[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Proposed Rules]
[Pages 17492-17494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8471]
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FEDERAL TRADE COMMISSION
16 CFR Part 460
Trade Regulation Rule; Labeling and Advertising of Home
Insulation
AGENCY: Federal Trade Commission.
ACTION: Proposed rule and request for public comments.
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SUMMARY: The Federal Trade Commission (the ``Commission'') is
requesting public comments about the overall costs and benefits and the
continuing need for its Trade Regulation Rule Concerning the Labeling
and Advertising of Home Insulation (the ``R-value Rule'' or ``Rule''),
16 CFR part 460, as well as whether the Rule, if retained, should be
amended to include new test procedures or specific requirements for new
products, as a part of its systematic review of all current Commission
regulations and guides. In addition, the Commission seeks comments on
whether to adopt a non-substantive amendment to the Rule that would
permit the use of an additional test procedure to determine the R-
values of home insulation products. All interested persons are hereby
given notice of the opportunity to submit written data, views and
arguments concerning the Commission's review of the R-value Rule and
the proposed non-substantive amendment.
DATES: Written comments will be accepted until June 6, 1995.
ADDRESSES: Comments should be directed to: Secretary, Federal Trade
Commission, Room H-159, Sixth Street and Pennsylvania Avenue NW.,
Washington, DC 20580. Comments about the R-value Rule should be
identified as ``R-value Rule, 16 CFR part 460--Comment.''
FOR FURTHER INFORMATION CONTACT:
Kent C. Howerton, Attorney, Federal Trade Commission, Room S-4631,
Sixth Street and Pennsylvania Avenue NW., Washington, DC 20580,
telephone (202) 326-3013, FAX (202) 326-3259.
SUPPLEMENTARY INFORMATION:
I. Introduction
The Commission requests public comments about the overall costs and
benefits of the R-value Rule, and its overall regulatory and economic
impact, as well as whether the Rule should be updated to included new
test procedures or specific requirements for [[Page 17493]] new
products, as a part of it systematic review of all current Commission
regulations and guides. In addition, the Commission proposes adopting a
non-substantive amendment to the Rule that would allow use of an
additional test procedure to determine the R-value of home insulation
products. The Commission also solicits comments concerning the proposed
non-substantive amendment.
II. Background
The Commission promulgated the R-value Rule under Section 18 of the
FTC Act in 1979. The Rule became effective on September 30, 1980. Among
other things, the Rule requires that manufacturers disclosed the R-
value (``thermal performance'') of each one insulation product, based
on tests conducted according to one of four specified American Society
of Testing and Materials (``ASTM'') test procedures.\1\ When the
Commission promulgated the Rule, it determined that ASTM R-value test
procedures C-177, C-236, and C-518 were highly accurate and
reproducible steady-state methods for determining the R-values of home
insulation products. 44 FR 50218, at 50226 note 189. In the original
Rule, the Commission stated that it also would accept the use of C-976
once it was adopted as an ASTM test procedure. ASTM adopted C-976 in
1982. The Rule, therefore, now officially recognizes tests using any of
these four test procedures.
\1\The test procedures are ASTM C-177 and ASTM C-518 (which use
hot and cold ``plates'' to determine R-values for homogeneous
``mass'' insulation products, like fiberglass batts and loose-fill
cellulose), and ASTM C-236 and ASTM C-976 (which use ``hot boxes''
to determine R-values for heterogeneous insulation systems, like
multi-panel aluminum foil products and insulation systems).
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The Commission conducted a review of the rule under the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., in 1984. During the review, the
Commission solicited comments on whether the Rule had had a significant
economic impact (costs and benefits) on a substantial number of small
businesses, whether there was a continuing need for the Rule, and what
changes, if any, should be made to the Rule to minimize the economic
effect on small entities. 49 FR 22104 (1984). Based upon the comments
submitted, the Commission determined that it had no basis to conclude
that the R-value Rule had a significant economic impact upon a
substantial number of small entities. The Commission determined not to
amend the Rule following the Regulatory Flexibility Act review. 50 FR
13246, at 13247 (1985).
Since the Rule was promulgated, the Commission has brought 12
actions to enforce its provisions.\2\ The Commission also has granted
three partial or conditional exemptions relating to specific
provisions, issued one Advisory Opinion allowing use of an alternative
testing procedure, and adopted three non-substantive amendments (one
that allowed manufactures to add to their insulation fact sheets
specific information required by other government agencies; a second,
in response to an industry request, that adopted a revised settled
density test procedure for loose-fill cellulose insulation; and a third
that adopted revised versions of the ASTM R-value test procedures).
\2\The Commission has brought seven civil penalty actions
against manufacturers, one against a testing laboratory, and three
against retailers. It also has brought one consumer redress action
against a professional installer.
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III. Regulatory Review Program
The Commission has determined, as part of its oversight
responsibilities, to review all current Commission rules and guides
periodically. These reviews seek information about the costs and
benefits of the Commission's rules and guides and their regulatory and
economic impact. The information obtained will assist the Commission in
identifying rules and guides that warrant modification or recision.
At this time, therefore, the Commission solicits comments on, among
other things, the economic impact of and the continuing need for the R-
value Rule, possible conflict between the Rule and state, local or
other federal laws, and the effect on the Rule of any technological,
economic, or other industry changes. No Commission determination on the
need for or the substance of the Rule should be inferred from this
request for comments.
IV. Non-Substantive Amendment
The Commission has received a petition from Mr. Ronald S. Graves,
Research Staff Member, Materials Analysis Group, at Martin Marietta
Energy Systems, Inc. (``Petition'').\3\ The petition requests that the
Commission include an additional (fifth) ASTM R-value test procedure
(`` ASTM Standard Test Method for Steady-State Thermal Transmission
Properties by Means of the Thin-Heater Apparatus,'' ASTM C-1114-92), as
an approved test method for compliance with Section 460.5(a) of the R-
value Rule.\4\ The test method is under the jurisdiction of ASTM
Committee C-16 on Thermal Measurements (which is the Committee
responsible for the other R-value test procedures required by the R-
value Rule), and is the direct responsibility of Subcommittee C16.30 on
Thermal Measurements. Mr. Graves is the Chairman of the Thin Heater
Task Group within C16.30 that meets semiannually to maintain and keep
C-1114 current.
\3\Martin Marietta Energy Systems, Inc., operates Oak Ridge
National Laboratory (``ORNL'') as a contractor for the U.S.
Department of Energy.
\4\The Petition, plus attachments, have been placed on the
public record of the R-value Rule and can be inspected at the
Commission's Public Reference Room, room 130, Sixth and Pennsylvania
Ave., NW, Washington, DC.
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According to the Petition, tests conducted in 1983 and 1990 on two
standard reference materials (``SRMs'') obtained from the National
Institute of Standards and Technology show apparent thermal
conductivity values for the SRMs to be within the most probable
uncertainty of 1.2 percent between 25 deg.C (77 deg.F)
and 50 deg.C (132 deg.F). The Petition states that results with
single-sided heat flow up or down and double-sided heat flow agreed to
0.2 percent. It asserts that these test results at ORNL\5\
demonstrate that ASTM C-1114-92 is an appropriate test procedure for
obtaining accurate apparent thermal conductivity values on insulation
products.
\5\The testing apparatus used at ORNL is referred to as the
Unguarded Thin Heater Apparatus (``UTHA'').
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The accuracy of the ASTM C-1114-92 test procedure, therefore,
appears to rate favorably compared to the accuracy of the other ASTM R-
value test procedures the Commission has adopted under the R-value
Rule. Evidence in the original rulemaking proceeding demonstrated that,
if properly performed: (1) Measurements under C-177 could achieve
results within 2 percent of the specimen's actual thermal
value, and a precision of one percent or better is normally attained;
(2) measurements under C-518 should come within at least 5
percent of absolute accuracy, with a reproducibility rate of
2 percent; and (3) measurements under C-236 can measure
thermal resistance values within 2 percent of absolute
accuracy. See 44 FR 50218, at 50226 note 189.
Thus, the Commission is considering adopting a non-substantive
amendment to Sec. 460.5 of the Rule, 16 CFR 460.5(a), to include ASTM
C-1114-92 as an optional, but not required, test procedure for
determining the R-values of home insulation products. Because the
amendment would not impose any new obligations upon parties covered by
the Rule (but merely would recognize the use of an additional,
optional, R-value test procedure), and because the apparent accuracy of
the test procedure [[Page 17494]] compares favorably to the test
procedures already required by the Rule (so the amendment likely would
not lessen consumer protection),\6\ the proposed amendment appears to
be non-substantive under Section 18(d)(2)(B) of the FTC Act, 15 U.S.C.
57a(d)(2)(B). Because the amendment appears to be non-substantive, the
Commission believes that it does not need to solicit public comment or
follow the lengthy rulemaking proceedings that would be required for a
substantive amendment to the rule. On the other hand, because the
Commission is soliciting comments as part of its regulatory review of
the Rule, the Commission has determined in its discretion to solicit
comments on the proposed amendment.
\6\The test procedure already is recognized by the industry as
an accurate and appropriate test procedure, having been adopted as
an official ASTM procedure after going through ASTM's consensus
approval process.
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IV. Solicitation of Comments
A. Regulatory Review
As part of its on-going regulatory review program for all its rules
and guides, the Commission solicits public comments on the following
questions:
(1) Is there a continuing need for the R-value Rule?
(a) What benefits has the Rule provided to purchasers of the
products or services affected by the Rule?
(b) Has the Rule imposed costs on purchasers?
(2) What changes, if any, should be made to the Rule to increase the
benefits of the Rule to purchasers?
(a) How would these changes affect the costs the Rule imposes on
firms subject to its requirements?
(3) What significant burdens or costs, including costs of compliance,
has the Rule imposed on firms subject to its requirements?
(a) Has the Rule provided benefits to such firms?
(4) What changes, if any, should be made to the Rule to reduce the
burdens or costs imposed on firms subject to its requirements?
(a) How would these changes affect the benefits provided by the
Rule?
(5) Does the Rule overlap or conflict with other federal, state, or
local laws or regulations?
(6) Since the Rule was issued, what effects, if any, have changes in
relevant technology or economic conditions had on the Rule?
In addition to the questions raised above, the Commission solicits
comments on the following issues. First, should the Rule be revised to
require the use of different test procedures or specifications than
those currently specified for certain types of products? In addition to
specifying R-value test procedures, the Rule currently specifies
procedures that must be followed in preparing specimens of certain
types and forms of home insulation for testing under the R-value test
procedures.\7\ The Rule also contains specific requirements for
determining the R-values of reflective home insulation products (which
perform as thermal insulation only when installed as a system with one
or more air spaces).\8\ The Commission thus solicits comments
concerning whether the Rule should be amended to specify different or
additional test procedures or specifications for insulation products
specifically addressed in the Rule.
\7\For loose-fill cellulose insulation, the R-value tests must
be conducted on test specimens prepared at the product's long-term,
or settled, density, determined according to paragraph 8 of ASTM C-
739-88 (``Standard Specification for Cellulosic Fiber (Wood-Base)
Loose-Fill Thermal Insulation,'' approved Oct. 25, 1988, published
April 1989). For loose-fill mineral wool insulation, the R-value
tests must be conducted on test specimens that fully reflect the
effect of settling on the product's R-value. For polyurethane,
polyisocyanurate, and extruded polystyrene insulation, the R-value
tests must be conducted on test specimens that fully reflect the
effect of aging on the product's R-value, for example, specimens
aged according to the procedure in paragraph 4.6.4 of General
Services Administration (GSA) Specification HH-I-530A, or another
reliable procedure.
\8\For single sheet reflective foil home insulations, the Rule
allows manufacturers to determine R-value according to two options:
By conducting R-value tests according to ASTM C-236-87 or ASTM C-
976-82; or by measuring the emissivity (reflectivity) of the product
according to ASTM E-408 (or another test method that provides
comparable results), and then determining the R-value for the
measured emissivity level, and the air space and direction of heat
flow for the intended application, using the tables in the most
recent edition of the American Society of Heating, Refrigerating,
and Air-Conditioning Engineers' (ASHRAE) handbook (using the R-value
shown for 50 deg.F, with a temperature differential of 30 deg.F).
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Second, are the insulation products for which the Rule does not
sufficiently address product-specific issues relating to testing or
preparation of test specimens? As noted, in some instances the Rule
provides particular procedures to be followed in preparing specimens
for R-value testing where the Commission found there was post-
installation effects (e.g., settling of loose-fill insulation products,
aging of certain cellular plastics insulation products) that need to be
considered. During the period since the Commission promulgated the
Rule, additional home insulation products designed to slow down heat
flow have been developed and automatically have been covered by the
Rule. However, because these products did not exist when the Rule was
issued, the Rule currently contains no specific test specimen
preparation provisions for these new products. The Commission,
therefore, solicits comments on whether the Rule should be revised to
specify the manner in which specimens of new products should be
prepared for R-value testing to ensure that R-values and related
information are accurate and based on uniform standards.
B. Non-Substantive Amendment
The Commission solicits comments concerning the Petition and the
Commission's proposal to adopt a non-substantive amendment to the Rule
that would recognize ASTM C-1114-92 as an acceptable test method for
determining the R-value of home insulation products under Section 460.5
of the R-value Rule, 16 CFR 460.5. Interested parties are invited to
submit any data or other information relevant to whether the Commission
should adopt the proposed amendment.
List of Subjects in 16 CFR Part 460
Advertising, Incorporation by reference, Insulation, Labeling,
Trade practices.
Authority: 15 U.S.C. 41 et seq.
By the direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-8471 Filed 4-5-95; 8:45 am]
BILLING CODE 6750-01-M
