Federal Register, Volume 78 Issue 25 (Wednesday, February 6, 2013)

[Federal Register Volume 78, Number 25 (Wednesday, February 6, 2013)]
[Rules and Regulations]
[Pages 8362-8389]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02225]

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FEDERAL TRADE COMMISSION

16 CFR Part 305

RIN 3084-AB15]

Energy Labeling Rule

AGENCY: Federal Trade Commission (FTC or Commission).

ACTION: Final rule.

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SUMMARY: The Commission issues final amendments for 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: The amendments published in this document are effective on March
15, 2013.

ADDRESSES: Requests for copies of this document should be sent to:
Public Reference Branch, Room 130, Federal Trade Commission, 600
Pennsylvania Avenue NW., Washington, DC 20580. The complete record of
this proceeding is also available at that address. Relevant portions of
the proceeding, including this document, are available at http://www.ftc.gov.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889,
Bureau of Consumer Protection, Federal Trade Commission, Room M-8102B,
600 Pennsylvania Avenue NW., Washington, DC, 20580.

SUPPLEMENTARY INFORMATION:

I. Background

The Commission's Energy Labeling Rule (``Rule'') (16 CFR Part 305),
issued pursuant to the Energy Policy and Conservation Act (EPCA),\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 product
categories: refrigerators, refrigerator-freezers, freezers,
dishwashers, water heaters, clothes washers, room air conditioners, and
furnaces. The Commission has since expanded the Rule's coverage to
include central air conditioners, heat pumps, plumbing products,
lighting products,

[[Page 8363]]

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/energy.
\3\ 44 FR 66466 (Nov. 19, 1979). The Commission currently has
two open proceedings related to other proposed amendments of the
Rule in addition to the present one. See 77 FR 15298 (Mar. 15, 2012)
(regulatory review of the Rule); 76 FR 45715 (Aug. 1, 2011)
(proposed expanded light bulb coverage).
\4\ See 52 FR 46888 (Dec. 10, 1987) (central air conditioners
and heat pumps); 54 FR 28031 (July 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); 76 FR 1038 (Jan. 6, 2011) (televisions).
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The Rule requires manufacturers to attach yellow EnergyGuide labels
to all covered appliances and televisions, as well as 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\
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\5\ See 42 U.S.C. 6302(a)(1), 16 CFR 305.4(a)(1).
\6\ See 42 U.S.C. 6302(a)(2), 16 CFR 305.4(a)(2).
\7\ See 42 U.S.C. 6296(a), 16 CFR 305.20.
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Manufacturers must provide retailers, including distributors,
contractors, and installers, with energy information concerning
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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\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 derived from
Department of Energy (DOE) test procedures, 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 305.12.
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II. DOE Regional Standards for Heating and Cooling Equipment

In 2011, DOE established new efficiency standards for residential
furnaces, central air conditioners, and heat pumps \10\ 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 of this Notice, new DOE requirements 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. In
addition, DOE has not changed existing standards for boilers and
electric furnaces. DOE has scheduled two compliance dates for the new
standards: 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. To promote compliance with these new standards, EISA 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\
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\10\ 76 FR 67037 (Oct. 31, 2011). DOE set October 25, 2012 as
the effective date for the establishment of the regional standards
regulations. See also, 76 FR 37408 (June 27, 2011) (DOE's initial
publication of regional standards).
\11\ Public Law 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.
\13\ 10 CFR 430.32 (DOE standards). EISA requires DOE to
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. 42 U.S.C. 6295(o)(6)(G).
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III. EISA's Mandate for New FTC Disclosures Related to Regional
Standards

In addition to requiring DOE to develop new efficiency 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.'' \14\ The statute 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.'' \15\ Consistent with the timing for DOE's
enforcement plan, EISA directs the Commission to complete this effort
within 15 months after DOE establishes the regional standards.
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\14\ 42 U.S.C. 6295(o)(6)(H).
\15\ Id.
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IV. 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.\16\ Specifically, the ANPR solicited suggestions for
disclosures to help consumers, distributors, contractors, and
installers easily determine whether a specific furnace, central air
conditioner, or heat pump meets the applicable standard for their
region. The Notice 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.\17\
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\16\ 76 FR 72872 (Nov. 28, 2011).
\17\ Transcript available at http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/furncacregstnd_enforceramework_pmtranscript.pdf.
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V. Notice of Proposed Rulemaking

The Commission followed the ANPR with a Notice of Proposed
Rulemaking (NPRM) on June 6, 2012, requesting comments on proposed, new
EnergyGuide label content for heating and cooling equipment.\18\ For
products subject to regional standards, the proposed label contained
two parts: an upper portion to educate consumers about the product's
efficiency rating and a lower portion to help industry members comply
with the new DOE standards. The proposal also expanded the label's
availability by requiring it on manufacturer Web sites, on product
packaging, and at the point-of-sale. In addition, the Commission
proposed to direct contractors to make the labels available to
consumers prior to purchase. The NPRM also sought comments on a change
to the oil furnace labels to disclose efficiency ratings at multiple
input capacities. Finally, the Commission stated that the compliance
dates for the new labels would coincide with the DOE compliance dates
for the various product categories.
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\18\ 77 FR 33337 (June 6, 2012).
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The Commission received 11 written comments in response, each of
which generally supported the proposed

[[Page 8364]]

changes to the EnergyGuide label.\19\ For example, ACCA stated that the
new labels will facilitate compliance with the DOE standards and
prevent unscrupulous contractors from undercutting competitors by
selling cheaper, non-compliant products.\20\ In addition, NRDC stated
that the proposed label ``is logical and will be informative'' to
consumers, installers, distributors, and other stakeholders. However,
as discussed below, commenters raised concerns with some specifics of
the proposal and suggested changes.
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\19\ See Air Conditioning Contractors of America (ACCA)
( 560904-00011); Air-Conditioning, Heating, and
Refrigeration Institute (AHRI) ( 560904-00008); American
Gas Association (AGA) ( 560904-00005); American Public Gas
Association (APGA) ( 560904-00004); Earthjustice (
560904-00009); Goodman Manufacturing ( 560904-00010);
Heating, Air-Conditioning and Refrigeration Distributors
International (HARDI) ( 560904-00012); Ingersoll Rand
Residential Solutions ( 560904-00007); Natural Resources
Defense Council (NRDC) (including Alliance to Save Energy, American
Council for an Energy-Efficient Economy, Appliance Standards
Awareness Project, Consumer Federation of America, National Consumer
Law Center, Natural Resources Defense Council, Northeast Energy
Efficiency Partnerships, and Northwest Energy Efficiency Alliance)
( 560904-00003); Rae, Audra ( 560904-00002); Rheem
Manufacturing Company ( 560904-00006). The comments are
available at http://www.ftc.gov/os/comments/regionaldisclosurenprm/index.shtm.
\20\ ACCA also supported the proposed split label format. See
also HARDI comments.
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VI. Final Rule

After considering the comments, the Commission adopts the proposed
amendments, with only minor revisions. The new label content discloses
efficiency ratings in a simple format and provides regional information
to help installers comply with the law.\21\ The final provisions also
expand the label's availability by requiring it on product packaging
(Sec. 305.12(e)(2)), at the point of sale (Sec. 305.14) and, as
already required by the Rule, on Web sites and the products themselves
(Sec. Sec. 305.20 and 305.12). These new requirements should help
industry members comply with the regional standards and aid consumers
in their purchasing decisions. As discussed below, the Commission made
several changes to the proposed label's content, location, and timing
in response to comments. Finally, the rule does not require
implementation of the new disclosures until the final compliance dates
for the DOE regional standards. Thus, if the DOE standards are
postponed or vacated for any reason, the applicable labeling rules will
not apply until DOE reissues a final compliance date.
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\21\ Tables 1 and 2 summarize the content of the final labels by
product category. Consistent with current practice, the FTC staff
will create new label templates for each heating and cooling product
that manufacturers may download from www.ftc.gov/energy.
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A. Label Content

To inform industry members and consumers about regional standards,
the Commission proposed a label with two sections. The upper portion,
which resembles the current EnergyGuide, provides consumers with
valuable energy efficiency information on labels for all heating and
cooling products, whether or not they are subject to different regional
standards. The lower portion contains maps, tables, and other
information to help installers comply with regional standards and is
required only on products subject to those standards (i.e., split-
system air conditioners, single-package air conditioners, and non-
weatherized and mobile home gas furnaces). As detailed below, the final
rule follows this two-section format (see Samples in Appendix L), which
was proposed in the NPRM.
1. Upper Portion Content
Background: The proposed upper label portion in the NPRM contained
three primary disclosures. First, it included the simple title,
``Efficiency Rating,'' with the technical term for the product's
efficiency rating elsewhere in a smaller font (e.g., ``Seasonal Energy
Efficiency Ratio (SEER)''). Second, the proposed upper portion
displayed a range of ratings for similar models to help consumers
compare competing products.\22\ This range information also contained
ratings for the various condenser-coil combinations of split-system air
conditioners and heat pumps. Finally, the proposed upper label portion
included a prominent link to a DOE online energy cost calculator, as
well as the product's capacity and model number.
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\22\ In the NPRM, the Commission also proposed to update
existing comparability ranges for all heating and cooling equipment.
The Commission proposed to require new ranges beginning May 1, 2013,
to coincide with the new efficiency standards applicable to most
products. However, for products subject to standards effective on
January 1, 2015 (i.e., central air conditioners, heat pumps, and
weatherized furnaces), the Commission proposed to wait to apply
ranges until that date.
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Comments on Upper Portion Content: In response to the proposed
rule, commenters raised concerns about the proposed wording for
efficiency rating terms, the label's comparability range bar design,
and the label's inclusion of capacity and model numbers.
First, some commenters objected to the Commission's proposal to
prominently display the term ``Efficiency Rating,'' and relegate
technical terms such as, ``SEER,'' ``Energy Efficiency Ratio (EER),''
``Heating Seasonal Performance Factor (HSPF),'' and ``Annual Fuel
Utilization Efficiency (AFUE),'' to a less noticeable portion of the
label. The comments argued that this approach could incorrectly suggest
to some consumers that all product types use the same rating
system.\23\ To address this concern, the commenters recommended that
the label clearly display the applicable efficiency rating (e.g., HSPF
or SEER) to prevent consumers from making incorrect comparisons.\24\
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\23\ See ACCA and NRDC comments. For example, NRDC explained
that a consumer comparing a heat pump and a furnace might assume
both products use the same rating system even though different
rating systems apply (HSPF for the heat pump and SEER for the
furnace).
\24\ To reduce potential confusion, Goodman recommended changing
the term ``condensing unit'' in the Rule to ``outdoor section'' and
the term ``coil'' to ``indoor product.'' The Commission does not
plan to change the current terms because they are consistent with
the terms used in DOE regulations (10 CFR Part 430) and have
appeared in FTC rules for decades with no apparent confusion.
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Second, commenters raised concerns about the proposed comparability
range design. In the NPRM, the Commission proposed to replace the line
graph on the current label with a horizontal thermometer-style scale
found on the new, smaller television EnergyGuide label. For split-
system models (i.e., models with a condenser and coil), the proposed
label also included a secondary range, comprised of a line graph marked
with downward arrows, depicting the high and low efficiency ratings
associated with the system's different possible condenser-coil
combinations. Both ACCA and NRDC commented that the proposed range
design was unnecessarily complicated and potentially confusing to
consumers, in part due to overlapping information on the range. These
commenters recommended that the FTC return to the current range design,
consistent with a draft label AHRI recommended earlier in this
proceeding.\25\
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\25\ See AHRI Comments on ANPR (Feb. 3, 2012) http://www.ftc.gov/os/comments/regionaldisclosuresanpr/00003.html.
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Finally, one manufacturer, Goodman, opposed the proposal to require
the basic model number and the model's capacity on the EnergyGuide
label. Under current requirements, which do not mandate model number
and capacity, Goodman uses a single label for multiple models that have
the same energy efficiency rating, but different capacities.
Accordingly, it argues the proposed capacity and model number
disclosures would require the creation of many new labels. Goodman also
questioned the benefit of including

[[Page 8365]]

capacity on the label, especially for split systems, because a system's
capacity will vary depending on the condenser-coil combination. It also
noted that the AHRI Web site and manufacturer literature already
provides a product's actual rated capacities.\26\
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\26\ In the NPRM, the Commission also sought comment on the
incorporation of a QR (``Quick Response'') code on the label.
Industry comments (e.g., AHRI and Goodman) opposed the idea arguing
that such a code would take up too much space on the label, confuse
consumers, and provide only marginal benefit. In its separate
regulatory review of the Rule, the Commission also sought comments
on the use of a QR code. The Commission will consider the comments
received in that proceeding before considering whether to propose
any specific requirements related to QR codes.
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Response to Comments on Upper Portion Content: In response to these
comments, the Commission has increased the prominence of the efficiency
rating terms and changed the graphical presentation of the label's
comparability range. However, consistent with the NPRM, the final rule
requires capacity and model numbers on the labels.
The Commission agrees with commenters that the label's technical
efficiency rating terms (e.g., SEER) should appear in a more prominent
fashion. In some situations, consumers may compare heating and cooling
products that fall into different categories (e.g., heat pumps and
furnaces). Without clear information identifying various efficiency
ratings across labels (e.g., HSPF and AFUE), consumers may incorrectly
compare different rating systems. Accordingly, the final rule requires
the acronym for the model's rating type immediately adjacent to the
term ``Efficiency Rating'' (e.g., ``Efficiency Rating (SEER*)''). The
full term for the applicable efficiency rating (e.g., ``*Seasonal
Energy Efficiency Rating'') will appear beneath the range information.
See, e.g., Sample Label 7A, below.
The Commission also agrees with commenters that the use of the
horizontal thermometer scale may cause confusion. In particular, as
noted by commenters, the high and low efficiency numbers associated
with split systems complicate the disclosure and may make the
thermometer-style range appear cluttered. Accordingly, the final rule
retains the simpler design from the current label and augments it with
the high and low ratings for split systems, similar to that suggested
by AHRI in its earlier comments. See, e.g., Sample Label 7A, below.
Finally, consistent with the proposal, the amendments require model
number and capacity disclosures on the label. Without this information,
consumers cannot use the DOE-generated cost calculator referenced on
the label. In addition, for split systems, the model number and
capacity allows consumers to obtain efficiency rating and energy cost
information of various condenser-coil combinations. Although some
manufacturers may have to change their labeling practices, the benefits
of the energy cost estimates for consumers outweigh this incremental
cost increase.\27\
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\27\ Because the FTC staff has assumed that manufacturers create
a single label for each basic model, this change does not alter the
Commission's Paperwork Reduction Act burden estimates for the Rule.
See section VIII of this Notice.
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Summary of Final Upper Portion Content: The final rule for the
label's upper portion requires disclosure of the product's efficiency
rating, a range of efficiency ratings for similar products, and a link
to an online energy cost calculator. The new, updated upper portion
design applies to all heating and cooling equipment, even product types
not subject to the new regional standards such as electric furnaces,
boilers, and weatherized furnaces. The new label bears the simple title
``Efficiency Rating,'' followed by a technical acronym for the rating
applicable to that product (e.g., SEER or AFUE). It also includes the
term ``efficiency rating'' because most consumers will not recognize
the technical terms alone (e.g., SEER). However, the full name of the
efficiency rating (e.g., ``Seasonal Energy Efficiency Rating'') also
appears on the label's upper portion.
In addition to the model's efficiency rating, the upper portion
continues to display a range of ratings for similar models to help
consumers compare competing products. The final rule updates the
existing comparability ranges for most heating and cooling
equipment.\28\ Specifically, it updates ranges for non-weatherized,
mobile home, and electric furnaces and boilers based on recent data and
the DOE efficiency standards currently scheduled to become effective on
May 1, 2013.\29\ The Commission will issue new ranges for products
subject to new standards currently scheduled to become effective on
January 1, 2015 (i.e., central air conditioners, heat pumps, and
weatherized furnaces) in 2014.\30\ The final rule also specifies
separate ranges for each system type, including weatherized and non-
weatherized furnaces, split-system air conditioner systems, small duct,
high-velocity systems, and space-constrained air conditioners. The
final label contains a prominent link to an online energy cost
calculator provided by a DOE Web site (productinfo.energy.gov). This
calculator will provide a clear, understandable tool to compare energy
performance. To allow consumers to use the calculator, the labels must
display the model's capacity in addition to its efficiency rating.\31\
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\28\ See Appendices G1-G6.
\29\ The new ranges currently scheduled to become effective on
May 1, 2013 apply to some equipment that is not subject to any
change in the standards (e.g., electric furnaces and boilers). The
new ranges will ensure the labels provide consumers the most recent
model data. The final rule adjusts the lower end of the boiler
ranges to reflect new DOE efficiency standards that became effective
Sept. 1, 2012. 73 FR 43611 (July 28, 2008).
\30\ 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. 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.
\31\ Energy cost information already appears on EnergyGuide
labels for other covered products, including dishwashers and
televisions. Unlike those products, however, heating and cooling
costs can vary significantly depending on whether the consumer lives
in a hot or cold climate. For example, the annual operating cost of
a furnace is likely to be much higher in Minnesota than Florida.
Therefore, national average cost information on the label may not be
helpful to many consumers. The online cost calculator will give
consumers better information based on their location.
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Finally, consistent with the proposed label, the final label's
upper portion contains specific information for split-system air
conditioners and heat pumps. 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 a typical coil (i.e., the condenser-coil combination with
the highest sales volume). The final label changes this approach by
disclosing the lowest and highest SEER (and HSPF for some models)
ratings for all the condenser's certified coil combinations to ensure
the consumer and installers understand that the final rating of their
system will depend on the coil installed with the condenser.\32\ This
disclosure provides the minimum and maximum efficiency yielded by a
particular split-system. The upper label portion also states that an
installed system's efficiency will vary depending on the coil matched
with the condenser.
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\32\ See, e.g., Sample 7A, Appendix L.

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[[Page 8366]]

2. Lower Portion Content
Background: In the NPRM, the lower portion of the proposed label
contained regional standards information, where applicable, to help
installers and consumers understand those requirements. The proposed
lower portion communicated this information through text, a map, and a
Web site link. The text included general information for installers
about regional efficiency standards, including a list of applicable
states. In addition, a color U.S. map illustrating regional standards
information appeared on the label for products that do not meet
standards in one or more regions (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 Commission
also designed the proposed labels to ensure that the FTC EnergyGuide
map would not appear on any labels displaying the Energy Star logo,
which also contains a map, to eliminate any confusion from the
appearance of two different maps on the same label.
For central air-conditioner models that do not meet the regional
standards in one or more regions, the proposed label displayed a
generic map and a table illustrating the three regions covered by the
new DOE standards. It also contained EER ratings (including high and
low ratings for split-system combinations) to help installers determine
regional standards compliance.\33\ For split systems, the proposed
label also contained a link to a DOE Web site listing various
condenser-coil combinations. Finally, the proposed label for single-
package air conditioners (i.e., units with consolidated components)
rated below 11.0 EER displayed a product-specific map, instead of the
generic map on split-system labels, to illustrate that such models can
only be installed in the northern and southeastern regions. On furnace
labels, the Commission also proposed specific regional information. For
non-weatherized gas and mobile home gas furnaces rated below 90 AFUE,
the draft label contained a map and a list identifying those states
where the product may be installed. For non-weatherized gas furnaces,
mobile home furnaces, and air conditioners that meet standards in all
regions, the proposed label contained the statement: ``Federal law
allows this unit to be installed in all U.S. states and territories.''
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\33\ The applicable DOE standards for split-system air-
conditioner products involve three different geographic regions and
two different efficiency ratings (SEER and Energy Efficiency Ratio
(EER)). As noted in the NPRM, EER is ``a measure of energy
efficiency for central air conditioners at specific operating
conditions,'' while SEER is ``a measure of energy efficiency for
central air conditioners that estimates energy performance over a
typical cooling season.'' 77 FR at 33339, n.19 (June 6, 2012).
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Comments on Lower Portion Content: Commenters generally supported
the content of the proposed lower label. However, several raised
specific concerns about the proposed map's colors, the presentation of
the ENERGY STAR logo, the prominence of EER disclosures, and the
potential inclusion of a link to the AHRI directory.
First, three industry members urged the Commission to require a
black and yellow label, instead of the proposed color map.\34\ AHRI,
which recommended a color map in earlier comments,\35\ changed its
recommendation, stating that multi-color labels would impose a
substantial burden. Two other commenters argued that a color map would
force some manufacturers to purchase new printers.\36\ These comments
urged the FTC to abandon the proposed color label and return to the
yellow and black format. In doing so, they suggested single-color
display patterns, such as solid and cross-hatch fills, to depict
multiple map regions. However, one commenter, ACCA, opposed this
change, arguing that the color label is critical to enable
distributors, contractors, and consumers to determine whether equipment
can be legally installed.
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\34\ AHRI, Ingersoll Rand, and Rheem comments.
\35\ AHRI comments (Feb. 3, 2012) available at http://www.ftc.gov/os/comments/regionaldisclosuresanpr/00003-82667.pdf.
\36\ See Ingersoll Rand and Rheem comments.
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Second, commenters raised concerns about the content and placement
of the ENERGY STAR logo, which includes a U.S. map identifying the
states where the product qualifies for the ENERGY STAR program. ACCA
noted that the proposed rule contained an older version of the ENERGY
STAR logo, which did not identify Kentucky as part of the southern
region. In addition, two comments raised concerns about the interaction
of the ENERGY STAR logo with other label information. ACCA and NRDC
argued that some labels may confuse consumers--specifically where the
ENERGY STAR logo, which illustrates that some products only qualify for
that program in certain states, appears with the statement ``Federal
Law allows this unit to be installed in all U.S. States and
territories.'' NRDC urged the Commission to avoid such problems by
placing the ENERGY STAR logo in a separate section. Other commenters
asked the Commission to clarify that the inclusion of the ENERGY STAR
logo on the label is optional.\37\
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\37\ AHRI; and Ingersoll Rand comments. They explained that
frequent changes to the ENERGY STAR program may make it difficult
for manufacturers to update their labels to stay current with ENERGY
STAR requirements.
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Third, commenters recommended that the Commission increase the
prominence of the label's EER information. ACCA and NRDC recommended
that EER information appear side-by-side or close to the SEER ratings
on the label's upper portion to provide informed consumers with this
information and help educate others about different efficiency
measures. One manufacturer recommended a larger font for the EER values
on split and packaged central air conditioner labels.\38\ In addition,
NRDC encouraged the FTC to include a brief definition for both SEER and
EER on the label as recommended in its comments on the ANPR.\39\
---------------------------------------------------------------------------

\38\ Ingersoll Rand comments.
\39\ NRDC also suggested changing ``Notice'' to ``Notice of
Minimum Regional Standards'' in the label's lower portion. It
contended that this modification would provide clarity and further
educate installers, distributors and other stakeholders who may be
new to the idea of regional efficiency standards. The Commission has
not included NRDC's suggested language because it would add
additional text to an already crowded label. In addition, it is
unclear whether the reference to ``regional standards'' in the
heading will be helpful to the average consumer.
---------------------------------------------------------------------------

Finally, some industry members urged the Commission to allow
manufacturers that participate in AHRI's certification programs to
include a link to AHRI's Web site on the label. ACCA explained that
contractors use this directory to determine the ratings of potential
condenser-coil combinations and to print certificates for tax credit or
utility incentive programs. AHRI argued that its directory is easier to
use than the DOE Web site. AHRI also recommended that a database link
appear on all EnergyGuide labels for all heating and cooling equipment,
not just those for split-system central air conditioners.\40\
---------------------------------------------------------------------------

\40\ Ingersoll Rand also urged the Commission to allow a link to
the AHRI database on the label.
---------------------------------------------------------------------------

Response to Comments on Lower Portion Content: In response to
comments, the Commission has changed the final label to yellow and
black and updated the ENERGY STAR logo and changed its location.
However, the Commission has not changed the location of the EER
disclosures for split-system labels or included a link to the AHRI
directory on the labels.
The Commission agrees with commenter concerns about the burden
associated with multi-color labels. According to the comments, a multi-

[[Page 8367]]

color label would require some manufacturers to purchase new printers
and others to pay higher printing costs. The traditional yellow and
black content can adequately communicate information to installers and
consumers without the significant cost of multi-color printing.
Accordingly, the final rule requires a yellow label with black text,
consistent with the current one. The final label denotes different
regions through gray-scale shading and conveys the same information
provided by the proposed multi-color version.
The final rule also includes two changes related to the ENERGY STAR
logo. To ensure the Rule includes the most current information, the
final labels include an updated version of the ENERGY STAR logo. In
addition, to minimize any confusion associated with the ENERGY STAR
logo and the regional standards map, the final labels separate the
ENERGY STAR logo from the regional standards information with a thick
black line. Finally, the Commission notes that, under the Rule, the
inclusion of the ENERGY STAR logo is optional.
The final rule continues to require EER ratings on the label for
split and single-package air conditioners because such information is
necessary to determine regional standards compliance for some
products.\41\ The Commission has increased the size of the EER
disclosure. However, contrary to some comments, the ratings continue to
appear on the lower portion of the labels. Because consumers are likely
to be unfamiliar with EER ratings, their prominent inclusion on the
label's upper portion could lead to confusion. Likewise, the Commission
has not defined the complicated terms ``SEER'' and ``EER'' on the label
because it is unclear whether their inclusion would significantly aid
consumers. In addition, given the technical nature of the differences
between EER and SEER, any explanation might create more confusion than
clarity for consumers.
---------------------------------------------------------------------------

\41\ The Commission has corrected the text of the final
amendments to clarify that the EER information must appear on all
split-system and single-package model labels, not just those that do
not meet the regional standards.
---------------------------------------------------------------------------

Contrary to some comments, the final label links consumers to the
DOE Web site rather than AHRI's directory. DOE's Web site provides a
U.S. government source of information from both AHRI and non-AHRI
members. In addition, some manufacturers are not members of AHRI, and
the link's inclusion on a government-mandated label is not appropriate.
Finally, all the labels will have a link to DOE's certification
database through the separate cost calculator link in the label's upper
portion (productinfo.energy.gov).
Summary of Final Lower Portion Content: Consistent with the
proposed rule, the final label's lower portion contains information to
help installers and consumers ensure that installed equipment complies
with DOE's regional standards. The label's text provides general
information to installers about regional efficiency standards,
including a list of states where the model may be legally
installed.\42\ A U.S. map illustrating regional standards information
appears on labels for products that do not meet standards in one or
more regions (i.e., certain split air conditioner systems, single-
package air conditioners rated at lower than 11.0 EER, and non-
weatherized and mobile gas furnaces rated at lower than 90 AFUE). The
map provides a simple, graphical means to inform distributors,
contractors, and consumers about where installation of the particular
equipment is prohibited. Finally, the label contains a link to DOE's
database of certified equipment to allow installers and consumers to
determine the ratings of specific condenser-coil combinations for split
systems (productinfo.energy.gov).
---------------------------------------------------------------------------

\42\ In addition to the comments outlined above, ACCA
recommended that the state names on the label appear in full and not
as postal abbreviations. ACCA noted that the use of postal
abbreviations changes the order the states appear in some cases. In
the Commission's view, it is unlikely that these subtle changes will
lead to serious confusion. Even in the few instances where the order
of the abbreviations may differ from those of the full name, the
abbreviations are in close enough proximity that the reader is not
likely to miss them. In addition, the full spelling of states would
consume significant space on the label.
---------------------------------------------------------------------------

As proposed in the NPRM, the final label's lower portion also
contains specific content for central air conditioners and furnaces
subject to regional standards. In particular, for models not meeting
the standards in at least one region, the label displays a U.S. map and
a table displaying information about the three regions covered by the
new DOE standards. The labels for split-system and single-package air
conditioners also contain EER ratings, which are necessary to help
installers determine regional standards compliance (see Tables 1 and
2). For split systems, the EER information includes the high and low
certified ratings. Consistent with DOE's standards, the 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. For non-weatherized
and mobile gas furnaces rated below 90 AFUE, the label contains a map
and a list identifying those states where the product may be installed.
Conversely, for non-weatherized furnaces, mobile home furnaces, and
central air conditioners 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. Location and Format of Label

Background: In the NPRM, the Commission explained that the label
would serve as the primary tool for communicating efficiency and
standards information. Under the proposed rule, the label would appear
on packaging (for product categories subject to regional standards) and
manufacturer Web sites, as well as on the product itself and retailer
Web sites as already mandated. The proposal also required 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.'' Finally, the proposed rule required certain retail
sellers (e.g., contractors, installers, and assemblers) to make the
EnergyGuide label available to consumers before purchase and
specifically directed contractors to give consumers the opportunity to
review the EnergyGuide label prior to purchase as currently required.
Comments on Label Location and Format: Commenters generally
supported the proposed label placement requirements. For example, ACCA
asserted that the label's appearance on packaging will help prevent
improper installations and its presence on manufacturer Web sites will
aid contractors in providing the labels to consumers. Earthjustice
predicted that the requirements will help ensure all consumers receive
energy information about these products.
However, some commenters raised concerns about three specific
aspects of the proposal. First, Earthjustice argued that the Rule
should require all retailers, not just contractors, to ensure consumers
have label information early in the sales process. Specifically, it
urged the Commission to direct brick-and-mortar retailers to
``affirmatively provide consumers with a copy of the label or
directions for viewing the label online prior to the sale of the
product.'' It also argued that, at the very least, the Commission
should clarify how retail sellers who negotiate or make sales over the
telephone or online (e.g., via email

[[Page 8368]]

or web forms) should make the required disclosure. Finally,
Earthjustice recommended that the Rule require retail sellers to have
customers confirm in writing that they have read and understood the
label and that they are aware of any regional standards applicable to
the product.
Second, NRDC and Earthjustice urged the Commission to ensure that
labels remain attached for the product's lifetime to help homeowners
with replacement purchases and prospective homebuyers who examine
installed equipment. In particular, NRDC urged the Commission to
eliminate language requiring adhesive labels that can be easily removed
``without the use of tools or liquids, other than water.'' NRDC noted
that, because heating and cooling products are usually installed in
out-of-the-way locations (i.e., in utility closets, basements,
rooftops, or outdoors), a more durable label is unlikely to create
aesthetic concerns. In contrast, Goodman argued that the label may not
be legible on units stored outdoors for months or years. It recommended
specific adhesive specifications, to replace the current requirements
which simply call for sufficient strength to prevent dislodgment during
normal handling.\43\
---------------------------------------------------------------------------

\43\ Specifically, Goodman questioned the requirement that
labels have ``an adhesion capacity sufficient to prevent their
dislodgment during normal handling throughout the chain of
distribution to the retailer or consumer,'' arguing that
manufacturers cannot control how products are handled once they
leave their control. Thus, Goodman recommended that the Rule simply
require a peel-adhesion (as noted in the last sentence of the same
paragraph), but with a reference to an appropriate industry standard
test method for peel-adhesion developed by ASTM International.
---------------------------------------------------------------------------

Finally, several manufacturers objected to the proposal to require
the label on product packaging. AHRI argued that this requirement is
unnecessary because current label requirements adequately communicate
product information to installers and consumers. Some commenters also
argued that current labeling practices already allow installers to view
the label before opening packages. For example, some manufacturers use
transparent shrink-wrap as packaging, making the EnergyGuide label
clearly visible to anyone examining the packaging. Other manufacturers
create open pockets on their product packaging to ensure the label can
be seen.\44\ Given these examples, AHRI argued that the proposed
mandatory package labels will increase costs without adding value to
the disclosure process. Other commenters recommended that the
Commission allow manufacturers to comply with the package label
requirement by ensuring that the label affixed to the product is
visible.\45\ Furthermore, Goodman explained that mandatory package
labels may not be feasible because many manufacturers ship their single
package HVAC products in corrugated, wax-coated boxes, which do not
hold adhesive labels well.
---------------------------------------------------------------------------

\44\ Rheem also argued that the label on the packaging would
provide little value because consumers rarely see the packaging.
\45\ Ingersoll Rand and Goodman comments.
---------------------------------------------------------------------------

Response to Comments: Consistent with the NPRM, the final rule
requires labels on products, packages, and Web sites to ensure the
availability of regional standards information for consumers and
installers. Additionally, the Commission, in response to commenters,
has modified its proposal by updating the disclosure rules applicable
to retailers, slightly changing the label's adhesive requirements, and
clarifying that manufacturers need not affix a label to packaging if
the label is legible through the packaging.
By focusing on the EnergyGuide labels as the primary vehicle for
conveying energy efficiency, the final requirements provide a single,
familiar tool for communicating efficiency and standards information.
The Rule also avoids multiple formats that could cause confusion and
increase compliance burdens. For distributors, installers, and other
retailers, the comprehensive label eliminates the need to create their
own disclosures. In addition, by requiring the label on products and
packaging, the final rule 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 provide installers with regional standards information to ensure
they install the correct equipment under the law.\46\ For products
subject to the regional standards, labels on packages will aid
distributors and installers to determine whether a model meets
applicable standards before they ship or open boxes, avoiding costly
mistakes.
---------------------------------------------------------------------------

\46\ The proposed rule does not require a permanent EnergyGuide
label on these products as suggested by comments, since the unit's
model number provides the information necessary to determine
compliance, particularly given the availability of online databases
from DOE and AHRI.
---------------------------------------------------------------------------

After considering the comments, the Commission has modified some
requirements for point of purchase disclosures and package labeling as
follows. First, in response to Earthjustice's concerns, the final rule
(Sec. 305.14(b)(2)) states that brick-and-mortar retailers must show
the label to their customers before they agree to purchase the product
to ensure customers will have access to the labels for the products
they are considering even if they do not specifically request to see
them. Though it is unclear whether many consumers purchase heating and
cooling equipment in brick-and-mortar stores, the revision will ensure
that such consumers have the same label access as those purchasing
equipment in their homes. Retailers may comply with the Rule by
informing consumers of the labels and providing a way for them to
access the information electronically. They may also display the labels
on the products themselves (if the products are clearly visible to
shoppers) or display them elsewhere in full view of the consumers. In
addition, the final rule (Sec. 305.14(b)(3)) clarifies that retailer
sellers who conduct their transactions solely over the telephone or
internet (e.g., email or web forms) must tell consumers where they can
view the labels online and give them an opportunity to review labels
before purchase. This will ensure that consumers have an opportunity to
review the labels regardless of which purchase method they use. The
final rule does not require contractors and other sellers to obtain a
signed acknowledgment confirming that they have provided label
information to consumers because it is unclear whether the benefits of
such a requirement outweigh its substantial costs to small businesses.
The final rule eliminates the specific adhesive provisions
requiring manufacturers to use labels that easily can be removed with
water. As NRDC notes, labels on installed equipment can benefit
consumers by helping homeowners in their future purchasing decisions or
by informing homebuyers about the efficiency ratings of installed
units. To encourage more durable labels, the final rule allows
manufacturers to use stronger adhesives. At the same time, the Rule
does not mandate a permanent label given uncertainties about the cost
and feasibility of such a requirement. In the label's absence, the
unit's model number will provide the information necessary to determine
compliance, particularly with the availability of online databases from
DOE and AHRI. The final rule does not impose a prescriptive adhesive
requirement because there is no evidence that the current performance-
based requirements, which have been in place for decades, do not work.

[[Page 8369]]

Finally, in response to industry concerns, the final rule does not
require a separate label on the packaging of products subject to
regional standards if the label affixed to the product is visible from
the package's exterior. There is no reason to require the manufacturer
to place another label on the product packaging if the product label is
clearly visible to someone examining the package. In addition, to
ensure the label remains affixed to different packaging (e.g., wax-
coated boxes), manufacturers may affix the labels through means other
than adhesives (e.g., staples, tape, etc.) as long as the method
prevents the label's dislodgment during normal handling throughout the
distribution chain to the retailer or consumer and ensures the label is
clearly visible.
Summary of Final Label Location and Format: The final rule requires
that the label be visible on packaging for product categories subject
to regional standards (Sec. 305.12) as well as on retailer and
manufacturer Web sites (Sec. Sec. 305.20 and 305.14).\47\ For online
disclosures, the final rule (Sec. 305.20) also directs 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.'' As discussed above, the final
requirements (Sec. 305.14) direct retail sellers (e.g., contractors,
installers, assemblers, and retail stores) to make the EnergyGuide
label available to consumers and provide them the opportunity to review
the EnergyGuide label prior to purchase. Contractors can comply with
this requirement by, for example, showing the labels to consumers or
providing them instructions to view the labels online.\48\
---------------------------------------------------------------------------

\47\ The Commission recently issued amendments to the Rule
requiring manufacturer Web sites to provide consumers, distributors,
and installers access to their product labels online for all
products bearing an EnergyGuide label by July 15, 2013. The
amendments also require all online retailers to include the
EnergyGuide label for the products they sell by January 15, 2014. 78
FR 2200 (Jan. 10, 2013). These requirements are consistent with
those issued by the Commission for television labels in 2011. See 76
FR 1038 (Jan. 11, 2011) (television requirements).
\48\ The Rule already contains similar disclosure requirements.
16 CFR 305.14.
---------------------------------------------------------------------------

C. Additional Labeling Requirements for Oil Furnaces

Background: In the NPRM, the Commission proposed to amend the oil
furnace label to give manufacturers the option of including the
efficiency ratings associated with different input rates, which allow
different levels of fuel usage. The proposed label contained a chart
displaying four efficiency ratings associated with four different input
rates. Under the proposal, installers who use an input rate different
from the manufacturer's default would mark the chart on the EnergyGuide
label.
Comments: The commenters offered mixed views on this proposal.
AHRI, which originally proposed the label modification, supported the
proposal. However, it urged the Commission to change the term ``input
rate'' to ``input capacity,'' consistent with the terminology used in
DOE's regulations. It also noted that the proposed input capacities in
the NPRM (i.e., 84,000, 105,000, 119,000 and 140,000 Btu/h) do not
represent an exhaustive list of capacities for typical models.
Accordingly, AHRI urged the Commission to allow manufacturers to
include up to four capacities of their own choosing. AHRI also urged
the Commission to clarify the requirements for ENERGY STAR logo
placement, noting that some oil furnace models may meet ENERGY STAR
criteria at one input capacity, but not at another.
In contrast, Goodman opposed the proposed oil furnace label,
raising concerns that the label would not be durable and, any
requirement to make it so would be overly burdensome. Goodman also
argued that a specific input capacity rating is not necessary because
the labels adequately disclose relative performance from one product to
the next.
Final Rule and Response to Comments: Consistent with the NPRM, the
final rule (305.12(h)(15)) allows, but does not require, manufacturers
to include multiple input capacities on their EnergyGuide labels for
oil furnaces. However, the final rule contains several changes and
clarifications in response to the comments. First, the Rule does not
dictate which input capacities must appear on the label because, as
noted by the comments, manufacturers do not offer a uniform set of
input capacities. Instead, the final rule allows manufacturers to
include up to four input capacities compatible with their model.
Second, the label uses the term ``input capacity'' instead of ``input
rate'' in response to commenter suggestions. Finally, the final rule
only allows the ENERGY STAR logo on models certified by that program at
all input capacities listed on the label. To avoid consumer confusion,
the Rule does not allow the logo on models qualifying for ENERGY STAR
at some capacities and not others.\49\
---------------------------------------------------------------------------

\49\ In response to Goodman's comment, the Commission notes that
the label, which is not designed to be permanent, will inform
consumers after purchase of their system's efficiency as installed
at a specific input capacity. Among other things, this information
may be important for tax credits or utility rebates.
---------------------------------------------------------------------------

D. Compliance Date for New Labels

Background: In the NPRM, the Commission proposed to roll out the
proposed label in two phases coinciding with the compliance dates of
DOE's regional standards. Under the first phase, manufacturers would
begin using the new label no later than May 1, 2013 for equipment
subject to new standards effective on that date (i.e., non-weatherized
and mobile home furnaces) as well as equipment not subject to any
change in the regional standards (e.g., boilers, oil-fired and electric
furnaces). Under the second phase, manufacturers would begin using 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).
Comments: Commenters raised several concerns with the proposed
compliance dates, warning that three factors could delay implementation
of the DOE rules and impact the labels' timing.\50\ First, APGA has
challenged DOE's new regional standards for furnaces in the U.S. Court
of Appeals for the D.C. Circuit.\51\ Second, AHRI has petitioned DOE to
grant an 18-month extension for regional furnace efficiency standards
from the current compliance date of May 1, 2013, to give manufacturers
more time to comply with the standards and labels. Finally, AGA noted
that DOE has not completed its rulemaking to develop a statutorily-
required enforcement plan for regional standards. In the commenters'
views, these three considerations cast doubt on the new labels' timing.
AGA explained that resolution of these matters could render the
Commission's final label requirements inaccurate or misleading and
called on the Commission to wait and coordinate with DOE to ensure
consistency between the final labels and DOE's standards and
enforcement requirements. Earthjustice disagreed, arguing that the FTC
cannot ignore its duty to meet the statutory deadline for labeling
rules merely because of the ongoing litigation. To address these
various uncertainties, Ingersoll Rand suggested the Commission tie the
Rule's

[[Page 8370]]

compliance date to the DOE standard compliance date generally, without
specifying a date.
---------------------------------------------------------------------------

\50\ APGA, AGA, Goodman, and AHRI comments.
\51\ American Public Gas Association v. U.S. Department of
Energy, No. 11-1485 (D.C. Cir. 2012).
---------------------------------------------------------------------------

In addition to concerns with these ongoing developments, some
commenters expressed reservations about the timing of the labeling
requirements. AHRI urged the Commission to recognize that some models
bearing the old label may remain in the distribution chain after the
Rule's compliance date. HARDI echoed these concerns, noting that some
inventory may continue to appear on the market after the compliance
date of the new standards. To reduce confusion associated with this
transition, Goodman recommended that the label itself display DOE's
compliance date. In addition, AHRI asked the Commission to clarify
whether manufacturers could begin affixing the label to products before
the compliance dates to ensure a reasonable transition period, and,
presumably, avoid requiring all label changes on a single day.\52\
Finally, NRDC recommended that the Commission require the label on
products manufactured before the compliance date to begin educating
installers early and to ensure that products in circulation have the
new label when the standards go into effect. However, NRDC noted that,
to avoid confusion, the label would have to explain that the regional
standards do not apply until the compliance date.
---------------------------------------------------------------------------

\52\ See also Goodman comments.
---------------------------------------------------------------------------

Final Rule and Response to Comments: After considering the
comments, the Commission has modified the Rule's language to account
for possible changes in the DOE compliance dates. As a result, the
final rule does not require that the labels themselves contain a
particular mandatory compliance date. Instead, it ties the labeling
requirements to DOE's compliance dates, whatever they may be.
Accordingly, if the DOE standards are postponed or vacated, the new
labeling rules will not apply until a new DOE compliance date is set.
Nevertheless, the Commission has not delayed publication of the final
labeling rules because EPCA imposes a clear completion deadline and, at
this time, DOE has not changed its compliance dates.\53\
---------------------------------------------------------------------------

\53\ 42 U.S.C. 6295(o)(6)(H). In addition, the Commission has
not delayed the labeling rules pending completion of the DOE
enforcement plan. Given the possibility that the DOE standards will
become applicable before the issuance of that plan, the final
labeling rule ensures the new disclosures will be available, as
Congress intended, to inform industry members about the standards,
regardless of the plan's status. However, if any conflicts should
arise between DOE's final enforcement plan and the labels, the
Commission will provide guidance to industry members and amend the
labeling rules as necessary.
---------------------------------------------------------------------------

Recognizing that the DOE compliance dates for the standards could
shift, the Commission has modified the final rule to remove specific
compliance dates (e.g., May 1, 2013), instead tying new label
compliance to the compliance date for DOE's regional standards. This
change eliminates the need to amend the labeling Rule should a delay
occur in the implementation of DOE's requirements. Thus, consistent
with the proposal, the final rule requires compliance with the new
label content (305.12) in two phases.\54\ Under the first phase,
manufacturers must begin using the new label for weatherized gas and
mobile home gas furnaces on the compliance date set by DOE for the
standards applicable to those products (currently scheduled for May 1,
2013). That date also applies to revised labels for equipment not
subject to the regional standards (e.g., boilers, non-weatherized oil-
fired furnaces, and electric furnaces). Likewise, under the second
phase, manufacturers must begin using the new label for weatherized
furnaces, central air conditioners, and heat pumps on the compliance
date set by DOE for those products (currently January 1, 2015).\55\
---------------------------------------------------------------------------

\54\ Similarly, the final rule ties the new disclosure
provisions in section 305.14 (i.e., manufacturers' duty to post
labels online and contractors' duty to make the labels available to
consumers) to the DOE compliance date. Unlike the two-stage approach
for label content in 305.12, the section 305.14 changes will take
effect at a single time (i.e., on the compliance date for regional
standards applicable to non-weatherized furnaces) to minimize
confusion and ensure uniformity in the contractor disclosures to
consumers. Finally, as discussed earlier, recent amendments already
require all manufacturers to post EnergyGuide labels online
beginning July 15, 2013, whether or not a delay occurs for the DOE
regional standards. 78 FR 2200.
\55\ 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. DOE has clarified that the
compliance date for the regional standards applies to the
installation of products on or after that date. See Department of
Energy, ``Regional Standards Enforcement Framework Document,''
http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/furncac_regstnd_enforceframework.pdf.
---------------------------------------------------------------------------

On January 11, 2013, DOE and APGA filed a settlement agreement with
the Court of Appeals for the D.C. Circuit to vacate the regional
standards for non-weatherized gas and mobile home gas furnaces.\56\ A
final decision from the court on the settlement is still pending. If a
final decision vacates the standards for those products, the
Commission's labeling rules for products tied to that compliance date
will not become effective because, as discussed above, the rule
language ties the label requirements to the DOE compliance date. In
short, without a DOE compliance date or DOE standards for that matter,
the Commission will not require the new labeling provisions. When DOE
revisits the standards, the Commission will amend the labeling rules if
necessary to conform to the new requirements. The proposed settlement
does not address the DOE regional standards scheduled for January 1,
2015 applicable to central air conditioners. Thus, absent further
developments, the Commission does not plan to alter the final labeling
requirements for those products or for weatherized furnaces.
---------------------------------------------------------------------------

\56\ Joint Motion of Petitioner and Respondent to Vacate in Part
and Remand for Further Rulemaking (Jan. 11, 2013), American Public
Gas Ass'n v. DOE, No. 11-1485 (D.C. Cir. filed Dec. 23, 2011).
---------------------------------------------------------------------------

In addition, the final label does not include a compliance date
disclosure, as suggested by some comments. Given the uncertainties
associated with the ongoing litigation and the extension request before
DOE, the Commission is reluctant to place a specific date on the label
that may become obsolete and cause consumer confusion.\57\
---------------------------------------------------------------------------

\57\ Similarly, the final rule does not require such labels on
products earlier than DOE's compliance dates given the uncertainty
associated with the implementation of DOE's standards.
---------------------------------------------------------------------------

In response to AHRI's concerns, the Commission clarifies that
manufacturers may begin implementing the new label format prior to the
DOE compliance date to facilitate a reasonable transition to the new
labels. The Commission has followed the same approach for similar
changes in the past.\58\ Early labeling will also increase the number
of units displaying the new label format on the compliance date of the
DOE standards. However, in weighing whether to begin labeling early,
manufacturers should consider the status of the ongoing issues related
to the timing of DOE's standards discussed above.
---------------------------------------------------------------------------

\58\ See, e.g., 75 FR 41710, 41696 (July 19, 2010) (light bulb
labels).
---------------------------------------------------------------------------

E. Possible DOE Waiver for Furnaces

Background and Comments: Commenters also urged the Commission to
require information on the label alerting installers and consumers to a
potential DOE waiver for furnace installations.\59\ On February 6,
2012, several organizations petitioned DOE to waive the new regional
standards where a higher-efficiency furnace installation would be
infeasible or prohibitively expensive (e.g., in some narrow row
houses). Anticipating such waivers, the commenters urged the Commission
to include special language on the label. For example, AGA recommended
that the label's lower portion include a notice that reads, ``Federal
law allows this unit to be installed in: [listed

[[Page 8371]]

states]'' and further provides that ``Federal law prohibits
installation of this unit in other states, except in the case of an
eligible waiver. See [DOE Web site] for information on eligibility
requirements for a waiver.'' \60\ HARDI, which expressed concerns with
such a DOE waiver, cautioned that it is unclear whether DOE has the
legal authority to issue such waivers.\61\
---------------------------------------------------------------------------

\59\ See NRDC, AGA, and ACCA comments.
\60\ Similarly, NRDC recommended label text stating, ``Federal
law prohibits installation of this unit in other states, except in
the case of an eligible waiver.''
\61\ AHRI noted that DOE has granted a waiver for small-duct,
high velocity air conditioner systems and urged the FTC to develop
an EnergyGuide label for products that have efficiencies outside the
ranges in the proposed EnergyGuide labels and are sold based on
waivers granted by DOE. The Commission does not plan to alter
current requirements because the Rule already has a procedure that
manufacturers can follow when their ratings fall outside of existing
ranges. See 16 CFR 305.10(b).
---------------------------------------------------------------------------

Final Rule and Response to Comments: Consistent with the comments,
the final rule includes label waiver language that manufacturers must
use if DOE issues waivers for furnace installations (Sec. 305.12(h)).
Specifically, the required language states, ``Federal law prohibits
installation of this unit in other states, unless a waiver from the
Department of Energy allows such installation.'' This disclosure will
alert installers and consumers to the existence of waivers should DOE
issue such measures. The disclosure's absence could lead to significant
confusion and disruption in the sale and installation of these models.
As stated in the final rule, this language will only appear on the
labels if DOE issues the requested waivers. If DOE does not issue such
waivers, manufacturers cannot include it.

F. Full Fuel Cycle Disclosures

Both the AGA and APGA urged the Commission to work with DOE to
develop consumer information about the full-fuel cycle energy
consumption and greenhouse gas emissions associated with consumer
products. In a 2011 policy statement issued in response to
recommendations from the National Academy of Sciences (NAS), DOE
announced plans to use full-fuel cycle measures of energy use and
emissions in estimating the likely impacts of energy conservation
standards.\62\ DOE also committed to working with the Commission to
generate information to help consumers make cross-class comparisons of
the energy use and emissions of appliances. In their comments, AGA and
APGA explained that both DOE and the Commission must begin to take the
steps necessary to resolve such issues and provide consumers with
better information about the energy use and environmental impacts of
their appliance choices. AGA recommended that the Commission consider
obtaining energy use and emissions information on a regional basis, to
correspond with the regional standards. It also recommended that the
Commission consider providing this type of information for both
individual products as well as the range of competing products.
Additionally, AGA noted that NAS identified the EnergyGuide label
information as the most effective means to convey the environmental
impact of energy consumption to the public. However, AGA acknowledged
that unresolved issues remain before such information will be
meaningful and accurate.
---------------------------------------------------------------------------

\62\ 76 FR 51281 (Aug. 18, 2011) (``Statement of Policy for
Adopting Full-Fuel-Cycle Analyses Into Energy Conservation Standards
Program'').
---------------------------------------------------------------------------

The Commission will continue to work with DOE to consider NAS's
recommendations. As part of the Commission's ongoing review of the
Rule, it sought comments on this issue.\63\ The Commission will
continue to consider this issue as part of the regulatory review.
---------------------------------------------------------------------------

\63\ 77 FR 15298 (Mar. 15, 2012) (NPRM).

Table 1--Furnaces
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regional standards information on Date for label Efficiency standard- Efficiency standard- Efficiency standard-
System type final label change * north southeast southwest
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-weatherized gas............. Models below 90 AFUE: U.S. map and May 1, 2013........ 90% AFUE \64\...... 80% AFUE........... 80% AFUE
explanatory text indicating
product can only be installed in
southeast/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: U.S. map and May 1, 2013........ 90% AFUE........... 80% AFUE........... 80% AFUE
explanatory text indicating
product can only be installed in
southeast/southwest.
All other models: a statement that
unit can be installed in any
state.
Non-weatherized oil-fired....... No regional standards information May 1, 2013........ 83% AFUE........... 83% AFUE........... 83% AFUE
(see Sample Label 9B).
Weatherized gas................. No regional standards information. Jan. 1, 2015....... 81% AFUE........... 81% AFUE........... 81% AFUE
Mobile home oil-fired........... No regional standards information. May 1, 2013........ 75% AFUE........... 75% AFUE........... 75% AFUE
Weatherized oil-fired........... No regional standards information. Jan. 1, 2015....... 78% AFUE........... 78% AFUE........... 78% AFUE
Electric........................ No regional standards information. May 1, 2013........ 78% AFUE........... 78% AFUE........... 78% AFUE
--------------------------------------------------------------------------------------------------------------------------------------------------------
* The Rule indicates that the label must be changed on or before the compliance date of the DOE efficiency standards. The dates on this table reflect
the dates currently scheduled by DOE.

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

\64\ Annual Fuel Utilization Efficiency.

[[Page 8372]]

Table 2--Central Air Conditioners and Heat Pumps
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regional standards information on Date for label Efficiency standard- Efficiency standard- Efficiency standard-
System type proposed label change * north southeast southwest
--------------------------------------------------------------------------------------------------------------------------------------------------------
Split-system air conditioners... All models regardless of Jan. 1, 2015....... 13 SEER \65\....... 14 SEER............ 14 SEER/12.2 EER
efficiency rating: low and high \66\ if model
SEER and EER for certified <45,000 Btu/h.
compressor-coil combinations.
Models below 14 SEER (any size ................... ................... ................... 14 SEER/11.7 EER if
model), below 12.2 EER (for model >45,000 Btu/
models smaller than 45,000 Btu/ h.
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 information Jan. 1, 2015....... 14 SEER/8.2 HSPF 14 SEER/8.2 HSPF... 14 SEER/8.2 HSPF.
(see Sample Label 8A). \67\.
All Models: low and high SEER and
HSPF for certified compressor-
coil combinations.
Single-package air conditioners. Models below 11 EER: U.S. Map and Jan. 1, 2015....... 14 SEER............ 14 SEER............ 14 SEER/11.0 EER.
explanatory text indicating
product can only be installed in
northern and southeastern states
(not southwestern) (see Sample
Label 7B) & EER rating.
All other models: a statement that
unit can be installed in any
state & EER rating.
Single-Package Heat Pumps....... No regional standards information. Jan. 1, 2015....... 14 SEER/8.0 HSPF... 14 SEER/8.0 HSPF... 14 SEER/8.0 HSPF.
Small-duct, high-velocity No regional standards information. Jan. 1, 2015....... 13 SEER/7.7 HSPF... 13 SEER/7.7 HSPF... 13 SEER/7.7 HSPF.
systems. All split-system models: low and
high SEER and HSPF for certified
compressor-coil combinations.
Space-constrained products--air No regional standards information. Jan. 1, 2015....... 12 SEER............ 12 SEER............ 12 SEER.
conditioners. All split-systems models: low and
high SEER and HSPF for certified
compressor-coil combinations.
Space-constrained products--heat No regional standards information. Jan. 1, 2015....... 12 SEER/7.4 HSPF... 12 SEER/7.4 HSPF... 12 SEER/7.4 HSPF.
pumps. All split-system models: low and
high SEER and HSPF for certified
compressor-coil combinations.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* The Rule language states that the label must be changed on or before the compliance date of the DOE efficiency standards. The dates on this table
reflect those currently scheduled by DOE.

VIII. Paperwork Reduction Act

The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute information collection
requirements as defined by 5 CFR 1320.3(c), the definitional provision
within the Office of Management and Budget (OMB) regulations that
implement the Paperwork Reduction Act. OMB has approved the Rule's
existing information collection requirements through Jan. 31, 2014 (OMB
Control No. 3084 0069). As described below, the final amendments modify
existing EnergyGuide label design and require its presence on packaging
for some products. Accordingly, the Commission is submitting these
amendments to OMB for review.
---------------------------------------------------------------------------

\65\ Seasonal Energy Efficiency Rating.
\66\ Energy Efficiency Rating.
\67\ Heating Seasonal Performance Factor.
---------------------------------------------------------------------------

Manufacturer EnergyGuide Images Online: The final amendments
require manufacturers to post images of their EnergyGuide labels on
their Web sites. Given approximately 6,000 total models\68\ at an
estimated five minutes per model,\69\ this requirement will entail a
burden of 500 hours.\70\ Assuming that the additional disclosure
requirement will be implemented by graphic designers at a mean hourly
wage of $23.41 per hour,\71\ the associated labor cost would
approximate $11,705 per year (500 hours x $23.41).
---------------------------------------------------------------------------

\68\ This estimate is based on information from industry sources
(e.g., www.ahrinet.org).
\69\ In comments, Goodman argued that the five-minute estimate
did not account for time spent by designers and engineers creating
the label. However, this particular estimate simply reflects the
time spent by Web site personnel loading the image onto the
manufacturer's Web site.
\70\ 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 required labels. Accordingly,
the burden estimate for manufacturers is higher (five minutes per
model) than that for catalog sellers (one minute per model).
\71\ See U.S. Department of Labor, Occupational Employment and
Wages--May 2011, Table 1, released March 27, 2012, available at
http://www.bls.gov/news.release/archives/ocwage_03272012.pdf.
---------------------------------------------------------------------------

Updating EnergyGuide Labels: The amendments also require heating
and cooling equipment manufacturers to change the EnergyGuide labels to
the new design. These changes constitute more than routine, minor
conforming changes such as those required to update existing labels.
The Commission estimates that 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.\72\ As with other recent

[[Page 8373]]

labeling changes, the FTC staff plans to provide template labels on the
Commission's Web site 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 engineers at an hourly wage rate of $44.36 per hour
based on Bureau of Labor Statistics information.\73\ Thus, the
Commission estimates that the new label design change will result in a
one-time labor cost of approximately $177,440 (4,000 hours x $44.36 per
hour).
---------------------------------------------------------------------------

\72\ 72 FR 49948, 49964 (Aug. 27, 2007) (general amendments to
the EnergyGuide label design). Comments from Goodman argued that the
estimate should reflect time spent creating work requests, making
the drawings, drawing review process, quality checks, and other
activities.
\73\ Goodman also indicated that engineers are generally
involved in these activities, working at hourly rates higher than
that of graphic designers. In response, the Commission has changed
the estimate to assume all work is conducted by engineers. However,
the Commission has not changed the time estimate because the FTC
staff, consistent with current practice, plans to provide files
containing label templates, largely eliminating the need for
manufacturers to design the labels themselves.
---------------------------------------------------------------------------

EnergyGuide Labels on Packaging: The amendments 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.\74\ The Commission estimates the
burden for package labeling at 12,222 hours [8 seconds x 5,500,000
units].\75\ 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
$13.44 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 $164,264 (12,222 hours x
$13.44 per hour).
---------------------------------------------------------------------------

\74\ See http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/hvac_ch_09_shipments_2011-04-25.pdf.
\75\ The Commission has increased this estimate from 6 to 8
seconds based on comments from Goodman explaining that the proposed
time did not take into consideration restocking labels and
``potential decrease in line rates due to quantity of work at a
given work station.''
---------------------------------------------------------------------------

Catalog and Installer Disclosures: The Rule already requires
retailers to post energy information in catalogs (including Web sites)
and installers and other retailers, including brick-and-mortar stores,
to make information available to consumers at the point of sale.
Therefore, the new requirements should not significantly alter the
current burden estimate.
Estimated Annual Non-Labor Cost Burden: The Commission expects the
amendments will impose additional labeling cost of $385,000, based on a
conservative estimate of 5,500,000 units shipped, at an average cost of
seven cents for each label.\76\
---------------------------------------------------------------------------

\76\ The Commission has added this estimate in response to
Goodman's comments. The units shipped for this revised calculation
excludes products that will not require a label on packaging (e.g.,
products not subject to regional standards such as heat pumps).
---------------------------------------------------------------------------

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, unless the Commission certifies
that the Rule will not have a significant economic impact on a
substantial number of small entities.
The Commission does not anticipate that the Rule will have a
significant economic impact on a 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 final
rule will have a significant impact on these entities because, as
discussed in the previous section, the amendments involve formatting
changes to labels, additional labels on some packaging, and Web site
changes.
Although the Commission certified under the RFA that the amendments
would not, if promulgated, have a significant impact on a substantial
number of small entities, the Commission has determined, nonetheless,
that it is appropriate to publish an FRFA in order to explain the
impact of the amendments on small entities as follows:

A. Statement of the Need for, and Objectives of, the Amendments

As directed by Congress, the Commission is issuing new disclosures
to help consumers and industry members understand new DOE regional
efficiency standards for heating and cooling equipment. The objective
of the final 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.).

B. Issues Raised by Comments in Response to the IRFA

The Commission did not receive any comments specifically related to
the impact of the final amendments on small businesses. The Commission
received comments on the burdens associated with the amendments, which
are addressed in the Paperwork Reduction Act section of this notice.

C. Estimate of Number of Small Entities to Which the Amendments Will
Apply

Under the Small Business Size Standards issued by the Small
Business Administration, the standards for equipment manufacturers is
750 employees.\77\ The Commission estimates that fewer than 50 such
entities subject to the proposed Rule's requirements qualify as small
businesses.
---------------------------------------------------------------------------

\77\ See Table of Small Business Size Standards, U. S. Small
Business Administration (October 24, 2012) available at 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 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.

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
Rule. While the labels are related to DOE efficiency standards, the
proposed requirements do not overlap with DOE rules.

F. Alternatives

The Commission has considered alternatives to the proposed rule and
changed the final rule to reduce regulatory burden. As discussed in
this Notice, the Commission has eliminated the proposed multi-color
label and, instead, required a black and yellow label to reduce costs
associated with full-color printing. In addition, the

[[Page 8374]]

Commission has clarified that manufacturers do not have to include a
separate label on packaging, if the label affixed to the product is
visible to someone examining the package.

XII. Final 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 issues the following
amendments to 16 CFR part 305:

PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER
THE ENERGY POLICY AND CONSERVATION ACT (ENERGY LABELING RULE)

0
1. The authority citation for part 305 continues to read as follows:

Authority: 42 U.S.C. 6294.

0
2. Amend Sec. 305.12, by revising paragraphs (d), (e), (f)
introductory text, and (g) introductory text, and adding paragraphs (h)
and (i) to read as follows:

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

* * * * *
(d) Label type. The labels must be affixed in the form of an
adhesive label, unless otherwise indicated by this section. All
adhesive labels 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''x38'') 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 they are easily read by
persons examining the products. The labels should be generally located
on the upper-right-front corner of each product's front exterior.
However, other prominent locations may be used as long as labels will
not become dislodged during normal handling throughout the chain of
distribution to retailers or consumers. Tops of the labels should not
exceed 74 inches from the base of taller products. Labels 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 should be affixed to the
condensing unit.
(2) In addition to the requirements of paragraph (e)(1), for split-
system and single-package central air conditioners, and all non-
weatherized and mobile home furnaces manufactured on or after the
compliance date of regional efficiency standards issued by the
Department of Energy for those products in 10 CFR part 430,
manufacturers shall affix labels to covered product packages or the
products themselves in positions that allow persons examining the
packaged products to read the labels easily. Labels on packaging must
be affixed via adhesive or another means sufficient to prevent their
dislodgment during normal handling throughout the chain of distribution
to the retailer or consumer. Labels for split-system central air
conditioners should be affixed to condensing units' packages or
condensing units consistent with this paragraph.
(f) Content of labels for furnaces. Content of labels for non-
weatherized furnaces, mobile home furnaces, electric furnaces, and
boilers manufactured before the compliance date of regional efficiency
standards issued by the Department of Energy in 10 CFR part 430 for
non-weatherized, and mobile home furnaces and content of labels for
weatherized furnaces manufactured before the compliance date of
regional efficiency standards for split-system air conditioners issued
by the Department of Energy in 10 CFR part 430.
* * * * *
(g) Content of labels for air conditioners and heat pumps. Content
of labels for central air conditioners and heat pumps manufactured
before the compliance date of regional efficiency standards issued by
the Department of Energy for central air conditioners in 10 CFR part
430.
* * * * *
(h) Subject heading. Content of labels for non-weatherized
furnaces, mobile home furnaces, and electric furnaces, and boilers
manufactured on or after the compliance date of regional efficiency
standards issued by the Department of Energy in 10 CFR part 430 for
non-weatherized, and mobile home furnaces and content of labels for
weatherized gas and oil-fired furnaces manufactured on or after the
compliance date of regional efficiency standards issued by the
Department of Energy in 10 CFR part 430 for split-system air
conditioners.
(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 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 efficiency (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 adjacent to the range(s) as illustrated in the sample labels in
appendix L:
For energy cost info, visit productinfo.energy.gov.
(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 gas furnaces and mobile home gas furnaces
with an AFUE lower than 90, the label shall contain the following
regional standards information consistent with sample label 9 in
appendix L to this part:
(i) A statement that reads either:
(A) ``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,'' if the Department of Energy has not issued
waivers applicable to these products, or
(B) ``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, unless a waiver from the

[[Page 8375]]

Department of Energy allows such installation,'' if the Department of
Energy has issued waivers applicable to these products.
(ii) A map and accompanying text as illustrated in sample label 9
in appendix L.
(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 certified 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 capacity set by the
manufacturer at shipment. The oil furnace label may also contain a
chart, as illustrated in sample label 9B in appendix L, indicating the
efficiency rating at up to three additional input capacities offered by
the manufacturer. Consistent with paragraph (f)(12)(iii) of this
section, labels for oil furnaces may include the ENERGY STAR logo only
if the model qualifies for that program on all input capacities
displayed on the label.
(i) Subject heading. Content of labels for central air conditioners
and heat pumps manufactured on or after the compliance date of regional
efficiency standards issued by the Department of Energy for central air
conditioners in 10 CFR part 430.
(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 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 7B 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 8A 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 8A
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 8A 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 to this part.
For energy cost info, visit productinfo.energy.gov.
(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.
(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 your contractor 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 your contractor for details.
(10) The following statement shall appear at the top of the label
as illustrated in the sample labels in appendix L of this part:
Federal law prohibits removal of this label before consumer
purchase.
(11) For any single-package air conditioner with a Energy
Efficiency Ratio (EER) of at least 11.0, any split-system central air
conditioner with a rated cooling capacity of at least 45,000 Btu/h and
efficiency ratings of at least 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 efficiency ratings of at least 14 SEER and 12.2 EER,
the label must contain the following regional standards information:
(i) A statement that reads: Notice Federal law allows this unit to
be

[[Page 8376]]

installed in all U.S. states and territories.
(ii) For split systems, 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.
(iii) A statement that reads:
Energy Efficiency Ratio (EER): This model's EER is [----].
(12) For any split-system central air conditioners with a rated
cooling capacity of at least 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 installed system must meet the minimum Federal regional
efficiency standards.
See productinfo.energy.gov for certified combinations.
(ii) A map and accompanying text as illustrated in the sample label
7A in appendix L.
(iii) For single-package air conditioner systems, a statement that
reads:
Energy Efficiency Ratio (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 label 7B 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 map and accompanying text as illustrated in the sample label
in appendix L.
(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 certified products in a location consistent with the sample
labels in appendix L to this part. 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.

0
3. Revise Sec. 305.14 to read as follows:

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

(a) The following provisions apply to any covered central air
conditioner, heat pump, or furnaces distributed in commerce before the
compliance date of regional efficiency standards issued by the
Department of Energy in 10 CFR part 430 for non-weatherized, and mobile
home furnaces.
(1) Required information. Manufacturers and private labelers of
central air conditioners, heat pumps, and furnaces (including boilers)
must provide energy information about the equipment they sell to
distributors and retailers, including contractors. This information can
be provided through means such as fact sheets, product brochures, and
directories. All required information must be disclosed clearly and
conspicuously. The information must include:
(i) Name of manufacturer or private labeler which, in the case of a
corporation, shall 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;
(ii) Trade name (if different from manufacturer);
(iii) Model number(s) given by the manufacturer or private labeler;
(iv) Capacity or size as determined in accordance with Sec. 305.7;
(v) Energy efficiency rating as determined in accordance with Sec.
305.5. The energy efficiency rating(s) for split-system condenser-
evaporator coil combinations shall be either:
(A) The energy efficiency rating of the actual condenser-evaporator
coil combination comprising the listed split system; or
(B) The energy efficiency rating of the condenser-evaporator coil
combination that is the particular manufacturer's most commonly sold
combination for that condenser model.
(vi) Ranges of comparability and of energy efficiency ratings found
in the appropriate appendices accompanying this part.
(vii) A statement that the energy efficiency ratings are based on
U.S. Government standard tests.
(viii) If the ``most common'' condenser-evaporator coil
combinations are given for central air conditioners and heat pump
efficiency ratings pursuant to Sec. 305.14(a)(1)(v)(B), the statement
required by Sec. 305.14(a)(1)(vii) as follows:
(A) For information disclosing the seasonal energy efficiency ratio
for cooling, the statement should read:
This energy rating is based on U.S. Government standard tests of
this condenser model combined with the most common coil. The rating may
vary slightly with different coils.
(B) For information disclosing both the seasonal energy efficiency
ratio for cooling and the heating seasonal performance factor for
heating, the statement should read:
This energy rating is based on U.S. Government standard tests of
this condenser model combined with the most common coil. The rating
will vary slightly with different coils and in different geographic
regions.
(C) For information disclosing the heating seasonal performance
factor for heating, the statement should read:
This energy rating is based on U.S. Government standard tests of
this condenser model combined with the most common coil. The rating
will vary slightly with different coils and in different geographic
regions.
(ix) For central air conditioners disclosing the efficiency ratings
for specific condenser/coil combinations pursuant to Sec.
305.14(a)(1)(v)(B), a general disclosure that the efficiency ratings
are based on U.S. Government tests.
(2) Distribution. (i) Manufacturers and private labelers must give
distributors and retailers, including assemblers, the information
specified under Sec. 305.14(a)(1) for the central air conditioners,
heat pumps, and furnaces (including boilers) they sell to them. This
information may be provided in paper or electronic form (including

[[Page 8377]]

Internet-based access). Distributors must give this information to
retailers, including assemblers, they supply.
(ii) Retailers, including assemblers, who sell central air
conditioners, heat pumps, and furnaces (including boilers) to consumers
must make the information specified under Sec. 305.14(a)(1) available
to customers in any manner, as long as customers are likely to notice
it. For example, it may be available in a display, where customers can
take copies of them. It 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.
(iii) Retailers, including assemblers, who negotiate or make sales
at a place other than their regular places of business must show the
required information to their customers and let them read the
information before they agree to purchase the product. If the
information is Internet-based, 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 information in lieu of showing them a paper version of the
information. Retailers who choose to use the Internet for the required
information, must let customers read such information before the
customers agree to purchase the product.
(b) The following provisions apply to any covered central air
conditioner, heat pump, or furnaces distributed in commerce on or after
the compliance date of regional efficiency standards issued by the
Department of Energy in 10 CFR part 430 for non-weatherized and mobile
home furnaces.
(1) 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 and consumers to hyperlink to the
label or download it for their use. The labels must remain on the Web
site for six months after the manufacturer ceases the model's
production.
(2) Distribution. (i) Manufacturers and private labelers must
provide to distributors and retailers, including assemblers,
EnergyGuide labels for covered 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.
(ii) Retailers, including assemblers, who sell covered central air
conditioners, heat pumps, and furnaces (including boilers) to consumers
must show the labels for the products they offer to customers and let
them read the labels before the customers agree to purchase the
product. For example, the retailer may display labeled units in their
store or direct consumers to the labels in a binder or computer at a
counter or service desk.
(iii) Retailers, including installers and assemblers, who negotiate
or make sales at a place other than their regular places of business,
including sales over the telephone or through electronic
communications, must show the labels for the products they offer to
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.
(3) Oil furnace labels. If an installer installs an oil furnace
with an input capacity different from that set by the manufacturer and
the manufacturer identifies alternative capacities on the label, the
installer must permanently mark the appropriate box on the EnergyGuide
label displaying the installed input capacity and the associated AFUE
as illustrated in Sample Label 9B.

0
4. Amend Sec. 305.20, by adding paragraphs (a)(5) and (i) to read as
follows:

Sec. 305.20 Paper catalogs and Web sites.

(a) * * *
(5) For Furnaces, central air conditioners, and heat pumps offered
for sale on or after the compliance date of regional efficiency
standards issued by the Department of Energy in 10 CFR part 430 for
non-weatherized furnaces: 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
the compliance date of regional efficiency standards issued by the
Department of Energy for those products in 10 CFR part 430 and subject
to such regional standards, the catalog must provide, in at least one
location, the disclosures and graphics required by Sec. 305.12(i)(11)
and (12). For non-weatherized gas and mobile home gas furnaces
manufactured after the compliance date of regional efficiency standards
issued by the Department of Energy for those products in 10 CFR part
430, and all furnaces manufactured after the compliance date of
regional efficiency standards issued by the Department of Energy in 10
CFR part 430 and subject to such standards, 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.
* * * * *
(i) For split-system and single-package central air conditioners
and non-weatherized or mobile home furnaces offered for sale on or
after the compliance date of regional efficiency standards issued by
the Department of Energy for those products in 10 CFR part 430, 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.

0
5. Revise Appendices G1, G2, G3, G4, G5, G6, G7, and G8 to read as
follows:

Appendix G1 to Part 305--Furnaces--Gas

------------------------------------------------------------------------
Range of annual fuel
utilization efficiencies
Furnace type (AFUEs)
-------------------------------
Low High
------------------------------------------------------------------------
Gas Furnaces Manufactured Before the 78.0 96.6
Compliance Date of DOE Regional
Standards--All Capacities..............

[[Page 8378]]

Non-Weatherized Gas Furnaces 80.0 98.5
Manufactured After the Compliance Date
of DOE Regional Standards--All
Capacities.............................
Weatherized Gas Furnaces Manufactured .............. ..............
After the Compliance Date of DOE
Regional Standards--All Capacities.....
------------------------------------------------------------------------

Appendix G2 to Part 305--Furnaces-- Electric

------------------------------------------------------------------------
Range of annual fuel
utilization efficiencies
Furnace type (AFUEs)
-------------------------------
Low High
------------------------------------------------------------------------
Electric Furnaces--All Capacities....... 100.0 100.0
------------------------------------------------------------------------

Appendix G3 to Part 305--Furnaces--Oil

------------------------------------------------------------------------
Range of annual fuel
utilization efficiencies
Type (AFUEs)
-------------------------------
Low High
------------------------------------------------------------------------
Oil Furnaces Manufactured Before the 78.0 86.1
Compliance Date of DOE Regional
Standards--All Capacities..............
Non-Weatherized Oil Furnaces 83.0 95.4
Manufactured After the Compliance Date
of DOE Regional Standards--All
Capacities.............................
Weatherized Oil Furnaces Manufactured .............. ..............
After the Compliance Date of DOE
Regional Standards--All Capacities.....
------------------------------------------------------------------------

Appendix G4 to Part 305--Mobile Home Furnaces--Gas

Appendix G5 to Part 305--Mobile Home Furnaces--Oil

Appendix G6 to Part 305--Boilers (Gas)

[[Page 8379]]

------------------------------------------------------------------------
Range of annual fuel
utilization efficiencies
Type (AFUEs)
-------------------------------
Low High
------------------------------------------------------------------------
Gas (Except Steam) Boilers Manufactured 80.0 95.5
Before the Compliance Date of DOE
Regional Standards for Non-Weatherized
Furnaces *--All Capacities.............
Gas (Steam) Boilers Manufactured Before 75.8 84.0
the Compliance Date of DOE Regional
Standards for Non-Weatherized Furnaces
*--All Capacities......................
All Gas Boilers Manufactured After the 80.0 98.0
Compliance Date of DOE Regional
Standards *--All Capacities............
------------------------------------------------------------------------
* Timing for boiler range revisions is tied to the compliance date for
non-weatherized furnace regional standards.

Appendix G7 to Part 305--Boilers (Oil)

Appendix G8 to Part 305--Boilers (Electric)

0
6. In Appendix L, Prototype Labels 3 and 4 are revised, Sample Label 7
is revised, Sample Labels 7A and 7B are 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:
---------------------------------------------------------------------------

* Timing of boiler range revisions is tied to the compliance
date for non-weatherized furnace regional standards.
---------------------------------------------------------------------------

Appendix L to Part 305--Sample Labels

* * * * *
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* * * * *

By direction of the Commission, Commissioner Wright not
participating.
Donald S. Clark
Secretary.
[FR Doc. 2013-02225 Filed 2-5-13; 8:45 am]
BILLING CODE 6750-01-C