacturers subject
to the Final Rule qualify as small
businesses.
D. Projected Reporting, Recordkeeping,
and Other Compliance Requirements
The Commission recognizes that the
Final Rule will involve some increased
costs related to reporting these products,
and maintaining test records. All of
these burdens and the skills required to
comply are discussed in the previous
section of this document, regarding the
Paperwork Reduction Act, and there
should be no difference in that burden
as applied to small businesses.
E. Alternatives
The Commission sought comments on
alternatives to the Proposed Rule,
including a delay in the effective dates
for the amendments. However, no
commenters suggested any changes to
the proposed amendments. Accordingly,
the Commission issues the amendments
as proposed.
Final Rule
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation,
Household appliances, Labeling,
Reporting and recordkeeping
requirements.
For the reasons set out above, the
Commission amends 16 CFR part 305 as
follows:
PART 305—ENERGY AND WATER USE
LABELING FOR CONSUMER
PRODUCTS UNDER THE ENERGY
POLICY AND CONSERVATION ACT
(‘‘ENERGY LABELING RULE’’)
1. The authority citation for part 305
continues to read as follows:
■
Authority: 42 U.S.C. 6294.
2. In § 305.3, revise paragraph (y) to
read as follows:
■
§ 305.3
Description of covered products.
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(y) Television means a product that is
designed to produce dynamic video,
contains an internal TV tuner encased
within the product housing, and is
capable of receiving dynamic visual
content from wired or wireless sources
including but not limited to: broadcast
and similar services for terrestrial, cable,
satellite, and/or broadband transmission
of analog and/or digital signals; and/or
display-specific data connections, such
as HDMI, Component video, S-video,
Composite video; and/or media storage
devices such as a USB flash drive,
memory card, or a DVD; and/or network
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connections, usually using Internet
Protocol, typically carried over Ethernet
or Wi-Fi. The requirements of this part
are limited to those televisions for
which the Department of Energy has
adopted and published test procedures
for measuring energy use.
3. In § 305.5, revise paragraph (d) and
remove paragraph (e), as follows:
■
§ 305.5 Determinations of estimated
annual energy consumption, estimated
annual operating cost, and energy
efficiency rating, water use rate, and other
required disclosure content.
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(d) Representations for ceiling fans
under § 305.13 and televisions under
§ 305.17 must be derived from
applicable procedures in 10 CFR parts
429, 430, and 431.
4. In § 305.8, revise paragraphs (a)(1)
and (3), add new paragraph (a)(4), and
revise paragraph (b)(1) to read as
follows:
■
§ 305.8
Submission of data.
(a)(1) Except as provided in
paragraphs (a)(2) through (4) of this
section, each manufacturer of a covered
product subject to the disclosure
requirements of this part and subject to
Department of Energy certification
requirements in 10 CFR part 429 shall
submit annually a report for each model
in current production containing the
same information that must be
submitted to the Department of Energy
pursuant to 10 CFR part 429 for that
product, and that the Department has
identified as public information
pursuant to 10 CFR part 429. In lieu of
submitting the required information to
the Commission as required by this
section, manufacturers may submit such
information to the Department of Energy
via the CCMS at https://
regulations.doe.gov/ccms as provided
by 10 CFR 429.12.
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(3) Manufacturers of televisions shall
submit annually a report containing the
brand name; model number; screen size
(diagonal in inches); power (in watts)
consumed in on mode, standby-passive
mode, in standby-active mode, low
mode, and off mode; and annual energy
consumption (kWh/year) for each basic
model in current production. The report
should also include a starting serial
number, date code, or other means of
identifying the date of manufacture with
the first submission for each basic
model. In lieu of submitting the
required information to the Commission
as required by this section,
manufacturers may submit such
information to the Department of Energy
via the Compliance and Certification
Management System (CCMS) at https://
regulations.doe.gov/ccms as provided
by 10 CFR 429.12.
(4) This section does not require
reports for general service light-emitting
diode (LED or OLED) lamps.
(b)(1) All data required by § 305.8(a)
except serial numbers shall be
submitted to the Commission annually,
on or before the following dates:
Deadline
for data
submission
Product category
Refrigerators ..........................................................................................................................................................................................
Refrigerators-freezers ...........................................................................................................................................................................
Freezers ................................................................................................................................................................................................
Central air conditioners .........................................................................................................................................................................
Heat pumps ...........................................................................................................................................................................................
Dishwashers ..........................................................................................................................................................................................
Water heaters ........................................................................................................................................................................................
Room air conditioners ...........................................................................................................................................................................
Furnaces ...............................................................................................................................................................................................
Pool heaters ..........................................................................................................................................................................................
Clothes washers ....................................................................................................................................................................................
Fluorescent lamp ballasts .....................................................................................................................................................................
Showerheads ........................................................................................................................................................................................
Faucets ..................................................................................................................................................................................................
Water closets ........................................................................................................................................................................................
Ceiling fans ...........................................................................................................................................................................................
Urinals ...................................................................................................................................................................................................
Metal halide lamp fixtures .....................................................................................................................................................................
General service fluorescent lamps .......................................................................................................................................................
Medium base compact fluorescent lamps ............................................................................................................................................
General service incandescent lamps ....................................................................................................................................................
Televisions ............................................................................................................................................................................................
*
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DEPARTMENT OF DEFENSE
§ 305.17—[Amended]
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■
Office of the Secretary
5. In § 305.17, remove paragraph (h).
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014–07739 Filed 4–8–14; 8:45 am]
BILLING CODE 6750–01–P
32 CFR Part 117
[Docket ID: DOD–2011–OS–0063]
RIN 0790–AI71
National Industrial Security Program
Department of Defense (DoD).
Interim final rule.
AGENCY:
ACTION:
This DoD interim final rule
(rule) assigns responsibilities and
SUMMARY:
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Aug. 1.
Aug. 1.
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July 1.
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June 1.
May 1.
July 1.
May 1.
May 1.
Oct. 1.
Mar. 1.
Mar. 1.
Mar. 1.
Mar. 1.
Mar. 1.
Mar. 1.
Sept. 1.
Mar. 1.
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Mar. 1.
June 1.
establishes requirements related to the
National Industrial Security Program
(NISP) to ensure maximum uniformity
and effectiveness for both DoD and nonDoD Components, as defined in this
rule, for which the Department serves as
the Cognizant Security Agency (CSA)
and provides industrial security services
in accordance with Executive Order
(EO) 12829, ‘‘National Industrial
Security Program.’’ The rule provides
guidance on the procedures used to
ensure classified information will be
properly safeguarded if a contractor has
reported foreign ownership, control or
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[Federal Register Volume 79, Number 68 (Wednesday, April 9, 2014)]
[Rules and Regulations]
[Pages 19464-19467]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07739]
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FEDERAL TRADE COMMISSION
16 CFR Part 305
RIN 3084-AB15
Energy and Water Use Labeling for Consumer Products Under the
Energy Policy and Conservation Act (``Energy Labeling Rule'')
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission issues conforming amendments to the Energy
Labeling Rule (``Rule'') to require a new Department of Energy (DOE)
test procedure for televisions and establish data reporting
requirements for those products.
DATES: The amendments are effective on May 9, 2014.
ADDRESSES: Requests for copies of this document should be sent to:
Public Reference Branch, Room 130, Federal Trade Commission, 600
Pennsylvania Avenue NW., Washington, DC 20580. The complete record of
this proceeding is also available at that address. Relevant portions of
the proceeding, including this document, are available at https://www.ftc.gov.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission's Energy Labeling Rule (Rule) (16 CFR part 305),
issued pursuant to the Energy Policy and Conservation Act (EPCA),
requires energy labeling for major household appliances and other
consumer products to help consumers compare competing models. When
first published in 1979, the Rule applied to eight product categories:
refrigerators, refrigerator-freezers, freezers, dishwashers, water
heaters, clothes washers, room air conditioners, and furnaces. The
Commission has since 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.
The Rule requires manufacturers to attach yellow EnergyGuide labels
on many of these products, and prohibits retailers from removing the
labels or rendering them illegible. In addition, the Rule directs
sellers, including retailers, to post label information on
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Web sites and in paper catalogs from which consumers can order
products. EnergyGuide labels for covered appliances must contain three
key disclosures: estimated annual energy cost (for most products); a
product's energy consumption or energy efficiency rating as determined
from DOE test procedures; and a comparability range displaying the
highest and lowest energy costs or efficiency ratings for all similar
models.\1\ For energy cost calculations, the Rule specifies national
average costs for applicable energy sources (e.g., electricity, natural
gas, oil) as calculated by DOE. The Rule sets a five-year schedule for
updating range of comparability and average unit energy cost
information.\2\ The Commission updates the range information based on
manufacturer data submitted pursuant to the Rule's reporting
requirements.
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\1\ Where no ``applicable'' DOE test exists for televisions,
EPCA authorizes the Commission to use ``adequate non-Department of
Energy test procedures'' to obtain information for energy
disclosures. 42 U.S.C. 6294(a)(2)(I)(ii). During FTC's television
labeling proceeding, DOE announced plans to develop a new test
procedure. 74 FR 53640, 53641 (Oct. 20, 2009).
\2\ 16 CFR 305.10.
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II. Final Amendments
The Commission issues conforming amendments to revise the Rule's
television testing and reporting requirements in response to a new DOE
television test procedure published on October 25, 2013 (78 FR 63823).
The Commission proposed these amendments in a Notice published on
December 26, 2013 (78 FR 78305) and received two comments.\3\ These
amendments will ensure the Rule's television labeling requirements are
consistent with EPCA, which mandates that FTC labels reflect applicable
DOE test procedures.\4\
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\3\ The comments can be found at https://www.ftc.gov/policy/public-comments/initiative-539.
\4\ 42 U.S.C. 6294(c).
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Background: When the Commission first issued labeling requirements
for televisions in 2011 (76 FR 1038 (Jan. 6, 2011)), no DOE test
procedure existed for such products. Accordingly, the FTC required
manufacturers to use the Environmental Protection Agency's (EPA's)
ENERGY STAR test procedure to measure television energy use. However,
as discussed in several previous Federal Register documents, the
Commission anticipated that amendments would be necessary after
completion of the DOE test procedure.\5\ DOE recently completed its
test procedure, which manufacturers must begin using on April 23,
2014.\6\
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\5\ For example, the Commission explained in 2011 that ``[w]hen
DOE completes its own rulemaking to develop a television test
procedure for use in that agency's efficiency standards program, the
Commission will issue conforming amendments consistent with EPCA's
requirements that the labels use information from DOE test
procedures when such procedures are available.'' 76 FR 1038, 1040
(Jan. 6, 2011). See also 78 FR 43974, 43975 (July 23, 2013); 78 FR
1779, 1780 (Jan. 9, 2013).
\6\ Any energy representation, including those made on a label,
for a covered product must fairly reflect the results of a new DOE
test procedure 180 days after that test's issuance. See 42 U.S.C.
6293(c)(2). In its October 25, 2013 Rule, DOE identified April 23,
2014 as the date for revised representations.
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To conform the labeling rule to the new DOE test procedure, the
Commission proposed three amendments. First, it proposed removing the
Rule's reference to the ENERGY STAR test in section 305.5 and replacing
it with the DOE procedure.\7\ Second, the Commission proposed a new
reporting requirement for televisions consistent with requirements for
most other labeled products, such as refrigerators and clothes
washers.\8\ Manufacturers would be allowed to submit their new
television data through the DOE's web-based reporting tool, the
Compliance and Certification Management System (CCMS).\9\ To ensure
adequate time after April 23, 2014 for the first round of data reports,
the Commission proposed to set a May 1 date for annual submissions
(section 305.8). After the Commission reviews the new data, it will
consider issuing updated comparability ranges for television
labels.\10\ Finally, the amendments update the definition of
``television'' in section 305.3 to incorporate DOE's definition of that
term and to limit labeling coverage to the scope of DOE's test
procedure. For the most part, DOE's definition of ``television'' and
the coverage of its test procedure are consistent with FTC's current
rule. However, DOE determined not to cover very small models with
screen sizes of 15 inches or less in its procedure because consumers
often do not use such devices as typical televisions.\11\
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\7\ EPCA gives Commission no discretion to retain the ENERGY
STAR procedure. 42 U.S.C. 6294(a)(2)(I).
\8\ The new DOE test procedure triggers EPCA's reporting
provisions, which require manufacturers to submit energy reports to
the Commission derived from DOE test procedures for all new models
and annually for models in current production. 42 U.S.C. 6296(b)(1)
and (4). Consistent with the Rule's required reports for other
covered products, the content for the television reports in the
final amendments include brand name; model number; screen size
(diagonal in inches); power (in watts) consumed in on mode, standby-
passive mode, in standby-active mode, low mode, and off mode; and
annual energy consumption (kWh/year) for each basic model in current
production. Currently, DOE rules do not contain reporting provisions
for televisions.
\9\ See https://www.regulations.doe.gov/ccms.
\10\ Section 305.17 contains the television ranges.
\11\ See 10 CFR 430.2 and App. H, sec. 1; 78 FR at 63825-26. The
amendments also delete obsolete subparagraph 305.17(h), which
contains specific labeling directions for televisions of nine inches
or fewer.
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Comments: The commenters did not oppose the amendments. However,
they raised three minor issues.\12\ First, CEA and Panasonic asked
whether models discontinued in the previous year should be included in
the initial 2014 data report. Second, Panasonic asked whether
manufacturers may report energy use figures that are more conservative
(i.e., showing higher energy use) than the test values. Finally, CEA,
though recognizing EPCA's mandate to tie television labeling to the DOE
test procedure, noted that the DOE test procedure may not keep pace
with the market and thus may pose challenges to the quality and
credibility of the EnergyGuide and ENERGY STAR programs in the future.
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\12\ CEA also provided comments on two issues they had raised
before the Commission earlier as part of the ongoing regulatory
review. See CEA Comments (560957-00012). In particular, the
commenters urged the Commission to allow electronic (i.e.,
paperless) labeling and to eliminate ranges of comparability on
labels.
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Discussion: The Commission issues the final amendments mostly as
proposed in the December 26, 2013 Proposed Rule. However, to ensure
manufacturers have adequate time to submit reports this year, the
Commission has set the annual reporting date for June 1, instead of May
1. In response to comments, the Commission advises that the initial
2014 data submissions need only include models currently in production,
and manufacturers should not include test data for models already
discontinued. In addition, as discussed in a final rule last year, the
Commission concurs with DOE guidance allowing manufacturers to rate
models more conservatively than the tested performance.\13\ Finally,
while the FTC is obligated to require the DOE test procedure, the FTC
staff will work with DOE to identify the need for possible test
procedure changes should they become necessary in the future.\14\
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\13\ See 78 FR 2200, 2201 (Jan. 10, 2013) (FTC guidance); 76 FR
12422, 12429 (Mar. 7, 2011) (DOE policy); and 10 CFR 429.14(a)(2)(i)
(DOE rules).
\14\ The Commission will address the CEA's broader concerns
about electronic labeling and comparability ranges separately as
part of the ongoing regulation review.
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III. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute information collection
requirements as
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defined by 5 CFR 1320.3(c), the definitional provision within the
Office of Management and Budget (OMB) regulations that implement the
Paperwork Reduction Act (PRA). OMB has approved the Rule's existing
information collection requirements through February 29, 2016 (OMB
Control No. 3084-0069). The Commission accounted for the burden of
testing and labeling televisions when it first issued the labeling
requirements (76 FR 1038 (Jan. 6, 2011)). However, the new DOE test
procedure triggers EPCA's requirement that manufacturers retest their
televisions for any energy representations made 180 days after DOE
publishes the test, including those on the FTC label. This creates an
additional, one-time burden. Accordingly, the Commission is submitting
these amendments to OMB for review.
In issuing the television labels, FTC staff estimated that 2,000
basic models exist in the marketplace, that manufacturers test two
units per model, and that testing requires one hour per unit tested.
Using these estimates, the Commission expects the new testing will
require a one-time burden of 4,000 additional hours of burden.
Annualized over a 3-year PRA clearance cycle, this one-time burden
amounts to 1,333 hours. Assuming further that this testing will be
implemented by electrical engineers, and applying an associated hourly
wage rate of $44.14 per hour, labor costs for testing would annualized
total of $58,839.\15\ In addition, the amendments would increase the
Rule's reporting requirements. Staff estimates that the average
reporting burden for these manufacturers is approximately two minutes
per basic model to enter information into DOE's online database. Based
on this estimate, multiplied by an estimated total of 2,000 basic
television models, the annual reporting burden for manufacturers is an
estimated 67 hours (2 minutes x 2,000 models / 60 minutes per hour).
Assuming further that these filing requirements will be implemented by
data entry workers at an hourly wage rate of $15.11 per hour, the
associated labor cost for recordkeeping would be approximately $1,012
per year.\16\ Any non-labor costs associated with the amendments are
likely to be minimal.
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\15\ See Bureau of Labor Statistics, U.S. Department of Labor,
Occupational Employment and Wages--May 2012, Table 1 (National
employment and wage data from the Occupational Employment Statistics
survey by occupation, May 2012), available at: https://www.bls.gov/news.release/ocwage.t01.htm.
\16\ See id.
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IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires
that the Commission provide an Initial Regulatory Flexibility Analysis
(IRFA) with a Proposed Rule and a Final Regulatory Flexibility Analysis
(FRFA), if any, with the Final Rule, unless the Commission certifies
that the Rule will not have a significant economic impact on a
substantial number of small entities.\17\
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\17\ 5 U.S.C. 603-605.
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The Commission does not anticipate that the Final Rule will have a
significant economic impact on a substantial number of small entities.
Consistent with past analysis (76 FR at 1049), the Commission estimates
that these new requirements will apply to about 30 product
manufacturers. Out of these companies, the Commission expects that no
manufacturers qualify as small businesses.\18\ Furthermore, the
Commission does not expect that the requirements specified in the Final
Rule will have a significant economic impact on these entities.
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\18\ See also 78 FR at 63838 (DOE's conclusion that no
television manufacturers qualify as small businesses).
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Although the Commission certified under the RFA that the amendments
would not, if promulgated, have a significant economic impact on a
substantial number of small entities, the Commission has determined,
nonetheless, that it is appropriate to publish an FRFA in order to
explain the impact of the amendments on small entities as follows:
A. Statement of the Need for, and Objectives of, the Amendments
The Commission is proposing amendments to conform the Rule to a
recently published DOE test procedure for televisions.
B. Issues Raised by Comments in Response to the IRFA
The Commission did not receive any comments specifically related to
the impact of the final amendments on small businesses. The Commission
did not receive any comments from the Small Business Administration in
response to the proposed rule.
C. Estimate of Number of Small Entities to Which the Amendments Will
Apply
Under the Small Business Size Standards issued by the Small
Business Administration, television manufacturers qualify as small
businesses if they have fewer than 1,000 employees (for other household
appliances the figure is 500 employees) or if their sales are less than
$8.0 million annually. The Commission believes that no manufacturers
subject to the Final Rule qualify as small businesses.
D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The Commission recognizes that the Final Rule will involve some
increased costs related to reporting these products, and maintaining
test records. All of these burdens and the skills required to comply
are discussed in the previous section of this document, regarding the
Paperwork Reduction Act, and there should be no difference in that
burden as applied to small businesses.
E. Alternatives
The Commission sought comments on alternatives to the Proposed
Rule, including a delay in the effective dates for the amendments.
However, no commenters suggested any changes to the proposed
amendments. Accordingly, the Commission issues the amendments as
proposed.
Final Rule
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
For the reasons set out above, the Commission amends 16 CFR part
305 as follows:
PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER
THE ENERGY POLICY AND CONSERVATION ACT (``ENERGY LABELING RULE'')
0
1. The authority citation for part 305 continues to read as follows:
Authority: 42 U.S.C. 6294.
0
2. In Sec. 305.3, revise paragraph (y) to read as follows:
Sec. 305.3 Description of covered products.
* * * * *
(y) Television means a product that is designed to produce dynamic
video, contains an internal TV tuner encased within the product
housing, and is capable of receiving dynamic visual content from wired
or wireless sources including but not limited to: broadcast and similar
services for terrestrial, cable, satellite, and/or broadband
transmission of analog and/or digital signals; and/or display-specific
data connections, such as HDMI, Component video, S-video, Composite
video; and/or media storage devices such as a USB flash drive, memory
card, or a DVD; and/or network
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connections, usually using Internet Protocol, typically carried over
Ethernet or Wi-Fi. The requirements of this part are limited to those
televisions for which the Department of Energy has adopted and
published test procedures for measuring energy use.
0
3. In Sec. 305.5, revise paragraph (d) and remove paragraph (e), as
follows:
Sec. 305.5 Determinations of estimated annual energy consumption,
estimated annual operating cost, and energy efficiency rating, water
use rate, and other required disclosure content.
* * * * *
(d) Representations for ceiling fans under Sec. 305.13 and
televisions under Sec. 305.17 must be derived from applicable
procedures in 10 CFR parts 429, 430, and 431.
0
4. In Sec. 305.8, revise paragraphs (a)(1) and (3), add new paragraph
(a)(4), and revise paragraph (b)(1) to read as follows:
Sec. 305.8 Submission of data.
(a)(1) Except as provided in paragraphs (a)(2) through (4) of this
section, each manufacturer of a covered product subject to the
disclosure requirements of this part and subject to Department of
Energy certification requirements in 10 CFR part 429 shall submit
annually a report for each model in current production containing the
same information that must be submitted to the Department of Energy
pursuant to 10 CFR part 429 for that product, and that the Department
has identified as public information pursuant to 10 CFR part 429. In
lieu of submitting the required information to the Commission as
required by this section, manufacturers may submit such information to
the Department of Energy via the CCMS at https://regulations.doe.gov/ccms as provided by 10 CFR 429.12.
* * * * *
(3) Manufacturers of televisions shall submit annually a report
containing the brand name; model number; screen size (diagonal in
inches); power (in watts) consumed in on mode, standby-passive mode, in
standby-active mode, low mode, and off mode; and annual energy
consumption (kWh/year) for each basic model in current production. The
report should also include a starting serial number, date code, or
other means of identifying the date of manufacture with the first
submission for each basic model. In lieu of submitting the required
information to the Commission as required by this section,
manufacturers may submit such information to the Department of Energy
via the Compliance and Certification Management System (CCMS) at
https://regulations.doe.gov/ccms as provided by 10 CFR 429.12.
(4) This section does not require reports for general service
light-emitting diode (LED or OLED) lamps.
(b)(1) All data required by Sec. 305.8(a) except serial numbers
shall be submitted to the Commission annually, on or before the
following dates:
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Deadline for data
Product category submission
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Refrigerators................................ Aug. 1.
Refrigerators-freezers....................... Aug. 1.
Freezers..................................... Aug. 1.
Central air conditioners..................... July 1.
Heat pumps................................... July 1.
Dishwashers.................................. June 1.
Water heaters................................ May 1.
Room air conditioners........................ July 1.
Furnaces..................................... May 1.
Pool heaters................................. May 1.
Clothes washers.............................. Oct. 1.
Fluorescent lamp ballasts.................... Mar. 1.
Showerheads.................................. Mar. 1.
Faucets...................................... Mar. 1.
Water closets................................ Mar. 1.
Ceiling fans................................. Mar. 1.
Urinals...................................... Mar. 1.
Metal halide lamp fixtures................... Sept. 1.
General service fluorescent lamps............ Mar. 1.
Medium base compact fluorescent lamps........ Mar. 1.
General service incandescent lamps........... Mar. 1.
Televisions.................................. June 1.
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* * * * *
Sec. 305.17--[Amended]
0
5. In Sec. 305.17, remove paragraph (h).
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014-07739 Filed 4-8-14; 8:45 am]
BILLING CODE 6750-01-P
