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Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Rules and Regulations conditioners is 1,368 hours 150 basic models 25% 36 hours. Staff estimates that engineering technicians, at an hourly rate of $28.37,33 will typically perform the required tasks, for an estimated annual labor cost of $38,300.
Recordkeeping: The Rule also requires manufacturers of covered products to retain records of test data generated in performing the tests to derive information included on labels. See 16
CFR 305.21. The FTC estimates the annual recordkeeping burden for manufacturers of portable air conditioners will be approximately one minute per basic model to store relevant data. Accordingly, the estimated annual recordkeeping burden would be approximately 3 hours 150 basic models one minute. Staff estimates that information processing staff, at an hourly rate of $16.24,34 will typically perform the required tasks, for an estimated annual labor cost of $50.
Online and Retail Catalog Disclosures: Staff estimates there are approximately 400 sellers of products covered under the Rule who are subject to the Rules catalog disclosure requirements. Staff has previously estimated covered online and catalog sellers spend approximately 17 hours per year to incorporate relevant product data for products that are currently covered by the Rule. Staff estimates the portable air conditioner requirements will add one additional hour per year in incremental burden per seller. Staff estimates these additions will result in an incremental burden of 400 hours 400 sellers one hour annually. Staff estimates that information processing staff, at an hourly rate of $16.24,35 will typically perform the required tasks, for an estimated incremental annual labor cost of $6,496.
Estimated annual non-labor cost burden: Staff anticipates that manufacturers are not likely to require any significant capital costs to comply with the amendments.
VII. Regulatory Flexibility Act The Regulatory Flexibility Act RFA, 5 U.S.C. 601 through 612, requires the Commission provide an Initial Regulatory Flexibility Analysis IRFA
with a proposed rule and a Final Regulatory Flexibility Analysis FRFA, with the final rule, if any, unless the Commission certifies that the rule will not have a significant economic impact on a substantial number of small entities. See 5 U.S.C. 603 through 605.
33 See
supra note 20.

34 Id.
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The Commission does not anticipate that the amendments 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. The Commission estimates that the amendments will apply to 300 online and paper catalog sellers of covered products and about 45
portable air conditioner manufacturers.
The Commission expects that approximately 150 of these various entities qualify as small businesses.
Although the Commission has certified under the RFA that the amendments would not 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. Description of the Reasons That Action by the Agency Is Being Taken Based upon the record, including public comments, the Commission is amending the Rule to expand product coverage and make additional improvements to the Rule to help consumers in their purchasing decisions for portable air conditioners.
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. In addition, the Chief Counsel for Advocacy of the Small Business Administration did not submit comments.
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, appliance manufacturers qualify as small businesses if they have fewer than 500
employees. Catalog sellers qualify as small businesses if their sales are less than $8.0 million annually. The Commission estimates that there are approximately 150 entities subject to the final amendments that qualify as small businesses. The Commission estimates that the amendments will not have a significant impact on small businesses.
D. Projected Reporting, Recordkeeping, and Other Compliance Requirements The amendments will slightly increase reporting, recordkeeping, and disclosure requirements associated with the Commissions labeling rules as
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discussed above. The amendments likely will increase compliance burdens by extending the labeling requirements to portable air conditioners. The Commission anticipates that the label design change will be implemented by graphic designers.
E. Description of Steps Taken To Minimize Significant Economic Impact, if Any, on Small Entities, Including Alternatives The Commission sought comment and information on the need, if any, for alternative compliance methods that would reduce the economic impact of the Rule on such small entities. To allow time for industry to come into compliance with the revised Rule and minimize the impact of the amendments on covered entities, the Commission has given manufacturers until October 1, 2022 to implement portable air conditioner labels. The Commission may consider other proposals related to electronic labeling and additional issues in a future proceeding.
VIII. Other Matters Pursuant to the Congressional Review Act 5 U.S.C. 801 et seq., the Office of Information and Regulatory Affairs designated this rule as not a major rule, as defined by 5 U.S.C. 8042.
Final Rule Language List of Subjects in 16 CFR Part 305
Advertising, Energy conservation, Household appliances, Labeling, Reporting and recordkeeping requirements.
For the reasons stated above, the Commission amends part 305 of title 16
of the Code of Federal Regulations as follows:
PART 305ENERGY AND WATER USE
LABELING FOR CONSUMER
PRODUCTS UNDER THE ENERGY
POLICY AND CONSERVATION ACT
ENERGY LABELING RULE
1. The authority citation for part 305
continues to read as follows:

Authority: 42 U.S.C. 6294.

2. In part 305, effective January 1, 2023:
a. Revise all references to seasonal energy efficiency ratio SEER to read seasonal energy efficiency ratio 2
SEER2;
b. Revise all references to SEER to read SEER2;
c. Revise all references to heating seasonal performance factor to read heating seasonal performance factor 2;

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