Energy Labeling Rule, 20218-20226 [2020-06960]
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20218
§ 39.13
Federal Register / Vol. 85, No. 70 / Friday, April 10, 2020 / Proposed Rules
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive (AD):
■
Rolls-Royce Deutschland Ltd & Co KG:
Docket No. FAA–2020–0364; Project
Identifier MCAI–2019–00119–E.
(a) Comments Due Date
The FAA must receive comments by May
26, 2020.
(b) Affected ADs
None.
(c) Applicability
This AD applies to Rolls-Royce
Deutschland Ltd. & Co KG (Type Certificate
previously held by Rolls-Royce plc) Trent
1000–A2, Trent 1000–AE2, Trent 1000–C2,
Trent 1000–CE2, Trent 1000–D2, Trent 1000–
E2, Trent 1000–G2, Trent 1000–H2, Trent
1000–J2, Trent 1000–K2, and Trent 1000–L2
model turbofan engines.
(d) Subject
Joint Aircraft System Component (JASC)
Code 7200, Engine (Turbine/Turboprop).
(e) Unsafe Condition
This AD was prompted by the
manufacturer revising the engine Time
Limits Manual (TLM) life limits of certain
critical rotating parts and direct
accumulation counting (DAC) data files. The
FAA is issuing this AD to prevent the failure
of critical rotating parts. The unsafe
condition, if not addressed, could result in
failure of one or more engines, loss of thrust
control, and loss of the airplane.
(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
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(g) Required Actions
Within 60 days after the effective date of
this AD, revise the airworthiness limitation
section (ALS) of the approved maintenance
program by incorporating:
(1) Task 05–10–01–800–801, ‘‘Critical Part
Mandatory Lives,’’ from Chapter 05–10 of the
applicable Rolls-Royce (RR) Trent 1000 RR
TLM T-Trent-10RRC, dated December 12,
2018, and
(2) Task 05–20–01–800–801, ‘‘Critical Parts
Mandatory Inspections,’’ from Chapter 05–20
of the applicable RR Trent 1000 RR TLM TTrent-10RRC, dated March 1, 2018.
(h) Definition
(1) For the purpose of this AD, the
‘‘approved maintenance program’’ is defined
as the basis for which the operator or the
owner ensures the continuing airworthiness
of each operated airplane.
(2) For the purpose of this AD, the
‘‘applicable RR Trent 1000 RR TLM T-Trent10RRC’’ refers to, depending on the affected
model, the following engine models TLMs:
(i) RR Trent 1000–A2 RR TLM T-Trent10RRC;
(ii) RR Trent 1000–AE2 RR TLM T-Trent10RRC;
(iii) RR Trent 1000–C2 RR TLM T-Trent10RRC;
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(iv) RR Trent 1000–CE2 RR TLM T-Trent10RRC;
(v) RR Trent 1000–D2 RR TLM T-Trent10RRC;
(vi) RR Trent 1000–E2 RR TLM T-Trent10RRC;
(vii) RR Trent 1000–G2 RR TLM T-Trent10RRC;
(viii) RR Trent 1000–H2 RR TLM T-Trent10RRC;
(ix) RR Trent 1000–J2 RR TLM T-Trent10RRC;
(x) RR Trent 1000–K2 RR TLM T-Trent10RRC; or
(xi) RR Trent 1000–L2 RR TLM T-Trent10RRC.
(i) Alternative Methods of Compliance
(AMOCs)
(1) The Manager, ECO Branch, FAA, has
the authority to approve AMOCs for this AD,
if requested using the procedures found in 14
CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector
or local Flight Standards District Office, as
appropriate. If sending information directly
to the manager of the ECO Branch, send it to
the attention of the person identified in
paragraph (j)(1) of this AD. You may email
your request to: ANE-D-AMOC@faa.gov.
(2) Before using any approved AMOC,
notify your appropriate principal inspector,
or lacking a principal inspector, the manager
of the local flight standards district office/
certificate holding district office.
(j) Related Information
(1) For more information about this AD,
contact Stephen Elwin, Aerospace Engineer,
ECO Branch, FAA, 1200 District Avenue,
Burlington, MA 01803; phone: 781–238–
7236; fax: 781–238–7199; email:
stephen.l.elwin@faa.gov.
(2) Refer to European Union Aviation
Safety Agency AD 2019–0058R1, dated April
2, 2019, for more information. You may
examine the EASA AD in the AD docket on
the internet at https://www.regulations.gov
by searching for and locating it in Docket No.
FAA–2020–0364.
(3) For service information identified in
this AD, contact Rolls-Royce Deutschland Ltd
& Co KG, Eschenweg 11, 15827 BlankenfeldeMahlow, Germany; phone: +49 (0) 33 708 6
0; email: https://www.rolls-royce.com/
contact-us.aspx. You may view this
referenced service information at the FAA,
Engine and Propeller Standards Branch, 1200
District Avenue, Burlington, MA 01803. For
information on the availability of this
material at the FAA, call 781–238–7759.
Issued on April 3, 2020.
Lance T. Gant,
Director, Compliance & Airworthiness
Division, Aircraft Certification Service.
[FR Doc. 2020–07450 Filed 4–9–20; 8:45 am]
BILLING CODE 4910–13–P
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FEDERAL TRADE COMMISSION
16 CFR Part 305
[3084–AB15]
Energy Labeling Rule
ACTION:
The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
proposes amending the Energy Labeling
Rule (‘‘Rule’’) to require EnergyGuide
labels for portable air conditioners and
seeks comment on these proposed
requirements, particularly the proposed
effective date. The Commission also
proposes conforming amendments to
reflect upcoming Department of Energy
(‘‘DOE’’) changes to efficiency
descriptors for central air conditioners.
In addition, the Commission seeks
comment on the labeling requirements
in our regulations.
DATES: Comments must be received by
June 9, 2020.
ADDRESSES: Interested parties may file a
comment online or on paper by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Portable Air
Conditioners, Matter No. R611004’’ on
your comment, and file your comment
online through https://
www.regulations.gov by following the
instructions on the web-based form. If
you prefer to file your comment on
paper, write ‘‘Portable Air Conditioners,
Matter No. R611004’’ on your comment
and on the envelope and mail your
comment to the following address:
Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue
NW, Suite CC–5610 (Annex C),
Washington, DC 20580, or deliver your
comment to the following address:
Federal Trade Commission, Office of the
Secretary, Constitution Center, 400 7th
Street SW, 5th Floor, Suite 5610 (Annex
C), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Hampton Newsome (202–326–2889),
Attorney, Division of Enforcement,
Bureau of Consumer Protection, Federal
Trade Commission, Room CC–9528, 600
Pennsylvania Avenue NW, Washington,
DC 20580.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background on the Energy Labeling
Rule
The Commission issued the Energy
Labeling Rule (‘‘Rule’’) in 1979,1
pursuant to the Energy Policy and
1 44
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Federal Trade Commission.
Notice of proposed rulemaking.
AGENCY:
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FR 66466 (Nov. 19, 1979).
10APP1
Federal Register / Vol. 85, No. 70 / Friday, April 10, 2020 / Proposed Rules
Conservation Act of 1975 (‘‘EPCA’’).2
The Rule requires energy labeling for
major home appliances and other
consumer products to help consumers
compare the energy usage and costs of
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
websites 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. The Rule requires
marketers to use national average costs
for applicable energy sources (e.g.,
electricity, natural gas, oil) as calculated
by DOE in all cost calculations. 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
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II. Proposed EnergyGuide Labels for
Portable Air Conditioners
The Commission proposes adding
labeling requirements for portable air
conditioners. Under EPCA, the
Commission may require labeling for
DOE-designated covered products if it
determines that labeling will ‘‘assist
purchasers in making purchasing
decisions’’ and will be ‘‘economically
and technologically feasible.’’ 42 U.S.C.
6294(a)(3). As detailed below, the
Commission has already sought
comment on labeling requirements for
portable air conditioners in several
earlier Federal Register notices. In these
notices, the Commission discussed the
benefits and burdens of such labels and
their format and content, which would
resemble the EnergyGuide labels already
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.
3 16 CFR 305.10.
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required for room air conditioners.4 It
found, in accordance with its EPCA
authority, that labeling for this product
category is likely to be economically
and technologically feasible and is
likely to assist consumers in their
purchasing decisions.5 In response to
these earlier notices and over several
rounds of comments, a wide array of
stakeholders, including industry
members, utilities, and consumer
groups supported (or did not oppose)
the proposal.
In January 2017, however, DOE
withdrew its final efficiency standards
from publication in the Federal Register
pursuant to the Presidential
Memorandum on Implementation of
Regulatory Freeze, leaving the final
standards compliance date unclear. As a
result, the Commission delayed
finalizing the label requirements due to
uncertainty about the timing of DOE
efficiency standards for these products.6
However, a recent DOE notice
announcing a compliance date for the
standards has resolved that
uncertainty.7 Accordingly, the
Commission now proposes to require an
EnergyGuide label for portable air
conditioners beginning on January 10,
2025 to coincide with those DOE
standards. Manufacturers would be able
to use the label earlier. The Commission
seeks comment on the proposed
amendments, particularly the proposed
effective date for those labels.
A. Portable Air Conditioner Energy
Costs and Consumer Labels
Earlier in this proceeding, the
Commission addressed the benefits as
well as the economic and technological
feasibility of labeling for portable air
conditioners. In a 2015 notice, for
example, it explained that portable air
conditioners are common in the
marketplace, vary in energy efficiency,
and use energy similar to, or greater
than, already-labeled room air
4 79 FR 34642 (June 18, 2014); 80 FR 67351 (Nov.
2, 2015); 81 FR 62681 (Sept. 12, 2016); and 82 FR
29230 (June 28, 2017). During this proceeding, the
Commission waited on label requirements pending
a final DOE-issued test procedure for these
products. DOE published that test procedure on
June 1, 2016 (81 FR 35242) and it became
mandatory for energy use representations on
November 28, 2016.
5 80 FR at 67357; and 81 FR at 62683. In
discussing similar economic and technological
feasibility determinations for labels in 1979, the
Commission concluded ‘‘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 (discussing determinations under 42
U.S.C. 6294(a)(1)).
6 82 FR at 29232.
7 85 FR 1378 (Jan. 10, 2020).
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20219
conditioners.8 In addition, DOE
reported the aggregate energy use of
portable air conditioners has increased
as these units have become more
popular.9 According to DOE estimates,
sellers shipped 1.32 million units in the
United States in 2014, with future
growth projected.10 DOE also found
these products exhibit a wide range of
efficiency ratings and energy costs for
similarly sized units (a difference of
about $100 per year between the most
and least efficient models). After the
2025 implementation of DOE standards
that range is likely to become smaller,
but remain significant (a difference of
about $30–$50 depending on the size
category as indicated in proposed
Appendix E2).
In addition, DOE estimated average
per-household annual electricity
consumption for these products at
approximately 804 kWh/yr for
residential products, generating $105 in
annual energy costs (at $0.13 per kWh/
hr).11 Therefore, energy labels are likely
to assist consumers with their
purchasing decisions by allowing them
to compare the energy costs of
competing models and, consequently,
save significant money on their electric
bills.
In addition, there is no evidence that
labeling is economically or
technologically infeasible (i.e., that the
costs of labeling substantially outweigh
consumer benefits). Indeed, the burdens
(discussed infra in the Paperwork
Reduction Act section) of labeling are
not likely to differ significantly from
those for room air conditioners, which
already have EnergyGuide labels.12
B. Proposed Label Requirements
The proposed portable air conditioner
label would be largely identical to the
current room air conditioner label in
content and format. As with the room
air conditioner labels, the labels would
appear on packaging, not the product
itself. The proposed amendments also
incorporate DOE’s definition of
‘‘portable air conditioner’’ at section
305.3.13 The appendices to the proposed
8 80
FR at 67357–58.
78 FR 40403, 40404–05 (July 5, 2013).
10 85 FR 1378; and ‘‘2016–12 Final Rule
Technical Support Document: Energy Efficiency
Program for Consumer Products and Commercial
and Industrial Equipment: Portable Air
Conditioners’’ (‘‘DOE TSD’’) December 2016 at
https://www.regulations.gov/document?D=EERE2013-BT-STD-0033-0047.
11 DOE TSD at Table 7.3.2.
12 See 80 FR at 67357 and 81 FR at 62683.
13 To effect new labeling requirements, the
proposed amendments insert the term ‘‘portable air
conditioner’’ next to ‘‘room air conditioner’’ into
appropriate paragraphs of the Rule as detailed in
the amendatory language included in this notice.
9 See
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Federal Register / Vol. 85, No. 70 / Friday, April 10, 2020 / Proposed Rules
Rule contain ranges specifically for
portable air conditioners broken down
into three size categories. The FTC staff
derived these cost ranges based on DOE
energy use data and has applied the
same electricity cost rate ($0.13 kWh/hr)
currently used for room air conditioner
labels.14 As discussed in detail in the
2016 and 2017 notices, the Commission
does not propose combining the ranges
for portable and room air conditioners
because it is not clear whether
consumers routinely compare the two
product categories when shopping.15
However, consumers who want to
compare the two product categories
would be able to easily do so using the
label’s energy cost disclosure. In
addition, consistent with requirements
applicable to room air conditioners, the
proposed amendments contain reporting
requirements identical to those created
by DOE for these products.
Finally, the Commission proposes to
establish an effective date for the label
that coincides with the compliance date
for DOE standards. Citing burdens
associated with testing and labeling,
industry comments earlier in this
proceeding urged the Commission to
synchronize any new labeling
requirements with the DOE standards
compliance date.16 The Commission
seeks comments on the proposed
effective date.
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III. Conforming Changes to Efficiency
Descriptors for Central Air
Conditioners
The Commission also seeks comments
on updates to the Rule’s efficiency
descriptors for central air conditioners
in Section 305.20 to conform to pending
DOE changes. In 2017, as part of
efficiency standards proceeding, DOE
announced changes to the rating
methods and associated efficiency
descriptors for central air conditioners
(e.g., from ‘‘Seasonal Energy Efficiency
Ratio (SEER)’’ to ‘‘Seasonal Energy
Efficiency Ratio 2 (SEER2)’’).17 The DOE
changes become effective on January 1,
2023. To ensure consistency with the
DOE standards, the Commission
proposes to change all applicable
references in Part 305, effective on
January 1, 2023. Given the relatively
small differences in the ratings
14 See DOE TSD, Chapter 3 at 24–25 and Ch. 5
at 5–20. Using estimates for the most energy
consumptive models based on the DOE standards,
the ranges by size category expressed in yearly
energy consumption are: (1) Less than 6,000 Btu/
hr: (375–753 kWh/yr), (2) 6,000 to 7,999 Btu/hr:
(663–916 kWh/yr), and (3) 8,000 Btu/yr or greater:
(807–1034 kWh-yr).
15 81 FR at 62682; and 82 FR at 29231–29232.
16 82 FR 29231.
17 82 FR 1786 (Jan. 6, 2017); and 82 FR 24211
(May 26, 2017).
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produced by the old and the new rating
methods, the Commission does not
propose any additional changes to the
label. The Commission also plans to
update ranges in Appendix H and I as
well as applicable numbers on the
sample labels in Appendix L when
updated data become available. The
Commission seeks comments on all
aspects of this proposal, including
whether data is available to update the
tables in Appendices H and I.
IV. Questions on Label Layout and
Format Requirements
The Commission also requests
comment on whether we should revise
Section 305.13—Layout, format, and
placement for refrigerators, refrigeratorfreezers, freezers, dishwashers, clothes
washers, water heaters, room air
conditioner, and pool heaters—and
Section 305.20—Labeling for central air
conditioners, heat pumps, and
furnaces—of the Rule. These sections
address required disclosures and
include detailed requirements for
labeling of the covered products. For
example, Section 305.13(b) Layout
specifies the trim size dimensions for
labels, including the precise width and
length (e.g., width 51⁄4 to 51⁄2 inches
(13.34 cm. to 13.97 cm.) and the number
of picas for the copy set (between 27
and 29); and the type style and setting.
Section 305.13(c) Type style and setting
states that Arial series typeface or
equivalent must be used exclusively,
prohibits the use of hyphens and
mandates that text ‘‘be set flush left with
two points leading except where
otherwise indicated.’’ Section 305.13
(e)(1) Adhesive labels states that:
All adhesive labels should be applied so
they can be easily removed without the use
of tools or liquids, other than water, but
should be applied with an adhesive with an
adhesive capacity sufficient to prevent their
dislodgment during normal handling
throughout the chain of distribution to the
retailer or consumer.
The provision then provides that the
paper stock for the labels shall have a
basic weight of not less than 58 pounds
per 500 sheets (25″ x 38″) or equivalent
and includes a suggested minimum peel
adhesive capacity: ‘‘[a] minimum peel
adhesion capacity for the adhesive of 12
ounces per square inch is suggested, but
not required if the adhesive can
otherwise meet the above standard.’’
Section 305.20 of the Rule similarly
contains requirements for layout; type
style and setting; and label type with
almost identical provisions addressing
trim size, number of picas, requirement
of Arial font, paper weight
specifications, and includes a suggested
minimum peel adhesion capacity.
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Freeing businesses from unnecessarily
prescriptive requirements can benefit
businesses and consumers. Other
Commission Rules and Guides
containing labeling requirements do not
include the same level of detail
regarding the content of the label. For
example, the Rules and Regulations
Under the Textile Fiber Products
Identification Act, 16 CFR part 303,
require that:
§ 303.15 Required label and method of
affixing.
(a) A label is required to be affixed to each
textile product and, where required, to its
package or container in a secure manner.
Such label shall be conspicuous and shall be
of such durability as to remain attached to
the product and its package throughout any
distribution, sale, resale and until sold and
delivered to the ultimate consumer.
Similarly, the Commission’s Guides for
Select Leather and Imitation Leather
Products, 16 CFR part 24, also address
the form of disclosures:
§ 24.2(g) Form of disclosures under this
section. All disclosures described in this
section should appear in the form of a
stamping on the product, or on a tag, label,
or card attached to the product, and should
be affixed so as to remain on or attached to
the product until received by the consumer
purchaser. . . .
The Commission seeks comment on
whether a more flexible provision
would provide sufficient guidance to
industry on expected labeling
requirements and adequately protect
consumers. Specifically, the
Commission seeks comment on the
following questions:
Section 305.13 Layout, format, and
placement of labels for refrigerators,
refrigerator-freezers, freezers,
dishwashers, clothes washers, water
heaters, room air conditioners, and pool
heaters.
a. Should the Commission revise this
section of the Rule to require only that
the layout, type style, and setting be
clear and conspicuous, and that the
labels be sufficiently durable and
applied with an adhesive whose
capacity is sufficient to prevent
dislodgment of the labels during normal
handling throughout the chain of
distribution to the retailer or consumer?
Why or why not?
b. With respect to the provisions
regarding the adhesive for the labels, is
the inclusion of the safe harbor
regarding the suggested peel capacity in
the current provision interpreted by
industry as a required standard?
c. What are the costs and benefits of
the current provision for consumers and
businesses?
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d. Would a more flexible provision
provide sufficient guidance to industry
on the expected labeling requirements?
e. How would a more flexible
provision affect the costs and benefits of
the Rule for consumers and businesses,
particularly small businesses?
f. If this Section of the Rule were
modified to include a more flexible
provision, should use of the specific
labeling requirements in the prior
version be a form of safe harbor for
industry? Why or why not?
Section 305.20 Labeling for central air
conditioning, heat pumps, and furnaces.
a. Should the Commission revise this
section of the Rule to require only that
the layout, type style and setting be
clear and conspicuous, and that the
labels be sufficiently durable and
applied with an adhesive whose
capacity is sufficient to prevent
dislodgment of the labels during normal
handling throughout the chain of
distribution to the retailer or consumer?
Why or why not?
b. With respect to the provisions
regarding the adhesive for the labels, is
the inclusion of the safe harbor
regarding the suggested peel capacity in
the current provision interpreted by
industry as a required standard?
c. What are the costs and benefits of
the current provision for consumers and
businesses?
d. Would a more flexible provision
provide sufficient guidance to industry
on the expected labeling requirements?
e. How would a more flexible
provision affect the costs and benefits of
the Rule for consumers and businesses,
particularly small businesses?
f. If this Section of the Rule were
modified to include a more flexible
provision, should use of the specific
labeling requirements in the prior
version be a form of safe harbor for
industry? Why or why not?
V. Request for Comment
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before June 9, 2020. Write ‘‘Portable Air
Conditioners, Matter No. R611004’’ on
your comment. Your comment—
including your name and your state—
will be placed on the public record of
this proceeding, including, to the extent
practicable, on the https://
www.regulations.gov website.
Postal mail addressed to the
Commission is subject to delay due to
heightened security screening. As a
result, we encourage you to submit your
comments online. To make sure that the
Commission considers your online
comment, you must file it through
https://www.regulations.gov, by
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following the instruction on the webbased form provided.
If you file your comment on paper,
write ‘‘Portable Air Conditioners, Matter
No. R611004’’ on your comment and on
the envelope, and mail your comment to
the following address: Federal Trade
Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex C), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex C),
Washington, DC 20024. If possible,
submit your paper comment to the
Commission by courier or overnight
service.
Because your comment will be placed
on the publicly accessible website,
https://www.regulations.gov, you are
solely responsible for making sure that
your comment does not include any
sensitive or confidential information. In
particular, your comment should not
include any sensitive personal
information, such as your or anyone
else’s Social Security number; date of
birth; driver’s license number or other
state identification number, or foreign
country equivalent; passport number;
financial account number; or credit or
debit card number. You are also solely
responsible for making sure that your
comment does not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, your comment should not
include any ‘‘trade secret or any
commercial or financial information
which . . . is privileged or
confidential’’—as provided by Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—
including in particular competitively
sensitive information such as costs,
sales statistics, inventories, formulas,
patterns, devices, manufacturing
processes, or customer names.
Comments containing material for
which confidential treatment is
requested must be filed in paper form,
must be clearly labeled ‘‘Confidential,’’
and must comply with FTC Rule 4.9(c).
In particular, the written request for
confidential treatment that accompanies
the comment must include the factual
and legal basis for the request, and must
identify the specific portions of the
comment to be withheld from the public
record. See FTC Rule 4.9(c). Your
comment will be kept confidential only
if the General Counsel grants your
request in accordance with the law and
the public interest. Once your comment
has been posted publicly at
www.regulations.gov—as legally
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20221
required by FTC Rule 4.9(b)—we cannot
redact or remove your comment, unless
you submit a confidentiality request that
meets the requirements for such
treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
Visit the FTC website to read this
NPRM and the news release describing
it. The FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before June 9, 2020. For information on
the Commission’s privacy policy,
including routine uses permitted by the
Privacy Act, see https://www.ftc.gov/
site-information/privacy-policy.
Because written comments appear
adequate to present the views of all
interested parties, the Commission has
not scheduled an oral hearing regarding
these proposed amendments. Interested
parties may request an opportunity to
present views orally. If such a request is
made, the Commission will publish a
document in the Federal Register
stating the time and place for such oral
presentation(s) and describing the
procedures that will be followed.
Interested parties who wish to present
oral views must submit a hearing
request, on or before June 9, 2020, in the
form of a written comment that
describes the issues on which the party
wishes to speak. If there is no oral
hearing, the Commission will base its
decision on the written rulemaking
record.
VI. Paperwork Reduction Act
The current Rule contains
recordkeeping, disclosure, testing, and
reporting requirements that constitute
information collection requirements as
defined by the Paperwork Reduction
Act (‘‘PRA’’).18 OMB has approved the
Rule’s existing information collection
requirements through December 31,
2022 (OMB Control No. 3084–0069).
The amendments include new labeling
requirements for portable air
conditioners that constitute information
collections under the PRA. Accordingly,
the Commission is seeking OMB
clearance specific to the Rule
amendments.19
Burden estimates below are based on
Census data, DOE figures and estimates,
18 44
U.S.C. 3501 et seq; see also 5 CFR 1320.3(c).
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.
19 The
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public comments, general knowledge of
manufacturing practices, and trade
association advice and figures. The FTC
estimates that there are about 150 basic
models of portable air conditioners (i.e.,
units with essentially identical physical
and electrical characteristics). In
addition, FTC staff estimates that there
are 45 portable air conditioner
manufacturers and 1,500,000 portable
air conditioner units shipped each year
in the U.S. The FTC seeks comment on
the following estimates:
Reporting: The Rule requires that
manufacturers of covered products
annually submit a report for each model
in current production containing the
same information that must be
submitted to the Department of Energy
pursuant to 10 CFR part 429. In lieu of
submitting the required information to
the Commission, manufacturers may
submit such information to DOE
directly via the agency’s Compliance
Certification Management System,
available at https://regulations.doe.gov/
ccms, as provided by 10 CFR 429.12.
Because manufacturers are already
required to submit these reports to DOE,
FTC staff estimates that any additional
burden associated with providing the
information to the FTC is minimal. FTC
staff estimates that the average reporting
burden for manufacturers of portable air
conditioners will be approximately 15
hours per manufacturer. Based on this
estimate, the annual reporting burden
for manufacturers of portable air
conditioners is 675 hours (15 hours × 45
manufacturers).20 Staff estimates that
information processing staff, at an
hourly rate of $16.24,21 will typically
perform the required tasks, for an
estimated annual labor cost of $10,962.
Labeling: The proposed amendments
require that manufacturers label
portable air conditioners. The burden
imposed by this requirement consists of
the time needed to draft labels and
incorporate them onto package designs.
Since EPCA and the Rule specify the
content and format for the required
labels and FTC staff provide online label
templates, manufacturers need only
20 In earlier comments, AHAM (#681–00012)
estimated that the data entry involved in filing
reports with the FTC is not particularly
burdensome, but estimated that other tasks
involved in reporting (such as performing the
required testing and gathering information) could
take as long as 40 hours per manufacturer. As noted
above, however, testing and reporting are required
and accounted for in DOE regulations. As a result,
staff estimates that the primary burdens associated
with reporting are due to DOE requirements.
21 These labor cost estimates are derived from the
Bureau of Labor Statistics figures in ‘‘Table 1.’’
National employment and wage data from the
Occupational Employment Statistics survey by
occupation, May 2018,’’ available at: https://
www.bls.gov/news.release/ocwage.t01.htm.
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input the energy consumption figures
and other product-specific information
derived from testing. FTC staff estimates
that the time to incorporate the required
information into labels and label
covered products is five hours per basic
model. Accordingly, staff estimates that
the approximate annual burden
involved in labeling covered products is
750 hours [150 basic models × 5 hours].
Staff estimates that information
processing staff, at an hourly rate of
$16.24,22 will typically perform the
required tasks, for an estimated annual
labor cost of $12,180.
Testing: Manufacturers of portable air
conditioners must test each basic model
they produce to determine energy usage,
but the majority of tests conducted are
required by DOE rules. As a result, it is
likely that only a small portion of the
tests conducted are attributable to the
Rule’s requirements. In addition,
manufacturers need not subject each
basic model to testing annually; they
must retest only if the product design
changes in such a way as to affect
energy consumption. FTC staff estimates
that manufacturers will require
approximately 36 hours for testing of
portable air conditioners,23 and that
25% of all basic models are tested
annually due to the Rule’s requirements.
Accordingly, the estimated annual
testing burden for portable air
conditioners is 1,368 hours ((150 basic
models × 25%) × 36 hours). Staff
estimates that engineering technicians,
at an hourly rate of $28.37,24 will
typically perform the required tasks, for
an estimated annual labor cost of
$38,300.
Recordkeeping: The Rule also requires
manufacturers of covered products to
retain records of test data generated in
performing the tests to derive
information included on labels. See 16
CFR 305.21. The FTC estimates that the
annual recordkeeping burden for
manufacturers of portable air
conditioners will be approximately one
minute per basic model to store relevant
data. Accordingly, the estimated annual
recordkeeping burden would be
approximately 3 hours (150 basic
models × one minute). Staff estimates
that information processing staff, at an
hourly rate of $16.24,25 will typically
perform the required tasks, for an
estimated annual labor cost of $50.
Online and Retail Catalog
Disclosures: Staff estimates that there
22 Id.
23 AHAM estimated manufacturers would require
32 hours per model for testing and up to 4 hours
for preparing the test data. AHAM Comment, #681–
0016.
24 See supra note 20.
25 Id.
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are approximately 400 sellers of
products covered under the Rule who
are subject to the Rule’s catalog
disclosure requirements. Staff has
previously estimated that covered
online and catalog sellers spend
approximately 17 hours per year to
incorporate relevant product data for
products that are currently covered by
the Rule. Staff estimates that the
portable air conditioner requirements
will add one additional hour per year in
incremental burden per seller. Staff
estimates that these additions will result
in an incremental burden of 400 hours
(400 sellers × one hour annually). Staff
estimates that information processing
staff, at an hourly rate of $16.24,26 will
typically perform the required tasks, for
an estimated incremental annual labor
cost of $6,496.
Estimated annual non-labor cost
burden: Staff anticipates that
manufacturers are not likely to require
any significant capital costs to comply
with the proposed amendments.
VII. Regulatory Flexibility Act
The Regulatory Flexibility Act
(‘‘RFA’’) 27 requires that the Commission
conduct an analysis of the anticipated
economic impact of the proposed
amendment on small entities. The RFA
requires that the Commission provide
an Initial Regulatory Flexibility
Analysis (‘‘IRFA’’) with a proposed rule
and a Final Regulatory Flexibility
Analysis (‘‘FRFA’’) with a final rule, if
any, unless the Commission certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.28 The
Commission does not anticipate that the
proposed rule will have a significant
economic impact on a substantial
number of small entities, but it
recognizes that some of the affected
manufacturers may qualify as small
businesses under the relevant
thresholds. Therefore, based on
available information, the Commission
certifies that amending the Rules as
proposed will not have a significant
economic impact on a substantial
number of small businesses.
The Commission estimates that the
amendments will apply to 300 online
and paper catalog sellers of covered
products and about 45 portable air
conditioner manufacturers. The
Commission expects that approximately
150 of these various entities qualify as
small businesses.
26 Id.
27 5
U.S.C. 601–612.
U.S.C. 605. The proposed conforming
changes to central air conditioner descriptors will
have no impact on the Rule’s current burden.
28 5
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Accordingly, this document serves as
notice to the Small Business
Administration of the FTC’s
certification of no effect. To ensure the
accuracy of this certification, however,
the Commission requests comment on
whether the proposed rule will have a
significant impact on a substantial
number of small entities, including
specific information on the number of
entities that would be covered by the
proposed rule, the number of these
companies that are small entities, and
the average annual burden for each
entity. Although the Commission
certifies under the RFA that the rule
proposed in this notice 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 IRFA in order
to inquire into the impact of the
proposed rule on small entities.
Therefore, the Commission has prepared
the following analysis:
A. Description of the Reasons That
Action by the Agency Is Being Taken
The Commission is proposing
expanded product coverage and
additional improvements to the Rule to
help consumers in their purchasing
decisions for portable air conditioners.
B. Statement of the Objectives of, and
Legal Basis for, the Proposed Rule
The objective of the rule is to improve
the effectiveness of the current labeling
program. The legal basis for the Rule is
the Energy Policy and Conservation Act
(42 U.S.C. 6292 et seq.).
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C. Small Entities To Which the Proposed
Rule 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 500
employees. Catalog sellers qualify as
small businesses if their sales are less
than $8.0 million annually. The
Commission estimates that there are
approximately 150 entities subject to the
proposed rule’s requirements that
qualify as small businesses.29 The
Commission seeks comment and
information with regard to the estimated
number and nature of small business
entities for which the proposed rule
would have a significant economic
impact.
29 81
FR 62681 (Sept. 12, 2016).
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D. Projected Reporting, Recordkeeping
and Other Compliance Requirements
The changes under consideration
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 portable air conditioners. The
Commission assumes that the label
design change will be implemented by
graphic designers.
E. Duplicative, Overlapping, or
Conflicting Federal Rules
The Commission has not identified
any other federal statutes, rules, or
policies that duplicate, overlap, or
conflict with the proposed rule. The
Commission invites comment and
information on this issue.
F. Significant Alternatives to the
Proposed Rule
The Commission seeks comment and
information on the need, if any, for
alternative compliance methods that,
consistent with the statutory
requirements, would reduce the
economic impact of the rule on small
entities. For example, the Commission
is currently unaware of the need to
adopt any special provisions for small
entities. However, if such issues are
identified, the Commission could
consider alternative approaches such as
extending the effective date of these
amendments for catalog sellers to allow
them additional time to comply beyond
the labeling deadline set for
manufacturers. If the comments filed in
response to this notice identify small
entities that are affected by the proposed
rule, as well as alternative methods of
compliance that would reduce the
economic impact of the rule on such
entities, the Commission will consider
the feasibility of such alternatives and
determine whether they should be
incorporated into the final rule.
VIII. Communications by Outside
Parties to the Commissioners or Their
Advisors
Written communications and
summaries or transcripts of oral
communications respecting the merits
of this proceeding, from any outside
party to any Commissioner or
Commissioner’s advisor, will be placed
on the public record. See 16 CFR
1.26(b)(5).
IX. Proposed Rule Language
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation,
Household appliances, Labeling,
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Frm 00022
Fmt 4702
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Reporting and recordkeeping
requirements.
For the reasons stated above, the
Commission proposes to amend part
305 of title 16 of the 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.
PART 305—[AMENDED]
2. In part 305, revise all references to
‘‘seasonal energy efficiency ratio
(SEER)’’ to read ‘‘seasonal energy
efficiency ratio 2’’; revise all references
to ‘‘SEER’’ to read ‘‘SEER2’’; revise all
references to ‘‘heating seasonal
performance factor’’ to read ‘‘heating
seasonal performance factor 2’’; revise
all references to ‘‘HSPF’’ to read
‘‘HSPF2’’; revise all references to
‘‘Energy Efficiency Ratio’’ to read
‘‘Energy Efficiency Ratio 2’’; and revise
all references to ‘‘EER’’ to read ‘‘EER2.’’
■ 3. In § 305.2,
■ a. Redesignate paragraph (l)(23) as
(24);
■ b. Add new paragraph (23), and
■ c. Revise paragraph (p).
The revisions read as follows:
■
§ 305.2
Definitions.
*
*
*
*
*
(l) * * *
(23) Portable air conditioners.
*
*
*
*
*
(p) Energy efficiency rating means the
following product-specific energy usage
descriptors: Annual fuel utilization
efficiency (AFUE) for furnaces;
combined energy efficiency ratio (CEER)
for room and portable air conditioners;
seasonal energy efficiency ratio (SEER)
for the cooling function of central air
conditioners and heat pumps; heating
seasonal performance factor (HSPF) for
the heating function of heat pumps;
airflow efficiency for ceiling fans; and,
thermal efficiency (TE) for pool heaters,
as these descriptors are determined in
accordance with tests prescribed under
section 323 of the Act (42 U.S.C. 6293).
These product-specific energy usage
descriptors shall be used in satisfying
all the requirements of this part.
*
*
*
*
*
■ 4. In § 305.3, add paragraph (j) to read
as follows:
§ 305.3 Description of appliances and
consumer electronics.
*
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(j) Portable air conditioner means a
portable encased assembly, other than a
packaged terminal air conditioner, room
air conditioner, or dehumidifier, that
delivers cooled, conditioned air to an
enclosed space, and is powered by
single-phase electric current. It includes
a source of refrigeration and may
include additional means for air
circulation and heating.
■ 5. In § 305.7, add paragraph (e)(3) to
read as follows:
§ 305.7
Ceiling fans .................................
Urinals .........................................
Metal halide lamp fixtures ..........
General service fluorescent
lamps.
Medium base compact fluorescent lamps.
General service incandescent
lamps.
Televisions ..................................
Deadline
for data
submission
Mar. 1.
Mar. 1.
Sept. 1.
Mar. 1.
Mar. 1.
Mar. 1.
June 1.
Prohibited Acts.
*
*
§ 305.10
§ 305.13 Layout, format, and placement of
labels for refrigerators, refrigeratorfreezers, freezers, dishwashers, clothes
washers, water heaters, room air
conditioners, portable air conditioners, and
pool heaters.
*
*
*
*
(e) * * *
(3) The requirements of this part shall
not apply to any portable air conditioner
produced before January 10, 2025.
*
*
*
*
*
■ 6. Amend § 305.10 by revising
paragraph (f) to read as follows:
Determinations of capacity.
*
*
*
*
*
(f) Room air conditioners and portable
air conditioners. The capacity shall be
the cooling capacity in Btu per hour, as
determined according to appendix F to
10 CFR part 430, subpart B, but rounded
to the nearest value ending in hundreds
that will satisfy the relationship that the
energy efficiency value used in
representations equals the rounded
value of capacity divided by the value
of input power in watts. If a value
ending in hundreds will not satisfy this
relationship, the capacity may be
rounded to the nearest value ending in
50 that will.
*
*
*
*
*
■ 7. In § 305.11, revise paragraph (b)(1)
to read as follows:
§ 305.11
Submission of data.
*
*
*
*
*
(b)(1) All data required by § 305.11(a)
except serial numbers shall be
submitted to the Commission annually,
on or before the following dates:
Deadline
for data
submission
Product category
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Product category
Refrigerators ...............................
Refrigerators-freezers .................
Freezers ......................................
Central air conditioners ..............
Heat pumps ................................
Dishwashers ...............................
Water heaters .............................
Room air conditioners ................
Portable air conditioners .............
Furnaces .....................................
Pool heaters ...............................
Clothes washers .........................
Fluorescent lamp ballasts ...........
Showerheads ..............................
Faucets .......................................
Water closets ..............................
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Aug. 1.
Aug. 1.
Aug. 1.
July 1.
July 1.
June 1.
May 1.
July 1.
Feb. 1.
May 1.
May 1.
Oct. 1.
Mar. 1.
Mar. 1.
Mar. 1.
Mar. 1.
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*
*
*
*
8. Amend § 305.13 by revising the
section heading and adding paragraph
(e)(3) to read as follows:
■
*
*
*
*
*
(e) * * *
*
*
*
*
*
(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.
Labels for room air conditioners
produced on or after October 1, 2019
and portable air conditioners produced
on or after January 10, 2025, shall be
printed on or affixed to the principal
display panel of the product’s
packaging. The labels for electric
instantaneous water heaters, room air
conditioners, and portable air
conditioners shall be black type and
graphics on a process yellow or other
neutral contrasting background.
*
*
*
*
*
■ 9. In § 305.18 revise the section
heading to read as follows:
§ 305.18 Label content for room air
conditioners and portable air conditioners.
*
*
*
*
*
10. Amend § 305.20 by revising
paragraphs (g)(11) through (14) to read
as follows:
■
§ 305.20 Labeling for central air
conditioners, heat pumps, and furnaces.
*
*
*
*
*
(g) * * *
(11) For any single-package air
conditioner with a minimum Energy
Efficiency Ratio 2 (EER2) of at least 10.6,
any split system central air conditioner
with a rated cooling capacity of at least
45,000 Btu/h and minimum efficiency
ratings of at least 13.8 SEER2 and 11.2
EER2 or at least 15.2 SEER2 and 9.8
EER2, and any split-system central air
conditioners with a rated cooling
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Sfmt 4702
capacity less than 45,000 Btu/h and
minimum efficiency ratings of at least
14.3 SEER2 and 11.7 EER2 or at least
15.2 SEER2 and 9.8 EER2, the label
must contain the following regional
standards information:
(i) A statement that reads:
Notice Federal law allows this unit to
be installed in all U.S. states and
territories.
(ii) For split systems, a statement that
reads:
Energy Efficiency Ratio 2 (EER2): The
installed system’s minimum EER2 is
ll.
(iii) For single-package air
conditioners, a statement that reads:
Energy Efficiency Ratio 2 (EER2): This
model’s EER2 is [ll].
(12) For any split system central air
conditioner with a rated cooling
capacity of at least 45,000 Btu/h and
minimum efficiency ratings of at least
13.8 SEER2 but lower than 11.2 EER2 or
at least 15.2 SEER2 but lower than 9.8
EER2, and any split-system central air
conditioners with a rated cooling
capacity less than 45,000 Btu/h and
minimum efficiency ratings of at least
14.3 SEER2 but lower than 11.7 EER2 or
at least 15.2 SEER2 but lower than 9.8
EER2, the label must contain the
following regional standards
information.
(i) A statement that reads:
Notice Federal law allows this unit to
be installed only in: AK, AL, AR, CO,
CT, DC, DE, FL, GA, HI, ID, IL, IA, IN,
KS, KY, LA, MA, ME, MD, MI, MN, MO,
MS, MT, NC, ND, NE, NH, NJ, NY, OH,
OK, OR, PA, RI, SC, SD, TN, TX, UT,
VA, VT, WA, WV, WI, WY and U.S.
territories. Federal law prohibits
installation of this unit in other states.
(ii) A map appropriate for the model
and accompanying text as illustrated in
the sample label 7 in appendix L of this
part.
(iii) A statement that reads:
Energy Efficiency Ratio 2 (EER2): The
installed system’s minimum EER2
is ll.
(13) For any split system central air
conditioner with a rated cooling
capacity of at least 45,000 Btu/h and a
minimum rated efficiency rating less
than 13.8 SEER2, and any split-system
central air conditioners with a rated
cooling capacity less than 45,000 Btu/h
and minimum efficiency ratings of less
than 14.3 SEER2, the label must contain
the following regional standards
information:
(i) A statement that reads:
Notice Federal law allows this unit to
be installed only in: AK, CO, CT, ID, IL,
IA, IN, KS, MA, ME, MI, MN, MO, MT,
ND, NE, NH, NJ, NY, OH, OR, PA, RI,
SD, UT, VT, WA, WV, WI, and WY.
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Federal law prohibits installation of this
unit in other states.
(ii) A map appropriate for the model
and accompanying text as illustrated in
the sample label 7 in appendix L of this
part.
(iii) A statement that reads:
Energy Efficiency Ratio 2 (EER2): The
installed system’s minimum EER2
is ll.
(14) For any single-package air
conditioner with a minimum EER2
below 10.6, the label must contain the
following regional standards
information:
(i) A statement that reads:
Notice Federal law allows this unit to
be installed only in: AK, AL, AR, CO,
CT, DC, DE, FL, GA, HI, ID, IL, IA, IN,
KS, KY, LA, MA, ME, MD, MI, MN, MO,
MS, MT, NC, ND, NE, NH, NJ, NY, OH,
OK, OR, PA, RI, SC, SD, TN, TX, UT,
VA, VT, WA, WV, WI, WY and U.S.
territories. Federal law prohibits
installation of this unit in other states.
(ii) A map appropriate for the model
and accompanying text as illustrated in
the sample label 7 in appendix L of this
part.
*
*
*
*
*
■ 11. In § 305.27 revise paragraph
(a)(1)(i) to read as follows:
§ 305.27
Paper catalogs and websites.
(a) * * *
(1) Content.
(i) Products required to bear
EnergyGuide or Lighting Facts labels.
All websites advertising covered
refrigerators, refrigerator-freezers,
freezers, room air conditioners, portable
air conditioners, clothes washers,
dishwashers, ceiling fans, pool heaters,
central air conditioners, heat pumps,
furnaces, general service lamps,
specialty consumer lamps (for products
offered for sale after May 2, 2018), and
televisions must display, for each
model, a recognizable and legible image
of the label required for that product by
this part. The website may hyperlink to
the image of the label using the sample
EnergyGuide and Lighting Facts icons
depicted in appendix L of this part. The
website must hyperlink the image in a
way that does not require consumers to
save the hyperlinked image in order to
view it.
*
*
*
*
*
■ 12. Redesignate Appendix E to Part
305 as Appendix E1 to Part 305 and add
Appendix E2 to Part 305 to read as
follows:
APPENDIX E2 TO PART 305—PORTABLE AIR CONDITIONERS RANGE INFORMATION
Range of estimated
annual energy costs
(dollars/year)
Seasonally adjusted cooling capacity range
(Btu/h)
Low
Less than 6,000 Btu ................................................................................................................................................
6,000 to 7,999 Btu ...................................................................................................................................................
8,000 or greater Btu ................................................................................................................................................
High
$48
87
104
$98
120
135
13. Revise Appendix K2 to Part 305 to
read as follows:
■
APPENDIX K2 TO PART 305—REPRESENTATIVE AVERAGE UNIT ENERGY COSTS FOR DISHWASHER, ROOM AIR
CONDITIONER, PORTABLE AIR CONDITIONERS LABELS
[This Table contains the representative unit energy costs that must be utilized to calculate estimated annual energy cost disclosures required
under §§ 305.16, 305.18, and 305.27 for dishwashers, room air conditioners, and portable air conditioners. This Table is based on information published by the U.S. Department of Energy in 2017.]
As required by
DOE test
procedure
Type of energy
In commonly used terms
Electricity .........................................
Natural Gas .....................................
No. 2 Heating Oil ............................
Propane ...........................................
Kerosene .........................................
¢13.00/kWh 1 ..........................................................................................
$1.05/therm 2 or $10.86/MCF 3 ..............................................................
$2.59/gallon 4 .........................................................................................
$1.53/gallon 5 .........................................................................................
$3.01/gallon 6 .........................................................................................
$.1300/kWh.
$0.00001052/Btu.
$0.00001883/Btu.
$0.00001672/Btu.
$0.00002232/Btu.
1 kWh
stands for kilowatt hour. kWh = 3,412 Btu.
= 100,000 Btu.
stands for 1,000 cubic feet. For the purposes of this table, one cubic foot of natural gas has an energy equivalence of 1,032 Btu (British
thermal units).
4 For the purposes of this table, one gallon of No. 2 heating oil has an energy equivalence of 137,561 Btu.
5 For the purposes of this table, one gallon of liquid propane has an energy equivalence of 91,333 Btu.
6 For the purposes of this table, one gallon of kerosene has an energy equivalence of 135,000 Btu.
2 therm
3 MCF
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By direction of the Commission.
April J. Tabor,
Acting Secretary.
Concurring Statement of Commissioner
Christine S. Wilson Energy Labeling
Rule
I support the Commission’s decision
to issue a Federal Register Notice
VerDate Sep<11>2014
18:03 Apr 09, 2020
Jkt 250001
seeking comment on the Energy
Labeling Rule. The Notice seeks
comment on proposed requirements for
the EnergyGuide labels for portable air
conditioners and proposes conforming
amendments to reflect upcoming
Department of Energy changes to
efficiency descriptors for central air
conditioners. In addition, the Notice
PO 00000
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Fmt 4702
Sfmt 4702
seeks comment on the more highly
detailed and prescriptive aspects of the
Rule. In a prior request for comment on
this Rule, I questioned whether these
prescriptive requirements were
necessary and encouraged the
Commission to rethink its approach to
the scope and detail of these
E:\FR\FM\10APP1.SGM
10APP1
20226
Federal Register / Vol. 85, No. 70 / Friday, April 10, 2020 / Proposed Rules
lotter on DSKBCFDHB2PROD with PROPOSALS
requirements.1 I am pleased that the
Commission is seeking comment on this
issue.
Specifically, this Notice seeks
comment on whether a more flexible
approach to labeling obligations would
provide sufficient guidance to
businesses while simultaneously
fulfilling the Commission’s mandate
under the statute.2 The current
requirements are highly prescriptive.
For example, the Rule specifies the trim
size dimensions for labels, including the
precise width and length (e.g., width
51⁄4 to 51⁄2 inches (13.34 cm to 13.97
cm)); the number of picas for the copy
set (between 27 and 29); the type style
and setting; the weight of the paper
stock on which the labels are printed
(not less than 58 pounds per 500 sheets
(25″ × 38″) or equivalent); and a
suggested minimum peel adhesive
capacity of 12 ounces per square inch.
These highly prescriptive requirements
depart significantly from the approach
employed by other Commission Rules
and Guides that contain labeling
requirements. For example, the Rules
and Regulations Under the Textile Fiber
Products Identification Act provide
simply that the ‘‘label shall be
conspicuous and shall be of such
durability as to remain attached to the
product and its package throughout any
distribution, sale, resale and until sold
and delivered to the ultimate
consumer.’’ 3 The Commission’s Guides
for Select Leather and Imitation Leather
Products similarly require that the label
‘‘should be affixed so as to remain on or
attached to the product until received
by the consumer purchaser.’’ 4
While I have great faith in markets to
produce the best results for consumers,
the prerequisite of healthy competition
is sometimes absent. In limited
situations, regulations can help address
market failures. But for regulations to
succeed in restoring market forces, they
must eliminate the market failure in the
most narrow and targeted manner
possible. Regulatory ‘‘fixes’’ that extend
beyond simply correcting the problem
may upset the balance of forces in the
rest of the market and, ultimately, may
harm consumers.5 That is why I share
1 See Dissenting Statement of Commissioner
Christine S. Wilson on the Notice of Proposed
Rulemaking: Energy Labeling Rule (Dec. 10, 2018),
https://www.ftc.gov/public-statements/2018/12/
dissenting-statement-commissioner-christine-swilson-notice-proposed.
2 Energy Policy and Conservation Act, 42 U.S.C.
6295.
3 16 CFR part 303.15.
4 16 CFR part 24.2(g).
5 See, e.g., Howard Beales, et al., ‘‘The Proper
Role of Rules in a Gloriously Unruly Economy,’’
released by the Regulatory Transparency Project of
the Federalist Society, August 28, 2019, https://
VerDate Sep<11>2014
17:33 Apr 09, 2020
Jkt 250001
the President’s goal of eliminating
unnecessary and burdensome regulatory
requirements.6
The Trump administration has called
for agencies to carefully review
regulations. I am proud that the FTC has
had a long tradition of proactively
reviewing our rules to ensure our
regulatory program protects consumers
while seeking to avoid the unnecessary
imposition of costs on businesses.7 In
the last few years, the FTC has repealed
or streamlined significantly a number of
Rules and Guides. For example, the FTC
recently repealed the Picture Tube Rule,
which the Commission determined was
no longer necessary to prevent
deceptive claims regarding the size of
television screens.8 The FTC also
revised the Jewelry Guides, removing
outdated provisions as well as lifting
restrictions on the marketing of goldcontent products.9 Just last year, the
FTC rescinded the Nursery Guides—
rules governing the sale of outdoor
plants—because they had outlived their
utility for consumers and industry.10
I applaud the FTC’s regular,
systematic review of all of its rules and
guides on a rotating basis. When the
Commission conducts a review of a Rule
or Guide, we regularly ask if the
regulation is still necessary. We ask
about the costs and benefits to
businesses and consumers; conflicts
with state, local, federal or international
laws; whether consumer perceptions
have changed; and the effect, if any, that
changes in relevant technological,
economic or environmental conditions
have had on Rules and Guides. This
process lends transparency to the
Commission’s regulatory review. The
Commission is receptive and responsive
to the comments, often making
regproject.org/paper/the-proper-role-of-rules-in-agloriously-unruly-economy/ (discussing large and
unintended consequences of burdensome
regulations).
6 Executive Order 13,771, 82 FR 9339 (Feb. 3,
2017) (imposing a rule that for every new regulation
created, two must be eliminated).
7 In the 1990s, the Commission rescinded 24
Guides (addressing, e.g., fallout shelters, the
decorative wall paneling industry, and the dog and
cat food industry) and 13 trade rules, including
those concerning the misuse of ‘‘automatic’’ or
terms of similar import as descriptive of household
electric sewing machines; deceptive advertising and
labeling as to size of tablecloths and related
products; and the Frosted Cocktail Glass Rule.
8 See https://www.ftc.gov/policy/federal-registernotices/16-cfr-part-410-deceptive-advertising-sizesviewable-pictures-shown.
9 See https://www.ftc.gov/public-statements/
2018/07/statement-basis-purpose-final-revisionsjewelry-guides.
10 See Press Release, Fed. Trade Comm’n., ‘‘FTC
Approves Proposal Rescinding Nursery Guides,’’
(June 4, 2019), https://www.ftc.gov/news-events/
press-releases/2019/06/ftc-approves-proposalrescinding-nursery-guides.
PO 00000
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Fmt 4702
Sfmt 4702
regulatory revisions to address changing
market forces.
Freeing businesses from unnecessarily
prescriptive requirements benefits
consumers. Although the Commission
long ago abandoned some of the most
egregious instances of invasive
regulatory zeal that earned it the
sobriquet of the ‘‘second most powerful
legislature in Washington,’’ 11
forswearing new mistakes is not enough.
Accordingly, I am pleased to see the
Agency reviewing the more prescriptive
aspects of this Rule and am committed
to an ongoing practice of identifying
opportunities to streamline our
regulations by updating, modifying, or
eliminating outdated, burdensome, or
unnecessary provisions.
[FR Doc. 2020–06960 Filed 4–9–20; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2020–0201]
RIN 1625–AA00
Safety Zone; Lake of the Ozarks, Mile
1.5 on the Gravois Arm of the Lake of
the Ozarks, Lake Ozark, MO
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard is proposing
to establish a temporary safety zone for
certain waters of the Lake of the Ozarks.
This action is necessary to provide for
the safety of life on these navigable
waters during a fireworks display
scheduled for June 6, 2020. This
proposed rulemaking would prohibit
persons and vessels from being in the
safety zone unless authorized by the
Captain of the Port Sector Upper
Mississippi River or a designated
representative. We invite your
comments on this proposed rulemaking.
DATES: Comments and related material
must be received by the Coast Guard on
or before May 11, 2020.
ADDRESSES: You may submit comments
identified by docket number USCG–
2020–0201 using the Federal
eRulemaking Portal at https://
www.regulations.gov. See the ‘‘Public
Participation and Request for
SUMMARY:
11 See, e.g., J. Howard Beales, III & Timothy J.
Muris, FTC Consumer Protection at 100: 1970s
Redux or Protecting Markets to Protect Consumers?,
83 Geo. Wash. L. Rev. 2157, 2159 (2015) (quoting
Jean Carper, The Backlash at the FTC, Wash. Post,
Feb. 6, 1977, at C1).
E:\FR\FM\10APP1.SGM
10APP1
]]>Agencies
[Federal Register Volume 85, Number 70 (Friday, April 10, 2020)]
[Proposed Rules]
[Pages 20218-20226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06960]
=======================================================================
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FEDERAL TRADE COMMISSION
16 CFR Part 305
[3084-AB15]
Energy Labeling Rule
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'')
proposes amending the Energy Labeling Rule (``Rule'') to require
EnergyGuide labels for portable air conditioners and seeks comment on
these proposed requirements, particularly the proposed effective date.
The Commission also proposes conforming amendments to reflect upcoming
Department of Energy (``DOE'') changes to efficiency descriptors for
central air conditioners. In addition, the Commission seeks comment on
the labeling requirements in our regulations.
DATES: Comments must be received by June 9, 2020.
ADDRESSES: Interested parties may file a comment online or on paper by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Portable Air
Conditioners, Matter No. R611004'' on your comment, and file your
comment online through https://www.regulations.gov by following the
instructions on the web-based form. If you prefer to file your comment
on paper, write ``Portable Air Conditioners, Matter No. R611004'' on
your comment and on the envelope and mail your comment to the following
address: Federal Trade Commission, Office of the Secretary, 600
Pennsylvania Avenue NW, Suite CC-5610 (Annex C), Washington, DC 20580,
or deliver your comment to the following address: Federal Trade
Commission, Office of the Secretary, Constitution Center, 400 7th
Street SW, 5th Floor, Suite 5610 (Annex C), Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome (202-326-2889),
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, Room CC-9528, 600 Pennsylvania Avenue NW,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background on the Energy Labeling Rule
The Commission issued the Energy Labeling Rule (``Rule'') in
1979,\1\ pursuant to the Energy Policy and
[[Page 20219]]
Conservation Act of 1975 (``EPCA'').\2\ The Rule requires energy
labeling for major home appliances and other consumer products to help
consumers compare the energy usage and costs of 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 websites 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. The Rule requires marketers
to use national average costs for applicable energy sources (e.g.,
electricity, natural gas, oil) as calculated by DOE in all cost
calculations. 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\
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\3\ 16 CFR 305.10.
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II. Proposed EnergyGuide Labels for Portable Air Conditioners
The Commission proposes adding labeling requirements for portable
air conditioners. Under EPCA, the Commission may require labeling for
DOE-designated covered products if it determines that labeling will
``assist purchasers in making purchasing decisions'' and will be
``economically and technologically feasible.'' 42 U.S.C. 6294(a)(3). As
detailed below, the Commission has already sought comment on labeling
requirements for portable air conditioners in several earlier Federal
Register notices. In these notices, the Commission discussed the
benefits and burdens of such labels and their format and content, which
would resemble the EnergyGuide labels already required for room air
conditioners.\4\ It found, in accordance with its EPCA authority, that
labeling for this product category is likely to be economically and
technologically feasible and is likely to assist consumers in their
purchasing decisions.\5\ In response to these earlier notices and over
several rounds of comments, a wide array of stakeholders, including
industry members, utilities, and consumer groups supported (or did not
oppose) the proposal.
---------------------------------------------------------------------------
\4\ 79 FR 34642 (June 18, 2014); 80 FR 67351 (Nov. 2, 2015); 81
FR 62681 (Sept. 12, 2016); and 82 FR 29230 (June 28, 2017). During
this proceeding, the Commission waited on label requirements pending
a final DOE-issued test procedure for these products. DOE published
that test procedure on June 1, 2016 (81 FR 35242) and it became
mandatory for energy use representations on November 28, 2016.
\5\ 80 FR at 67357; and 81 FR at 62683. In discussing similar
economic and technological feasibility determinations for labels in
1979, the Commission concluded ``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
(discussing determinations under 42 U.S.C. 6294(a)(1)).
---------------------------------------------------------------------------
In January 2017, however, DOE withdrew its final efficiency
standards from publication in the Federal Register pursuant to the
Presidential Memorandum on Implementation of Regulatory Freeze, leaving
the final standards compliance date unclear. As a result, the
Commission delayed finalizing the label requirements due to uncertainty
about the timing of DOE efficiency standards for these products.\6\
However, a recent DOE notice announcing a compliance date for the
standards has resolved that uncertainty.\7\ Accordingly, the Commission
now proposes to require an EnergyGuide label for portable air
conditioners beginning on January 10, 2025 to coincide with those DOE
standards. Manufacturers would be able to use the label earlier. The
Commission seeks comment on the proposed amendments, particularly the
proposed effective date for those labels.
---------------------------------------------------------------------------
\6\ 82 FR at 29232.
\7\ 85 FR 1378 (Jan. 10, 2020).
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A. Portable Air Conditioner Energy Costs and Consumer Labels
Earlier in this proceeding, the Commission addressed the benefits
as well as the economic and technological feasibility of labeling for
portable air conditioners. In a 2015 notice, for example, it explained
that portable air conditioners are common in the marketplace, vary in
energy efficiency, and use energy similar to, or greater than, already-
labeled room air conditioners.\8\ In addition, DOE reported the
aggregate energy use of portable air conditioners has increased as
these units have become more popular.\9\ According to DOE estimates,
sellers shipped 1.32 million units in the United States in 2014, with
future growth projected.\10\ DOE also found these products exhibit a
wide range of efficiency ratings and energy costs for similarly sized
units (a difference of about $100 per year between the most and least
efficient models). After the 2025 implementation of DOE standards that
range is likely to become smaller, but remain significant (a difference
of about $30-$50 depending on the size category as indicated in
proposed Appendix E2).
---------------------------------------------------------------------------
\8\ 80 FR at 67357-58.
\9\ See 78 FR 40403, 40404-05 (July 5, 2013).
\10\ 85 FR 1378; and ``2016-12 Final Rule Technical Support
Document: Energy Efficiency Program for Consumer Products and
Commercial and Industrial Equipment: Portable Air Conditioners''
(``DOE TSD'') December 2016 at https://www.regulations.gov/document?D=EERE-2013-BT-STD-0033-0047.
---------------------------------------------------------------------------
In addition, DOE estimated average per-household annual electricity
consumption for these products at approximately 804 kWh/yr for
residential products, generating $105 in annual energy costs (at $0.13
per kWh/hr).\11\ Therefore, energy labels are likely to assist
consumers with their purchasing decisions by allowing them to compare
the energy costs of competing models and, consequently, save
significant money on their electric bills.
---------------------------------------------------------------------------
\11\ DOE TSD at Table 7.3.2.
---------------------------------------------------------------------------
In addition, there is no evidence that labeling is economically or
technologically infeasible (i.e., that the costs of labeling
substantially outweigh consumer benefits). Indeed, the burdens
(discussed infra in the Paperwork Reduction Act section) of labeling
are not likely to differ significantly from those for room air
conditioners, which already have EnergyGuide labels.\12\
---------------------------------------------------------------------------
\12\ See 80 FR at 67357 and 81 FR at 62683.
---------------------------------------------------------------------------
B. Proposed Label Requirements
The proposed portable air conditioner label would be largely
identical to the current room air conditioner label in content and
format. As with the room air conditioner labels, the labels would
appear on packaging, not the product itself. The proposed amendments
also incorporate DOE's definition of ``portable air conditioner'' at
section 305.3.\13\ The appendices to the proposed
[[Page 20220]]
Rule contain ranges specifically for portable air conditioners broken
down into three size categories. The FTC staff derived these cost
ranges based on DOE energy use data and has applied the same
electricity cost rate ($0.13 kWh/hr) currently used for room air
conditioner labels.\14\ As discussed in detail in the 2016 and 2017
notices, the Commission does not propose combining the ranges for
portable and room air conditioners because it is not clear whether
consumers routinely compare the two product categories when
shopping.\15\ However, consumers who want to compare the two product
categories would be able to easily do so using the label's energy cost
disclosure. In addition, consistent with requirements applicable to
room air conditioners, the proposed amendments contain reporting
requirements identical to those created by DOE for these products.
---------------------------------------------------------------------------
\13\ To effect new labeling requirements, the proposed
amendments insert the term ``portable air conditioner'' next to
``room air conditioner'' into appropriate paragraphs of the Rule as
detailed in the amendatory language included in this notice.
\14\ See DOE TSD, Chapter 3 at 24-25 and Ch. 5 at 5-20. Using
estimates for the most energy consumptive models based on the DOE
standards, the ranges by size category expressed in yearly energy
consumption are: (1) Less than 6,000 Btu/hr: (375-753 kWh/yr), (2)
6,000 to 7,999 Btu/hr: (663-916 kWh/yr), and (3) 8,000 Btu/yr or
greater: (807-1034 kWh-yr).
\15\ 81 FR at 62682; and 82 FR at 29231-29232.
---------------------------------------------------------------------------
Finally, the Commission proposes to establish an effective date for
the label that coincides with the compliance date for DOE standards.
Citing burdens associated with testing and labeling, industry comments
earlier in this proceeding urged the Commission to synchronize any new
labeling requirements with the DOE standards compliance date.\16\ The
Commission seeks comments on the proposed effective date.
---------------------------------------------------------------------------
\16\ 82 FR 29231.
---------------------------------------------------------------------------
III. Conforming Changes to Efficiency Descriptors for Central Air
Conditioners
The Commission also seeks comments on updates to the Rule's
efficiency descriptors for central air conditioners in Section 305.20
to conform to pending DOE changes. In 2017, as part of efficiency
standards proceeding, DOE announced changes to the rating methods and
associated efficiency descriptors for central air conditioners (e.g.,
from ``Seasonal Energy Efficiency Ratio (SEER)'' to ``Seasonal Energy
Efficiency Ratio 2 (SEER2)'').\17\ The DOE changes become effective on
January 1, 2023. To ensure consistency with the DOE standards, the
Commission proposes to change all applicable references in Part 305,
effective on January 1, 2023. Given the relatively small differences in
the ratings produced by the old and the new rating methods, the
Commission does not propose any additional changes to the label. The
Commission also plans to update ranges in Appendix H and I as well as
applicable numbers on the sample labels in Appendix L when updated data
become available. The Commission seeks comments on all aspects of this
proposal, including whether data is available to update the tables in
Appendices H and I.
---------------------------------------------------------------------------
\17\ 82 FR 1786 (Jan. 6, 2017); and 82 FR 24211 (May 26, 2017).
---------------------------------------------------------------------------
IV. Questions on Label Layout and Format Requirements
The Commission also requests comment on whether we should revise
Section 305.13--Layout, format, and placement for refrigerators,
refrigerator-freezers, freezers, dishwashers, clothes washers, water
heaters, room air conditioner, and pool heaters--and Section 305.20--
Labeling for central air conditioners, heat pumps, and furnaces--of the
Rule. These sections address required disclosures and include detailed
requirements for labeling of the covered products. For example, Section
305.13(b) Layout specifies the trim size dimensions for labels,
including the precise width and length (e.g., width 5\1/4\ to 5\1/2\
inches (13.34 cm. to 13.97 cm.) and the number of picas for the copy
set (between 27 and 29); and the type style and setting. Section
305.13(c) Type style and setting states that Arial series typeface or
equivalent must be used exclusively, prohibits the use of hyphens and
mandates that text ``be set flush left with two points leading except
where otherwise indicated.'' Section 305.13 (e)(1) Adhesive labels
states that:
All adhesive labels should be applied so they can be easily
removed without the use of tools or liquids, other than water, but
should be applied with an adhesive with an adhesive capacity
sufficient to prevent their dislodgment during normal handling
throughout the chain of distribution to the retailer or consumer.
The provision then provides that the paper stock for the labels shall
have a basic weight of not less than 58 pounds per 500 sheets (25'' x
38'') or equivalent and includes a suggested minimum peel adhesive
capacity: ``[a] minimum peel adhesion capacity for the adhesive of 12
ounces per square inch is suggested, but not required if the adhesive
can otherwise meet the above standard.''
Section 305.20 of the Rule similarly contains requirements for
layout; type style and setting; and label type with almost identical
provisions addressing trim size, number of picas, requirement of Arial
font, paper weight specifications, and includes a suggested minimum
peel adhesion capacity.
Freeing businesses from unnecessarily prescriptive requirements can
benefit businesses and consumers. Other Commission Rules and Guides
containing labeling requirements do not include the same level of
detail regarding the content of the label. For example, the Rules and
Regulations Under the Textile Fiber Products Identification Act, 16 CFR
part 303, require that:
Sec. 303.15 Required label and method of affixing.
(a) A label is required to be affixed to each textile product
and, where required, to its package or container in a secure manner.
Such label shall be conspicuous and shall be of such durability as
to remain attached to the product and its package throughout any
distribution, sale, resale and until sold and delivered to the
ultimate consumer.
Similarly, the Commission's Guides for Select Leather and Imitation
Leather Products, 16 CFR part 24, also address the form of disclosures:
Sec. 24.2(g) Form of disclosures under this section. All
disclosures described in this section should appear in the form of a
stamping on the product, or on a tag, label, or card attached to the
product, and should be affixed so as to remain on or attached to the
product until received by the consumer purchaser. . . .
The Commission seeks comment on whether a more flexible provision would
provide sufficient guidance to industry on expected labeling
requirements and adequately protect consumers. Specifically, the
Commission seeks comment on the following questions:
Section 305.13 Layout, format, and placement of labels for
refrigerators, refrigerator-freezers, freezers, dishwashers, clothes
washers, water heaters, room air conditioners, and pool heaters.
a. Should the Commission revise this section of the Rule to require
only that the layout, type style, and setting be clear and conspicuous,
and that the labels be sufficiently durable and applied with an
adhesive whose capacity is sufficient to prevent dislodgment of the
labels during normal handling throughout the chain of distribution to
the retailer or consumer? Why or why not?
b. With respect to the provisions regarding the adhesive for the
labels, is the inclusion of the safe harbor regarding the suggested
peel capacity in the current provision interpreted by industry as a
required standard?
c. What are the costs and benefits of the current provision for
consumers and businesses?
[[Page 20221]]
d. Would a more flexible provision provide sufficient guidance to
industry on the expected labeling requirements?
e. How would a more flexible provision affect the costs and
benefits of the Rule for consumers and businesses, particularly small
businesses?
f. If this Section of the Rule were modified to include a more
flexible provision, should use of the specific labeling requirements in
the prior version be a form of safe harbor for industry? Why or why
not?
Section 305.20 Labeling for central air conditioning, heat pumps,
and furnaces.
a. Should the Commission revise this section of the Rule to require
only that the layout, type style and setting be clear and conspicuous,
and that the labels be sufficiently durable and applied with an
adhesive whose capacity is sufficient to prevent dislodgment of the
labels during normal handling throughout the chain of distribution to
the retailer or consumer? Why or why not?
b. With respect to the provisions regarding the adhesive for the
labels, is the inclusion of the safe harbor regarding the suggested
peel capacity in the current provision interpreted by industry as a
required standard?
c. What are the costs and benefits of the current provision for
consumers and businesses?
d. Would a more flexible provision provide sufficient guidance to
industry on the expected labeling requirements?
e. How would a more flexible provision affect the costs and
benefits of the Rule for consumers and businesses, particularly small
businesses?
f. If this Section of the Rule were modified to include a more
flexible provision, should use of the specific labeling requirements in
the prior version be a form of safe harbor for industry? Why or why
not?
V. Request for Comment
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before June 9, 2020.
Write ``Portable Air Conditioners, Matter No. R611004'' on your
comment. Your comment--including your name and your state--will be
placed on the public record of this proceeding, including, to the
extent practicable, on the https://www.regulations.gov website.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it through https://www.regulations.gov,
by following the instruction on the web-based form provided.
If you file your comment on paper, write ``Portable Air
Conditioners, Matter No. R611004'' on your comment and on the envelope,
and mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex C), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex
C), Washington, DC 20024. If possible, submit your paper comment to the
Commission by courier or overnight service.
Because your comment will be placed on the publicly accessible
website, https://www.regulations.gov, you are solely responsible for
making sure that your comment does not include any sensitive or
confidential information. In particular, your comment should not
include any sensitive personal information, such as your or anyone
else's Social Security number; date of birth; driver's license number
or other state identification number, or foreign country equivalent;
passport number; financial account number; or credit or debit card
number. You are also solely responsible for making sure that your
comment does not include any sensitive health information, such as
medical records or other individually identifiable health information.
In addition, your comment should not include any ``trade secret or any
commercial or financial information which . . . is privileged or
confidential''--as provided by Section 6(f) of the FTC Act, 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)--including in
particular competitively sensitive information such as costs, sales
statistics, inventories, formulas, patterns, devices, manufacturing
processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov--as legally required by FTC
Rule 4.9(b)--we cannot redact or remove your comment, unless you submit
a confidentiality request that meets the requirements for such
treatment under FTC Rule 4.9(c), and the General Counsel grants that
request.
Visit the FTC website to read this NPRM and the news release
describing it. The FTC Act and other laws that the Commission
administers permit the collection of public comments to consider and
use in this proceeding as appropriate. The Commission will consider all
timely and responsive public comments that it receives on or before
June 9, 2020. For information on the Commission's privacy policy,
including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Because written comments appear adequate to present the views of
all interested parties, the Commission has not scheduled an oral
hearing regarding these proposed amendments. Interested parties may
request an opportunity to present views orally. If such a request is
made, the Commission will publish a document in the Federal Register
stating the time and place for such oral presentation(s) and describing
the procedures that will be followed. Interested parties who wish to
present oral views must submit a hearing request, on or before June 9,
2020, in the form of a written comment that describes the issues on
which the party wishes to speak. If there is no oral hearing, the
Commission will base its decision on the written rulemaking record.
VI. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute information collection
requirements as defined by the Paperwork Reduction Act (``PRA'').\18\
OMB has approved the Rule's existing information collection
requirements through December 31, 2022 (OMB Control No. 3084-0069). The
amendments include new labeling requirements for portable air
conditioners that constitute information collections under the PRA.
Accordingly, the Commission is seeking OMB clearance specific to the
Rule amendments.\19\
---------------------------------------------------------------------------
\18\ 44 U.S.C. 3501 et seq; see also 5 CFR 1320.3(c).
\19\ 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.
---------------------------------------------------------------------------
Burden estimates below are based on Census data, DOE figures and
estimates,
[[Page 20222]]
public comments, general knowledge of manufacturing practices, and
trade association advice and figures. The FTC estimates that there are
about 150 basic models of portable air conditioners (i.e., units with
essentially identical physical and electrical characteristics). In
addition, FTC staff estimates that there are 45 portable air
conditioner manufacturers and 1,500,000 portable air conditioner units
shipped each year in the U.S. The FTC seeks comment on the following
estimates:
Reporting: The Rule requires that manufacturers of covered products
annually submit a report for each model in current production
containing the same information that must be submitted to the
Department of Energy pursuant to 10 CFR part 429. In lieu of submitting
the required information to the Commission, manufacturers may submit
such information to DOE directly via the agency's Compliance
Certification Management System, available at https://regulations.doe.gov/ccms, as provided by 10 CFR 429.12. Because
manufacturers are already required to submit these reports to DOE, FTC
staff estimates that any additional burden associated with providing
the information to the FTC is minimal. FTC staff estimates that the
average reporting burden for manufacturers of portable air conditioners
will be approximately 15 hours per manufacturer. Based on this
estimate, the annual reporting burden for manufacturers of portable air
conditioners is 675 hours (15 hours x 45 manufacturers).\20\ Staff
estimates that information processing staff, at an hourly rate of
$16.24,\21\ will typically perform the required tasks, for an estimated
annual labor cost of $10,962.
---------------------------------------------------------------------------
\20\ In earlier comments, AHAM (#681-00012) estimated that the
data entry involved in filing reports with the FTC is not
particularly burdensome, but estimated that other tasks involved in
reporting (such as performing the required testing and gathering
information) could take as long as 40 hours per manufacturer. As
noted above, however, testing and reporting are required and
accounted for in DOE regulations. As a result, staff estimates that
the primary burdens associated with reporting are due to DOE
requirements.
\21\ These labor cost estimates are derived from the Bureau of
Labor Statistics figures in ``Table 1.'' National employment and
wage data from the Occupational Employment Statistics survey by
occupation, May 2018,'' available at: https://www.bls.gov/news.release/ocwage.t01.htm.
---------------------------------------------------------------------------
Labeling: The proposed amendments require that manufacturers label
portable air conditioners. The burden imposed by this requirement
consists of the time needed to draft labels and incorporate them onto
package designs. Since EPCA and the Rule specify the content and format
for the required labels and FTC staff provide online label templates,
manufacturers need only input the energy consumption figures and other
product-specific information derived from testing. FTC staff estimates
that the time to incorporate the required information into labels and
label covered products is five hours per basic model. Accordingly,
staff estimates that the approximate annual burden involved in labeling
covered products is 750 hours [150 basic models x 5 hours]. Staff
estimates that information processing staff, at an hourly rate of
$16.24,\22\ will typically perform the required tasks, for an estimated
annual labor cost of $12,180.
---------------------------------------------------------------------------
\22\ Id.
---------------------------------------------------------------------------
Testing: Manufacturers of portable air conditioners must test each
basic model they produce to determine energy usage, but the majority of
tests conducted are required by DOE rules. As a result, it is likely
that only a small portion of the tests conducted are attributable to
the Rule's requirements. In addition, manufacturers need not subject
each basic model to testing annually; they must retest only if the
product design changes in such a way as to affect energy consumption.
FTC staff estimates that manufacturers will require approximately 36
hours for testing of portable air conditioners,\23\ and that 25% of all
basic models are tested annually due to the Rule's requirements.
Accordingly, the estimated annual testing burden for portable air
conditioners is 1,368 hours ((150 basic models x 25%) x 36 hours).
Staff estimates that engineering technicians, at an hourly rate of
$28.37,\24\ will typically perform the required tasks, for an estimated
annual labor cost of $38,300.
---------------------------------------------------------------------------
\23\ AHAM estimated manufacturers would require 32 hours per
model for testing and up to 4 hours for preparing the test data.
AHAM Comment, #681-0016.
\24\ See supra note 20.
---------------------------------------------------------------------------
Recordkeeping: The Rule also requires manufacturers of covered
products to retain records of test data generated in performing the
tests to derive information included on labels. See 16 CFR 305.21. The
FTC estimates that the annual recordkeeping burden for manufacturers of
portable air conditioners will be approximately one minute per basic
model to store relevant data. Accordingly, the estimated annual
recordkeeping burden would be approximately 3 hours (150 basic models x
one minute). Staff estimates that information processing staff, at an
hourly rate of $16.24,\25\ will typically perform the required tasks,
for an estimated annual labor cost of $50.
---------------------------------------------------------------------------
\25\ Id.
---------------------------------------------------------------------------
Online and Retail Catalog Disclosures: Staff estimates that there
are approximately 400 sellers of products covered under the Rule who
are subject to the Rule's catalog disclosure requirements. Staff has
previously estimated that covered online and catalog sellers spend
approximately 17 hours per year to incorporate relevant product data
for products that are currently covered by the Rule. Staff estimates
that the portable air conditioner requirements will add one additional
hour per year in incremental burden per seller. Staff estimates that
these additions will result in an incremental burden of 400 hours (400
sellers x one hour annually). Staff estimates that information
processing staff, at an hourly rate of $16.24,\26\ will typically
perform the required tasks, for an estimated incremental annual labor
cost of $6,496.
---------------------------------------------------------------------------
\26\ Id.
---------------------------------------------------------------------------
Estimated annual non-labor cost burden: Staff anticipates that
manufacturers are not likely to require any significant capital costs
to comply with the proposed amendments.
VII. Regulatory Flexibility Act
The Regulatory Flexibility Act (``RFA'') \27\ requires that the
Commission conduct an analysis of the anticipated economic impact of
the proposed amendment on small entities. The RFA requires that the
Commission provide an Initial Regulatory Flexibility Analysis
(``IRFA'') with a proposed rule and a Final Regulatory Flexibility
Analysis (``FRFA'') with a final rule, if any, unless the Commission
certifies that the rule will not have a significant economic impact on
a substantial number of small entities.\28\ The Commission does not
anticipate that the proposed rule will have a significant economic
impact on a substantial number of small entities, but it recognizes
that some of the affected manufacturers may qualify as small businesses
under the relevant thresholds. Therefore, based on available
information, the Commission certifies that amending the Rules as
proposed will not have a significant economic impact on a substantial
number of small businesses.
---------------------------------------------------------------------------
\27\ 5 U.S.C. 601-612.
\28\ 5 U.S.C. 605. The proposed conforming changes to central
air conditioner descriptors will have no impact on the Rule's
current burden.
---------------------------------------------------------------------------
The Commission estimates that the amendments will apply to 300
online and paper catalog sellers of covered products and about 45
portable air conditioner manufacturers. The Commission expects that
approximately 150 of these various entities qualify as small
businesses.
[[Page 20223]]
Accordingly, this document serves as notice to the Small Business
Administration of the FTC's certification of no effect. To ensure the
accuracy of this certification, however, the Commission requests
comment on whether the proposed rule will have a significant impact on
a substantial number of small entities, including specific information
on the number of entities that would be covered by the proposed rule,
the number of these companies that are small entities, and the average
annual burden for each entity. Although the Commission certifies under
the RFA that the rule proposed in this notice 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 IRFA in order to inquire into the impact of
the proposed rule on small entities. Therefore, the Commission has
prepared the following analysis:
A. Description of the Reasons That Action by the Agency Is Being Taken
The Commission is proposing expanded product coverage and
additional improvements to the Rule to help consumers in their
purchasing decisions for portable air conditioners.
B. Statement of the Objectives of, and Legal Basis for, the Proposed
Rule
The objective of the rule is to improve the effectiveness of the
current labeling program. The legal basis for the Rule is the Energy
Policy and Conservation Act (42 U.S.C. 6292 et seq.).
C. Small Entities To Which the Proposed Rule 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 500 employees. Catalog sellers
qualify as small businesses if their sales are less than $8.0 million
annually. The Commission estimates that there are approximately 150
entities subject to the proposed rule's requirements that qualify as
small businesses.\29\ The Commission seeks comment and information with
regard to the estimated number and nature of small business entities
for which the proposed rule would have a significant economic impact.
---------------------------------------------------------------------------
\29\ 81 FR 62681 (Sept. 12, 2016).
---------------------------------------------------------------------------
D. Projected Reporting, Recordkeeping and Other Compliance Requirements
The changes under consideration 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 portable
air conditioners. The Commission assumes that the label design change
will be implemented by graphic designers.
E. Duplicative, Overlapping, or Conflicting Federal Rules
The Commission has not identified any other federal statutes,
rules, or policies that duplicate, overlap, or conflict with the
proposed rule. The Commission invites comment and information on this
issue.
F. Significant Alternatives to the Proposed Rule
The Commission seeks comment and information on the need, if any,
for alternative compliance methods that, consistent with the statutory
requirements, would reduce the economic impact of the rule on small
entities. For example, the Commission is currently unaware of the need
to adopt any special provisions for small entities. However, if such
issues are identified, the Commission could consider alternative
approaches such as extending the effective date of these amendments for
catalog sellers to allow them additional time to comply beyond the
labeling deadline set for manufacturers. If the comments filed in
response to this notice identify small entities that are affected by
the proposed rule, as well as alternative methods of compliance that
would reduce the economic impact of the rule on such entities, the
Commission will consider the feasibility of such alternatives and
determine whether they should be incorporated into the final rule.
VIII. Communications by Outside Parties to the Commissioners or Their
Advisors
Written communications and summaries or transcripts of oral
communications respecting the merits of this proceeding, from any
outside party to any Commissioner or Commissioner's advisor, will be
placed on the public record. See 16 CFR 1.26(b)(5).
IX. Proposed Rule Language
List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
For the reasons stated above, the Commission proposes to amend part
305 of title 16 of the 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.
PART 305--[AMENDED]
0
2. In part 305, revise all references to ``seasonal energy efficiency
ratio (SEER)'' to read ``seasonal energy efficiency ratio 2''; revise
all references to ``SEER'' to read ``SEER2''; revise all references to
``heating seasonal performance factor'' to read ``heating seasonal
performance factor 2''; revise all references to ``HSPF'' to read
``HSPF2''; revise all references to ``Energy Efficiency Ratio'' to read
``Energy Efficiency Ratio 2''; and revise all references to ``EER'' to
read ``EER2.''
0
3. In Sec. 305.2,
0
a. Redesignate paragraph (l)(23) as (24);
0
b. Add new paragraph (23), and
0
c. Revise paragraph (p).
The revisions read as follows:
Sec. 305.2 Definitions.
* * * * *
(l) * * *
(23) Portable air conditioners.
* * * * *
(p) Energy efficiency rating means the following product-specific
energy usage descriptors: Annual fuel utilization efficiency (AFUE) for
furnaces; combined energy efficiency ratio (CEER) for room and portable
air conditioners; seasonal energy efficiency ratio (SEER) for the
cooling function of central air conditioners and heat pumps; heating
seasonal performance factor (HSPF) for the heating function of heat
pumps; airflow efficiency for ceiling fans; and, thermal efficiency
(TE) for pool heaters, as these descriptors are determined in
accordance with tests prescribed under section 323 of the Act (42
U.S.C. 6293). These product-specific energy usage descriptors shall be
used in satisfying all the requirements of this part.
* * * * *
0
4. In Sec. 305.3, add paragraph (j) to read as follows:
Sec. 305.3 Description of appliances and consumer electronics.
* * * * *
[[Page 20224]]
(j) Portable air conditioner means a portable encased assembly,
other than a packaged terminal air conditioner, room air conditioner,
or dehumidifier, that delivers cooled, conditioned air to an enclosed
space, and is powered by single-phase electric current. It includes a
source of refrigeration and may include additional means for air
circulation and heating.
0
5. In Sec. 305.7, add paragraph (e)(3) to read as follows:
Sec. 305.7 Prohibited Acts.
* * * * *
(e) * * *
(3) The requirements of this part shall not apply to any portable
air conditioner produced before January 10, 2025.
* * * * *
0
6. Amend Sec. 305.10 by revising paragraph (f) to read as follows:
Sec. 305.10 Determinations of capacity.
* * * * *
(f) Room air conditioners and portable air conditioners. The
capacity shall be the cooling capacity in Btu per hour, as determined
according to appendix F to 10 CFR part 430, subpart B, but rounded to
the nearest value ending in hundreds that will satisfy the relationship
that the energy efficiency value used in representations equals the
rounded value of capacity divided by the value of input power in watts.
If a value ending in hundreds will not satisfy this relationship, the
capacity may be rounded to the nearest value ending in 50 that will.
* * * * *
0
7. In Sec. 305.11, revise paragraph (b)(1) to read as follows:
Sec. 305.11 Submission of data.
* * * * *
(b)(1) All data required by Sec. 305.11(a) except serial numbers
shall be submitted to the Commission annually, on or before the
following dates:
------------------------------------------------------------------------
Deadline for data
Product category submission
------------------------------------------------------------------------
Refrigerators.............................. Aug. 1.
Refrigerators-freezers..................... Aug. 1.
Freezers................................... Aug. 1.
Central air conditioners................... July 1.
Heat pumps................................. July 1.
Dishwashers................................ June 1.
Water heaters.............................. May 1.
Room air conditioners...................... July 1.
Portable air conditioners.................. Feb. 1.
Furnaces................................... May 1.
Pool heaters............................... May 1.
Clothes washers............................ Oct. 1.
Fluorescent lamp ballasts.................. Mar. 1.
Showerheads................................ Mar. 1.
Faucets.................................... Mar. 1.
Water closets.............................. Mar. 1.
Ceiling fans............................... Mar. 1.
Urinals.................................... Mar. 1.
Metal halide lamp fixtures................. Sept. 1.
General service fluorescent lamps.......... Mar. 1.
Medium base compact fluorescent lamps...... Mar. 1.
General service incandescent lamps......... Mar. 1.
Televisions................................ June 1.
------------------------------------------------------------------------
* * * * *
0
8. Amend Sec. 305.13 by revising the section heading and adding
paragraph (e)(3) to read as follows:
Sec. 305.13 Layout, format, and placement of labels for
refrigerators, refrigerator-freezers, freezers, dishwashers, clothes
washers, water heaters, room air conditioners, portable air
conditioners, and pool heaters.
* * * * *
(e) * * *
* * * * *
(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. Labels for room air
conditioners produced on or after October 1, 2019 and portable air
conditioners produced on or after January 10, 2025, shall be printed on
or affixed to the principal display panel of the product's packaging.
The labels for electric instantaneous water heaters, room air
conditioners, and portable air conditioners shall be black type and
graphics on a process yellow or other neutral contrasting background.
* * * * *
0
9. In Sec. 305.18 revise the section heading to read as follows:
Sec. 305.18 Label content for room air conditioners and portable air
conditioners.
* * * * *
0
10. Amend Sec. 305.20 by revising paragraphs (g)(11) through (14) to
read as follows:
Sec. 305.20 Labeling for central air conditioners, heat pumps, and
furnaces.
* * * * *
(g) * * *
(11) For any single-package air conditioner with a minimum Energy
Efficiency Ratio 2 (EER2) of at least 10.6, any split system central
air conditioner with a rated cooling capacity of at least 45,000 Btu/h
and minimum efficiency ratings of at least 13.8 SEER2 and 11.2 EER2 or
at least 15.2 SEER2 and 9.8 EER2, and any split-system central air
conditioners with a rated cooling capacity less than 45,000 Btu/h and
minimum efficiency ratings of at least 14.3 SEER2 and 11.7 EER2 or at
least 15.2 SEER2 and 9.8 EER2, the label must contain the following
regional standards information:
(i) A statement that reads:
Notice Federal law allows this unit to be installed in all U.S.
states and territories.
(ii) For split systems, a statement that reads:
Energy Efficiency Ratio 2 (EER2): The installed system's minimum
EER2 is __.
(iii) For single-package air conditioners, a statement that reads:
Energy Efficiency Ratio 2 (EER2): This model's EER2 is [__].
(12) For any split system central air conditioner with a rated
cooling capacity of at least 45,000 Btu/h and minimum efficiency
ratings of at least 13.8 SEER2 but lower than 11.2 EER2 or at least
15.2 SEER2 but lower than 9.8 EER2, and any split-system central air
conditioners with a rated cooling capacity less than 45,000 Btu/h and
minimum efficiency ratings of at least 14.3 SEER2 but lower than 11.7
EER2 or at least 15.2 SEER2 but lower than 9.8 EER2, the label must
contain the following regional standards information.
(i) A statement that reads:
Notice Federal law allows this unit to be installed only in: AK,
AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IA, IN, KS, KY, LA, MA, ME,
MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC,
SD, TN, TX, UT, VA, VT, WA, WV, WI, WY and U.S. territories. Federal
law prohibits installation of this unit in other states.
(ii) A map appropriate for the model and accompanying text as
illustrated in the sample label 7 in appendix L of this part.
(iii) A statement that reads:
Energy Efficiency Ratio 2 (EER2): The installed system's minimum
EER2 is __.
(13) For any split system central air conditioner with a rated
cooling capacity of at least 45,000 Btu/h and a minimum rated
efficiency rating less than 13.8 SEER2, and any split-system central
air conditioners with a rated cooling capacity less than 45,000 Btu/h
and minimum efficiency ratings of less than 14.3 SEER2, the label must
contain the following regional standards information:
(i) A statement that reads:
Notice Federal law allows this unit to be installed only in: AK,
CO, CT, ID, IL, IA, IN, KS, MA, ME, MI, MN, MO, MT, ND, NE, NH, NJ, NY,
OH, OR, PA, RI, SD, UT, VT, WA, WV, WI, and WY.
[[Page 20225]]
Federal law prohibits installation of this unit in other states.
(ii) A map appropriate for the model and accompanying text as
illustrated in the sample label 7 in appendix L of this part.
(iii) A statement that reads:
Energy Efficiency Ratio 2 (EER2): The installed system's minimum
EER2 is __.
(14) For any single-package air conditioner with a minimum EER2
below 10.6, the label must contain the following regional standards
information:
(i) A statement that reads:
Notice Federal law allows this unit to be installed only in: AK,
AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IA, IN, KS, KY, LA, MA, ME,
MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC,
SD, TN, TX, UT, VA, VT, WA, WV, WI, WY and U.S. territories. Federal
law prohibits installation of this unit in other states.
(ii) A map appropriate for the model and accompanying text as
illustrated in the sample label 7 in appendix L of this part.
* * * * *
0
11. In Sec. 305.27 revise paragraph (a)(1)(i) to read as follows:
Sec. 305.27 Paper catalogs and websites.
(a) * * *
(1) Content.
(i) Products required to bear EnergyGuide or Lighting Facts labels.
All websites advertising covered refrigerators, refrigerator-freezers,
freezers, room air conditioners, portable air conditioners, clothes
washers, dishwashers, ceiling fans, pool heaters, central air
conditioners, heat pumps, furnaces, general service lamps, specialty
consumer lamps (for products offered for sale after May 2, 2018), and
televisions must display, for each model, a recognizable and legible
image of the label required for that product by this part. The website
may hyperlink to the image of the label using the sample EnergyGuide
and Lighting Facts icons depicted in appendix L of this part. The
website must hyperlink the image in a way that does not require
consumers to save the hyperlinked image in order to view it.
* * * * *
0
12. Redesignate Appendix E to Part 305 as Appendix E1 to Part 305 and
add Appendix E2 to Part 305 to read as follows:
Appendix E2 to Part 305--Portable Air Conditioners Range Information
------------------------------------------------------------------------
Range of estimated annual
Seasonally adjusted cooling capacity energy costs (dollars/year)
range (Btu/h) -------------------------------
Low High
------------------------------------------------------------------------
Less than 6,000 Btu..................... $48 $98
6,000 to 7,999 Btu...................... 87 120
8,000 or greater Btu.................... 104 135
------------------------------------------------------------------------
0
13. Revise Appendix K2 to Part 305 to read as follows:
Appendix K2 to Part 305--Representative Average Unit Energy Costs for
Dishwasher, Room Air Conditioner, Portable Air Conditioners Labels
[This Table contains the representative unit energy costs that must be
utilized to calculate estimated annual energy cost disclosures required
under Sec. Sec. 305.16, 305.18, and 305.27 for dishwashers, room air
conditioners, and portable air conditioners. This Table is based on
information published by the U.S. Department of Energy in 2017.]
------------------------------------------------------------------------
As required by
Type of energy In commonly used terms DOE test
procedure
------------------------------------------------------------------------
Electricity................... [cent]13.00/kWh \1\... $.1300/kWh.
Natural Gas................... $1.05/therm \2\ or $0.00001052/Btu.
$10.86/MCF \3\.
No. 2 Heating Oil............. $2.59/gallon \4\...... $0.00001883/Btu.
Propane....................... $1.53/gallon \5\...... $0.00001672/Btu.
Kerosene...................... $3.01/gallon \6\...... $0.00002232/Btu.
------------------------------------------------------------------------
\1\ kWh stands for kilowatt hour. kWh = 3,412 Btu.
\2\ therm = 100,000 Btu.
\3\ MCF stands for 1,000 cubic feet. For the purposes of this table, one
cubic foot of natural gas has an energy equivalence of 1,032 Btu
(British thermal units).
\4\ For the purposes of this table, one gallon of No. 2 heating oil has
an energy equivalence of 137,561 Btu.
\5\ For the purposes of this table, one gallon of liquid propane has an
energy equivalence of 91,333 Btu.
\6\ For the purposes of this table, one gallon of kerosene has an energy
equivalence of 135,000 Btu.
By direction of the Commission.
April J. Tabor,
Acting Secretary.
Concurring Statement of Commissioner Christine S. Wilson Energy
Labeling Rule
I support the Commission's decision to issue a Federal Register
Notice seeking comment on the Energy Labeling Rule. The Notice seeks
comment on proposed requirements for the EnergyGuide labels for
portable air conditioners and proposes conforming amendments to reflect
upcoming Department of Energy changes to efficiency descriptors for
central air conditioners. In addition, the Notice seeks comment on the
more highly detailed and prescriptive aspects of the Rule. In a prior
request for comment on this Rule, I questioned whether these
prescriptive requirements were necessary and encouraged the Commission
to rethink its approach to the scope and detail of these
[[Page 20226]]
requirements.\1\ I am pleased that the Commission is seeking comment on
this issue.
---------------------------------------------------------------------------
\1\ See Dissenting Statement of Commissioner Christine S. Wilson
on the Notice of Proposed Rulemaking: Energy Labeling Rule (Dec. 10,
2018), https://www.ftc.gov/public-statements/2018/12/dissenting-statement-commissioner-christine-s-wilson-notice-proposed.
---------------------------------------------------------------------------
Specifically, this Notice seeks comment on whether a more flexible
approach to labeling obligations would provide sufficient guidance to
businesses while simultaneously fulfilling the Commission's mandate
under the statute.\2\ The current requirements are highly prescriptive.
For example, the Rule specifies the trim size dimensions for labels,
including the precise width and length (e.g., width 5\1/4\ to 5\1/2\
inches (13.34 cm to 13.97 cm)); the number of picas for the copy set
(between 27 and 29); the type style and setting; the weight of the
paper stock on which the labels are printed (not less than 58 pounds
per 500 sheets (25'' x 38'') or equivalent); and a suggested minimum
peel adhesive capacity of 12 ounces per square inch. These highly
prescriptive requirements depart significantly from the approach
employed by other Commission Rules and Guides that contain labeling
requirements. For example, the Rules and Regulations Under the Textile
Fiber Products Identification Act provide simply that the ``label shall
be conspicuous and shall be of such durability as to remain attached to
the product and its package throughout any distribution, sale, resale
and until sold and delivered to the ultimate consumer.'' \3\ The
Commission's Guides for Select Leather and Imitation Leather Products
similarly require that the label ``should be affixed so as to remain on
or attached to the product until received by the consumer purchaser.''
\4\
---------------------------------------------------------------------------
\2\ Energy Policy and Conservation Act, 42 U.S.C. 6295.
\3\ 16 CFR part 303.15.
\4\ 16 CFR part 24.2(g).
---------------------------------------------------------------------------
While I have great faith in markets to produce the best results for
consumers, the prerequisite of healthy competition is sometimes absent.
In limited situations, regulations can help address market failures.
But for regulations to succeed in restoring market forces, they must
eliminate the market failure in the most narrow and targeted manner
possible. Regulatory ``fixes'' that extend beyond simply correcting the
problem may upset the balance of forces in the rest of the market and,
ultimately, may harm consumers.\5\ That is why I share the President's
goal of eliminating unnecessary and burdensome regulatory
requirements.\6\
---------------------------------------------------------------------------
\5\ See, e.g., Howard Beales, et al., ``The Proper Role of Rules
in a Gloriously Unruly Economy,'' released by the Regulatory
Transparency Project of the Federalist Society, August 28, 2019,
https://regproject.org/paper/the-proper-role-of-rules-in-a-gloriously-unruly-economy/ (discussing large and unintended
consequences of burdensome regulations).
\6\ Executive Order 13,771, 82 FR 9339 (Feb. 3, 2017) (imposing
a rule that for every new regulation created, two must be
eliminated).
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The Trump administration has called for agencies to carefully
review regulations. I am proud that the FTC has had a long tradition of
proactively reviewing our rules to ensure our regulatory program
protects consumers while seeking to avoid the unnecessary imposition of
costs on businesses.\7\ In the last few years, the FTC has repealed or
streamlined significantly a number of Rules and Guides. For example,
the FTC recently repealed the Picture Tube Rule, which the Commission
determined was no longer necessary to prevent deceptive claims
regarding the size of television screens.\8\ The FTC also revised the
Jewelry Guides, removing outdated provisions as well as lifting
restrictions on the marketing of gold-content products.\9\ Just last
year, the FTC rescinded the Nursery Guides--rules governing the sale of
outdoor plants--because they had outlived their utility for consumers
and industry.\10\
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\7\ In the 1990s, the Commission rescinded 24 Guides
(addressing, e.g., fallout shelters, the decorative wall paneling
industry, and the dog and cat food industry) and 13 trade rules,
including those concerning the misuse of ``automatic'' or terms of
similar import as descriptive of household electric sewing machines;
deceptive advertising and labeling as to size of tablecloths and
related products; and the Frosted Cocktail Glass Rule.
\8\ See https://www.ftc.gov/policy/federal-register-notices/16-cfr-part-410-deceptive-advertising-sizes-viewable-pictures-shown.
\9\ See https://www.ftc.gov/public-statements/2018/07/statement-basis-purpose-final-revisions-jewelry-guides.
\10\ See Press Release, Fed. Trade Comm'n., ``FTC Approves
Proposal Rescinding Nursery Guides,'' (June 4, 2019), https://www.ftc.gov/news-events/press-releases/2019/06/ftc-approves-proposal-rescinding-nursery-guides.
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I applaud the FTC's regular, systematic review of all of its rules
and guides on a rotating basis. When the Commission conducts a review
of a Rule or Guide, we regularly ask if the regulation is still
necessary. We ask about the costs and benefits to businesses and
consumers; conflicts with state, local, federal or international laws;
whether consumer perceptions have changed; and the effect, if any, that
changes in relevant technological, economic or environmental conditions
have had on Rules and Guides. This process lends transparency to the
Commission's regulatory review. The Commission is receptive and
responsive to the comments, often making regulatory revisions to
address changing market forces.
Freeing businesses from unnecessarily prescriptive requirements
benefits consumers. Although the Commission long ago abandoned some of
the most egregious instances of invasive regulatory zeal that earned it
the sobriquet of the ``second most powerful legislature in
Washington,'' \11\ forswearing new mistakes is not enough. Accordingly,
I am pleased to see the Agency reviewing the more prescriptive aspects
of this Rule and am committed to an ongoing practice of identifying
opportunities to streamline our regulations by updating, modifying, or
eliminating outdated, burdensome, or unnecessary provisions.
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\11\ See, e.g., J. Howard Beales, III & Timothy J. Muris, FTC
Consumer Protection at 100: 1970s Redux or Protecting Markets to
Protect Consumers?, 83 Geo. Wash. L. Rev. 2157, 2159 (2015) (quoting
Jean Carper, The Backlash at the FTC, Wash. Post, Feb. 6, 1977, at
C1).
[FR Doc. 2020-06960 Filed 4-9-20; 8:45 am]
BILLING CODE 6750-01-P
