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# ,E GAO

Accountability· Integrity· Reliability United States Government Accountability Office Washington, DC 20548

B-319280 February 12, 2010 The Honorable JeffBingaman Chairman The Honorable LisaMurkowski Ranking Minority Member Committee on Energy and Natural Resources United States Senate The Honorable Henry A. Waxman Chairman The Honorable Joe L. Barton Ranking Minority Member Committee on Energy and Commerce House ofRepresentatives Subject: Departmentof Energy: Energy Conservatjon Program: Energy Conservation Standardsfor Certain ConsumerProducts (Dishwashers, Dehumidifiers, Microwave Ovens, andElectric andGasKitchen RangesandOvens) andfor Certain CommercialandIndustrialEquipment(Commercial Clothes Washers) Pursuant to section 801(a)(2)(A) oftitle 5, United States Code, this is ourreport on a majorrule promulgatedby the Department ofEnergy (DOE), entitled "Energy Conservation Program: Energy Conservation Standards for Certain Consumer Products (Dishwashers, Dehumidifiers, Microwave Ovens, and Electric and Gas Kitchen Ranges and Ovens) and for Certain Commercial and Industrial Equipment (Commercial Clothes Washers)" (RIN: 1904-AB93). We received the rule on January 25,2010. It was published in the FederalRegisteras a final rule on January 8,2010. 75 Fed. Reg. 1122. The final rule amends energy conservation standards for commercial clothes washers (CCWs). The Energy Policy and ConservationAct (EPCA), as amended by the Energy PolicyAct of2005 (EPACT 2005), directs DOE to considermandatory energy conservation standards for CCWs. The EPACT 2005 amendments to EPCA require that DOE issue a final rule byJanuary 1, 2010, to determine whether standards for CCWs should be amended. Underthe EPACT 2005 amendments, if

GAO-I0-407Ramended standards arejustified, they would become effective no laterthan January 1, 2013. DOE states the standards established in the final rule will be applicable startingJanuary 8,2013. The final rule has an effective date ofMarch 9, 2010. The Congressional Review Act (CRA) requires a 60-day delay in the effective date ofa majorrule from the date of publication in the 

### FederalRegisterorreceipt ofthe rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The rule was published in the 

### FederalRegisteron January 8,2010, but we did notreceive the rule until January 25,2010. Therefore, the final rule does not have the required 60-day delay in its effective date. Enclosed is our assessment ofthe DOE's compliance with the procedural steps required by section 801(a)(I)(B)(i) through (iv) oftitle 5 with respect to the rule. Our review ofthe procedural steps taken indicates that DOE complied with the applicable requirements. Ifyou have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subjectmatter ofthe rule, please contact Shirley A. Jones, Assistant General Counsel, at (202) 512-8156.

# v?~t~ RobertJ. Cramer Managing Associate General Counsel Enclosure

cc: Daniel Cohen Assistant General Counsel for Legislation,

Regulation, and Energy Efficiency DepartmentofEnergy

Page 2 GAO-I0-407RENCLOSURE REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON AMAJOR RULE ISSUED BY THE DEPARTMENT OF ENERGY ENTITLED "ENERGY CONSERVATION PROGRAM: ENERGY CONSERVATION STANDARDS

FOR CERTAIN CONSUMER PRODUCTS (DISHWASHERS, DEHUMIDIFIERS,

MICROWAVE OVENS, AND ELECTRIC AND GAS KITCHEN RANGES AND OVENS) AND FOR CERTAIN COMMERCIAL AND INDUSTRIAL EQUIPMENT (COMMERCIAL CLOTHES WASHERS)" (RIN: 1904-AB93)
(i) Cost-benefit analysis DOE considered the cost and benefits ofthe rule and determined that the costs outweigh the benefits. The benefits include energy savings, life cycle costs (LCC) savings for CCW consumers, positive national netpresentvalue, and emissions reductions. The costs include loss ofmanufacturerindustry netpresentvalue and LCC increases for some CCW consumers. (ii) Agency actions relevantto the Regulatory Flexibility Act. 5 U.S.C. §§ 603-605, 607, and 609 DOE certifies that the final rule will nothave a significantimpact on a substantial number ofsmall entities and that a regulatory flexibility analysis is notrequired. DOE used the small business definitions setby the Small Business Administration to detennine whether any ofthe manufacturers ofequipment covered by this rulemaking qualify as small entities that would be required to comply with the rule. (iii) Agency actions relevantto sections 202-205 ofthe Unfunded Mandates Reform Act of 1995,2 U.S.C. §§ 1532-1535 DOE states the final rule does not contain a federal intergovernmental mandate. It may impose expenditures of$100 million ormore on the private sector, although DOE believes such expenditures are likely to be less than $50 million. (iv) Other relevantinformation or requirements under acts and executive orders Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. The final regulations were issued using the notice and commentprocedures found at 5 U.S.C. § 553. On November 9,2009, DOE published a notice ofproposed rulemaking on the Energy Conservation Program. 74 Fed. Reg. 57,738. DOE

GAO-1O-407Rreceived timely public comments which are addressed in the final rule. 75 Fed. Reg. 1127. Paperwork Reduction Act, 44 US.C. §§ 3501-3520 DOE states the final rule imposes no information and recordkeeping requirements. Therefore, DOE has taken no further action in this rulemaking with respectto the act. Statutory authorization for the rule DOE states the final rule is authorized by EPCA, as amended (42 US.C. 6291 ct seq.), by EPACT 2005. 42 US.C. 6313(e)(2)(A). Executive Order No. 12,866 (Regulatory Planning and Review) DOE states the final rule is a "significantregulatory action." Therefore, this action is subjectto review by the Office ofManagement and Budget (OMB). Accordingly, DOE presented the draft final rule and other documents prepared for this rulemaking, including a regulatory impact analysis, to OMB for review. Executive OrderNo. 13,132 (Federalism)

. DOE states thatitexamined the November 2009 proposed rule and determined that itwould nothave a substantial direct effect on the states, on the relationship between the national government and the states, or on the distribution ofpower and responsibilities among the various levels ofgovernment. 74 Fed. Reg. 57,798. DOE notes thatitreceived no comments on this issue in response to the November 2009 notice ofproposed rulemaking, and its conclusions on this issue are the same for the final rule as they were for the proposed rule. Therefore, DOE states ithas taken no further action in the final rule with respect to the order.

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