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Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Rules and Regulations I. Background on the Energy Labeling Rule The Commission issued the Energy Labeling Rule Rule in 1979,1
pursuant to the Energy Policy and Conservation Act of 1975 EPCA.2
The Rule requires energy labeling for major home appliances and other consumer products to help consumers compare the energy usage and costs of competing models. It also contains labeling requirements for refrigerators, refrigerator-freezers, freezers, dishwashers, water heaters, clothes washers, room air conditioners, furnaces, central air conditioners, heat pumps, plumbing products, lighting products, ceiling fans, and televisions.
The Rule requires manufacturers to attach yellow EnergyGuide labels to many of the covered products and prohibits retailers from removing these labels or rendering them illegible. In addition, it directs sellers, including retailers, to post label information on websites and in paper catalogs from which consumers can order products.
EnergyGuide labels for most covered products contain three key disclosures:
Estimated annual energy cost, a products energy consumption or energy efficiency rating as determined by DOE
test procedures, and a comparability range displaying the highest and lowest energy costs or efficiency ratings for all similar models. The Rule requires marketers to use national average costs for applicable energy sources e.g., electricity, natural gas, oil as calculated by DOE in all cost calculations. Under the Rule, the Commission periodically updates comparability range and annual energy cost information based on manufacturer data submitted pursuant to the Rules reporting requirements.3
II. Notice of Proposed Rulemaking In an April 10, 2020 Notice of Proposed Rulemaking NPRM 85 FR
20218, the Commission sought comments on EnergyGuide labels for portable air conditioners, updates to efficiency descriptors for central air conditioner labels, and the need for changes to the current label layout and format requirements.
A. Proposed EnergyGuide Labels for Portable Air Conditioners The NPRM proposed establishing EnergyGuide labeling for portable air 1 44

FR 66466 Nov. 19, 1979.
U.S.C. 6294. EPCA also requires the Department of Energy DOE to develop test procedures that measure how much energy appliances use, and to determine the representative average cost a consumer pays for different types of energy.
3 16 CFR 305.10.
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conditioners. Under EPCA, the Commission may require labeling for DOE-designated covered products if it determines labeling will assist purchasers in making purchasing decisions and will be economically and technologically feasible. 42 U.S.C.
6294a3. Prior to the NPRM, the Commission sought comment on labeling requirements for portable air conditioners in several previous Federal Register notices. In those publications, the Commission discussed the benefits and burdens of such labels, as well as their format and content, which would largely match the labels already required for room air conditioners.4
Over the course of this proceeding, the Commission found, in accordance with its EPCA authority, labeling for this product category is likely to be economically and technologically feasible and assist consumers in their purchasing decisions.5 Over several rounds of comments, a wide array of stakeholders, including industry members, utilities, and consumer groups supported or did not oppose the proposal.
In 2017, the Commission delayed final label requirements due to uncertainty about when DOE would promulgate efficiency standards for these products.6 Specifically, in January of that year, DOE withdrew its final efficiency standards from Federal Register publication pursuant to the Presidential Memorandum on Implementation of Regulatory Freeze, leaving the final standards compliance date unclear. In early 2020, DOE
announced a compliance date for the standards resolving any uncertainty.7
Accordingly, the Commission then released an NPRM proposing EnergyGuide labels for portable air conditioners and a January 10, 2025
compliance date to coincide with the effective date of the DOE standards.
In previous notices on these issues, the Commission addressed the benefits 4 79 FR 34642 June 18, 2014; 80 FR 67351 Nov.
2, 2015; 81 FR 62681 Sept. 12, 2016; and 82 FR
29230 June 28, 2017. Earlier in this proceeding, the Commission waited on label requirements pending a final DOE-issued test procedure for these products. DOE published that test procedure on June 1, 2016 81 FR 35242, and it became mandatory for energy use representations on November 28, 2016.
5 80 FR at 67357; and 81 FR at 62683. In discussing similar economic and technological feasibility determinations for labels in 1979, the Commission concluded that Congresss intent was to permit the exclusion of any product category, if the Commission found that the costs of the labeling program would substantially outweigh any potential benefits to consumers. 44 FR at 6646768 discussing determinations under 42
U.S.C. 6294a1.
6 82 FR at 29232.
7 85 FR 1378 Jan. 10, 2020.

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as well as the economic and technological feasibility of portable air conditioner labels. In a 2015 notice, for example, it found portable air conditioners are common in the marketplace, vary in energy efficiency, and use energy similar to or greater than, currently labeled room air conditioners.8 In addition, DOE
reported the aggregate energy use of portable air conditioners has increased.9
According to DOE estimates, sellers shipped 1.32 million units in the United States in 2014, with future growth projected.10
DOE also found these products exhibit a wide range of efficiency ratings and energy costs for similarly sized units a difference of about $100 per year between the most and least efficient models. After the 2025
implementation of DOE standards, that range is likely to be smaller, but remain significant a difference of about $30
$50 depending on the size category as indicated in Appendix E2. DOE
estimated average per-household annual electricity consumption for these products at 804 kWh/yr, generating $105 in annual energy costs at $0.13
per kWh/hr.11 Given this information, the Commission concluded energy labels are likely to assist consumers with their purchasing decisions by allowing them to compare the energy costs of competing models and, consequently, save significant money on their electric bills.
Further, in the NPRM, the Commission stated there is no evidence labeling is economically or technologically infeasible i.e., the costs of labeling substantially outweigh consumer benefits. Indeed, the burdens discussed infra in the Paperwork Reduction Act section of labeling are not likely to differ significantly from those for room air conditioners, which already have EnergyGuide labels.12
As discussed in the NPRM, the proposed portable air conditioner label would be mostly identical to the current room air conditioner label in content, format, and placement i.e., on packaging, not the product itself. The proposed amendments incorporated DOEs definition of portable air 8 80

FR at 6735758.
78 FR 40403, 4040405 July 5, 2013.
10 The most recent DOE shipment statistics are from 2014. 85 FR 1378; and 201612 Final Rule Technical Support Document: Energy Efficiency Program for Consumer Products and Commercial and Industrial Equipment: Portable Air Conditioners DOE TSD December 2016 at https www.regulations.gov/document?D=EERE2013-BT-STD-0033-0047.
11 DOE TSD at Table 7.3.2.
12 See 80 FR at 67357 and 81 FR at 62683.
9 See
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