Energy Labeling Rule, 29230-29236 [2017-13469]
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Federal Register / Vol. 82, No. 123 / Wednesday, June 28, 2017 / Rules and Regulations
with FAA Order 1050.1F,
Environmental Impacts: Policies and
Procedures, paragraph 5–6.5.d,
‘‘Modification of the technical
description of special use airspace
(SUA) that does not alter the
dimensions, altitudes, or times of
designation of the airspace (such as
changes in designation of the
controlling or using agency, or
correction of typographical errors).’’
This airspace action is an administrative
change to the using agency names for
restricted areas R–3007A, R–3007B, R–
3007C, and R–3007D to update the
using agency name. It does not alter the
dimensions, altitudes, time of
designation, or use of the airspace.
Therefore, this airspace action is not
expected to result in any significant
environmental impacts. In accordance
with FAAO 1050.1F, paragraph 5–2
regarding Extraordinary Circumstances,
this action has been reviewed for factors
and circumstances in which a normally
categorically excluded action may have
a significant environmental impact
requiring further analysis, and it is
determined that no extraordinary
circumstances exist that warrant
preparation of an environmental
assessment.
List of Subjects in 14 CFR Part 73
Adoption of the Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR part 73 as follows:
PART 73—SPECIAL USE AIRSPACE
1. The authority citation for part 73
continues to read as follows:
■
Authority: 49 U.S.C. 106(f), 106(g); 40103,
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
1959–1963 Comp., p. 389.
■
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Townsend, GA [Amended]
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By removing ‘‘Using agency. ANG,
Savannah Combat Readiness Training Center,
GA,’’ and adding in its place ‘‘Using agency.
USMC, Marine Corps Air Station Beaufort,
SC.’’
R–3007B
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Townsend, GA [Amended]
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*
By removing ‘‘Using agency. ANG,
Savannah Combat Readiness Training Center,
GA,’’ and adding in its place ‘‘Using agency.
USMC, Marine Corps Air Station Beaufort,
SC.’’
VerDate Sep<11>2014
*
*
*
By removing ‘‘Using agency. ANG,
Savannah Combat Readiness Training Center,
GA,’’ and adding in its place ‘‘Using agency.
USMC, Marine Corps Air Station Beaufort,
SC.’’
R–3007D
*
*
Townsend, GA [Amended]
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*
*
By removing ‘‘Using agency. ANG,
Savannah Combat Readiness Training Center,
GA,’’ and adding in its place ‘‘Using agency.
USMC, Marine Corps Air Station Beaufort,
SC.’’
Issued in Washington, DC, on June 21,
2017.
Rodger A. Dean, Jr.,
Manager, Airspace Policy Group.
[FR Doc. 2017–13456 Filed 6–27–17; 8:45 am]
BILLING CODE 4910–13–P
FEDERAL TRADE COMMISSION
16 CFR Part 305
[3084–AB15]
Energy Labeling Rule
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
AGENCY:
Final rule.
The Commission issues
amendments to the Energy Labeling
Rule to eliminate certain marking
requirements for plumbing products and
to exempt certain ceiling fans from
labeling requirements. Additionally, the
amendments update the Rule to include
labeling requirements for electric
instantaneous water heaters. The
Commission also makes nonsubstantive, conforming changes to the
testing provisions for LED covered
lamps and minor corrections to other
provisions.
SUMMARY:
This rule is effective on
December 26, 2017, except for the
amendments to § 305.13, which are
effective on September 17, 2018, and the
amendments to § 305.16, which are
effective on July 28, 2017.
2. § 73.30 is amended as follows:
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Townsend, GA [Amended]
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DATES:
[Amended]
R–3007A
*
ACTION:
Airspace, Prohibited areas, Restricted
areas.
§ 73.30
R–3007C
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Relevant portions of the
record of this proceeding, including this
document, are available at https://
www.ftc.gov.
ADDRESSES:
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:
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I. Background
The Commission issued the Energy
Labeling Rule (‘‘Rule’’) in 1979,1
pursuant to the Energy Policy and
Conservation Act of 1975 (EPCA).2 The
Rule requires energy labeling for major
home appliances and other consumer
products to help consumers compare
competing models. It also contains
labeling requirements for refrigerators,
refrigerator-freezers, freezers,
dishwashers, water heaters, clothes
washers, room air conditioners,
furnaces, central air conditioners, heat
pumps, plumbing products, lighting
products, ceiling fans, and televisions.
The Rule requires manufacturers to
attach yellow EnergyGuide labels to
many of the covered products and
prohibits retailers from removing these
labels or rendering them illegible. In
addition, it directs sellers, including
retailers, to post label information on
Web sites and in paper catalogs from
which consumers can order products.
EnergyGuide labels for most covered
products contain three key disclosures:
Estimated annual energy cost, a
product’s energy consumption or energy
efficiency rating as determined by DOE
test procedures, and a comparability
range displaying the highest and lowest
energy costs or efficiency ratings for all
similar models. For cost calculations,
the Rule specifies national average costs
for applicable energy sources (e.g.,
electricity, natural gas, oil) as calculated
by DOE. Under the Rule, the
Commission periodically updates
comparability range and annual energy
cost information based on manufacturer
data submitted pursuant to the Rule’s
reporting requirements.3
II. Amendments to the Energy Labeling
Rule
In a September 12, 2016 Notice of
Proposed Rulemaking (2016 NPRM), the
Commission sought comment on several
issues including portable air conditioner
(portable AC or PAC) labeling, largediameter and high-speed small-diameter
(HSSD) ceiling fan labels, electric
instantaneous water heater labeling, and
plumbing disclosures changes. The
Commission received 10 comments in
response.4 After reviewing responsive
1 44
FR 66466 (Nov. 19, 1979).
U.S.C. 6294. EPCA also requires the
Department of Energy (DOE) to develop test
procedures that measure how much energy
appliances use, and to determine the representative
average cost a consumer pays for different types of
energy.
3 16 CFR 305.10.
4 See 81 FR 62681. The comments received in
response to the 2016 NPRM are here: https://
www.ftc.gov/policy/public-comments/initiative-681.
The comments included:
2 42
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comments, the Commission now issues
final amendments addressing these
issues.
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A. Portable Air Conditioners
Background: In its 2016 NPRM, the
Commission proposed requiring
EnergyGuide labels for portable air
conditioners, concluding that such
labels will aid consumers in their
purchasing decisions.5 Given the
similarity of portable ACs to room air
conditioners (room ACs or RACs), the
Commission proposed requiring the
same or similar labeling for the two
products. It also noted that DOE had
issued a new test procedure for portable
ACs on June 1, 2016 (81 FR 35242).
However, the Commission explained
that the content and timing of DOE’s
new test procedure raised several new
issues that affect such labeling. First,
DOE’s test procedures do not generate
comparable results for portable and
room air conditioners.6 This
inconsistency could mislead consumers
comparing the two types of products.
The Commission therefore proposed
waiting to issue portable AC labels until
DOE harmonizes the two tests.7 It also
invited comment on whether to
combine portable AC and room AC
comparability ranges.8 Finally, the
Commission sought input on the timing
of these requirements, including data
reporting, for portable air conditioners.
Citing significant burdens associated
with testing and labeling, earlier
Delta T Corporation dba Big Ass Solutions (Delta
T) (#00009); De Longhi Appliances (#00010); A.O.
Smith Corporation (#00011); Association of Home
Appliance Manufacturers (AHAM) (#00012); Rheem
Manufacturing Company (#00013); Appliance
Standards Awareness Project (‘‘Joint Commenters’’)
(#00014); Air-Conditioning, Heating, and
Refrigeration Institute (AHRI) #00015; Hunter Fan
Company (#00008); Plumbing Manufacturers
International (PMI) #00003; and the People’s
Republic of China (#0016 and #0017).
5 The Commission also stated such labels would
be economically and technologically feasible. See
42 U.S.C. 6294(a)(3). The Commission addressed
the benefits and feasibility of labels for these
products in earlier notices. See 81 FR at 62682–83;
80 FR 67351, 67357 (Nov. 2, 2015).
6 81 FR at 35251. DOE stated that it would
consider amending the room air conditioner
procedure to address this issue. However, it is not
clear when it will do so.
7 Consistent with the Commission’s recent
decision on room air conditioners, the Commission
indicated that the portable AC label would appear
on the product box, not the unit itself. In addition,
the portable AC label would disclose the Combined
Energy Efficiency Ratio (CEER). See 80 FR at 67293.
8 In response to an earlier notice, commenters had
disagreed on this issue. See 81 FR at 62682–83. In
DOE’s test procedure notice, DOE stated that
‘‘comparative ratings between room ACs and
portable ACs [are] desirable,’’ suggesting that
consumers do compare these products. See 81 FR
at 35251. DOE also noted ‘‘the many similarities
between room ACs and portable ACs in design,
cost, functionality, consumer utility, and
applications.’’ Id. at 35250.
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industry comments urged the
Commission to synchronize the date for
compliance of any new labeling
requirements with the date of
compliance with DOE efficiency
standards, which would occur roughly
five years after DOE issues such
standards.
Comments: Commenters generally
supported labeling for portable ACs.
They also agreed, for different reasons,
that the Commission should not
combine comparability ranges for
portable and room ACs at this time. In
addition, industry members urged the
Commission to synchronize the timing
of new label requirements with
proposed DOE energy efficiency
standards, which may not become
effective for several years.
Industry members, AHAM and
DeLonghi, as well as China argued
against combining label ranges for
portable and room ACs because of
significant differences in how
consumers purchase and use these
products and the consumer confusion
such combined information may cause.9
Specifically, AHAM and DeLonghi
argued that consumers are unlikely to
compare these products because they
use them for different purposes. In
support of its position, AHAM
presented consumer research suggesting
that each product has ‘‘unique key
purchase drivers.’’ Specifically, portable
AC buyers generally seek the flexibility
to move the product from room to room
and store it elsewhere in cooler weather.
In addition, these consumers often
purchase portable ACs because room
models do not fit in their windows. As
DeLonghi explained, portable ACs
generally offer a ‘‘unique solution’’
where installation of other air
conditioner types is ‘‘forbidden or
impracticable.’’ 10 AHAM added that
most air conditioner owners are likely to
choose the configuration (PAC or RAC)
they currently own when they purchase
a new unit. AHAM noted that room AC
owners generally use these products as
the principal source of cooling, while
portable ACs owners often use those
products for supplemental cooling.
Finally, AHAM pointed to DOE research
suggesting that room ACs are generally
9 China added that the test methods and the user
experience for the two product types are different.
10 In AHAM’s view, room AC buyers do not need
the ability to move units from room to room, view
PACs as too expensive, or are unaware of PACs.
AHAM also suggested, based on its research, the
consumers will not focus on EnergyGuide labels
because cooling capacity and price are much higher
priorities for consumers than energy efficiency and
operating costs. According to AHAM, even if
consumers compare RACs and PACs while
shopping, they may not be comparing energy costs
in making purchasing decisions.
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29231
operated more hours annually than
portable ACs. It also noted that the
current room ACs have different
categories for non-louvered and
casement RACs, categories which do not
apply to portable units.11
The Joint Commenters similarly
recommended against combining ranges
at this time. However, they also
recommended initiating separate ranges
to avoid delay and ensure consumers
have access to energy labels pending
DOE test harmonization. They
explained that the test conditions
impose different outdoor temperatures
for the two product types. The
inconsistency favors portable ACs,
making them appear more efficient.
Therefore, although portable AC labels
generated under the test will not allow
for a direct comparison to room AC
labels, the labels will still accurately
depict portable ACs as generally less
efficient (and thus more costly to
operate) than room ACs.12
In contrast, AHAM and DeLonghi
recommended the Commission wait and
synchronize the labeling requirements
with the compliance date for new DOE
efficiency standards, which would be
set five years after DOE issues such
standards. AHAM explained that its
members will devote considerable
resources over the next few years to
ensure product lines meet the new DOE
standards.13 AHAM also stated that the
pre-development, development, and
tooling phases of launching a new
product take years to complete and
require extensive resources. According
to AHAM, complying with an
EnergyGuide label requirement before
the DOE compliance date ‘‘will require
companies to divert resources from
developing new, more efficient
products.’’ Aligning the compliance
dates would ‘‘allow manufacturers to
engage in the extensive development
and testing activities required to
innovate and bring more efficient
products to market and to comply with
regulatory requirements.’’ AHAM added
that, should FTC decide to move
forward with labeling/reporting
requirements before the DOE
compliance date, the compliance date
for the labeling requirements should not
be prior to October 1, 2017 and should
be synchronized with the annual
11 AHAM also argued that DOE’s statement about
the desirability for harmonized test results, cited by
the Commission in the NPRM, has no bearing on
whether consumers actually compare these
products when shopping.
12 The Joint Commenters suggested that FTC
consider label language alerting consumers that the
room AC test conditions are not consistent with
those for PACs.
13 AHAM provided additional information
involving the expected burden of labeling.
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production cycle (i.e., the cooling
season) for these products.14
Discussion: The Commission is not
issuing final label requirements for
portable air conditioners at this time. As
discussed above, commenters disagree
on the timing of compliance with new
labeling requirements. AHAM and
DeLonghi argued that the compliance
dates for labels and DOE efficiency
standards should be synchronized to
allow industry to focus more of their
resources during the five-year standards
compliance period on developing more
efficient products rather than on
labeling products. The Joint
Commenters, on the other hand, seek a
shorter compliance period, arguing that
the label information would benefit
consumers before implementation of the
standards.15 However, in January 2017,
DOE withdrew its final efficiency
standards from publication in the
Federal Register pursuant to an
Executive Order, leaving any final
standards compliance date unclear at
this time.16 Therefore, before
considering this issue further, the
Commission will wait for further clarity
regarding DOE’s energy efficiency
standards.
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B. Large-Diameter and High-Speed
Small Diameter Ceiling Fan Labels
Background: In final amendments
published September 15, 2016 (81 FR
63634) (2016 Final Rule), the
Commission issued updated ceiling fan
14 AHAM also requested more details about the
label content, compliance dates, and reporting
requirements before issuing a final rule and urged
that the reporting and labeling requirements be
consistent with DOE’s reporting requirements and
the DOE test procedure. As the Commission has
stated before, the proposed label content is largely
identical to those for room ACs.
15 In arguing for a shorter label compliance
period, the Joint Commenters note that a 2010
Commission rule (75 FR 41699 (July 19, 2010)
required new labeling for certain lighting products
prior to the effective date of energy efficiency
standards for those products because labeling ‘‘will
provide benefits to consumers that outweigh any
additional cost to industry.’’ However, in response
to industry concerns in that proceeding, the
Commission later exempted some of the bulbs in
question from the new labeling requirements,
explaining in part that the exemption would allow
manufacturers to focus their labeling resources ‘‘on
products that will remain in the market well into
the future . . . .’’ 76 FR 20233, 20236 (April 12,
2011).
16 In December 2016, DOE announced a final rule
establishing reporting requirements and future
efficiency standards for portable ACs. See
‘‘Issuance: 2016–12–28 Energy Conservation
Program: Energy Conservation Standards for
Portable Air Conditioners; Final Rule,’’ https://
energy.gov/eere/buildings/downloads/issuance2016-12-28-energy-conservation-program-energyconservation-2. Pursuant to the Presidential
Memorandum on Implementation of Regulatory
Freeze (Jan. 24, 2017), DOE subsequently withdrew
the final rule from publication in the Federal
Register.
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labels, which will be required on all fan
boxes beginning on September 17, 2018.
In publishing the new label, the
Commission excluded large-diameter
fans (i.e., greater than 84 inches) and
high-speed small-diameter fans because
new DOE testing requirements prescribe
significantly different operating
assumptions (hours per day) for these
models.17 As a result, the test yields
incompatible yearly cost estimates
among these different fan types.18
Absent adequate disclosures alerting
consumers to these different operating
assumptions, the resulting
inconsistencies could be misleading.
Accordingly, the Commission sought
comment on the need for, and content
of, large-diameter and HSSD fan labels.
Comments: Commenters agreed the
Commission should not require labels
for large-diameter fans. Delta T asserted
that such labels would create little or no
benefit for consumers while adding
burden and costs for manufacturers.
Citing DOE research, Delta T explained
that large-diameter fans are typically not
sold to individual consumers through
retail outlets or e-commerce sites. Thus,
in its view, labeling would not benefit
typical purchasers while creating
additional burden and cost for
manufacturers. Hunter indicated that
large diameter fan labels are likely to
confuse consumers if such labels are
inconsistent with small-diameter fan
labels. Delta T cautioned that such
inconsistent labels would confuse
consumers given the vastly different
applications for these products.
Should the FTC require labels, Delta
T recommended the label display
integrated efficiency, maximum power
consumption, and maximum cubic feet
per minute of airflow, and cost
comparisons limited to similar-size
products. In addition, Hunter
recommended disclosures advising
consumers not to compare largediameter models to small ones.
Discussion: The Commission has
determined not to require labels for
large-diameter and HSSD fans.19 Based
on the comments and DOE information,
large-diameter and HSSD fans are
17 See 81 FR 48620 (July 25, 2016). In its proposed
test procedure Notice, DOE described a HSSD fan
as a model that has a blade thickness of less than
3.2 mm at the edge or a maximum tip speed greater
than applicable limits set out by DOE and does not
otherwise qualify as ‘‘a very small-diameter ceiling
fan, highly-decorative ceiling fan or belt-driven
ceiling fan.’’ 81 FR 1688, 1700, 1703 (Jan. 13, 2016).
18 The DOE test procedure dictates a 6.4-hour per
day operating assumption for standard fans but a
12-hour per day figure for large-diameter and HSSD
models. 81 FR at 48645.
19 The amendments contain a minor correction to
section 305.13 regarding the fan sizes included for
covered models.
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generally not sold to residential
consumers but rather purchased by
commercial or industrial entities
unlikely to use a consumer label.20
Therefore, the Commission concludes
that for these products the labeling costs
would substantially outweigh labeling
benefits.21 However, manufacturers and
other marketers should note that, under
EPCA (42 U.S.C. 6293(c)), any energy
representations (e.g., airflow ratings)
made for these products, whether on
packaging, in advertising, or elsewhere,
must fairly disclose the results of the
DOE test procedure.22
C. Electric Instantaneous Water Heaters
Background: In its 2016 NPRM, the
Commission proposed to include
EnergyGuide labeling provisions for
electric instantaneous water heaters.
Although such products already fell
within the Rule’s ‘‘water heater’’
definition (section 305.3), the
Commission in the past did not require
that they be labeled because DOE did
not have an applicable test method. In
2014, however, DOE updated its water
heater test procedure to include such a
test method.23 Accordingly, in the 2016
NPRM, the Commission proposed
updating the Rule to publish
comparability ranges and labeling
provisions for these water heater
models.24 The labels for the electric
instantaneous models are no different
from other covered water heaters. The
Commission proposed requiring
manufacturers to begin using labels on
their products within 180 days of the
final Rule to give manufacturers
adequate time to label their models.
Comments: The commenters (AHRI,
A.O. Smith, and Rheem) supported the
Commission requiring labels for electric
20 The commenters did not specifically address
HSSD fans. However, DOE stated in an earlier
notice that ‘‘HSSD ceiling fans generally operate at
much higher speeds (in terms of RPM) than
standard or hugger ceiling fans, and are installed in
commercial applications.’’ 81 FR at 1703.
21 Under EPCA, the Commission may forgo label
requirements for covered products if it determines
that labeling for a product type or class thereof is
not ‘‘economically or technically feasible.’’ See 42
U.S.C. 6294(b)(5). In interpreting this statutory
provision, the Commission has stated ‘‘that
Congress[’s] intent was to permit the exclusion of
any product category, if the Commission found that
the costs of the labeling program would
substantially outweigh any potential benefits to
consumers.’’ 44 FR at 66467–68.
22 China requested the Rule include definitions
for large-diameter and HSSD fans. The amendments
published by the Commission on September 15,
2016 (81 FR at 63646) (section 305.3(x)) reference
the DOE definitions for these terms in 10 CFR part
430.
23 79 FR 40542 (July 11, 2014).
24 81 FR at 62683–84. In earlier comments, AHRI
recommended labels for these products in light of
the DOE test procedure change. See AHRI
comments (Jan. 11, 2016) (#00015).
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instantaneous water heaters. For
instance, A.O. Smith stated that labeling
requirements ‘‘will assure a transparent
level playing field upon which
manufacturers will be able to
communicate important information to
consumers.’’ However, these comments
raised concerns about physically
attaching labels to these products. They
explained that electric instantaneous
units are generally too small to
accommodate the EnergyGuide label.
A.O. Smith also noted that these
products are most commonly displayed
in their packaging (i.e., box). Therefore,
the commenters requested that the
Commission either allow manufacturers
to place the label on packaging (like
ceiling fans), include the label with
other product literature, or affix hang
tags directly on the product (an option
currently prohibited by the Rule).25
Discussion: Consistent with the
comments and EPCA’s mandate, the
final amendments impose labeling
requirements, including the
comparability ranges proposed in the
2016 NPRM for electric instantaneous
water heaters.26 The cost figure for the
label is 12 cents per kWh, consistent
with the figure currently used for
electric storage water heater labels. In
response to comments indicating that
the products themselves are generally
too small for an adhesive label and that
the products are usually displayed in
boxes, the final Rule requires the label
to appear conspicuously on the
product’s packaging, not on the product
itself.27 Manufacturers may incorporate
the label into the packaging graphics or
affixing adhesive labels to the box.28
25 Rheem and AHRI noted conforming changes
needed for the online sample template label for
instantaneous water heaters on the FTC Web site.
Those changes have been made at https://
www.ftc.gov/tips-advice/business-center/guidance/
energyguide-labels-templates-manufacturers.
26 Under EPCA (42 U.S.C. 6294(a)(1)), the
Commission must require labels for water heaters
unless it finds such labeling is not technologically
or economically feasible. The comments, all from
industry members supporting the label, identified
no such barriers.
27 Consistent with the proposal, the final
amendments require labels for models produced
beginning 180 days after publication of this Notice.
In addition, the final Rule does not allow labels to
be included in literature disseminated with the
product or affixed as hang tags. The inclusion of
labels in product literature would prevent
consumers from examining the label prior to
purchase. In addition, the Rule (section
305.11(e)(2)) prohibits the placement of hang tags
on product exteriors because such labels may
‘‘become misplaced or damaged easily’’ in a retail
environment. See 72 FR 49948, 49961 (Aug. 29,
2007).
28 AHRI’s comments also raised concerns about
whether gas-fired instantaneous water heaters can
accommodate the size of the label. However, the
Rule has required labels for gas-fired units for
decades with no apparent difficulty and the 2016
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D. Plumbing ASME Reference Update
Background: In the 2016 NPRM, the
Commission also proposed updating the
marking and labeling requirements in
Section 305.16 to remove a reference to
the ASME (American Society of
Mechanical Engineers) standards that
the Rule requires on showerheads and
faucets (‘‘A112.18.1’’), as well as water
closets and urinals (‘‘A112.19.2’’). The
Commission explained that the required
marking appears to have outlived its
usefulness, and that its removal likely
will have no negative impact on
consumers or other market participants.
In addition, the current revisions of both
ASME standards no longer require these
markings.
Comments: All commenters
addressing this issue supported the
proposal. PMI agreed these standard
markings have outlived their usefulness
and are no longer required by the latest
versions of the ASME standards. PMI
provided suggested language to ensure
that the amendments delete the ASME
marking requirements from the Rule.
PMI also requested that the proposed
rulemaking become effective no later
than 30 days after it is published in the
Federal Register to allow manufacturers
to remove the markings from their
products as soon as possible.
Discussion: As proposed, the final
amendments remove the ASME
references in the Rule.29 As discussed in
the 2016 NPRM, these disclosures are
unlikely to aid consumers or industry
members and, as such, impose
unnecessary burdens. The final changes
incorporate the Rule language
suggestions offered by PMI. The
amendments will become effective 30
days after publication of this Notice in
the Federal Register.
E. LED Test Procedure Reference
The final amendments include a nonsubstantive, conforming change to the
Rule’s testing provisions (section 305.5)
NPRM did not propose any changes for gas-fired
model labels. In addition, both Rheem and A.O.
Smith indicated in their comments that electric
models are generally smaller than gas-fired ones.
The Commission therefore has determined not to
address labels of gas-fired instantaneous water
heaters in the final amendments.
29 EPCA directs the Commission to amend the
plumbing labeling requirements to be consistent
with any revisions to these ASME standards, unless
the Commission finds such amendments would be
inconsistent with EPCA’s purposes or certain
labeling requirements for plumbing products. 42
U.S.C. 6294(a)(2)(E)(ii). As noted in earlier
comments, the ASME standards themselves no
longer require such markings, and applicable
plumbing codes now impose similar disclosures
and require manufacturers to third-party certify
their products to the current applicable standard.
Accordingly, these amendments are consistent with
EPCA. See 81 FR at 62684.
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to clarify that manufacturers must use
DOE test procedures for LED covered
lamps. In the past, the Rule stated that
the Commission will accept tests
conducted according to IEA LM79 as a
reasonable basis for representations of
light output for general service LED
lamps. However, on July 1, 2016 (81 FR
43404), DOE issued final test procedures
incorporating LM79 standard by
reference. Because EPCA requires
manufacturers to use DOE test
procedures for labeling,30 the Rule
provision’s reference to IEA LM79 is
now obsolete. Accordingly, the
Commission finds good cause for
amending the testing provisions for LED
covered lamps to remove the obsolete
reference to IEA LM79 without notice
and comment because such a procedure
is unnecessary in this case. See 16 CFR
1.26(b).31
III. Paperwork Reduction Act
The current Rule contains
recordkeeping, disclosure, testing, and
reporting requirements that constitute
information collection requirements as
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 November 30, 2019 (OMB
Control No. 3084–0069). The
amendments make changes in the Rule’s
labeling requirements that will increase
the PRA burden as detailed below.32
Accordingly, the Commission is seeking
OMB clearance specific to the Rule
amendments.33
Burden estimates below are based on
Census data, DOE figures and estimates,
general knowledge of manufacturing
practices, and trade association advice
and figures. The FTC estimates that
there are about 100 basic models (i.e.,
units with essentially identical physical
and electrical characteristics) affected
30 42
U.S.C. 6293(c) and 6294(c)(1)(A).
amendments also include minor
corrections to language in section 305.11(f) for
refrigerators and freezers (e.g., deletes an obsolete
reference to ‘‘year’’), clothes washers, and
dishwashers, and to the cost figure for television
disclosures in paper catalogs in section
305.20(b)(1)(i)(F). The Commission finds good
cause for implementing these corrections without
notice and comment.
32 The amendments to the plumbing provisions
add no additional burden beyond existing
estimates.
33 The PRA analysis for this rulemaking focuses
strictly on the information collection requirements
created by and/or otherwise affected by the
amendments. Unaffected information collection
provisions have previously been accounted for in
past FTC analyses under the Rule and are covered
by the current PRA clearance from OMB.
31 The
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by these amendments. In addition, FTC
staff estimates that there are 6
instantaneous water heater
manufacturers. The FTC estimates that
there are 100,000 electric instantaneous
water heaters shipped each year in the
U.S.
Annual Burden Hours
Reporting: FTC staff estimates that
manufacturers will require
approximately two minutes per model
to enter label data per basic model.
Accordingly, the FTC estimates that
cumulative annual reporting burden
will be 3 hours (2 minutes per model ×
100 basic models).
Labeling: FTC staff estimates that
manufacturers will require six seconds
per unit to affix labels. Accordingly, the
FTC estimates that cumulative annual
disclosure (labeling) burden will be 167
hours to affix labels [(six seconds per
unit × 100,000 total annual product
shipments)].
Testing: For testing, manufacturers
will require approximately 24 hours for
each water heater. The FTC estimates
that, on average, 50% of the total basic
models are tested each year.
Accordingly, the estimated annual
testing burden for electric instantaneous
water heaters is 1,200 hours (24 hours
× 100 × 0.5).
Recordkeeping: The Rule also requires
electric instantaneous water heater
manufacturers to keep records of test
data generated in performing the tests to
derive information included on labels.
The FTC estimates that it will take
manufacturers one minute per record
(i.e., per model) to store the data.
Accordingly, the estimated annual
recordkeeping burden would be
approximately 2 hours (1 minute × 100
basic models).
Catalog Disclosures: Based upon FTC
staff research concerning the number of
manufacturers and online retailers, staff
estimates that there are an additional
150 catalog sellers who are subject to
the Rule’s catalog disclosure
requirements. Staff estimates further
that these sellers each require
approximately 2 hours per year to
incorporate the data into their catalogs.
This estimate is based on the
assumptions that entry of the required
information takes on average one
minute per covered product and that the
average online catalog contains
approximately 100 covered products
relevant here. Given that there is great
variety among sellers in how many
products that they offer online, it is very
difficult to estimate such numbers with
precision. In addition, this analysis
assumes that information for all 100
covered products is entered into the
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catalog each year. This is a conservative
assumption because the number of
incremental additions to the catalog
from year to year is likely to be much
lower after initial start-up efforts have
been completed. Thus, the total annual
disclosure burden for all catalog sellers
of electric instantaneous water heaters
covered by the Rule is 300 hours (150
sellers × 2 hours).
Thus, estimated annual burden
attributable to the amendments is 1,672
hours (3 hours for reporting + 167 for
labeling + 1,200 for testing + 2 hours for
recordkeeping + 300 disclosure hours
for catalog sellers).
Annual Labor Costs
Staff derived labor costs by applying
assumed hourly wages 34 to the burden
hours described above. In calculating
labor costs, the FTC assumes that
electrical engineers perform test
procedures, electronic equipment
installers affix labels, and data entry
workers enter label data, catalog
disclosures, and perform recordkeeping.
Average hourly wages for these labor
categories, based on BLS data, are as
follows: (1) Electrical engineers
($47.41); (2) electronic equipment
installers ($24.27); and (3) data entry
workers ($16.24).
Based on the above estimates and
assumptions, the total annual labor cost
for the various burden categories and
sub-categories noted above is as follows:
Reporting: 3 hours × $16.24/hour (data
entry workers) = $49
Labeling: 167 hours × $24.27 (electronic
equipment installers) = $4,053
Testing: 1,200 hours × $47.41/hour
(electrical engineers) = $56,892
Recordkeeping: 2 hours × $16.24/hour
(data entry workers) = $32
Catalog Disclosures: 300 hours × $16.24/
hour (data entry workers) = $4,872
Thus, the total annual labor cost is
approximately $65,898.
Annual Non-Labor Costs
Manufacturers are not likely to
require any significant capital costs to
comply with the amendments. Industry
members, however, will incur the cost
of printing package labels for each
covered unit. The estimated label cost,
based on $.03 per label, is $3,000
(100,000 × $.03).
Total Estimated Burden: Accordingly,
the estimated total hour burden of the
34 The mean hourly wages that follow are drawn
from ‘‘Occupational Employment and Wages—May
2016,’’ Bureau of Labor Statistics (‘‘BLS’’), U.S.
Department of Labor, Table 1, released March 31,
2017 (‘‘National employment and wage data from
the Occupational Employment Statistics survey by
occupation, May 2016’’), available at https://
www.bls.gov/news.release/ocwage.t01.htm.
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final amendments is 1,672 with
associated labor costs of $65,898 and
annualized capital or other non-labor
costs totaling $3,000.
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)
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.35
The Commission does not anticipate
that the final amendments will have a
significant economic impact on a
substantial number of small entities.
The Commission recognizes that some
affected entities may qualify as small
businesses under the relevant
thresholds. The Commission does not
expect, however, that the economic
impact of implementing the
amendments will be significant because
the amendments involve routine
labeling requirements commonly
implemented by the affected entities
and, as illustrated in the PRA analysis,
the PRA burden of these requirements is
not large. The Commission will provide
businesses with ample time to
implement the requirements. In
addition, the Commission does not
expect that the requirements specified
in the final amendments will have a
significant impact on affected entities.
Although the Commission certified
under the RFA that the amendments
would not, if promulgated, have a
significant 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. Description of the Reasons That
Action by the Agency Is Being Taken
The Commission is issuing a new
energy label for electric instantaneous
water heaters to help consumers with
their purchasing decisions. It is also
amending the Rule’s requirements to
eliminate unnecessary requirements
regarding plumbing disclosures.
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. In addition, the
35 5
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Commission did not receive any
comments filed by the Chief Counsel for
Advocacy of the Small Business
Administration. Comments that involve
impacts on all entities are discussed
above in the Paperwork Reduction Act
section.
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, appliance
manufacturers qualify as small
businesses if they have fewer than 1,000
employees (for other household
appliances the figure is 500 employees).
Catalog sellers qualify as small
businesses if their sales are less than
$8.0 million annually. FTC staff
estimates that there are approximately
100 catalog sellers subject to the
proposed rule’s requirements that
qualify as small businesses.36
D. Projected Reporting, Recordkeeping,
and Other Compliance Requirements
The amendments would slightly
increase reporting or recordkeeping
requirements associated with the
Commission’s labeling rules as
discussed above. The amendments
likely will increase compliance burdens
by extending the labeling requirements
to instantaneous electric water heaters.
As previously explained in the PRA
analysis, the Commission anticipates
that the labeling will be implemented by
electronic equipment installers.
E. Description of Steps Taken To
Minimize Significant Economic Impact,
if any, on Small Entities, Including
Alternatives
The Commission sought comment and
information on the need, if any, for
alternative compliance methods that
would reduce the economic impact of
the Rule on such small entities. In
response to comments, the Commission
has given manufacturers the option of
printing or affixing labels on electric
instantaneous water heaters to provide
flexibility in meeting that requirement.
The Commission also removed outdated
references on plumbing products that
are unlikely to aid consumers or
industry members and, as such, impose
unnecessary burdens.
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Final Rule
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation,
Household appliances, Labeling,
36 See 75 FR 41696, 41712 (July 19, 2010). The
staff has not identified any manufacturers affected
by the amendments that are small businesses.
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Reporting and recordkeeping
requirements.
For the reasons discussed above, the
Commission amends part 305 of title 16,
Code of Federal Regulations, 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. Amend § 305.11 by revising
paragraph (d) introductory text, adding
paragraph (d)(3), and revising
paragraphs (f)(9)(i), (iv), and (vii)
through (x) to read as follows:
■
§ 305.11 Labeling for refrigerators,
refrigerator-freezers, freezers, dishwashers,
clothes washers, water heaters, room air
conditioners, and pool heaters.
*
*
*
*
*
(d) Label types. Except as indicated in
paragraph (d)(3) of this section, the
labels must be affixed to the product in
the form of an adhesive label or a hang
tag as follows:
*
*
*
*
*
(3) Package labels for certain
products. Labels for electric
instantaneous water heaters shall be
printed on or affixed to the product’s
packaging in a conspicuous location.
*
*
*
*
*
(f) * * *
(9) * * *
(i) Labels for refrigerators and
refrigerator-freezers must contain a
statement as illustrated in the prototype
labels in appendix L and specified as
follows (fill in the blanks with the
appropriate energy cost figure):
Your cost will depend on your utility
rates and use.
Both cost ranges based on models of
similar size capacity.
[Insert statement required by
§ 305.11(f)(9)(iii)].
Estimated energy cost based on a
national average electricity cost of __
cents per kWh.
ftc.gov/energy.
*
*
*
*
*
(iv) Labels for freezers must contain a
statement as illustrated in the prototype
labels in appendix L and specified as
follows (fill in the blanks with the
appropriate energy cost figure):
Your cost will depend on your utility
rates and use.
[Insert statement required by
§ 305.11(f)(10)(v)].
Estimated energy cost based on a
national average electricity cost of __
cents per kWh.
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ftc.gov/energy.
*
*
*
*
(vii) For water heaters covered by
appendices D1, D2, and D3, the
statement will read as follows (fill in the
blanks with the appropriate fuel type,
and energy cost figures):
Your costs will depend on your utility
rates and use.
Cost range based only on models
fueled by [natural gas, oil, propane, or
electricity] with a [very small, low,
medium, or high] first hour rating [fewer
than 18 gallons, 18–50.9 gallons, 51–
74.9 gallons, or greater than 75 gallons].
Estimated energy cost is based on a
national average [electricity, natural gas,
propane, or oil] cost of [__ cents per
kWh or $__ per therm or gallon].
Estimated yearly energy use: __ [kWh
or therms].
ftc.gov/energy.
(viii) For instantaneous water heaters
(appendices D4 and D5), the statement
will read as follows (fill in the blanks
with the appropriate model type, and
the energy cost figures):
Your costs will depend on your utility
rates and use.
Cost range based only on [electric
models or models fueled by natural gas]
with a [very small, low, medium, or
high] gallons per minute rating [0 to 1.6,
1.7 to 2.7, 2.8 to 4.0, or greater than 4.0].
Estimated energy cost is based on a
national average [electricity, natural gas,
or propane] cost of [ __ cents per kWh
or $__ per therm or gallon].
Estimated yearly energy use: __ [kWh
or therms].
ftc.gov/energy.
(ix) For dishwashers covered by
appendices C1 and C2, the statement
will read as follows (fill in the brackets
with the appropriate capacity and the
energy cost figures):
Your costs will depend on your utility
rates and use.
Cost range based only on [compact/
standard] capacity models.
Estimated energy cost is based on four
washloads a week, and a national
average electricity cost of [__] cents per
kWh and natural gas cost of $[__] per
therm.
For more information, visit
www.ftc.gov/energy.
(x) For clothes washers covered by
appendices F1 and F2, the statement
will read as follows (fill in the blanks
with the appropriate capacity and
energy cost figures):
Your costs will depend on your utility
rates and use.
Cost range based only on [compact/
standard] capacity models.
Estimated operating cost is based on
six wash loads a week and a national
*
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average electricity cost of __ cents per
kWh and natural gas cost of $ __ per
therm.
ftc.gov/energy.
*
*
*
*
*
■ 3. In § 305.13, revise paragraph
(a)(1)(xii), as added September 15, 2015,
at 81 FR 63649, and effective September
17, 2018, to read as follows:
§ 305.13
Labeling for ceiling fans.
(a) * * *
(1) * * *
(xii) For fans from 19 or more inches
and less than or equal to 84 inches in
diameter, the label shall display a cost
range of $3 to $34 along with the
statement underneath the range ‘‘Cost
Range of Similar Models (19″–84″).
*
*
*
*
*
■ 4. In § 305.16, effective July 28, 2017,
revise paragraphs (a)(3) and (4) and
(b)(3) and (4) to read as follows:
§ 305.16 Labeling and marking for
plumbing products.
(a) * * *
(3) The package for each showerhead
and faucet shall disclose the
manufacturer’s name and the model
number.
(4) The package or any label attached
to the package for each showerhead or
faucet shall contain at least the
following: The flow rate expressed in
gallons per minute (gpm) or gallons per
cycle (gpc), and the flow rate value shall
be the actual flow rate or the maximum
flow rate specified by the standards
established in subsection (j) of section
325 of the Act, 42 U.S.C. 6295(j). Each
flow rate disclosure shall also be given
in liters per minute (L/min) or liters per
cycle (L/cycle).
(b) * * *
(3) The package, and any labeling
attached to the package, for each water
closet and urinal shall disclose the flow
rate, expressed in gallons per flush (gpf),
and the water use value shall be the
actual water use or the maximum water
use specified by the standards
established in subsection (k) of section
325 of the Act, 42 U.S.C. 6295(k). Each
flow rate disclosure shall also be given
in liters per flush (Lpf).
(4) With respect to any gravity tanktype white 2-piece toilet offered for sale
or sold before January 1, 1997, which
has a water use greater than 1.6 gallons
per flush (gpf), any printed matter
distributed or displayed in connection
with such product (including packaging
and point-of-sale material, catalog
material, and print advertising) shall
include, in a conspicuous manner, the
words ‘‘For Commercial Use Only.’’
*
*
*
*
*
5. In § 305.20, revise paragraph
(b)(1)(i)(F) to read as follows:
■
§ 305.20
Paper catalogs and Web sites.
*
*
*
*
*
(b) * * *
(1) * * *
(i) * * *
(F) Televisions. The estimated annual
operating cost determined in accordance
with § 305.5 and a disclosure stating
‘‘Your energy cost depends on your
utility rates and use. The estimated cost
is based on 12 cents per kWh and 5
hours of use per day. For more
information, visit www.ftc.gov/energy.’’
*
*
*
*
*
6. Revise appendix D5 to read as
follows:
■
Appendix D5 to Part 305—Water
Heaters—Instantaneous—Electric
RANGE INFORMATION
Range of estimated annual
energy costs
(dollars/year)
Capacity
Low
Capacity (maximum flow rate); gallons per minute (gpm):
‘‘Very Small’’—less than 1.6 .............................................................................................................................
‘‘Low’’—1.7 to 2.7 .............................................................................................................................................
‘‘Medium’’—2.8 to 3.9 .......................................................................................................................................
‘‘High’’—over 4.0 ..............................................................................................................................................
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017–13469 Filed 6–27–17; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF LABOR
Employee Benefits Security
Administration
29 CFR Part 2510
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RIN 1210–AB76
Definition of Employee Pension Benefit
Plan Under ERISA
Employee Benefits Security
Administration, Department of Labor.
ACTION: Final rule; CRA Revocation.
AGENCY:
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Under the Congressional
Review Act, Congress has passed, and
the President has signed resolutions of
disapproval of Savings Arrangements
Established by States for NonGovernmental Employees and Savings
Arrangements Established by Qualified
State Political Subdivisions for NonGovernmental Employees, as codified in
the Code of Federal Regulations. The
Employee Benefits Security
Administration (EBSA) published these
final rules in 2016, effective October 31,
2016 and January 19, 2017, respectively.
Because these resolutions invalidate
these final rules, EBSA is hereby
removing these final rules from the
Code of Federal Regulations.
DATES: This action is effective June 28,
2017.
FOR FURTHER INFORMATION CONTACT:
Jeffrey J. Turner, Office of Regulations
and Interpretations, Employee Benefits
SUMMARY:
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High
$72
*
*
*
$74
*
*
*
Security Administration, (202) 693–
8500. This is not a toll-free number.
SUPPLEMENTARY INFORMATION: On August
30, 2016, the Department issued a final
rule entitled Savings Arrangements
Established by States for NonGovernmental Employees (81 FR 59464,
Aug. 30, 2016). The final rule, which
became effective on October 31, 2016,
amended an existing rule defining
‘‘employee pension benefit plans’’ for
purposes of ERISA (29 CFR part 2510,
§ 2510.3–2) in order to add a safe harbor
for certain state-established savings
arrangements. Subsequently, on
December 20, 2016, the Department
issued another final rule entitled
Savings Arrangements Established by
Qualified State Political Subdivisions
for Non-Governmental Employees (81
FR 92639, Dec. 20, 2016), which
amended the August 30, 2016, final rule
to expand the safe harbor to savings
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]]>Agencies
[Federal Register Volume 82, Number 123 (Wednesday, June 28, 2017)]
[Rules and Regulations]
[Pages 29230-29236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13469]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 305
[3084-AB15]
Energy Labeling Rule
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission issues amendments to the Energy Labeling Rule
to eliminate certain marking requirements for plumbing products and to
exempt certain ceiling fans from labeling requirements. Additionally,
the amendments update the Rule to include labeling requirements for
electric instantaneous water heaters. The Commission also makes non-
substantive, conforming changes to the testing provisions for LED
covered lamps and minor corrections to other provisions.
DATES: This rule is effective on December 26, 2017, except for the
amendments to Sec. 305.13, which are effective on September 17, 2018,
and the amendments to Sec. 305.16, which are effective on July 28,
2017.
ADDRESSES: Relevant portions of the record of this 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 issued the Energy Labeling Rule (``Rule'') in
1979,\1\ pursuant to the Energy Policy and Conservation Act of 1975
(EPCA).\2\ The Rule requires energy labeling for major home appliances
and other consumer products to help consumers compare competing models.
It also contains labeling requirements for refrigerators, refrigerator-
freezers, freezers, dishwashers, water heaters, clothes washers, room
air conditioners, furnaces, central air conditioners, heat pumps,
plumbing products, lighting products, ceiling fans, and televisions.
---------------------------------------------------------------------------
\1\ 44 FR 66466 (Nov. 19, 1979).
\2\ 42 U.S.C. 6294. EPCA also requires the Department of Energy
(DOE) to develop test procedures that measure how much energy
appliances use, and to determine the representative average cost a
consumer pays for different types of energy.
---------------------------------------------------------------------------
The Rule requires manufacturers to attach yellow EnergyGuide labels
to many of the covered products and prohibits retailers from removing
these labels or rendering them illegible. In addition, it directs
sellers, including retailers, to post label information on Web sites
and in paper catalogs from which consumers can order products.
EnergyGuide labels for most covered products contain three key
disclosures: Estimated annual energy cost, a product's energy
consumption or energy efficiency rating as determined by DOE test
procedures, and a comparability range displaying the highest and lowest
energy costs or efficiency ratings for all similar models. For cost
calculations, the Rule specifies national average costs for applicable
energy sources (e.g., electricity, natural gas, oil) as calculated by
DOE. Under the Rule, the Commission periodically updates comparability
range and annual energy cost information based on manufacturer data
submitted pursuant to the Rule's reporting requirements.\3\
---------------------------------------------------------------------------
\3\ 16 CFR 305.10.
---------------------------------------------------------------------------
II. Amendments to the Energy Labeling Rule
In a September 12, 2016 Notice of Proposed Rulemaking (2016 NPRM),
the Commission sought comment on several issues including portable air
conditioner (portable AC or PAC) labeling, large-diameter and high-
speed small-diameter (HSSD) ceiling fan labels, electric instantaneous
water heater labeling, and plumbing disclosures changes. The Commission
received 10 comments in response.\4\ After reviewing responsive
[[Page 29231]]
comments, the Commission now issues final amendments addressing these
issues.
---------------------------------------------------------------------------
\4\ See 81 FR 62681. The comments received in response to the
2016 NPRM are here: https://www.ftc.gov/policy/public-comments/initiative-681. The comments included:
Delta T Corporation dba Big Ass Solutions (Delta T) (#00009); De
Longhi Appliances (#00010); A.O. Smith Corporation (#00011);
Association of Home Appliance Manufacturers (AHAM) (#00012); Rheem
Manufacturing Company (#00013); Appliance Standards Awareness
Project (``Joint Commenters'') (#00014); Air-Conditioning, Heating,
and Refrigeration Institute (AHRI) #00015; Hunter Fan Company
(#00008); Plumbing Manufacturers International (PMI) #00003; and the
People's Republic of China (#0016 and #0017).
---------------------------------------------------------------------------
A. Portable Air Conditioners
Background: In its 2016 NPRM, the Commission proposed requiring
EnergyGuide labels for portable air conditioners, concluding that such
labels will aid consumers in their purchasing decisions.\5\ Given the
similarity of portable ACs to room air conditioners (room ACs or RACs),
the Commission proposed requiring the same or similar labeling for the
two products. It also noted that DOE had issued a new test procedure
for portable ACs on June 1, 2016 (81 FR 35242). However, the Commission
explained that the content and timing of DOE's new test procedure
raised several new issues that affect such labeling. First, DOE's test
procedures do not generate comparable results for portable and room air
conditioners.\6\ This inconsistency could mislead consumers comparing
the two types of products. The Commission therefore proposed waiting to
issue portable AC labels until DOE harmonizes the two tests.\7\ It also
invited comment on whether to combine portable AC and room AC
comparability ranges.\8\ Finally, the Commission sought input on the
timing of these requirements, including data reporting, for portable
air conditioners. Citing significant burdens associated with testing
and labeling, earlier industry comments urged the Commission to
synchronize the date for compliance of any new labeling requirements
with the date of compliance with DOE efficiency standards, which would
occur roughly five years after DOE issues such standards.
---------------------------------------------------------------------------
\5\ The Commission also stated such labels would be economically
and technologically feasible. See 42 U.S.C. 6294(a)(3). The
Commission addressed the benefits and feasibility of labels for
these products in earlier notices. See 81 FR at 62682-83; 80 FR
67351, 67357 (Nov. 2, 2015).
\6\ 81 FR at 35251. DOE stated that it would consider amending
the room air conditioner procedure to address this issue. However,
it is not clear when it will do so.
\7\ Consistent with the Commission's recent decision on room air
conditioners, the Commission indicated that the portable AC label
would appear on the product box, not the unit itself. In addition,
the portable AC label would disclose the Combined Energy Efficiency
Ratio (CEER). See 80 FR at 67293.
\8\ In response to an earlier notice, commenters had disagreed
on this issue. See 81 FR at 62682-83. In DOE's test procedure
notice, DOE stated that ``comparative ratings between room ACs and
portable ACs [are] desirable,'' suggesting that consumers do compare
these products. See 81 FR at 35251. DOE also noted ``the many
similarities between room ACs and portable ACs in design, cost,
functionality, consumer utility, and applications.'' Id. at 35250.
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Comments: Commenters generally supported labeling for portable ACs.
They also agreed, for different reasons, that the Commission should not
combine comparability ranges for portable and room ACs at this time. In
addition, industry members urged the Commission to synchronize the
timing of new label requirements with proposed DOE energy efficiency
standards, which may not become effective for several years.
Industry members, AHAM and DeLonghi, as well as China argued
against combining label ranges for portable and room ACs because of
significant differences in how consumers purchase and use these
products and the consumer confusion such combined information may
cause.\9\ Specifically, AHAM and DeLonghi argued that consumers are
unlikely to compare these products because they use them for different
purposes. In support of its position, AHAM presented consumer research
suggesting that each product has ``unique key purchase drivers.''
Specifically, portable AC buyers generally seek the flexibility to move
the product from room to room and store it elsewhere in cooler weather.
In addition, these consumers often purchase portable ACs because room
models do not fit in their windows. As DeLonghi explained, portable ACs
generally offer a ``unique solution'' where installation of other air
conditioner types is ``forbidden or impracticable.'' \10\ AHAM added
that most air conditioner owners are likely to choose the configuration
(PAC or RAC) they currently own when they purchase a new unit. AHAM
noted that room AC owners generally use these products as the principal
source of cooling, while portable ACs owners often use those products
for supplemental cooling. Finally, AHAM pointed to DOE research
suggesting that room ACs are generally operated more hours annually
than portable ACs. It also noted that the current room ACs have
different categories for non-louvered and casement RACs, categories
which do not apply to portable units.\11\
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\9\ China added that the test methods and the user experience
for the two product types are different.
\10\ In AHAM's view, room AC buyers do not need the ability to
move units from room to room, view PACs as too expensive, or are
unaware of PACs. AHAM also suggested, based on its research, the
consumers will not focus on EnergyGuide labels because cooling
capacity and price are much higher priorities for consumers than
energy efficiency and operating costs. According to AHAM, even if
consumers compare RACs and PACs while shopping, they may not be
comparing energy costs in making purchasing decisions.
\11\ AHAM also argued that DOE's statement about the
desirability for harmonized test results, cited by the Commission in
the NPRM, has no bearing on whether consumers actually compare these
products when shopping.
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The Joint Commenters similarly recommended against combining ranges
at this time. However, they also recommended initiating separate ranges
to avoid delay and ensure consumers have access to energy labels
pending DOE test harmonization. They explained that the test conditions
impose different outdoor temperatures for the two product types. The
inconsistency favors portable ACs, making them appear more efficient.
Therefore, although portable AC labels generated under the test will
not allow for a direct comparison to room AC labels, the labels will
still accurately depict portable ACs as generally less efficient (and
thus more costly to operate) than room ACs.\12\
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\12\ The Joint Commenters suggested that FTC consider label
language alerting consumers that the room AC test conditions are not
consistent with those for PACs.
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In contrast, AHAM and DeLonghi recommended the Commission wait and
synchronize the labeling requirements with the compliance date for new
DOE efficiency standards, which would be set five years after DOE
issues such standards. AHAM explained that its members will devote
considerable resources over the next few years to ensure product lines
meet the new DOE standards.\13\ AHAM also stated that the pre-
development, development, and tooling phases of launching a new product
take years to complete and require extensive resources. According to
AHAM, complying with an EnergyGuide label requirement before the DOE
compliance date ``will require companies to divert resources from
developing new, more efficient products.'' Aligning the compliance
dates would ``allow manufacturers to engage in the extensive
development and testing activities required to innovate and bring more
efficient products to market and to comply with regulatory
requirements.'' AHAM added that, should FTC decide to move forward with
labeling/reporting requirements before the DOE compliance date, the
compliance date for the labeling requirements should not be prior to
October 1, 2017 and should be synchronized with the annual
[[Page 29232]]
production cycle (i.e., the cooling season) for these products.\14\
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\13\ AHAM provided additional information involving the expected
burden of labeling.
\14\ AHAM also requested more details about the label content,
compliance dates, and reporting requirements before issuing a final
rule and urged that the reporting and labeling requirements be
consistent with DOE's reporting requirements and the DOE test
procedure. As the Commission has stated before, the proposed label
content is largely identical to those for room ACs.
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Discussion: The Commission is not issuing final label requirements
for portable air conditioners at this time. As discussed above,
commenters disagree on the timing of compliance with new labeling
requirements. AHAM and DeLonghi argued that the compliance dates for
labels and DOE efficiency standards should be synchronized to allow
industry to focus more of their resources during the five-year
standards compliance period on developing more efficient products
rather than on labeling products. The Joint Commenters, on the other
hand, seek a shorter compliance period, arguing that the label
information would benefit consumers before implementation of the
standards.\15\ However, in January 2017, DOE withdrew its final
efficiency standards from publication in the Federal Register pursuant
to an Executive Order, leaving any final standards compliance date
unclear at this time.\16\ Therefore, before considering this issue
further, the Commission will wait for further clarity regarding DOE's
energy efficiency standards.
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\15\ In arguing for a shorter label compliance period, the Joint
Commenters note that a 2010 Commission rule (75 FR 41699 (July 19,
2010) required new labeling for certain lighting products prior to
the effective date of energy efficiency standards for those products
because labeling ``will provide benefits to consumers that outweigh
any additional cost to industry.'' However, in response to industry
concerns in that proceeding, the Commission later exempted some of
the bulbs in question from the new labeling requirements, explaining
in part that the exemption would allow manufacturers to focus their
labeling resources ``on products that will remain in the market well
into the future . . . .'' 76 FR 20233, 20236 (April 12, 2011).
\16\ In December 2016, DOE announced a final rule establishing
reporting requirements and future efficiency standards for portable
ACs. See ``Issuance: 2016-12-28 Energy Conservation Program: Energy
Conservation Standards for Portable Air Conditioners; Final Rule,''
https://energy.gov/eere/buildings/downloads/issuance-2016-12-28-energy-conservation-program-energy-conservation-2. Pursuant to the
Presidential Memorandum on Implementation of Regulatory Freeze (Jan.
24, 2017), DOE subsequently withdrew the final rule from publication
in the Federal Register.
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B. Large-Diameter and High-Speed Small Diameter Ceiling Fan Labels
Background: In final amendments published September 15, 2016 (81 FR
63634) (2016 Final Rule), the Commission issued updated ceiling fan
labels, which will be required on all fan boxes beginning on September
17, 2018. In publishing the new label, the Commission excluded large-
diameter fans (i.e., greater than 84 inches) and high-speed small-
diameter fans because new DOE testing requirements prescribe
significantly different operating assumptions (hours per day) for these
models.\17\ As a result, the test yields incompatible yearly cost
estimates among these different fan types.\18\ Absent adequate
disclosures alerting consumers to these different operating
assumptions, the resulting inconsistencies could be misleading.
Accordingly, the Commission sought comment on the need for, and content
of, large-diameter and HSSD fan labels.
---------------------------------------------------------------------------
\17\ See 81 FR 48620 (July 25, 2016). In its proposed test
procedure Notice, DOE described a HSSD fan as a model that has a
blade thickness of less than 3.2 mm at the edge or a maximum tip
speed greater than applicable limits set out by DOE and does not
otherwise qualify as ``a very small-diameter ceiling fan, highly-
decorative ceiling fan or belt-driven ceiling fan.'' 81 FR 1688,
1700, 1703 (Jan. 13, 2016).
\18\ The DOE test procedure dictates a 6.4-hour per day
operating assumption for standard fans but a 12-hour per day figure
for large-diameter and HSSD models. 81 FR at 48645.
---------------------------------------------------------------------------
Comments: Commenters agreed the Commission should not require
labels for large-diameter fans. Delta T asserted that such labels would
create little or no benefit for consumers while adding burden and costs
for manufacturers. Citing DOE research, Delta T explained that large-
diameter fans are typically not sold to individual consumers through
retail outlets or e-commerce sites. Thus, in its view, labeling would
not benefit typical purchasers while creating additional burden and
cost for manufacturers. Hunter indicated that large diameter fan labels
are likely to confuse consumers if such labels are inconsistent with
small-diameter fan labels. Delta T cautioned that such inconsistent
labels would confuse consumers given the vastly different applications
for these products.
Should the FTC require labels, Delta T recommended the label
display integrated efficiency, maximum power consumption, and maximum
cubic feet per minute of airflow, and cost comparisons limited to
similar-size products. In addition, Hunter recommended disclosures
advising consumers not to compare large-diameter models to small ones.
Discussion: The Commission has determined not to require labels for
large-diameter and HSSD fans.\19\ Based on the comments and DOE
information, large-diameter and HSSD fans are generally not sold to
residential consumers but rather purchased by commercial or industrial
entities unlikely to use a consumer label.\20\ Therefore, the
Commission concludes that for these products the labeling costs would
substantially outweigh labeling benefits.\21\ However, manufacturers
and other marketers should note that, under EPCA (42 U.S.C. 6293(c)),
any energy representations (e.g., airflow ratings) made for these
products, whether on packaging, in advertising, or elsewhere, must
fairly disclose the results of the DOE test procedure.\22\
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\19\ The amendments contain a minor correction to section 305.13
regarding the fan sizes included for covered models.
\20\ The commenters did not specifically address HSSD fans.
However, DOE stated in an earlier notice that ``HSSD ceiling fans
generally operate at much higher speeds (in terms of RPM) than
standard or hugger ceiling fans, and are installed in commercial
applications.'' 81 FR at 1703.
\21\ Under EPCA, the Commission may forgo label requirements for
covered products if it determines that labeling for a product type
or class thereof is not ``economically or technically feasible.''
See 42 U.S.C. 6294(b)(5). In interpreting this statutory provision,
the Commission has stated ``that Congress['s] intent was to permit
the exclusion of any product category, if the Commission found that
the costs of the labeling program would substantially outweigh any
potential benefits to consumers.'' 44 FR at 66467-68.
\22\ China requested the Rule include definitions for large-
diameter and HSSD fans. The amendments published by the Commission
on September 15, 2016 (81 FR at 63646) (section 305.3(x)) reference
the DOE definitions for these terms in 10 CFR part 430.
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C. Electric Instantaneous Water Heaters
Background: In its 2016 NPRM, the Commission proposed to include
EnergyGuide labeling provisions for electric instantaneous water
heaters. Although such products already fell within the Rule's ``water
heater'' definition (section 305.3), the Commission in the past did not
require that they be labeled because DOE did not have an applicable
test method. In 2014, however, DOE updated its water heater test
procedure to include such a test method.\23\ Accordingly, in the 2016
NPRM, the Commission proposed updating the Rule to publish
comparability ranges and labeling provisions for these water heater
models.\24\ The labels for the electric instantaneous models are no
different from other covered water heaters. The Commission proposed
requiring manufacturers to begin using labels on their products within
180 days of the final Rule to give manufacturers adequate time to label
their models.
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\23\ 79 FR 40542 (July 11, 2014).
\24\ 81 FR at 62683-84. In earlier comments, AHRI recommended
labels for these products in light of the DOE test procedure change.
See AHRI comments (Jan. 11, 2016) (#00015).
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Comments: The commenters (AHRI, A.O. Smith, and Rheem) supported
the Commission requiring labels for electric
[[Page 29233]]
instantaneous water heaters. For instance, A.O. Smith stated that
labeling requirements ``will assure a transparent level playing field
upon which manufacturers will be able to communicate important
information to consumers.'' However, these comments raised concerns
about physically attaching labels to these products. They explained
that electric instantaneous units are generally too small to
accommodate the EnergyGuide label. A.O. Smith also noted that these
products are most commonly displayed in their packaging (i.e., box).
Therefore, the commenters requested that the Commission either allow
manufacturers to place the label on packaging (like ceiling fans),
include the label with other product literature, or affix hang tags
directly on the product (an option currently prohibited by the
Rule).\25\
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\25\ Rheem and AHRI noted conforming changes needed for the
online sample template label for instantaneous water heaters on the
FTC Web site. Those changes have been made at https://www.ftc.gov/tips-advice/business-center/guidance/energyguide-labels-templates-manufacturers.
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Discussion: Consistent with the comments and EPCA's mandate, the
final amendments impose labeling requirements, including the
comparability ranges proposed in the 2016 NPRM for electric
instantaneous water heaters.\26\ The cost figure for the label is 12
cents per kWh, consistent with the figure currently used for electric
storage water heater labels. In response to comments indicating that
the products themselves are generally too small for an adhesive label
and that the products are usually displayed in boxes, the final Rule
requires the label to appear conspicuously on the product's packaging,
not on the product itself.\27\ Manufacturers may incorporate the label
into the packaging graphics or affixing adhesive labels to the box.\28\
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\26\ Under EPCA (42 U.S.C. 6294(a)(1)), the Commission must
require labels for water heaters unless it finds such labeling is
not technologically or economically feasible. The comments, all from
industry members supporting the label, identified no such barriers.
\27\ Consistent with the proposal, the final amendments require
labels for models produced beginning 180 days after publication of
this Notice. In addition, the final Rule does not allow labels to be
included in literature disseminated with the product or affixed as
hang tags. The inclusion of labels in product literature would
prevent consumers from examining the label prior to purchase. In
addition, the Rule (section 305.11(e)(2)) prohibits the placement of
hang tags on product exteriors because such labels may ``become
misplaced or damaged easily'' in a retail environment. See 72 FR
49948, 49961 (Aug. 29, 2007).
\28\ AHRI's comments also raised concerns about whether gas-
fired instantaneous water heaters can accommodate the size of the
label. However, the Rule has required labels for gas-fired units for
decades with no apparent difficulty and the 2016 NPRM did not
propose any changes for gas-fired model labels. In addition, both
Rheem and A.O. Smith indicated in their comments that electric
models are generally smaller than gas-fired ones. The Commission
therefore has determined not to address labels of gas-fired
instantaneous water heaters in the final amendments.
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D. Plumbing ASME Reference Update
Background: In the 2016 NPRM, the Commission also proposed updating
the marking and labeling requirements in Section 305.16 to remove a
reference to the ASME (American Society of Mechanical Engineers)
standards that the Rule requires on showerheads and faucets
(``A112.18.1''), as well as water closets and urinals (``A112.19.2'').
The Commission explained that the required marking appears to have
outlived its usefulness, and that its removal likely will have no
negative impact on consumers or other market participants. In addition,
the current revisions of both ASME standards no longer require these
markings.
Comments: All commenters addressing this issue supported the
proposal. PMI agreed these standard markings have outlived their
usefulness and are no longer required by the latest versions of the
ASME standards. PMI provided suggested language to ensure that the
amendments delete the ASME marking requirements from the Rule. PMI also
requested that the proposed rulemaking become effective no later than
30 days after it is published in the Federal Register to allow
manufacturers to remove the markings from their products as soon as
possible.
Discussion: As proposed, the final amendments remove the ASME
references in the Rule.\29\ As discussed in the 2016 NPRM, these
disclosures are unlikely to aid consumers or industry members and, as
such, impose unnecessary burdens. The final changes incorporate the
Rule language suggestions offered by PMI. The amendments will become
effective 30 days after publication of this Notice in the Federal
Register.
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\29\ EPCA directs the Commission to amend the plumbing labeling
requirements to be consistent with any revisions to these ASME
standards, unless the Commission finds such amendments would be
inconsistent with EPCA's purposes or certain labeling requirements
for plumbing products. 42 U.S.C. 6294(a)(2)(E)(ii). As noted in
earlier comments, the ASME standards themselves no longer require
such markings, and applicable plumbing codes now impose similar
disclosures and require manufacturers to third-party certify their
products to the current applicable standard. Accordingly, these
amendments are consistent with EPCA. See 81 FR at 62684.
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E. LED Test Procedure Reference
The final amendments include a non-substantive, conforming change
to the Rule's testing provisions (section 305.5) to clarify that
manufacturers must use DOE test procedures for LED covered lamps. In
the past, the Rule stated that the Commission will accept tests
conducted according to IEA LM79 as a reasonable basis for
representations of light output for general service LED lamps. However,
on July 1, 2016 (81 FR 43404), DOE issued final test procedures
incorporating LM79 standard by reference. Because EPCA requires
manufacturers to use DOE test procedures for labeling,\30\ the Rule
provision's reference to IEA LM79 is now obsolete. Accordingly, the
Commission finds good cause for amending the testing provisions for LED
covered lamps to remove the obsolete reference to IEA LM79 without
notice and comment because such a procedure is unnecessary in this
case. See 16 CFR 1.26(b).\31\
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\30\ 42 U.S.C. 6293(c) and 6294(c)(1)(A).
\31\ The amendments also include minor corrections to language
in section 305.11(f) for refrigerators and freezers (e.g., deletes
an obsolete reference to ``year''), clothes washers, and
dishwashers, and to the cost figure for television disclosures in
paper catalogs in section 305.20(b)(1)(i)(F). The Commission finds
good cause for implementing these corrections without notice and
comment.
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III. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute information collection
requirements as 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 November
30, 2019 (OMB Control No. 3084-0069). The amendments make changes in
the Rule's labeling requirements that will increase the PRA burden as
detailed below.\32\ Accordingly, the Commission is seeking OMB
clearance specific to the Rule amendments.\33\
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\32\ The amendments to the plumbing provisions add no additional
burden beyond existing estimates.
\33\ The PRA analysis for this rulemaking focuses strictly on
the information collection requirements created by and/or otherwise
affected by the amendments. Unaffected information collection
provisions have previously been accounted for in past FTC analyses
under the Rule and are covered by the current PRA clearance from
OMB.
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Burden estimates below are based on Census data, DOE figures and
estimates, general knowledge of manufacturing practices, and trade
association advice and figures. The FTC estimates that there are about
100 basic models (i.e., units with essentially identical physical and
electrical characteristics) affected
[[Page 29234]]
by these amendments. In addition, FTC staff estimates that there are 6
instantaneous water heater manufacturers. The FTC estimates that there
are 100,000 electric instantaneous water heaters shipped each year in
the U.S.
Annual Burden Hours
Reporting: FTC staff estimates that manufacturers will require
approximately two minutes per model to enter label data per basic
model. Accordingly, the FTC estimates that cumulative annual reporting
burden will be 3 hours (2 minutes per model x 100 basic models).
Labeling: FTC staff estimates that manufacturers will require six
seconds per unit to affix labels. Accordingly, the FTC estimates that
cumulative annual disclosure (labeling) burden will be 167 hours to
affix labels [(six seconds per unit x 100,000 total annual product
shipments)].
Testing: For testing, manufacturers will require approximately 24
hours for each water heater. The FTC estimates that, on average, 50% of
the total basic models are tested each year. Accordingly, the estimated
annual testing burden for electric instantaneous water heaters is 1,200
hours (24 hours x 100 x 0.5).
Recordkeeping: The Rule also requires electric instantaneous water
heater manufacturers to keep records of test data generated in
performing the tests to derive information included on labels. The FTC
estimates that it will take manufacturers one minute per record (i.e.,
per model) to store the data. Accordingly, the estimated annual
recordkeeping burden would be approximately 2 hours (1 minute x 100
basic models).
Catalog Disclosures: Based upon FTC staff research concerning the
number of manufacturers and online retailers, staff estimates that
there are an additional 150 catalog sellers who are subject to the
Rule's catalog disclosure requirements. Staff estimates further that
these sellers each require approximately 2 hours per year to
incorporate the data into their catalogs. This estimate is based on the
assumptions that entry of the required information takes on average one
minute per covered product and that the average online catalog contains
approximately 100 covered products relevant here. Given that there is
great variety among sellers in how many products that they offer
online, it is very difficult to estimate such numbers with precision.
In addition, this analysis assumes that information for all 100 covered
products is entered into the catalog each year. This is a conservative
assumption because the number of incremental additions to the catalog
from year to year is likely to be much lower after initial start-up
efforts have been completed. Thus, the total annual disclosure burden
for all catalog sellers of electric instantaneous water heaters covered
by the Rule is 300 hours (150 sellers x 2 hours).
Thus, estimated annual burden attributable to the amendments is
1,672 hours (3 hours for reporting + 167 for labeling + 1,200 for
testing + 2 hours for recordkeeping + 300 disclosure hours for catalog
sellers).
Annual Labor Costs
Staff derived labor costs by applying assumed hourly wages \34\ to
the burden hours described above. In calculating labor costs, the FTC
assumes that electrical engineers perform test procedures, electronic
equipment installers affix labels, and data entry workers enter label
data, catalog disclosures, and perform recordkeeping. Average hourly
wages for these labor categories, based on BLS data, are as follows:
(1) Electrical engineers ($47.41); (2) electronic equipment installers
($24.27); and (3) data entry workers ($16.24).
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\34\ The mean hourly wages that follow are drawn from
``Occupational Employment and Wages--May 2016,'' Bureau of Labor
Statistics (``BLS''), U.S. Department of Labor, Table 1, released
March 31, 2017 (``National employment and wage data from the
Occupational Employment Statistics survey by occupation, May
2016''), available at https://www.bls.gov/news.release/ocwage.t01.htm.
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Based on the above estimates and assumptions, the total annual
labor cost for the various burden categories and sub-categories noted
above is as follows:
Reporting: 3 hours x $16.24/hour (data entry workers) = $49
Labeling: 167 hours x $24.27 (electronic equipment installers) = $4,053
Testing: 1,200 hours x $47.41/hour (electrical engineers) = $56,892
Recordkeeping: 2 hours x $16.24/hour (data entry workers) = $32
Catalog Disclosures: 300 hours x $16.24/hour (data entry workers) =
$4,872
Thus, the total annual labor cost is approximately $65,898.
Annual Non-Labor Costs
Manufacturers are not likely to require any significant capital
costs to comply with the amendments. Industry members, however, will
incur the cost of printing package labels for each covered unit. The
estimated label cost, based on $.03 per label, is $3,000 (100,000 x
$.03).
Total Estimated Burden: Accordingly, the estimated total hour
burden of the final amendments is 1,672 with associated labor costs of
$65,898 and annualized capital or other non-labor costs totaling
$3,000.
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) 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.\35\
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\35\ 5 U.S.C. 603-605.
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The Commission does not anticipate that the final amendments will
have a significant economic impact on a substantial number of small
entities. The Commission recognizes that some affected entities may
qualify as small businesses under the relevant thresholds. The
Commission does not expect, however, that the economic impact of
implementing the amendments will be significant because the amendments
involve routine labeling requirements commonly implemented by the
affected entities and, as illustrated in the PRA analysis, the PRA
burden of these requirements is not large. The Commission will provide
businesses with ample time to implement the requirements. In addition,
the Commission does not expect that the requirements specified in the
final amendments will have a significant impact on affected entities.
Although the Commission certified under the RFA that the amendments
would not, if promulgated, have a significant 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. Description of the Reasons That Action by the Agency Is Being Taken
The Commission is issuing a new energy label for electric
instantaneous water heaters to help consumers with their purchasing
decisions. It is also amending the Rule's requirements to eliminate
unnecessary requirements regarding plumbing disclosures.
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. In addition,
the
[[Page 29235]]
Commission did not receive any comments filed by the Chief Counsel for
Advocacy of the Small Business Administration. Comments that involve
impacts on all entities are discussed above in the Paperwork Reduction
Act section.
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, appliance manufacturers qualify as small
businesses if they have fewer than 1,000 employees (for other household
appliances the figure is 500 employees). Catalog sellers qualify as
small businesses if their sales are less than $8.0 million annually.
FTC staff estimates that there are approximately 100 catalog sellers
subject to the proposed rule's requirements that qualify as small
businesses.\36\
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\36\ See 75 FR 41696, 41712 (July 19, 2010). The staff has not
identified any manufacturers affected by the amendments that are
small businesses.
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D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The amendments would slightly increase reporting or recordkeeping
requirements associated with the Commission's labeling rules as
discussed above. The amendments likely will increase compliance burdens
by extending the labeling requirements to instantaneous electric water
heaters. As previously explained in the PRA analysis, the Commission
anticipates that the labeling will be implemented by electronic
equipment installers.
E. Description of Steps Taken To Minimize Significant Economic Impact,
if any, on Small Entities, Including Alternatives
The Commission sought comment and information on the need, if any,
for alternative compliance methods that would reduce the economic
impact of the Rule on such small entities. In response to comments, the
Commission has given manufacturers the option of printing or affixing
labels on electric instantaneous water heaters to provide flexibility
in meeting that requirement. The Commission also removed outdated
references on plumbing products that are unlikely to aid consumers or
industry members and, as such, impose unnecessary burdens.
Final Rule
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
For the reasons discussed above, the Commission amends part 305 of
title 16, Code of Federal Regulations, 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. Amend Sec. 305.11 by revising paragraph (d) introductory text,
adding paragraph (d)(3), and revising paragraphs (f)(9)(i), (iv), and
(vii) through (x) to read as follows:
Sec. 305.11 Labeling for refrigerators, refrigerator-freezers,
freezers, dishwashers, clothes washers, water heaters, room air
conditioners, and pool heaters.
* * * * *
(d) Label types. Except as indicated in paragraph (d)(3) of this
section, the labels must be affixed to the product in the form of an
adhesive label or a hang tag as follows:
* * * * *
(3) Package labels for certain products. Labels for electric
instantaneous water heaters shall be printed on or affixed to the
product's packaging in a conspicuous location.
* * * * *
(f) * * *
(9) * * *
(i) Labels for refrigerators and refrigerator-freezers must contain
a statement as illustrated in the prototype labels in appendix L and
specified as follows (fill in the blanks with the appropriate energy
cost figure):
Your cost will depend on your utility rates and use.
Both cost ranges based on models of similar size capacity.
[Insert statement required by Sec. 305.11(f)(9)(iii)].
Estimated energy cost based on a national average electricity cost
of __ cents per kWh.
ftc.gov/energy.
* * * * *
(iv) Labels for freezers must contain a statement as illustrated in
the prototype labels in appendix L and specified as follows (fill in
the blanks with the appropriate energy cost figure):
Your cost will depend on your utility rates and use.
[Insert statement required by Sec. 305.11(f)(10)(v)].
Estimated energy cost based on a national average electricity cost
of __ cents per kWh.
ftc.gov/energy.
* * * * *
(vii) For water heaters covered by appendices D1, D2, and D3, the
statement will read as follows (fill in the blanks with the appropriate
fuel type, and energy cost figures):
Your costs will depend on your utility rates and use.
Cost range based only on models fueled by [natural gas, oil,
propane, or electricity] with a [very small, low, medium, or high]
first hour rating [fewer than 18 gallons, 18-50.9 gallons, 51-74.9
gallons, or greater than 75 gallons].
Estimated energy cost is based on a national average [electricity,
natural gas, propane, or oil] cost of [__ cents per kWh or $__ per
therm or gallon].
Estimated yearly energy use: __ [kWh or therms].
ftc.gov/energy.
(viii) For instantaneous water heaters (appendices D4 and D5), the
statement will read as follows (fill in the blanks with the appropriate
model type, and the energy cost figures):
Your costs will depend on your utility rates and use.
Cost range based only on [electric models or models fueled by
natural gas] with a [very small, low, medium, or high] gallons per
minute rating [0 to 1.6, 1.7 to 2.7, 2.8 to 4.0, or greater than 4.0].
Estimated energy cost is based on a national average [electricity,
natural gas, or propane] cost of [ __ cents per kWh or $__ per therm or
gallon].
Estimated yearly energy use: __ [kWh or therms].
ftc.gov/energy.
(ix) For dishwashers covered by appendices C1 and C2, the statement
will read as follows (fill in the brackets with the appropriate
capacity and the energy cost figures):
Your costs will depend on your utility rates and use.
Cost range based only on [compact/standard] capacity models.
Estimated energy cost is based on four washloads a week, and a
national average electricity cost of [__] cents per kWh and natural gas
cost of $[__] per therm.
For more information, visit www.ftc.gov/energy.
(x) For clothes washers covered by appendices F1 and F2, the
statement will read as follows (fill in the blanks with the appropriate
capacity and energy cost figures):
Your costs will depend on your utility rates and use.
Cost range based only on [compact/standard] capacity models.
Estimated operating cost is based on six wash loads a week and a
national
[[Page 29236]]
average electricity cost of __ cents per kWh and natural gas cost of $
__ per therm.
ftc.gov/energy.
* * * * *
0
3. In Sec. 305.13, revise paragraph (a)(1)(xii), as added September
15, 2015, at 81 FR 63649, and effective September 17, 2018, to read as
follows:
Sec. 305.13 Labeling for ceiling fans.
(a) * * *
(1) * * *
(xii) For fans from 19 or more inches and less than or equal to 84
inches in diameter, the label shall display a cost range of $3 to $34
along with the statement underneath the range ``Cost Range of Similar
Models (19''-84'').
* * * * *
0
4. In Sec. 305.16, effective July 28, 2017, revise paragraphs (a)(3)
and (4) and (b)(3) and (4) to read as follows:
Sec. 305.16 Labeling and marking for plumbing products.
(a) * * *
(3) The package for each showerhead and faucet shall disclose the
manufacturer's name and the model number.
(4) The package or any label attached to the package for each
showerhead or faucet shall contain at least the following: The flow
rate expressed in gallons per minute (gpm) or gallons per cycle (gpc),
and the flow rate value shall be the actual flow rate or the maximum
flow rate specified by the standards established in subsection (j) of
section 325 of the Act, 42 U.S.C. 6295(j). Each flow rate disclosure
shall also be given in liters per minute (L/min) or liters per cycle
(L/cycle).
(b) * * *
(3) The package, and any labeling attached to the package, for each
water closet and urinal shall disclose the flow rate, expressed in
gallons per flush (gpf), and the water use value shall be the actual
water use or the maximum water use specified by the standards
established in subsection (k) of section 325 of the Act, 42 U.S.C.
6295(k). Each flow rate disclosure shall also be given in liters per
flush (Lpf).
(4) With respect to any gravity tank-type white 2-piece toilet
offered for sale or sold before January 1, 1997, which has a water use
greater than 1.6 gallons per flush (gpf), any printed matter
distributed or displayed in connection with such product (including
packaging and point-of-sale material, catalog material, and print
advertising) shall include, in a conspicuous manner, the words ``For
Commercial Use Only.''
* * * * *
0
5. In Sec. 305.20, revise paragraph (b)(1)(i)(F) to read as follows:
Sec. 305.20 Paper catalogs and Web sites.
* * * * *
(b) * * *
(1) * * *
(i) * * *
(F) Televisions. The estimated annual operating cost determined in
accordance with Sec. 305.5 and a disclosure stating ``Your energy cost
depends on your utility rates and use. The estimated cost is based on
12 cents per kWh and 5 hours of use per day. For more information,
visit www.ftc.gov/energy.''
* * * * *
0
6. Revise appendix D5 to read as follows:
Appendix D5 to Part 305--Water Heaters--Instantaneous--Electric
Range Information
------------------------------------------------------------------------
Range of estimated annual
energy costs (dollars/year)
Capacity -------------------------------
Low High
------------------------------------------------------------------------
Capacity (maximum flow rate); gallons
per minute (gpm):
``Very Small''--less than 1.6....... $72 $74
``Low''--1.7 to 2.7................. * *
``Medium''--2.8 to 3.9.............. * *
``High''--over 4.0.................. * *
------------------------------------------------------------------------
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-13469 Filed 6-27-17; 8:45 am]
BILLING CODE 6750-01-P
