[Federal Register Volume 79, Number 68 (Wednesday, April 9, 2014)]
[Rules and Regulations]
[Pages 19464-19467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-07739]
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FEDERAL TRADE COMMISSION
16 CFR Part 305
RIN 3084-AB15
Energy and Water Use Labeling for Consumer Products Under the
Energy Policy and Conservation Act (``Energy Labeling Rule'')
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Final rule.
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SUMMARY: The Commission issues conforming amendments to the Energy
Labeling Rule (``Rule'') to require a new Department of Energy (DOE)
test procedure for televisions and establish data reporting
requirements for those products.
DATES: The amendments are effective on May 9, 2014.
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,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 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),
requires energy labeling for major household appliances and other
consumer products to help consumers compare competing models. When
first published in 1979, 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,
ceiling fans, certain types of water heaters, and televisions.
The Rule requires manufacturers to attach yellow EnergyGuide labels
on many of these products, and prohibits retailers from removing the
labels or rendering them illegible. In addition, the Rule directs
sellers, including retailers, to post label information on
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Web sites and in paper catalogs from which consumers can order
products. EnergyGuide labels for covered appliances must contain three
key disclosures: estimated annual energy cost (for most products); a
product's energy consumption or energy efficiency rating as determined
from DOE test procedures; and a comparability range displaying the
highest and lowest energy costs or efficiency ratings for all similar
models.\1\ For energy cost calculations, the Rule specifies national
average costs for applicable energy sources (e.g., electricity, natural
gas, oil) as calculated by DOE. The Rule sets a five-year schedule for
updating range of comparability and average unit energy cost
information.\2\ The Commission updates the range information based on
manufacturer data submitted pursuant to the Rule's reporting
requirements.
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\1\ Where no ``applicable'' DOE test exists for televisions,
EPCA authorizes the Commission to use ``adequate non-Department of
Energy test procedures'' to obtain information for energy
disclosures. 42 U.S.C. 6294(a)(2)(I)(ii). During FTC's television
labeling proceeding, DOE announced plans to develop a new test
procedure. 74 FR 53640, 53641 (Oct. 20, 2009).
\2\ 16 CFR 305.10.
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II. Final Amendments
The Commission issues conforming amendments to revise the Rule's
television testing and reporting requirements in response to a new DOE
television test procedure published on October 25, 2013 (78 FR 63823).
The Commission proposed these amendments in a Notice published on
December 26, 2013 (78 FR 78305) and received two comments.\3\ These
amendments will ensure the Rule's television labeling requirements are
consistent with EPCA, which mandates that FTC labels reflect applicable
DOE test procedures.\4\
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\3\ The comments can be found at http://www.ftc.gov/policy/public-comments/initiative-539.
\4\ 42 U.S.C. 6294(c).
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Background: When the Commission first issued labeling requirements
for televisions in 2011 (76 FR 1038 (Jan. 6, 2011)), no DOE test
procedure existed for such products. Accordingly, the FTC required
manufacturers to use the Environmental Protection Agency's (EPA's)
ENERGY STAR test procedure to measure television energy use. However,
as discussed in several previous Federal Register documents, the
Commission anticipated that amendments would be necessary after
completion of the DOE test procedure.\5\ DOE recently completed its
test procedure, which manufacturers must begin using on April 23,
2014.\6\
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\5\ For example, the Commission explained in 2011 that ``[w]hen
DOE completes its own rulemaking to develop a television test
procedure for use in that agency's efficiency standards program, the
Commission will issue conforming amendments consistent with EPCA's
requirements that the labels use information from DOE test
procedures when such procedures are available.'' 76 FR 1038, 1040
(Jan. 6, 2011). See also 78 FR 43974, 43975 (July 23, 2013); 78 FR
1779, 1780 (Jan. 9, 2013).
\6\ Any energy representation, including those made on a label,
for a covered product must fairly reflect the results of a new DOE
test procedure 180 days after that test's issuance. See 42 U.S.C.
6293(c)(2). In its October 25, 2013 Rule, DOE identified April 23,
2014 as the date for revised representations.
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To conform the labeling rule to the new DOE test procedure, the
Commission proposed three amendments. First, it proposed removing the
Rule's reference to the ENERGY STAR test in section 305.5 and replacing
it with the DOE procedure.\7\ Second, the Commission proposed a new
reporting requirement for televisions consistent with requirements for
most other labeled products, such as refrigerators and clothes
washers.\8\ Manufacturers would be allowed to submit their new
television data through the DOE's web-based reporting tool, the
Compliance and Certification Management System (CCMS).\9\ To ensure
adequate time after April 23, 2014 for the first round of data reports,
the Commission proposed to set a May 1 date for annual submissions
(section 305.8). After the Commission reviews the new data, it will
consider issuing updated comparability ranges for television
labels.\10\ Finally, the amendments update the definition of
``television'' in section 305.3 to incorporate DOE's definition of that
term and to limit labeling coverage to the scope of DOE's test
procedure. For the most part, DOE's definition of ``television'' and
the coverage of its test procedure are consistent with FTC's current
rule. However, DOE determined not to cover very small models with
screen sizes of 15 inches or less in its procedure because consumers
often do not use such devices as typical televisions.\11\
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\7\ EPCA gives Commission no discretion to retain the ENERGY
STAR procedure. 42 U.S.C. 6294(a)(2)(I).
\8\ The new DOE test procedure triggers EPCA's reporting
provisions, which require manufacturers to submit energy reports to
the Commission derived from DOE test procedures for all new models
and annually for models in current production. 42 U.S.C. 6296(b)(1)
and (4). Consistent with the Rule's required reports for other
covered products, the content for the television reports in the
final amendments include brand name; model number; screen size
(diagonal in inches); power (in watts) consumed in on mode, standby-
passive mode, in standby-active mode, low mode, and off mode; and
annual energy consumption (kWh/year) for each basic model in current
production. Currently, DOE rules do not contain reporting provisions
for televisions.
\9\ See https://www.regulations.doe.gov/ccms.
\10\ Section 305.17 contains the television ranges.
\11\ See 10 CFR 430.2 and App. H, sec. 1; 78 FR at 63825-26. The
amendments also delete obsolete subparagraph 305.17(h), which
contains specific labeling directions for televisions of nine inches
or fewer.
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Comments: The commenters did not oppose the amendments. However,
they raised three minor issues.\12\ First, CEA and Panasonic asked
whether models discontinued in the previous year should be included in
the initial 2014 data report. Second, Panasonic asked whether
manufacturers may report energy use figures that are more conservative
(i.e., showing higher energy use) than the test values. Finally, CEA,
though recognizing EPCA's mandate to tie television labeling to the DOE
test procedure, noted that the DOE test procedure may not keep pace
with the market and thus may pose challenges to the quality and
credibility of the EnergyGuide and ENERGY STAR programs in the future.
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\12\ CEA also provided comments on two issues they had raised
before the Commission earlier as part of the ongoing regulatory
review. See CEA Comments (560957-00012). In particular, the
commenters urged the Commission to allow electronic (i.e.,
paperless) labeling and to eliminate ranges of comparability on
labels.
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Discussion: The Commission issues the final amendments mostly as
proposed in the December 26, 2013 Proposed Rule. However, to ensure
manufacturers have adequate time to submit reports this year, the
Commission has set the annual reporting date for June 1, instead of May
1. In response to comments, the Commission advises that the initial
2014 data submissions need only include models currently in production,
and manufacturers should not include test data for models already
discontinued. In addition, as discussed in a final rule last year, the
Commission concurs with DOE guidance allowing manufacturers to rate
models more conservatively than the tested performance.\13\ Finally,
while the FTC is obligated to require the DOE test procedure, the FTC
staff will work with DOE to identify the need for possible test
procedure changes should they become necessary in the future.\14\
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\13\ See 78 FR 2200, 2201 (Jan. 10, 2013) (FTC guidance); 76 FR
12422, 12429 (Mar. 7, 2011) (DOE policy); and 10 CFR 429.14(a)(2)(i)
(DOE rules).
\14\ The Commission will address the CEA's broader concerns
about electronic labeling and comparability ranges separately as
part of the ongoing regulation review.
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III. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute information collection
requirements as
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defined by 5 CFR 1320.3(c), the definitional provision within the
Office of Management and Budget (OMB) regulations that implement the
Paperwork Reduction Act (PRA). OMB has approved the Rule's existing
information collection requirements through February 29, 2016 (OMB
Control No. 3084-0069). The Commission accounted for the burden of
testing and labeling televisions when it first issued the labeling
requirements (76 FR 1038 (Jan. 6, 2011)). However, the new DOE test
procedure triggers EPCA's requirement that manufacturers retest their
televisions for any energy representations made 180 days after DOE
publishes the test, including those on the FTC label. This creates an
additional, one-time burden. Accordingly, the Commission is submitting
these amendments to OMB for review.
In issuing the television labels, FTC staff estimated that 2,000
basic models exist in the marketplace, that manufacturers test two
units per model, and that testing requires one hour per unit tested.
Using these estimates, the Commission expects the new testing will
require a one-time burden of 4,000 additional hours of burden.
Annualized over a 3-year PRA clearance cycle, this one-time burden
amounts to 1,333 hours. Assuming further that this testing will be
implemented by electrical engineers, and applying an associated hourly
wage rate of $44.14 per hour, labor costs for testing would annualized
total of $58,839.\15\ In addition, the amendments would increase the
Rule's reporting requirements. Staff estimates that the average
reporting burden for these manufacturers is approximately two minutes
per basic model to enter information into DOE's online database. Based
on this estimate, multiplied by an estimated total of 2,000 basic
television models, the annual reporting burden for manufacturers is an
estimated 67 hours (2 minutes x 2,000 models / 60 minutes per hour).
Assuming further that these filing requirements will be implemented by
data entry workers at an hourly wage rate of $15.11 per hour, the
associated labor cost for recordkeeping would be approximately $1,012
per year.\16\ Any non-labor costs associated with the amendments are
likely to be minimal.
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\15\ See Bureau of Labor Statistics, U.S. Department of Labor,
Occupational Employment and Wages--May 2012, Table 1 (National
employment and wage data from the Occupational Employment Statistics
survey by occupation, May 2012), available at: http://www.bls.gov/news.release/ocwage.t01.htm.
\16\ See id.
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IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires
that the Commission provide an Initial Regulatory Flexibility Analysis
(IRFA) with a Proposed Rule and a Final Regulatory Flexibility Analysis
(FRFA), if any, 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.\17\
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\17\ 5 U.S.C. 603-605.
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The Commission does not anticipate that the Final Rule will have a
significant economic impact on a substantial number of small entities.
Consistent with past analysis (76 FR at 1049), the Commission estimates
that these new requirements will apply to about 30 product
manufacturers. Out of these companies, the Commission expects that no
manufacturers qualify as small businesses.\18\ Furthermore, the
Commission does not expect that the requirements specified in the Final
Rule will have a significant economic impact on these entities.
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\18\ See also 78 FR at 63838 (DOE's conclusion that no
television manufacturers qualify as small businesses).
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Although the Commission certified under the RFA that the amendments
would not, if promulgated, have a significant economic 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
The Commission is proposing amendments to conform the Rule to a
recently published DOE test procedure for televisions.
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
did not receive any comments from the Small Business Administration in
response to the proposed rule.
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, television manufacturers qualify as small
businesses if they have fewer than 1,000 employees (for other household
appliances the figure is 500 employees) or if their sales are less than
$8.0 million annually. The Commission believes that no manufacturers
subject to the Final Rule qualify as small businesses.
D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The Commission recognizes that the Final Rule will involve some
increased costs related to reporting these products, and maintaining
test records. All of these burdens and the skills required to comply
are discussed in the previous section of this document, regarding the
Paperwork Reduction Act, and there should be no difference in that
burden as applied to small businesses.
E. Alternatives
The Commission sought comments on alternatives to the Proposed
Rule, including a delay in the effective dates for the amendments.
However, no commenters suggested any changes to the proposed
amendments. Accordingly, the Commission issues the amendments as
proposed.
Final Rule
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 amends 16 CFR part
305 as follows:
PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER
THE ENERGY POLICY AND CONSERVATION ACT (``ENERGY LABELING RULE'')
0
1. The authority citation for part 305 continues to read as follows:
Authority: 42 U.S.C. 6294.
0
2. In Sec. 305.3, revise paragraph (y) to read as follows:
Sec. 305.3 Description of covered products.
* * * * *
(y) Television means a product that is designed to produce dynamic
video, contains an internal TV tuner encased within the product
housing, and is capable of receiving dynamic visual content from wired
or wireless sources including but not limited to: broadcast and similar
services for terrestrial, cable, satellite, and/or broadband
transmission of analog and/or digital signals; and/or display-specific
data connections, such as HDMI, Component video, S-video, Composite
video; and/or media storage devices such as a USB flash drive, memory
card, or a DVD; and/or network
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connections, usually using Internet Protocol, typically carried over
Ethernet or Wi-Fi. The requirements of this part are limited to those
televisions for which the Department of Energy has adopted and
published test procedures for measuring energy use.
0
3. In Sec. 305.5, revise paragraph (d) and remove paragraph (e), as
follows:
Sec. 305.5 Determinations of estimated annual energy consumption,
estimated annual operating cost, and energy efficiency rating, water
use rate, and other required disclosure content.
* * * * *
(d) Representations for ceiling fans under Sec. 305.13 and
televisions under Sec. 305.17 must be derived from applicable
procedures in 10 CFR parts 429, 430, and 431.
0
4. In Sec. 305.8, revise paragraphs (a)(1) and (3), add new paragraph
(a)(4), and revise paragraph (b)(1) to read as follows:
Sec. 305.8 Submission of data.
(a)(1) Except as provided in paragraphs (a)(2) through (4) of this
section, each manufacturer of a covered product subject to the
disclosure requirements of this part and subject to Department of
Energy certification requirements in 10 CFR part 429 shall submit
annually a report for each model in current production containing the
same information that must be submitted to the Department of Energy
pursuant to 10 CFR part 429 for that product, and that the Department
has identified as public information pursuant to 10 CFR part 429. In
lieu of submitting the required information to the Commission as
required by this section, manufacturers may submit such information to
the Department of Energy via the CCMS at https://regulations.doe.gov/ccms as provided by 10 CFR 429.12.
* * * * *
(3) Manufacturers of televisions shall submit annually a report
containing the brand name; model number; screen size (diagonal in
inches); power (in watts) consumed in on mode, standby-passive mode, in
standby-active mode, low mode, and off mode; and annual energy
consumption (kWh/year) for each basic model in current production. The
report should also include a starting serial number, date code, or
other means of identifying the date of manufacture with the first
submission for each basic model. In lieu of submitting the required
information to the Commission as required by this section,
manufacturers may submit such information to the Department of Energy
via the Compliance and Certification Management System (CCMS) at
https://regulations.doe.gov/ccms as provided by 10 CFR 429.12.
(4) This section does not require reports for general service
light-emitting diode (LED or OLED) lamps.
(b)(1) All data required by Sec. 305.8(a) except serial numbers
shall be submitted to the Commission annually, on or before the
following dates:
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Deadline for data
Product category submission
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Refrigerators................................ Aug. 1.
Refrigerators-freezers....................... Aug. 1.
Freezers..................................... Aug. 1.
Central air conditioners..................... July 1.
Heat pumps................................... July 1.
Dishwashers.................................. June 1.
Water heaters................................ May 1.
Room air conditioners........................ July 1.
Furnaces..................................... May 1.
Pool heaters................................. May 1.
Clothes washers.............................. Oct. 1.
Fluorescent lamp ballasts.................... Mar. 1.
Showerheads.................................. Mar. 1.
Faucets...................................... Mar. 1.
Water closets................................ Mar. 1.
Ceiling fans................................. Mar. 1.
Urinals...................................... Mar. 1.
Metal halide lamp fixtures................... Sept. 1.
General service fluorescent lamps............ Mar. 1.
Medium base compact fluorescent lamps........ Mar. 1.
General service incandescent lamps........... Mar. 1.
Televisions.................................. June 1.
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Sec. 305.17--[Amended]
0
5. In Sec. 305.17, remove paragraph (h).
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014-07739 Filed 4-8-14; 8:45 am]
BILLING CODE 6750-01-P