[Federal Register Volume 77, Number 109 (Wednesday, June 6, 2012)]
[Proposed Rules]
[Pages 33337-33359]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13626]


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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: Proposed rule; request for comments.

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SUMMARY: The Commission seeks comment on proposed disclosures to help 
consumers, distributors, contractors, and installers easily determine 
whether a specific furnace or central air conditioner meets applicable 
Department of Energy regional efficiency standards.

DATES: Comments must be received by August 6, 2012.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the

[[Page 33338]]

SUPPLEMENTARY INFORMATION section below. Write ``Regional Labeling for 
Heating and Cooling Equipment--Proposed Rule (16 CFR Part 305) (Project 
No. P114202)'' on your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/proposedregionaldisclosuresnprm, 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 C), 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 proposed labeling requirements for 
residential furnaces, central air conditioners, and heat pumps to help 
consumers and industry members install products that comply with 
Department of Energy (DOE) efficiency standards.

II. Background

    The Commission's Appliance Labeling Rule (``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. The 
Commission has since expanded the Rule's coverage to include central 
air conditioners, heat pumps, plumbing products, lighting products, 
ceiling fans, certain types of water heaters, and televisions.\4\
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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).
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    The Rule requires manufacturers to attach yellow EnergyGuide labels 
to all covered furnaces, central air conditioners, and heat pumps.\5\ 
It also prohibits retailers from removing these labels or rendering 
them illegible.\6\ In addition, retailers must post label information 
on Web sites and in paper catalogs from which consumers can order these 
products.\7\ Manufacturers must 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). In turn, retailers, including installers, must show this 
information to their customers and let them read the information before 
purchase.\8\
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    \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.
    \8\ 16 CFR 305.14.
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    The EnergyGuide labels for heating and cooling equipment contain 
two key disclosures: (1) The product's efficiency rating, and (2) a 
comparability range 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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    \9\ 16 CFR 305.13.
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III. DOE Regional Standards for Heating and Cooling Equipment

    On October 25, 2011,\10\ DOE announced new efficiency standards for 
residential furnaces, central air conditioners, and heat pumps as 
directed by the Energy Independence and Security Act of 2007 
(EISA).\11\ Unlike existing DOE standards, which impose uniform, 
national efficiency levels, the new standards vary by region for 
certain products.\12\ As detailed in Tables 1 and 2, the DOE rules 
impose regional efficiency standards for four product categories: 
split-system air conditioners, single-package air conditioners, non-
weatherized gas furnaces, and mobile home gas furnaces. For all other 
covered heating and cooling equipment, the new standards are nationally 
uniform. The new DOE requirements will become effective on two dates: 
May 1, 2013, for non-weatherized gas furnaces, mobile home gas 
furnaces, and non-weatherized oil furnaces; and January 1, 2015, for 
weatherized gas furnaces and all central air conditioners and heat 
pumps.
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    \10\ 76 FR 67037 (Oct. 31, 2011). See also, 76 FR 37408 (June 
27, 2011).
    \11\ Pub. L. 110-140; 42 U.S.C. 6295(o)(6). EISA amended EPCA to 
authorize separate regional standards for these products.
    \12\ 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, the District 
of Columbia, and U.S. territories. The Southwest includes Arizona, 
California, New Mexico, and Nevada. 76 FR 37422.
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    To promote compliance with these new standards, EISA also directs 
DOE to develop an enforcement plan to specify the responsibilities of 
installers, distributors, and manufacturers in meeting the new 
standards and making required disclosures.\13\ DOE must complete this 
plan within 15 months after issuance of the final efficiency standards. 
To augment DOE's enforcement efforts, EISA gives states authority to 
enforce the regional standards in Federal court.\14\
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    \13\ 42 U.S.C. 6295(o)(6)(G).
    \14\ Id.
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IV. EISA's Mandate for New FTC Disclosures Related to Regional 
Standards

    EISA directs the FTC to develop new disclosures for heating and 
cooling equipment. 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.'' \15\ The statute also 
authorizes the Commission to modify the EnergyGuide label or develop 
other disclosure ``methods that make it easy for consumers and 
installers to use and understand at the point of installation.'' \16\ 
Consistent with the timing for DOE's enforcement plan, EISA directs the 
Commission to complete this effort 15 months after DOE issues the 
regional standards.
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    \15\ 42 U.S.C. 6295(o)(6)(H).
    \16\ Id.
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V. FTC Advance Notice of Proposed Rulemaking

    In response to EISA's mandate, the Commission published an Advance 
Notice of Proposed Rulemaking (ANPR) on November 28, 2011, seeking 
comments on the development of new disclosures related to the regional 
standards.\17\ The ANPR invited comment to help consumers,

[[Page 33339]]

distributors, contractors, and installers easily determine whether a 
specific furnace, central air conditioner, or heat pump meets the 
applicable standard for their region. It also sought input on the 
content, location, and format of such disclosures. To facilitate this 
process, FTC and DOE staff held a joint public meeting on December 16, 
2011.
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    \17\ 76 FR 72872 (Nov. 28, 2011).
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VI. Public Comments

    The Commission received four written comments in response to its 
ANPR.\18\ In general, the comments recommended EnergyGuide label 
changes to inform industry members and consumers about regional 
standards for heating and cooling equipment. In addition, one commenter 
provided suggestions for the label's location on products, packaging, 
and Web sites. That commenter also addressed the time needed to comply 
with the new requirements. Finally, the comments suggested specific 
changes for oil furnace labels related to input rates set by 
installers.
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    \18\ Air Conditioning Contractors of America (ACCA) ( 
00005); Air-Conditioning, Heating, and Refrigeration Institute 
(AHRI) ( 00003); Natural Resources Defense Council (NRDC) 
and other Organizations ( 00004) (the other organizations 
include Alliance to Save Energy, American Council for an Energy-
Efficient Economy, Appliance Standards Awareness Project, Consumer 
Federation of America, Earthjustice, National Consumer Law Center, 
Natural Resources Defense Council, Northeast Energy Efficiency 
Partnerships, Northwest Energy Efficiency Alliance, Northwest Power 
and Conservation Council); and Torres, Michelle ( 00002). 
The comments are available at: http://www.ftc.gov/os/comments/regionaldisclosuresanpr/index.shtm.
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A. Recommended Label Content

    The comments recommended several label changes to help industry 
members and consumers understand applicable regional efficiency 
standards. These suggestions included a U.S. map and a list of states 
to identify applicable regions, specific disclosures for central air 
conditioners and furnaces, links to product databases, and efficiency 
range updates.
    U.S. Map on Label: Manufacturers, installers, and energy efficiency 
groups urged the Commission to include a U.S. map on the label 
depicting the applicable regional efficiency standards for specific 
product types. According to Air-Conditioning, Heating, and 
Refrigeration Institute (AHRI), such a map will allow manufacturers to 
inform distributors, installers, and consumers about the regional 
requirements. To augment the map, Natural Resources Defense Council 
(NRDC) recommended a list of states where the product can be legally 
installed and a warning that federal law prohibits installation in any 
other state. NRDC also recommended maps for all models subject to 
regional standards (e.g., all non-weatherized gas furnaces regardless 
of efficiency). In its view, such an approach would avoid consumer 
confusion in comparing labels for different models. For models that 
comply with all applicable standards (e.g., a 90 AFUE furnace), NRDC 
also recommended that the label state: ``Federal Law allows 
installation of this unit in any U.S. state.'' Finally, the Air 
Conditioning Contractors of America (ACCA) urged the Commission to 
spell state names on the label and not use state abbreviations.
    Split-System Central Air Conditioners: The comments also provided 
specific recommendations for split-system central air conditioners. 
These systems consist of two separate pieces of equipment: an outdoor 
condenser and an indoor coil. During the installation process, 
installers match a condenser with a coil to form the entire air 
conditioning system. The final efficiency rating for these systems 
varies depending on the installed condenser-coil combination. Under the 
current Rule, EnergyGuide labels appear on the condenser unit and 
disclose the efficiency rating of that unit when matched with the 
typical coil (i.e., the condenser-coil combination with the highest 
sales volume). The applicable regional standards for these products 
involve three different geographic regions and two different efficiency 
ratings (Seasonal Energy Efficiency Ratio (``SEER'') and Energy 
Efficiency Ratio (``EER'')).\19\
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    \19\ As explained in NRDC's comments, EER is ``a measure of 
energy efficiency for central air conditioners at specific operating 
conditions''; and SEER is a ``a measure of energy efficiency for 
central air conditioners that estimates energy performance over a 
typical cooling season.''
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    For these systems, AHRI recommended using a general U.S. map 
identifying the three regions covered by the standards and a table 
listing the applicable standards by region.\20\ NRDC advocated a 
product-specific map depicting the states in which the model may be 
legally installed. AHRI also suggested a disclosure to help installers 
and consumers understand that a system's efficiency depends on the 
installed condenser-coil combination. Specifically, AHRI recommended 
that the label disclose the high and low efficiency values associated 
with the different coils certified to match the labeled condenser 
(e.g., 13.5-14.4 SEER). In addition, AHRI suggested a statement 
explaining that the system's overall efficiency rating will depend on 
the condenser-coil combination.
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    \20\ For single-package air conditioners, which do not have 
separate condenser-coil combinations, the new standards set a 
minimum EER rating in the Southwest region. To help installers 
comply with these standards, AHRI recommended a map on labels for 
single-package air conditioner labels to communicate the minimum EER 
standard for those products in the Southwest region.
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    The comments also recommended that the air conditioner label 
include information to help consumers and installers understand the 
product's Energy Efficiency Ratio (EER), an efficiency rating different 
from SEER. Unlike SEER, which reflects the model's efficiency over a 
typical cooling season, EER measures efficiency under specific 
operating conditions. Although SEER is the primary efficiency rating 
for these products, EER is necessary for determining an air 
conditioner's compliance with the new DOE standards in the southwest 
region. NRDC argued that the label should include definitions of both 
EER and SEER. In addition, AHRI advocated a separate comparability 
range for EER on the label. NRDC did not believe that this was 
necessary.
    Furnaces: The comments made specific recommendations for non-
weatherized and mobile gas furnaces, which are both subject to the 
regional standards. These standards prohibit the installation of 
furnaces rated lower than 90 AFUE in northern states.\21\ In AHRI's 
view, labels for these lower-efficiency furnaces should include a map 
identifying the states where those models can be legally installed. 
AHRI also suggested that the Commission consult the furnace map used on 
the Energy Star logo, which appears on the label for qualified 
products. This logo includes a U.S. map displaying the states in which 
certain furnaces qualify for the Energy Star program.\22\ NRDC agreed 
but urged the Commission to avoid confusion that might arise with the 
appearance of two maps on the label.
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    \21\ ``Annual Fuel Utilization Efficiency'' (AFUE) is the 
efficiency rating for these products.
    \22\ Energy Star is a program administered by the Environmental 
Protection Agency (EPA) which identifies high efficiency products 
for consumers. See www.energystar.gov.
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    Product Databases: AHRI recommended that all labels contain a 
reference to the AHRI directory (www.ahridirectory.org), which lists 
models certified by that organization. In its view, the directory will 
help ensure contractors select appropriate products for their location 
and consumers receive products that comply with the regional standards. 
AHRI also urged the Commission to allow installers to use the directory 
in complying with their point of sale disclosure requirements.

[[Page 33340]]

    Efficiency Ranges: Both AHRI and NRDC recommended amendments to the 
comparability ranges displayed on the EnergyGuide labels for heating 
and cooling equipment. These ranges disclose the most and least 
efficient product ratings on the market. Specifically, AHRI urged the 
Commission to update these efficiency ranges to reflect the new energy 
conservation standards. NRDC also suggested that the thresholds for the 
regional standards should appear on the label's range. For furnace 
labels, it recommended a vertical arrow on the range accompanied by the 
statement ``Federal law requires furnaces installed in northern states 
to meet a minimum AFUE of 90,'' or, alternatively, the phrase 
``Installation legal in Southern states only'' placed on the range 
between 80 and 90 AFUE. For central air conditioners, NRDC recommended 
a hash mark or shaded region on the SEER range to communicate the 
regional standard for those products.

B. Location and Format for Disclosures

    The comments also offered some suggestions for the label's location 
and format. NRDC provided three specific suggestions for the label's 
placement and format. First, it recommended a permanent version of the 
EnergyGuide label on products to aid enforcement and voluntary 
compliance by consumers and other market participants. In its view, a 
permanent label would reveal non-compliance for real estate 
transactions and energy ratings. Second, NRDC argued that the product 
package should display the label to aid official enforcement efforts 
and help distributors, installers, and consumers avoid costly shipping 
and installation mistakes. According to NRDC, the package label could 
also display a Quick Response (QR) scan code so that consumers can 
access additional product information online.\23\ Finally, NRDC argued 
that the required disclosures should appear online in official product 
descriptions and advertisements because online dealers currently offer 
heating and cooling equipment directly to consumers. In its view, such 
disclosures should include an EnergyGuide icon and a link to the 
EnergyGuide label and any other relevant product information to help 
consumers who research equipment online. Additionally, NRDC proposed 
that Web sites selling such equipment should provide regional standards 
information on the product information page, without requiring 
consumers to open a link to the EnergyGuide label. It recommended that 
the FTC look to the recent television labeling requirements as guidance 
for the EnergyGuide label's placement. Among other things, these new 
rules require online sellers to use an FTC-provided EnergyGuide icon so 
that consumers can view the required labels.\24\
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    \23\ Currently, the Environmental Protection Agency requires QR 
codes on fuel economy labels for vehicles. These codes link consumer 
to detailed information for individual models at 
www.fueleconomy.gov. See 40 CFR 600.302-12(b)(6).
    \24\ See 76 FR 1038 (Jan. 11, 2011).
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    Finally, AHRI explained that focus on EnergyGuide label revisions 
alone should be sufficient to meet FTC and DOE objectives and cautioned 
that additional requirements would increase regulatory burden without 
consumer benefit. Similarly, ACCA stated that labeling changes, along 
with the current contractor disclosures, should meet the Commission's 
objectives.\25\
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    \25\ ACCA also urged FTC, in coordination with DOE, to create 
print and broadcast public service announcements, promotional 
materials with the DOE or FTC logo, and other information to inform 
consumers and contractors of the pending standard changes.
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C. Timing of New Labels

    NRDC encouraged the FTC to establish compliance deadlines of May 1, 
2013 for non-weatherized gas, oil-fired, and mobile home gas furnaces, 
and January 1, 2015 for weatherized furnaces and central air 
conditioners and heat pumps. These dates coincide with the 
implementation of the relevant regional efficiency standards, and, in 
NRDC's view, will ensure that products manufactured on these dates and 
thereafter comply with the disclosure requirements.

D. Oil Furnace Labels

    On an issue unrelated to the regional standards, AHRI urged the FTC 
to modify the EnergyGuide label for oil furnaces.\26\ The installed 
efficiency rating of these products depends on input rates set by 
installers in the consumer's home. Thus, the efficiency rating on the 
label may not match the rating of the installed unit. To address this 
issue, AHRI recommended the Commission require a label listing the 
efficiency ratings associated with four different input rates set in 
the field. Under AHRI's proposal, installers would mark the label to 
indicate the product's efficiency rating as installed.
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    \26\ The efficiency standards for oil furnaces are the same 
across the country.
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VII. Proposed Disclosures for Heating and Cooling

    After reviewing the comments, the Commission proposes amending the 
EnergyGuide label content for heating and cooling equipment. The 
Commission also proposes to expand the label's availability by 
requiring it on manufacturer Web sites, on product packaging, and at 
the point of sale. These changes should help industry members comply 
with the regional standards and aid consumers in their purchasing 
decisions for these products. The labels' proposed new content 
discloses efficiency ratings in a simple format and provides regional 
information to help installers comply with the law. Tables 1 and 2 
summarize the content of the proposed labels by product category. In 
addition, the proposal directs contractors to make the labels available 
to consumers prior to purchase. These changes should help industry 
members and consumers easily use and understand the labels. The 
proposed amendments also change the oil furnace labels in response to 
AHRI's suggestion. Finally, the proposed effective dates for the new 
labels coincide with the DOE compliance dates for the various product 
categories.

A. Label Revisions

    Consistent with commenter suggestions, the Commission proposes 
changing the EnergyGuide label content to inform industry members and 
consumers about regional standards and otherwise improve the label. The 
proposed label contains two parts: a revised upper portion designed 
primarily for consumers and a lower portion to help installers comply 
with the regional standards. The upper portion, which resembles the 
current EnergyGuide, will appear on labels for all heating and cooling 
products, whether or not they are subject to different regional 
standards.\27\ The lower portion contains maps, tables, and other 
information designed to help installers comply with the regional 
standards and will appear only on products subject to regional 
standards (i.e., split-system air conditioners, single-package air 
conditioners, and non-weatherized and mobile home gas furnaces).
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    \27\ These products include boilers, which fall under the 
definition of ``furnace'' in the Rule. 16 CFR 305.3(g).
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    Upper Portion: The upper portion, which closely resembles the 
current label, discloses the product's efficiency rating, a range of 
efficiency ratings for similar products, and a link to an online energy 
cost calculator. It bears the simple title ``Efficiency Rating'' 
followed by a technical acronym for the rating applicable to that 
product (e.g., SEER or AFUE). The Commission

[[Page 33341]]

proposes to use ``efficiency rating'' because the technical terms alone 
(e.g., SEER) are likely to be unfamiliar to most consumers. 
Nevertheless, the acronyms for those technical terms appear in smaller 
type elsewhere on the label to identify the type of rating disclosed 
(e.g., SEER, AFUE, or EER).
    In addition to the product's efficiency rating, the upper portion 
displays a range of ratings for similar models to help consumers 
compare competing products.\28\ Consistent with the comments and the 
current Rule's requirements, the Commission proposes to update existing 
comparability ranges for all heating and cooling equipment.\29\ 
Following NRDC's comment, the Commission proposes requiring new ranges 
beginning May 1, 2013, to coincide with the new efficiency standards 
applicable to most products.\30\ However, for products subject to 
standards effective on January 1, 2015 (i.e., central air conditioners, 
heat pumps, and weatherized furnaces), the new ranges will not apply 
until that date.\31\ The Commission also proposes specifying separate 
ranges for each system type addressed by the efficiency standards. 
Thus, for example, the Rule will have separate ranges for weatherized 
and non-weatherized furnaces, split-system air conditioner systems, 
small duct, high-velocity systems, and space-constrained air 
conditioners. Commenters should address whether such separate 
categories are necessary to help consumers compare products.\32\
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    \28\ The label's range does not include thresholds for regional 
standards as suggested by NRDC because the addition of such 
information may create confusion and detract from the label's basic 
message. In addition, the proposed label addresses applicable 
regional standards elsewhere.
    \29\ In the final rule notice, the Commission will adjust the 
range tables in the Appendices if necessary to reflect new industry 
data available at that time. 16 CFR 305.10(b).
    \30\ The new ranges effective May 1, 2013 will also apply to 
equipment not subject to any change in the standards (e.g., electric 
furnaces and boilers).
    \31\ The Commission will publish new ranges for central air 
conditioners, heat pumps, and weatherized furnaces before the 
January 1, 2015 date. Under the current Rule, the Commission amends 
range information for labels on a five-year schedule. However, the 
Commission has indicated it may update ranges more frequently. 72 FR 
49948, 49959 (Aug. 29, 2007). The ranges on the new sample heat pump 
and air conditioner labels in this Notice stem from current industry 
data and have been included only for illustrative purposes.
    \32\ To reduce label clutter, the proposal also eliminates text 
stating that the efficiency range is based on a particular model 
type (e.g., ``Efficiency range based only on split system units''). 
The Commission seeks comment on whether this statement should remain 
on the label.
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    Yearly energy cost disclosure gives consumers a clear, 
understandable tool to compare energy performance. Therefore, the 
proposed label also contains a prominent link to an online energy cost 
calculator based on a government Web site. Energy cost information 
appears on EnergyGuide labels for other covered products such as 
dishwashers and televisions. Unlike those products, however, heating 
and cooling costs can vary significantly depending on the consumer's 
location. For example, the annual operating cost of a furnace installed 
in Minnesota is likely to be much higher than one in Florida. As a 
result, national average cost information on the label may not provide 
a good estimate for a substantial number of consumers. Accordingly, the 
Commission proposes to provide consumers with a link to an online cost 
calculator, which will give consumers estimates based on their 
location.\33\
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    \33\ To allow consumers to use the calculator, the proposed rule 
requires the labels to display the model's capacity in addition to 
its efficiency rating.
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    Lower Portion: The proposed label's lower portion contains 
information to help installers comply with regional standards. The 
proposed rule only requires this information for product categories 
subject to different regional standards (i.e., split-system air 
conditioners, single-package air conditioners, and non-weatherized and 
mobile home gas furnaces).\34\ The lower portion communicates standards 
information through text, a map, and a link. The text provides general 
information to installers about regional efficiency standards, 
including a list of applicable states.\35\ Second, a color U.S. map 
illustrating regional standards information appears on the label for 
products that do not meet standards in at least one region (i.e., 
certain split air conditioner systems, single-package air conditioners 
lower than 11.0 EER, and non-weatherized and mobile gas furnaces lower 
than 90 AFUE). The color map provides a simple, graphical means to 
inform distributors, contractors, and consumers about the regional 
requirements. However, contrary to commenter suggestions, the proposed 
label for units that are legal to install in any state would not have a 
map but rather would state, ``Federal law allows this unit to be 
installed in all U.S. states and territories.'' Because these higher-
efficiency models can be installed anywhere, a map would add 
unnecessary detail to the label. Additionally, under this approach, the 
FTC map would not appear on any labels displaying the Energy Star map 
and thus eliminate any confusion from the appearance of two different 
maps on the same label. Finally, the proposed label contains a link to 
DOE's database of certified equipment (http://www.regulations.doe.gov/certification-data/Category.html).\36\ This information will help 
contractors and consumers ensure that installed equipment complies with 
the regional standards. The Commission seeks comment on whether it 
should require a QR code on all labels to link consumers and installers 
directly to detailed information about the product at the DOE Web site.
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    \34\ The regional disclosures do not apply to products subject 
to uniform national standards (e.g., heat pumps).
    \35\ Given space limitations, the labels do not spell out state 
names as suggested by ACCA. State postal abbreviations should not 
lead to significant confusion, particularly for installers who are 
likely to be familiar with the abbreviations of states in which they 
work.
    \36\ The Commission proposes to link consumers to the DOE Web 
site, rather than AHRI's directory, because DOE's site provides a 
government source for information from both AHRI and non-AHRI 
members.
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    Central Air Conditioners and Heat Pumps: The proposed label 
contains specific requirements for split-system air conditioners and 
heat pumps. First, consistent with AHRI's suggestion, the upper portion 
of the label discloses the lowest and highest SEER (and HSPF) ratings 
for all the condenser's certified coil combinations. This disclosure 
provides the minimum and maximum efficiency yielded by a particular 
split-system. Second, the proposed label states that an installed 
system's efficiency varies depending on which coil is matched with the 
condenser. Third, consistent with AHRI's suggestion, the lower portion 
of the proposed air conditioner label displays a map and a table 
illustrating the three regions covered by the new DOE standards.\37\ 
This map will provide installers with a clear illustration of the 
standards applicable to the product. The Commission is not proposing a 
product-specific map because split-system air conditioner efficiency 
ratings vary depending on the installed condenser-coil combination. 
Thus, a condenser may meet the standard in the southern region when 
paired with one coil but not when paired with another.
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    \37\ The proposed rule contains no regional standards 
information for heat pump labels because those products are subject 
to uniform national standards.
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    The proposed labels for split-system air conditioners and single-
package air conditioners also contain EER ratings because such 
information is necessary to determine regional standards compliance. 
EER information would appear in the proposed label's lower portion and, 
for split systems, would include the high and low certified ratings. 
The Commission does not

[[Page 33342]]

propose to include a separate EER range bar. Because most consumers are 
not likely to be familiar with EER ratings, the inclusion of a separate 
EER range is likely to lead to confusion without providing significant 
benefit. Finally, the proposed label for single-package air 
conditioners rated below 11.0 EER displays a product specific map to 
illustrate that such models can only be installed in the northern and 
southeastern regions.
    Furnaces: The Commission also proposes specific regional 
information for furnace labels. For non-weatherized and mobile gas 
furnaces rated below 90 AFUE, the proposed label contains a map and a 
list identifying those states where the product may be installed. For 
non-weatherized and mobile home furnaces that meet standards in all 
regions, the proposed label contains the statement: ``Federal law 
allows this unit to be installed in all U.S. states and territories.''

B. Label Location

    To improve access to the EnergyGuide label for heating and cooling 
products, the proposed amendments continue to require the label on the 
product itself and retailer Web sites, and propose requiring it on 
packaging (for product categories subject to regional standards) and 
manufacturer Web sites. The proposal also directs contractors to give 
consumers the opportunity to review the EnergyGuide label prior to 
purchase. These requirements provide a single, familiar tool for 
communicating efficiency and standards information. They also avoid 
multiple formats that could cause confusion and increase compliance 
burdens. For distributors and installers, the comprehensive label 
eliminates the need to create their own disclosures.
    In addition, by requiring the label in several different locations, 
the proposed approach should help consumers and installers with their 
purchasing and installation decisions--regardless of where those 
decisions occur. The label's continued presence on products provides 
consumers with efficiency information for their purchases. It will also 
help installers with regional standards information to ensure they 
install the correct equipment under the law.\38\ Labels on packages 
will help distributors and installers determine whether a model meets 
applicable standards before they ship or open boxes, avoiding costly 
shipping or installation mistakes.
---------------------------------------------------------------------------

    \38\ The proposed rule does not require a permanent EnergyGuide 
label on these products as suggested by comments because the unit's 
model number provides the information necessary to determine 
compliance, particularly given the availability of online databases 
from DOE and AHRI.
---------------------------------------------------------------------------

    Consistent with the Commission's recent television labeling 
requirements as well as its proposed requirements for all covered 
products, the proposed rule requires manufacturer Web sites to provide 
consumers, distributors, and installers access to their product labels 
online.\39\ The proposed amendments continue to require retail Web 
sites to post a copy of the EnergyGuide label. In addition, the 
proposal requires retail Web sites selling any product subject to 
regional standards to display the statement ``Federal law prohibits the 
installation of some [central air conditioners or furnaces] in certain 
states. Look to the EnergyGuide label to determine whether this product 
can be legally installed in your location.'' This should ensure that 
the Web site alerts purchasers to regional restrictions even if 
purchasers do not open the label itself. Though some commenters 
suggested a lengthier disclosure, such information would unnecessarily 
duplicate the label's content. In addition to requirements for Web 
sites, the proposal also contains disclosures for paper catalogs 
requirements related to regional standards.
---------------------------------------------------------------------------

    \39\ See 76 FR 1038 (Jan. 11, 2011) (television requirements) 
and 77 FR 15298 (Mar. 15, 2012) (proposed requirements for all 
covered products). The present notice includes the proposed rule 
language for catalog disclosure from the March 15, 2012 notice and 
corrects minor errors in that language.
---------------------------------------------------------------------------

    Finally, the Commission proposes requiring retail sellers (e.g., 
contractors, installers, and assemblers) to make the EnergyGuide label 
available to consumers before purchase. Contractors can comply with 
this requirement by, for example, showing the labels to consumers or 
providing them instructions to view the labels online. Though AHRI 
urged the Commission to refer to AHRI's directory for these required 
disclosures, the label itself is preferable because it provides 
detailed information in a larger format specifically designed for 
consumers. This requirement should not increase existing disclosure 
burdens for installers because the Rule already requires them to make 
energy disclosures to consumers.\40\ Nothing prevents installers from 
also directing consumers to the AHRI site.
---------------------------------------------------------------------------

    \40\ 16 CFR 305.14.
---------------------------------------------------------------------------

C. Oil Furnace Labels

    In response to AHRI's suggestion, the Commission proposes to amend 
the oil furnace label to include the efficiency ratings associated with 
different input rates. The proposed label provides consumers with the 
furnace's efficiency rating as configured and installed in their home, 
as well as the efficiency rating associated with the product's input 
rate as shipped by the manufacturer. In addition, the proposed label 
contains a chart displaying four efficiency ratings associated with the 
four input rates recommended by AHRI. It also contains a single scale 
displaying the furnace's efficiency rating at the manufacturer's rated 
input to avoid label clutter that could potentially confuse consumers. 
If the installer uses a different input rate, they must mark the chart 
on the EnergyGuide label to indicate so.\41\ The Commission seeks 
comment on whether this is necessary and, if so, whether the proposed 
label will provide clear information to consumers. In addition, 
commenters should address whether this same design should appear on 
boilers, which also vary in efficiency by input rate settings.
---------------------------------------------------------------------------

    \41\ See 42 U.S.C. 6294(c)(4).
---------------------------------------------------------------------------

D. Effective Dates for Label Changes

    The Commission proposes to require the proposed label changes in 
two phases. Under the first phase, manufacturers must begin using the 
new label no later than May 1, 2013 for equipment subject to new 
standards effective on that date (i.e., weatherized gas and mobile home 
gas furnaces) or not subject to any change in the standards (e.g., 
boilers, oil-fired, and electric furnaces). Under the second phase, 
manufacturers must begin placing the new labels no later than January 
1, 2015 for any heating and cooling equipment subject to new standards 
effective on that date (i.e., weatherized furnaces and central air 
conditioners and heat pumps).\42\ Until January 1, 2015, manufacturers 
must continue to use the current label, including the current ranges, 
for those products. These proposed dates coincide with the effective 
dates of regional standards for those products and thus should provide 
a reasonable transition date for the new labels. However, DOE has 
clarified that the effective date for the regional standards applies to 
the installation of products on or after that date.\43\ Accordingly, 
the Commission seeks comment on whether to require manufacturers to 
begin using

[[Page 33343]]

the new labels earlier to provide a lead-time for newly labeled units 
to enter retailer inventories before the regional standards take 
effect.
---------------------------------------------------------------------------

    \42\ The Commission will update ranges for weatherized furnaces 
and central air conditioners and heat pumps before the January 1, 
2015 transition to the new labels.
    \43\ See Department of Energy, ``Regional Standards Enforcement 
Framework Document,'' http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/furncac_regstnd_enforceframework.pdf.
    \44\ Seasonal Energy Efficiency Rating.
    \45\ Energy Efficiency Rating.
    \46\ Heating Seasonal Performance Factor.

                                                                    Table 1--Furnaces
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     Regional standards
           System type             information on proposed   Date for  label change       Efficiency      Efficiency  standard--  Efficiency  standard--
                                            label                                     standard--north  %       southeast  %            southwest  %
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-weatherized gas.............  Models below 90 AFUE:     May 1, 2013.............  90 AFUE...........  80 AFUE...............  80 AFUE.
                                   U.S. map and
                                   explanatory text
                                   indicating product can
                                   only be installed in
                                   south/southwest (see
                                   Sample Label 9).
                                  All other models: a
                                   statement that unit can
                                   be installed in any
                                   state (see Sample Label
                                   9A).
Mobile home gas.................  Models below 90 AFUE:     May 1, 2013.............  90 AFUE...........  80 AFUE...............  80 AFUE.
                                   U.S. map and
                                   explanatory text
                                   indicating product can
                                   only be installed in
                                   south/southwest.
                                  All other models: a
                                   statement that unit can
                                   be installed in any
                                   state.
Non-weatherized oil-fired.......  No regional standards     May 1, 2013.............  83 AFUE...........  83 AFUE...............  83 AFUE.
                                   information (see Sample
                                   Label 9B).
Weatherized gas.................  No regional standards     Jan. 1, 2015............  81 AFUE...........  81 AFUE...............  81 AFUE.
                                   information.
Mobile home oil-fired...........  No regional standards     May 1, 2013.............  75 AFUE...........  75 AFUE...............  75 AFUE.
                                   information.
Weatherized oil-fired...........  No regional standards     Jan. 1, 2015............  78 AFUE...........  78 AFUE...............  78 AFUE.
                                   information.
Electric........................  No regional standards     May 1, 2013.............  78 AFUE...........  78 AFUE...............  78 AFUE.
                                   information.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                    Table 2--Central Air Conditioners and Heat Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                        Regional standards
            System type               information on proposed   Date for label change   Efficiency standard-  Efficiency standard-  Efficiency standard-
                                               label                                           north                southeast             southwest
--------------------------------------------------------------------------------------------------------------------------------------------------------
Split-system air conditioners.....  All models regardless of    Jan. 1, 2015.........  13 SEER \44\.........  14 SEER.............  14 SEER/12.2 EER
                                     efficiency rating: low                                                                          \45\ <45,000 Btu/h
                                     and high SEER and EER for                                                                       14 SEER/11.7 EER
                                     certified compressor-coil                                                                       >45,000 Btu/h.
                                     combinations.
                                    Models below 14 SEER (any
                                     size model), below 12.2
                                     EER (for models smaller
                                     than 45,000 Btu/h), or
                                     below 11.7 EER (for
                                     models larger than 45,000
                                     Btu/h): General U.S. map
                                     & standards chart (see
                                     Sample Label 7A).
                                    All other models: A
                                     statement that unit can
                                     be installed in any state.
Split-system heat pumps...........  No regional standards       Jan. 1, 2015.........  14 SEER/8.2 HSPF \46\  14 SEER/8.2 HSPF....  14 SEER/8.2 HSPF.
                                     information (see Sample
                                     Label 8A).
                                    All Models: Low and high
                                     SEER and HSPF for
                                     certified compressor-coil
                                     combinations.
Single-package air conditioners...  Models below 11 EER: U.S.   Jan. 1, 2015.........  14 SEER..............  14 SEER.............  14 SEER/11.0 EER.
                                     Map and explanatory text
                                     indicating product can
                                     only be installed in
                                     northern and southeastern
                                     states (not southwestern)
                                     (see Sample Label 7B).
                                    All other models: A
                                     statement that unit can
                                     be installed in any state.
Single-Package Heat Pumps.........  No regional standards       Jan. 1, 2015.........  14 SEER/8.0 HSPF.....  14 SEER/8.0 HSPF....  14 SEER/8.0 HSPF.
                                     information.
Small-duct, high-velocity systems.  No regional standards       Jan. 1, 2015.........  13 SEER/7.7 HSPF.....  13 SEER/7.7 HSPF....  13 SEER/7.7 HSPF.
                                     information..
                                    All Models: Low and high
                                     SEER and HSPF for
                                     certified compressor-coil
                                     combinations.
Space-constrained products -air     No Regional Standards       Jan. 1, 2015.........  12 SEER..............  12 SEER.............  12 SEER.
 conditioners.                       information.
                                    All split-systems models:
                                     Low and high SEER and
                                     HSPF for certified
                                     compressor-coil
                                     combinations.

[[Page 33344]]

 
Space-constrained products--heat    No Regional Standards       Jan. 1, 2015.........  12 SEER/7.4 HSPF.....  12 SEER/7.4 HSPF....  12 SEER/7.4 HSPF.
 pumps.                              information.
                                    All split-system models:
                                     All Models: Low and high
                                     SEER and HSPF for
                                     certified compressor-coil
                                     combinations.
--------------------------------------------------------------------------------------------------------------------------------------------------------

VIII. Paperwork Reduction Act

    The current Rule contains recordkeeping, disclosure, testing, and 
reporting requirements that constitute ``collection[s] of information'' 
under the Paperwork Reduction Act (PRA).\47\ OMB has approved the 
Rule's existing information collection requirements through Jan. 31, 
2014 (OMB Control No. 3084-0069). As described below, the proposed 
amendments modify existing EnergyGuide label design and require its 
presence on packaging for some products. Accordingly, the Commission is 
submitting this proposed rule and an associated PRA Supporting 
Statement to OMB for review.
---------------------------------------------------------------------------

    \47\ 44 U.S.C. 3501-3521.
---------------------------------------------------------------------------

    Manufacturer EnergyGuide Images Online: The proposed Rule requires 
manufacturers to post images of their EnergyGuide labels on their Web 
sites. Given approximately 6,000 total models \48\ at an estimated five 
minutes per model, this requirement will entail a burden of 500 
hours.\49\ Assuming that the additional disclosure requirement will be 
implemented by graphic designers at a mean hourly wage of $23.42 per 
hour,\50\ the associated labor cost would approximate $11,710 per year 
(500 hours x $23.42).
---------------------------------------------------------------------------

    \48\ This estimate is based on information from industry 
sources.
    \49\ Unlike retail Web sites that already have established Web 
pages for the products they offer, some manufacturers may have to 
create new Web pages for posting these requirements. Accordingly, 
the burden estimate for manufacturers is higher (five minutes per 
model) than that for catalog sellers (one minute per model).
    \50\ See U.S. Department of Labor, National Compensation Survey: 
Occupational Earnings in the United States 2010 (May 2011), Bulletin 
2753, Table 3 at 3-13 (``Full-time civilian workers,'' mean and 
median hourly wages), available at http://www.bls.gov/ncs/ncswage2010.htm.
---------------------------------------------------------------------------

    Updating EnergyGuide Labels: The proposed rule requires heating and 
cooling equipment manufacturers to change the EnergyGuide labels to the 
new design. The new label design will require a one-time drafting 
change for the manufacturers. Consistent with similar label changes in 
the past, the Commission estimates that this one-time change will take 
40 hours per manufacturer.\51\ As with other recent labeling changes, 
the FTC staff plans to provide template labels to manufacturers to 
minimize the burden associated with such labels changes. The Commission 
estimates that there are approximately 100 manufacturers of affected 
covered products. Therefore, the label design change will result in a 
one-time burden of 4,000 hours (100 manufacturers x 40 hours). In 
calculating the associated labor cost estimate, the Commission assumes 
that the label design change will be implemented by graphic designers 
at an hourly wage rate of $23.42 per hour based on Bureau of Labor 
Statistics information. Thus, the Commission estimates that the new 
label design change will result in a one-time labor cost of 
approximately $93,680 (4,000 hours x $23.42 per hour).
---------------------------------------------------------------------------

    \51\ 72 FR 49948, 49964 (Aug. 27, 2007).
---------------------------------------------------------------------------

    EnergyGuide Labels on Packaging: The proposed amendments would 
require manufacturers to affix a copy of the EnergyGuide on packaging 
for split-system and single-package air conditioners, and non-
weatherized and mobile home gas furnaces. DOE has estimated past annual 
shipments of these units at about 5,500,000.\52\ The Commission 
estimates the burden for package labeling at 9,167 hours [6 seconds x 
5,500,000 units]. In calculating the associated labor cost estimate, 
the Commission assumes that the label design change will be implemented 
by packaging and filling machine operators at an hourly wage rate of 
$14.67 per hour based on Bureau of Labor Statistics information. Thus, 
the Commission estimates that label placement on packaging will result 
in an annual labor cost of approximately $134,480 (9,167 hours x $14.67 
per hour).
---------------------------------------------------------------------------

    \52\ See http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/hvac_ch_09_shipments_2011-04-25.pdf.
---------------------------------------------------------------------------

    Catalog and Installer Disclosures: The Rule already requires 
retailers to post energy information in catalogs (including Web sites) 
and installers to make information available to consumers at the point 
of sale. Therefore, the proposed requirements would not alter this 
burden.
    Estimated Annual Non-labor Cost Burden: Any capital costs 
associated with the amendments are likely to be minimal.
    The Commission invites comments that will enable it to: (1) 
Evaluate whether the proposed collections of information are necessary 
for the proper performance of the functions of the Commission, 
including whether the information will have practical utility; (2) 
evaluate the accuracy of the Commission's estimate of the burden of the 
proposed collections of information, including the validity of the 
methodology and assumptions used; (3) enhance the quality, utility, and 
clarity of the information to be collected; and (4) minimize the burden 
of the collections of information on those who must comply, including 
through the use of appropriate automated, electronic, mechanical, or 
other technological techniques or other forms of information 
technology.
    Comments on any proposed disclosure requirements that are subject 
to OMB review under the PRA should additionally be submitted to: Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
Attention: Desk Officer for Federal Trade Commission. Comments should 
be submitted via facsimile to (202) 395-5167 because U.S. postal mail 
at the OMB is subject to lengthy delays due to heightened security 
precautions.

IX. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612, 
requires that the Commission provide an Initial Regulatory Flexibility 
Analysis (``IRFA'') with a proposed Rule and a Final Regulatory 
Flexibility Analysis (``FRFA''), with the final Rule, if any, unless 
the Commission certifies that the Rule will not have a significant 
economic impact on a substantial number of small entities. See 5 U.S.C. 
603-605.
    The Commission does not anticipate that the proposed Rule will have 
a significant economic impact on a

[[Page 33345]]

substantial number of small entities. The Commission recognizes that 
some of the affected manufacturers may qualify as small businesses 
under the relevant thresholds. However, the Commission does not expect 
that the requirements specified in the proposed Rule will have a 
significant impact on these entities because, as discussed in the 
previous section, the proposed amendments involve formatting changes to 
labels, additional labels on some packaging, and Web site changes that 
should not have a significant impact on affected entities, including 
small businesses.
    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

    As directed by Congress, the Commission proposes new disclosures to 
help consumers and industry members understand new DOE regional 
efficiency standards for heating and cooling equipment.

B. Statement of the Objectives of, and Legal Basis for, the Proposed 
Rule

    The objective of the proposed Rule is to develop new labels to help 
communicate regional standards requirements for heating and cooling 
equipment. The legal basis for this Rule is the EPCA (42 U.S.C. 6291 et 
seq.).

C. Small Entities to Which the Proposed Rule Will Apply

    Under the Small Business Size Standards issued by the Small 
Business Administration, the standards for equipment manufacturers is 
750 employees.\53\ The Commission estimates that fewer than 50 entities 
subject to the proposed Rule's requirements qualify as small 
businesses. The Commission seeks comment and information with regard to 
the estimated number or nature of small business entities for which the 
proposed Rule would have a significant economic impact.
---------------------------------------------------------------------------

    \53\ See http://www.sba.gov/content/table-small-business-size-standards.
---------------------------------------------------------------------------

D. Projected Reporting, Recordkeeping and Other Compliance Requirements

    The Commission recognizes that the proposed labeling changes will 
involve some burdens on affected entities. However, the amendments 
should not have a significant impact on small entities. The proposed 
amendments would increase existing burdens by requiring manufacturers 
to change their EnergyGuide labels for products and place labels on 
packages for certain furnaces and central air conditioners. Graphic 
designers and packaging operators will implement the new requirements. 
There should be no capital costs associated with the amendments. The 
Commission invites comment and information on these issues.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other federal statutes, 
rules, or policies that would duplicate, overlap, or conflict with the 
proposed Rule. While the proposed labels are related to DOE efficiency 
standards, the proposed requirements do not overlap with DOE rules.

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 such 
small entities. As one alternative to reduce burden, the Commission 
could delay the effective date of the amendments to provide additional 
time for small business compliance. Comments filed in response to this 
notice should identify small entities that are affected by the Rule, as 
well as alternative methods of compliance that would reduce the 
economic impact of the Rule on small entities. The Commission will 
consider the feasibility of such alternatives and determine whether 
they should be incorporated into the final rule.

X. 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).

XI. 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 
FTC's proposed requirements. Please provide explanations for your 
answers and supporting evidence where appropriate. After examining the 
comments, the Commission will determine whether to issue final 
amendments.
    All comments should be filed as prescribed below, and must be 
received by August 6, 2012. Interested parties are invited to submit 
written comments electronically or in paper form. Comments should refer 
to ``Regional Labeling for Heating and Cooling Equipment--Proposed Rule 
(16 CFR Part 305) (Project No. P114202)'' to facilitate the 
organization of comments. Please note that your comment--including your 
name and your state--will be placed on the public record of this 
proceeding, including on the publicly accessible FTC Web site, at 
http://www.ftc.gov/os/publiccomments.shtm.
    Because comments will be made public, they should not include any 
sensitive personal information, such as any individual'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. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include ``[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 Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 46(f), and 
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing matter 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).\54\
---------------------------------------------------------------------------

    \54\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9.(c).

---------------------------------------------------------------------------

[[Page 33346]]

    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted using the following weblink: https://ftcpublic.commentworks.com/ftc/proposedregionaldisclosuresnprm (and 
following the instructions on the web-based form). To ensure that the 
Commission considers an electronic comment, you must file it on the 
web-based form at the weblink https://ftcpublic.commentworks.com/ftcproposedregionaldisclosuresnprm. If this Notice appears at http://www.regulations.gov/#!home, you may also file an electronic comment 
through that Web site. The Commission will consider all comments that 
regulations.gov forwards to it. You may also visit the FTC Web site at 
http://www.ftc.gov to read the Notice and the news release describing 
it.
    A comment filed in paper form should include the ``Regional 
Labeling for Heating and Cooling Equipment--Proposed Rule (16 CFR Part 
305) (Project No. P114202)'' reference both in the text and on the 
envelope, and should be mailed or delivered to the following address: 
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex 
C), 600 Pennsylvania Avenue NW., Washington, DC 20580. The FTC is 
requesting that any comment filed in paper form be sent by courier or 
overnight service, if possible, because U.S. postal mail in the 
Washington area and at the Commission is subject to delay due to 
heightened security precautions.
    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, whether filed in paper or 
electronic form. Comments received will be available to the public on 
the FTC Web site, to the extent practicable, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the FTC makes every 
effort to remove home contact information for individuals from the 
public comments it receives before placing those comments on the FTC 
Web site. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
    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 26, 
2012, 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.

XII. Proposed Rule Language

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Reporting and recordkeeping requirements.

    For the reasons set out above, the Commission proposes the 
following amendments to 16 CFR Part 305:

PART 305--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'')

    1. The authority citation for part 305 continues to read as 
follows:

    Authority:  42 U.S.C. 6294.

    2. In Sec.  305.12, revise paragraphs (c), (d), and (e), 
redesignate paragraphs (f) and (g) as paragraphs (h) and (i) 
respectively, add new paragraphs (f) and (g), and revise redesignated 
paragraphs (h)(8)(iii) and (i)(9)(iii) to read as follows:


Sec.  305.12  Labeling for central air conditioners, heat pumps, and 
furnaces.

* * * * *
    (c) Colors. The basic colors of all labels covered by this section 
shall be process yellow or equivalent and process black unless 
otherwise indicated in this part. The label shall be printed full bleed 
process yellow. All type and graphics shall be print process black 
unless otherwise stated.
    (d) Label Type. The labels must be affixed in the form of an 
adhesive label. 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 adhesion capacity 
sufficient to prevent their dislodgment during normal handling 
throughout the chain of distribution to the retailer or consumer. The 
paper stock for pressure-sensitive or other adhesive labels shall have 
a basic weight of not less than 58 pounds per 500 sheets (25'' x 38'') 
or equivalent, exclusive of the release liner and adhesive. 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.
    (e) Placement.
    (1) Manufacturers shall affix adhesive labels to the covered 
products in such a position that it is easily read by a person 
examining the product. The label should be generally located on the 
upper-right-front corner of the product's front exterior. However, some 
other prominent location may be used as long as the label will not 
become dislodged during normal handling throughout the chain of 
distribution to the retailer or consumer. The top of the label should 
not exceed 74 inches from the base of taller products. The label can be 
displayed in the form of a flap tag adhered to the top of the appliance 
and bent (folded at 90[deg]) to hang over the front, as long as this 
can be done with assurance that it will be readily visible. Labels for 
split system central air conditioners shall be affixed to the 
condensing unit.
    (2) In addition to the requirements of paragraph (1), for split-
system and single-package central air conditioners manufactured on or 
after January 1, 2015, and all non-weatherized and mobile home 
furnaces, manufacturers shall affix adhesive labels to covered product 
packages in such a position easily read by a person examining the 
product. Labels for split-system central air conditioners shall be 
affixed to the condensing unit's package.
    (f) Content of labels for non-weatherized, mobile home, and 
electric furnaces and boilers manufactured after May 1, 2013, and all 
furnaces and boilers manufactured after January 1, 2015.
    (1) Headlines and texts, as illustrated in the prototype and sample 
labels in appendix L to this part.
    (2) Name of manufacturer or private labeler shall, in the case of a 
corporation, be deemed to be satisfied only by the actual corporate 
name, which may be preceded or followed by the name of the particular 
division of the corporation. In the case of an

[[Page 33347]]

individual, partnership, or association, the name under which the 
business is conducted shall be used.
    (3) The model's basic model number.
    (4) The model's capacity as illustrated in the prototype and sample 
labels in appendix L to this part.
    (5) The annual fuel utilization efficiency (AFUE) for furnace 
models as determined in accordance with Sec.  305.5.
    (6) Ranges of comparability consisting of the lowest and highest 
annual fuel utilization efficiencies (AFUE) ratings for all furnaces of 
the model's type consistent with sample label 9A in appendix L.
    (7) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest annual fuel utilization 
efficiency ratings forming the scale.
    (8) The following statement shall appear in bold print on furnace 
labels beneath the range(s) as illustrated in the sample labels in 
appendix L:
    For energy cost info, visit ftc.gov/energy.
    (9) For non-weatherized gas furnaces and mobile home gas furnaces 
with an AFUE of 90 or greater, the label must contain the following 
regional standards information consistent with sample label 9A in 
appendix L to this part:
    Notice Federal law allows this unit to be installed in all U.S. 
states and territories.
    (10) For non-weatherized and mobile home gas furnaces with an AFUE 
lower than 90, the label shall contain the following regional standards 
information consistent with sample label 9A in appendix L to this part:
    (i) A statement that reads:
    Notice Federal law allows this unit to be installed only in: AL, 
AZ, AR, CA, DC, DE, FL, GA, HI, KY, LA, MD, MS, NC, NM, NV, OK, SC, TN, 
TX, VA, and U.S. territories.
    Federal law prohibits installation of this unit in other states.
    (ii) A color map and accompanying text as illustrated in sample 
label 9A in appendix L. The map contains the following colors: Green, 
CMKY value 34, 0, 55, 0; and Gray, CMKY value 0, 0, 0, 9.
    (11) The following statement shall appear at the top of the label 
as illustrated in the sample labels in appendix L:
    Federal law prohibits removal of this label before consumer 
purchase.
    (12) No marks or information other than that specified in this part 
shall appear on or directly adjoining this label except that:
    (i) A part or publication number identification may be included on 
this label, as desired by the manufacturer. If a manufacturer elects to 
use a part or publication number, it must appear in the lower right-
hand corner of the label and be set in 6-point type or smaller.
    (ii) The energy use disclosure labels required by the governments 
of Canada or Mexico may appear directly adjoining this label, as 
desired by the manufacturer.
    (iii) The manufacturer may include the ENERGY STAR logo on the 
label for qualified products in a location consistent with the sample 
labels in appendix L. The logo must be no larger than 1 inch by 3 
inches in size. Only manufacturers that have signed a Memorandum of 
Understanding with the Department of Energy or the Environmental 
Protection Agency may add the ENERGY STAR logo to labels on qualifying 
covered products; such manufacturers may add the ENERGY STAR logo to 
labels only on those covered products that are contemplated by the 
Memorandum of Understanding.
    (13) Manufacturers of boilers shipped with more than one input 
nozzle to be installed in the field must label such boilers with the 
AFUE of the system when it is set up with the nozzle that results in 
the lowest AFUE rating.
    (14) Manufacturers that ship out boilers that may be set up as 
either steam or hot water units must label the boilers with the AFUE 
rating derived by conducting the required test on the boiler as a hot 
water unit.
    (15) Manufacturers of oil furnaces must label their products with 
the AFUE rating associated with the furnace's input rate set by the 
manufacturer at shipment. The oil furnace label must contain a chart, 
as illustrated in sample label 9B in appendix L, indicating the 
efficiency rating at additional input rates of 84,000, 105,000, 
119,000, and 140,000 Btu/hr.
    (g) Content of labels for central air conditioners and heat pumps 
manufactured on or after January 1, 2015.
    (1) Headlines and texts, as illustrated in the prototype and sample 
labels in appendix L to this part.
    (2) Name of manufacturer or private labeler shall, in the case of a 
corporation, be deemed to be satisfied only by the actual corporate 
name, which may be preceded or followed by the name of the particular 
division of the corporation. In the case of an individual, partnership, 
or association, the name under which the business is conducted shall be 
used.
    (3) The model's basic model number.
    (4) The model's capacity as illustrated in the prototype and sample 
labels in appendix L to this part.
    (5) The seasonal energy efficiency ratio (SEER) for the cooling 
function of central air conditioners as determined in accordance with 
Sec.  305.5. For the heating function, the heating seasonal performance 
factor (HSPF) shall be calculated for heating Region IV for the 
standardized design heating requirement nearest the capacity measured 
in the High Temperature Test in accordance with Sec.  305.5. In 
addition, as illustrated in the sample labels 7A and 8A in appendix L, 
the energy efficiency ratings for any split-system condenser-evaporator 
coil combinations shall include the low and high ratings of all 
condenser-evaporator coil combinations certified to the Department of 
Energy pursuant to 10 CFR Part 430.
    (6)(i) Each cooling-only central air conditioner label shall 
contain a range of comparability consisting of the lowest and highest 
SEER for all cooling only central air conditioners consistent with 
sample label 7A in appendix L to this part.
    (ii) Each heat pump label, except as noted in paragraph (g)(6)(iii) 
of this section, shall contain two ranges of comparability. The first 
range shall consist of the lowest and highest seasonal energy 
efficiency ratios for the cooling side of all heat pumps consistent 
with sample label 7A in appendix L to this part. The second range shall 
consist of the lowest and highest heating seasonal performance factors 
for the heating side of all heat pumps consistent with sample label 7A 
in appendix L to this part.
    (iii) Each heating-only heat pump label shall contain a range of 
comparability consisting of the lowest and highest heating seasonal 
performance factors for all heating-only heat pumps following the 
format of sample label 7A in appendix L to this part.
    (7) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest efficiency ratings forming the 
scale.
    (8) The following statement shall appear on the label in bold print 
as indicated in the sample labels in appendix L.
    For energy cost info, visit ftc.gov/energy.
    (9) All labels on split-system condenser units must contain one of 
the following three statements:
    (i) For labels disclosing only the seasonal energy efficiency ratio 
for cooling, the statement should read:
    This system's efficiency rating depends on the coil your contractor 
installs with this unit. Ask for details.

[[Page 33348]]

    (ii) For labels disclosing both the seasonal energy efficiency 
ratio for cooling and the heating seasonal performance factor for 
heating, the statement should read:
    This system's efficiency ratings depend on the coil your contractor 
installs with this unit. The heating efficiency rating will vary 
slightly in different geographic regions. Ask for details.
    (iii) For labels disclosing only the heating seasonal performance 
factor for heating, the statement should read:
    This system's efficiency rating depends on the coil your contractor 
installs with this unit. The efficiency rating will vary slightly in 
different geographic regions. Ask for details.
    (10) The following statement shall appear at the top of the label 
as illustrated in the sample labels in appendix L:
    Federal law prohibits removal of this label before consumer 
purchase.
    (11) For any single-package air conditioner with a minimum Energy 
Efficiency Ratio (EER) of 11.0, any split-system central air 
conditioner with a rated minimum cooling capacity of 45,000 Btu/h and 
minimum efficiency ratings of 14 SEER and 11.7 EER, and any split-
system central air conditioners with a rated cooling capacity less than 
45,000 Btu/h and minimum efficiency ratings of 14 SEER and 12.2 EER, 
the label must contain the following regional standards information 
consistent with sample label 7A in appendix L to this part:
    Notice Federal law allows this unit to be installed in all U.S. 
states and territories.
    (12) For any split-system central air conditioners with a rated 
minimum cooling capacity of 45,000 Btu/h and minimum efficiency ratings 
below 14 SEER or 11.7 EER, and any split-system central air conditioner 
with a rated cooling capacity less than 45,000 Btu/h and a minimum 
efficiency rating below 14 SEER or 12.2 EER, the label must contain the 
following regional standards information consistent with sample label 
7A in appendix L to this part:
    (i) A statement that reads:
    The system you install must meet the minimum Federal regional 
efficiency standards.
    See regulations.doe.gov/certification for certified combinations.
    (ii) A map and accompanying text as illustrated in the sample label 
9A in appendix L. The map contains the following colors: Blue, CMYK 
value 33, 7, 1, 0; Peach, CMKY value 11, 26, 51, 0; and Yellow, CMKY 
value 3, 0, 55, 0.
    (iii) A statement that reads:
    Energy Efficiency Ratio (EER): The installed system's EER could 
range from [----] to [----]., depending on the coil installed with this 
unit.
    (13) For any single-package air conditioner with an EER below 11.0, 
the label must contain the following regional standards information 
consistent with sample labels in appendix L to this part:
    (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, 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 color map and accompanying text as illustrated in the sample 
label in appendix L. The map contains the following colors: Green, CMKY 
value 34, 0, 55, 0; and Gray, CMKY value 0, 0, 0, 9.
    (i) A statement that reads:
    Energy Efficiency Ratio (EER): This model's EER is [----].
    (14) No marks or information other than that specified in this part 
shall appear on or directly adjoining this label except that:
    (i) A part or publication number identification may be included on 
this label, as desired by the manufacturer. If a manufacturer elects to 
use a part or publication number, it must appear in the lower right-
hand corner of the label and be set in 6-point type or smaller.
    (ii) The energy use disclosure labels required by the governments 
of Canada or Mexico may appear directly adjoining this label, as 
desired by the manufacturer.
    (iii) The manufacturer may include the ENERGY STAR logo on the 
label for qualified products in a location consistent with the sample 
labels in appendix L. The logo must be no larger than 1 inch by 3 
inches in size. Only manufacturers that have signed a Memorandum of 
Understanding with the Department of Energy or the Environmental 
Protection Agency may add the ENERGY STAR logo to labels on qualifying 
covered products; such manufacturers may add the ENERGY STAR logo to 
labels only on those covered products that are contemplated by the 
Memorandum of Understanding.
    (h) Content of label for weatherized gas furnaces manufactured 
before January 1, 2015.
* * * * *
    (8) * * *
    (iii) The manufacturer may include the ENERGY STAR logo on the 
label for qualified products in a location consistent with the sample 
labels in appendix L. The logo must be 1 inch by 3 inches in size. Only 
manufacturers that have signed a Memorandum of Understanding with the 
Department of Energy or the Environmental Protection Agency may add the 
ENERGY STAR logo to labels on qualifying covered products; such 
manufacturers may add the ENERGY STAR logo to labels only on those 
covered products that are contemplated by the Memorandum of 
Understanding.
    (i) Content of label for central air conditioners and heat pumps 
manufactured before January 1, 2015.
* * * * *
    (9) * * *
    (iii) The manufacturer may include the ENERGY STAR logo on the 
label for qualified products in a location consistent with the sample 
labels in appendix L. The logo must be no larger than 1 inch by 3 
inches in size. Only manufacturers that have signed a Memorandum of 
Understanding with the Department of Energy or the Environmental 
Protection Agency may add the ENERGY STAR logo to labels on qualifying 
covered products; such manufacturers may add the ENERGY STAR logo to 
labels only on those covered products that are contemplated by the 
Memorandum of Understanding.
    3. Revise section 305.14 to read as follows:


Sec.  305.14  Energy information disclosures for heating and cooling 
equipment.

    (a) Manufacturer Duty to Provide Labels. For any covered central 
air conditioner, heat pump, or furnace model that a manufacturer 
distributes in commerce, the manufacturer must make a copy of the 
EnergyGuide label available on a publicly accessible Web site in a 
manner that allows catalog sellers to hyperlink to the label or 
download it for use in catalogs that advertise such products. The 
labels must remain on the Web site for two years after the manufacturer 
ceases the model's production.
    (b) Distribution. (1) Manufacturers and private labelers must 
provide to distributors and retailers, including assemblers, 
EnergyGuide labels for the central air conditioners, heat pumps, and 
furnaces (including boilers) they sell to them. The label may be 
provided in paper or electronic form (including Internet-based access). 
Distributors must give this information to retailers, including 
assemblers, they supply.
    (2) Retailers, including assemblers, who sell central air 
conditioners, heat pumps, and furnaces (including boilers) to consumers 
must make the

[[Page 33349]]

EnergyGuide labels for the models they sell available to customers 
prior to purchase, in any manner, as long as customers are likely to 
notice them. For example, they may be available in a display, where 
customers can take copies of them. They may be kept in a binder or made 
available electronically at a counter or service desk, with a sign 
telling customers where the required information is.
    (3) Retailers, including installers, who negotiate or make sales at 
a place other than their regular places of business must show the 
labels to their customers and let them read the labels before the 
customers agree to purchase the product. If the labels are on a Web 
site, retailers, including assemblers, who negotiate or make sales at a 
place other than their regular places of business, may choose to 
provide customers with instructions to access such labels in lieu of 
showing them a paper version of the information. Retailers who choose 
to use the Internet for the required label disclosures must provide 
customers the opportunity to read such information prior to sale of the 
product.
    (c) Oil Furnace Labels. If an installer installs an oil furnace 
with an input rate different from that set by the manufacturer and 
identified on the label, the installer must permanently mark the 
appropriate box on the EnergyGuide label displaying the installed input 
rate and the associated AFUE.
    4. In section 305.20, revise paragraphs (a) and (b), and add 
paragraph (c) to read as follows:


Sec.  305.20  Paper catalogs and Web sites.

    (a) Covered products offered for sale on the Internet. Any 
manufacturer, distributor, retailer, or private labeler who advertises 
a covered product on an Internet Web site in a manner that qualifies as 
a catalog under this Part shall disclose energy information as follows:
    (1) Content.
    (i) Products required to bear EnergyGuide or Lighting Facts labels. 
All Web sites advertising covered refrigerators, refrigerator-freezers, 
freezers, room air conditioners, clothes washers, dishwashers, ceiling 
fans, pool heaters, central air conditioners, heat pumps, furnaces, 
general service lamps, and televisions must display, for each model, an 
image of the label required for that product by this Part. The Web site 
may hyperlink to the image of the label using the icon depicted in 
appendix L.
    (ii) Products not required to bear EnergyGuide or Lighting Facts 
labels.
    All Web sites advertising covered showerheads, faucets, water 
closets, urinals, general service fluorescent lamps, fluorescent lamp 
ballasts, and metal halide lamp fixtures must include the following 
disclosures for each covered product:
    (A) Showerheads, faucets, water closets, and urinals. The product's 
water use, expressed in gallons and liters per minute (gpm and L/min) 
or per cycle (gpc and L/cycle) or gallons and liters per flush (gpf and 
Lpf) as specified in Sec.  305.16.
    (B) General service fluorescent lamps, fluorescent lamp ballasts 
and luminaires and metal halide lamp fixtures. A capital letter ``E'' 
printed within a circle.
    (2) Format. The required Web site disclosures, whether label image, 
icon, or text, must appear clearly and conspicuously and in close 
proximity to the covered product's price on each Web page that contains 
a detailed description of the covered product and its price. The label 
and hyperlink icon must conform to the prototypes in appendix L, but 
may be altered in size to accommodate the Web page's design, as long as 
they remain clear and conspicuous to consumers viewing the page.
    (b) Covered products offered for sale in paper catalogs. Any 
manufacturer, distributor, retailer, or private labeler that advertises 
a covered product in a paper publication that qualifies as a catalog 
under this part shall disclose energy information as follows:
    (1) Content.
    (i) Products required to bear EnergyGuide or Lighting Facts labels. 
All paper catalogs advertising covered products required by this Part 
to bear EnergyGuide or Lighting Facts labels illustrated in appendix L 
(refrigerators, refrigerator-freezers, freezers, room air conditioners, 
clothes washers, dishwashers, ceiling fans, pool heaters, central air 
conditioners, heat pumps, furnaces, general service lamps, and 
televisions) must either display an image of the full label prepared in 
accordance with this Part, or make a text disclosure as follows:
    (A) Refrigerator, refrigerator-freezer, and freezer. The capacity 
of the model determined in accordance with Sec.  305.7, the estimated 
annual operating cost determined in accordance with Sec.  305.5 and 
appendix K of this Part, and a disclosure stating ``Your energy cost 
depends on your utility rates and use. The estimated cost is based on 
[$----] per kWh. For more information, visit www.ftc.gov/energy.''
    (B) Room air conditioners and water heaters. The capacity of the 
model determined in accordance with Sec.  305.7, the estimated annual 
operating cost determined in accordance with Sec.  305.5 and appendix K 
of this Part, and a disclosure stating ``Your operating costs will 
depend on your utility rates and use. The estimated operating cost is 
based on a national average [electricity, natural gas, propane, or oil] 
cost of [$---- per kWh, therm, or gallon]. For more information, visit 
www.ftc.gov/energy.''
    (C) Clothes washers and dishwashers. The capacity of the model 
determined in accordance with Sec.  305.7 and the estimated annual 
operating cost determined in accordance with Sec.  305.5 and appendix 
K, and a disclosure stating ``Your energy cost depends on your utility 
rates and use. The estimated cost is based on [4 washloads a week for 
dishwashers, or 8 washloads a week for clothes washers] and [----] 
cents per kWh for electricity and $---- per therm for natural gas. For 
more information, visit www.ftc.gov/energy.''
    (D) General service fluorescent lamps or general service lamps. All 
the information concerning that lamp required by Sec.  305.15 of this 
part to be disclosed on the lamp's package, and a disclosure stating 
``Your energy cost depends on your utility rates and use. The estimated 
cost and life is based on 11 cents per kWh and 3 hours of use per day. 
For more information, visit www.ftc.gov/energy.'' For the ``Light 
Appearance'' disclosure required by Sec.  305.15(b)(3)(iv), the catalog 
need only disclose the lamp's correlated color temperature in Kelvin 
(e.g., 2700 K). General service fluorescent lamps or incandescent 
reflector lamps must also include a capital letter ``E'' printed within 
a circle and the statement described in Sec.  305.15(d)(1).
    (E) Ceiling fans. All the information required by Sec.  305.13.
    (F) Televisions. The estimated annual operating cost determined in 
accordance with Sec.  305.5 and a disclosure stating ``Your energy cost 
depends on your utility rates and use. The estimated cost is based on 
[----] cents per kWh and 5 hours of use per day. For more information, 
visit www.ftc.gov/energy.''
    (G) Furnaces, Central Air Conditioners, and Heat Pumps: The model's 
efficiency rating or ratings as disclosed on the label and a disclosure 
stating ``For more information, visit www.ftc.gov/energy.'' For split-
system units, a disclosure stating ``This system's efficiency rating 
depends on the coil installed with this unit.'' For central air 
conditioners manufactured on or after January 1, 2015, the catalog must 
provide, in at least one location, the disclosures and graphics 
required by section 305.12(g)(11)&(12). For non-weatherized, mobile 
home, and electric furnaces and boilers manufactured after May 1, 2013, 
and all furnaces and

[[Page 33350]]

boilers manufactured after January 1, 2015, the catalog must disclose, 
in a clear and conspicuous fashion, the states in which specific models 
may be installed as indicated on the product's label prepared by the 
manufacturer pursuant to Sec.  305.12.
    (ii) Products not required to bear EnergyGuide or Lighting Facts 
labels. All paper catalogs advertising covered products not required by 
this Part to bear labels with specific design characteristics 
illustrated in appendix L (showerheads, faucets, water closets, 
urinals, fluorescent lamp ballasts, and metal halide lamp fixtures) 
must make a text disclosure for each covered product identical to those 
required for Internet disclosures under Sec.  305.20(a)(1)(iii).
    (2) Format. Unless otherwise indicated in this section, the 
required disclosures, whether text, label image, or icon, must appear 
clearly and conspicuously on each page that contains a detailed 
description of the covered product and its price. If a catalog displays 
an image of the full label, the size of the label may be altered to 
accommodate the catalog's design, as long as the label remains clear 
and conspicuous to consumers. For text disclosures made pursuant to 
Sec.  305.20(b)(1)(i) and (ii), the required disclosure may be 
displayed once per page per type of product if the catalog offers 
multiple covered products of the same type on a page, as long as the 
disclosure remains clear and conspicuous.
    (c) For split-system and single-package central air conditioners 
offered for sale after January 1, 2015, and any non-weatherized or 
mobile home furnace, the catalog (Web site or paper catalog) must 
contain the following statement conspicuously placed on the product 
page in close proximity to the link to the product's EnergyGuide label:
    Federal law prohibits the installation of some [central air 
conditioners or furnaces] in certain states. Look to the EnergyGuide 
label to determine whether this product can be installed in your 
location.
* * * * *
    5. Revise Appendices G1, G2, G3, G4, G5, G6, G7, and G8 and add 
Appendices G9 and G10 to read as follows:

         Appendix G1 to Part 305--Furnaces--Non-Weatherized Gas
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            80.0            98.5
------------------------------------------------------------------------


           Appendix G2 to Part 305--Furnaces--Weatherized Gas
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            78.0            96.6
------------------------------------------------------------------------


               Appendix G3 to Part 305--Furnaces--Electric
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................             100             100
------------------------------------------------------------------------


         Appendix G4 to Part 305--Furnaces--Non-Weatherized Oil
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            83.0            95.4
------------------------------------------------------------------------


           Appendix G5 to Part 305--Furnaces--Weatherized Oil
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            78.0            86.1
------------------------------------------------------------------------


[[Page 33351]]


           Appendix G6 to Part 305--Mobile Home Furnaces--Gas
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            80.0            96.5
------------------------------------------------------------------------


           Appendix G7 to Part 305--Mobile Home Furnaces--Oil
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            75.0            86.6
------------------------------------------------------------------------


                 Appendix G8 to Part 305--Boilers (Gas)
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            78.0            98.0
------------------------------------------------------------------------


                 Appendix G9 to Part 305--Boilers (Oil)
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................            80.0            96.0
------------------------------------------------------------------------


              Appendix G10 to Part 305--Boilers (Electric)
------------------------------------------------------------------------
                                               Range of annual fuel
                                             utilization efficiencies
 Manufacturer's rated heating capacities              (AFUEs)
                 (Btu/h)                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
All Capacities..........................             100             100
------------------------------------------------------------------------

    6. In Appendix L, Sample Label 7 is revised, Sample Label 7A is 
added, Sample Label 8 is revised, Sample Label 8A is added, Sample 
Label 9 is revised, and Sample Labels 9A and 9B are added to read as 
follows:
* * * * *
BILLING CODE 6750-01-P

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    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2012-13626 Filed 6-5-12; 8:45 am]
BILLING CODE 6750-01-C