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