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Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Rules and Regulations
would simplify the Rule and free businesses from unnecessarily prescriptive requirements. Specifically, Goodman recommended the Rule specify only minimum dimensions instead of the current range of widths and lengths and include only whole number minimums e.g., 7 inches for the length as opposed to 738 inches. It also suggested removal of requirements related to picas for copy set, the centering of text, and type style and setting, which includes requirements for a uniform font type. Goodman also recommended elimination of the existing paper stock requirement 58
pounds per 500 sheets or equivalent and minimum peel adhesion capacity 12 ounces per square inch. Finally, it claimed the suggested minimum peel adhesion capacity in 305.20d is typically taken to be a requirement despite the Rules language to the contrary.
D. Transition to Electronic Labeling Three commenters discussed issues beyond whether the Rules specific label requirements should be less prescriptive. Specifically, AHAM, AHRI, and Goodman urged the Commission to consider whether physical labels continue to provide value to consumers. AHAM, whose members manufacture large household appliances, such as refrigerators and dishwashers, argued the showroom focus of the label is outdated and recommended a transition away from physical labels and a shift to a program providing label content solely online. In addition to helping manufacturers by significantly reducing compliance costs, AHAM argued such an approach would help consumers by reflecting evolving shopping patterns. According to AHAM, the majority of consumers research appliances online before entering a store or purchasing from a website. Moreover, energy efficiency is not a primary factor in consumers appliance purchases.
Instead, according to AHAM, consumers focus on other factors, primarily purchase cost. Should the FTC retain requirements for a physical label, AHAM recommended more flexible requirements, but also urged the Commission to retain the existing label specifications as a safe harbor.
According to AHAM, companies have invested time and resources in developing labels compliant with the existing requirements. A safe harbor would allow them to benefit from these investments and provide more certainty even if the Commission shifts to less detailed regulations.
In AHAMs view, conditions have changed even in the last decade, and
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significant opportunities exist to permit the electronic delivery of label information. It noted the Commission has already laid the groundwork for such a shift by requiring manufacturers to provide electronic access to label content e.g., 305.9 online availability of labels and 305.11 submission of website address for online labels. With these regulatory requirements in place, AHAM predicted a transition to electronic labels would involve a small step that would dramatically reduce regulatory burden and cost and eliminate the redundancy of requiring labels in both digital and paper format.
AHAM asserted such a change would allow consumers to access the content in the form and manner that best suits them and allow them to readily access the content wherever they may be researching their purchase. It also suggested such a shift would allow retailers to access labels from the DOE
Compliance Certification Management System CCMS and provide flexibility to present the label content through printouts, electronic displays, or other means suitable to consumer needs. In addition, an online format would allow manufacturers to more easily update labels and make corrections to online content. Finally, AHAM urged the Commission to coordinate such efforts with Canada to align data elements, reporting and content.
AHRI and Goodman offered similar suggestions but focused their comments on specific aspects of heating and cooling equipment. AHRI noted the FTC
has the discretion under EPCA 42
U.S.C. 6294a to discontinue the use of EnergyGuide labels for central air conditioners and heat pumps if it determines the label does not assist consumers in making purchasing decisions. It agreed with AHAM that the FTC has already taken the most dramatic step forward in the virtual revolution by requiring all manufacturers to have a pdf or link version of its FTC label available online. Nevertheless, according to AHRI, the labels small value for heating and cooling equipment renders its administrative burden outsized.
However, as discussed below, AHRI did not recommend the wholesale retirement of EnergyGuide labels, but rather a modernization using QR
codes and electronic labels to inform consumers without requiring anachronistic prescriptive stickers.
In discussing the Rules current approach, AHRI argued the label on central air conditioners does not help consumers with their purchasing decisions because consumers generally do not buy these products off-the-

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shelf in retail stores and, for new home purchases, a builder not the consumer typically chooses equipment. In addition, contractors usually sell replacement products in the consumers home, often in urgent situations. In such transactions, contractors usually provide homeowners with information about their products using the manufacturers literature, the AHRI
Directory of Certified Product Performance, energy code requirements, incentive programs, and specific design features. AHRI also argued, given the many different efficiency ratings of various outdoor-indoor unit combinations, the actual value of the physical label is questionable at best.
Accordingly, not only are consumers unlikely to view the label prior to purchase, information provided directly by the contractor, including efficiency ratings for various unit combinations, is significantly more accurate.
In lieu of the current labeling approach, AHRI recommended a modified, smaller label giving both electronic access to consumer information online e.g., through a QR
code, as well as regional standards compliance statements in clear text.
In AHRIs view, this approach would bring the cost-benefit equation of the labeling program into balance. It would also allow consumers to learn about the products efficiency, while dramatically reducing the burden associated with affixing labels to the equipment.
V. Final Amendments The Commission issues the final amendments as proposed, with modifications discussed below. The amendments finalize the labeling requirements for portable air conditioners with a compliance date coinciding with the DOE standards.
Additionally, the amendments contain the proposed changes to the efficiency descriptors on central air conditioner labels. The Commission, however, declines to propose additional wideranging changes e.g., a transition to electronic labeling to the EnergyGuide program at this time. Instead, the Commission may seek further comment on these issues, including the elimination of physical labels, in a future proceeding, where the Commission could gather the evidence necessary to fully consider significant amendments to the entire Rule.
A. Portable Air Conditioner Labels As proposed in the NPRM and supported by commenters, the Commission adopts the proposed amendments containing new labeling
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