441 G St. N.W. 

Washington, DC 20548 

8-325938 

June 17, 2014 

U.S. GOVERNMENT ACCOUNTABILITY OFFICE 

The Honorable Mary L. Landrieu 

Chair 

The Honorable Lisa Murkowski 

Ranking Member 

Committee on Energy and Natural Resources 

United States Senate 

The Honorable Fred Upton 

Chairman 

The Honorable Henry A. Waxman 

Ranking Member 

Committee on Energy and Commerce 

House of Representatives 

Subject: Department of Energy: Energy Conservation Program: Energy Conservation Standards for 

Walk-In Coolers and Freezers 

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule 

promulgated by the Department of Energy (Energy) entitled "Energy Conservation Program: Energy 

Conservation Standards for Walk-In Coolers and Freezers" (RIN: 1904-AB86). We received the rule on 

June 3, 2014. It was published in the Federal Register as a final rule on June 3, 2014. 79 Fed. Reg. 

32,050. 

The final rule adopts energy conservation standards for some classes of walk-in cooler and walk-in 

freezer components that the Department of Energy has determined are technologically feasible, 

economically justified, and would result in the significant conservation of energy. The final rule is effective 

August 4, 2014, and compliance with the amended standards established in the final rule is required on 

June 5, 2017. 

Enclosed is our assessment of Energy's compliance with the procedural steps required by section 

801 (a)(1 )(B)(i) through (iv) of title 5 with respect to the rule. Our review of the procedural steps taken 

indicates that Energy complied with the applicable requirements. 

If you have any questions about this report or wish to contact GAO officials responsible for the evaluation 

work relating to the subject matter of the rule, please contact Shirley A. Jones, Assistant General 

Counsel, at (202) 512-8156. 

Robert J. Cra 

Managing Associate 

Enclosure 

cc: Daniel Cohen 

Assistant General Counsel for Legislation, 

Regulation and Energy Efficiency 

Department of Energy 

GA0-14-682R 
REPORT UNDER 5 U.S.C. § 801 (a)(2)(A) ON A MAJOR RULE 

ISSUED BY THE 

(i) Cost-benefit analysis 

DEPARTMENT OF ENERGY 

ENTITLED 

"ENERGY CONSERVATION PROGRAM: 

ENERGY CONSERVATION STANDARDS FOR 

WALK-IN COOLERS AND FREEZERS" 

(RI N: 1904-AB86) 

ENCLOSURE 

Energy prepared a cost-benefit analysis in conjunction with the final rule. Energy found that the 

benefits to the nation from the standards, which include energy savings, consumer life-cycle 

cost (LCC) savings, positive net present value of consumer benefit, and emission reductions, 

outweigh the burdens, which include loss of industry net present value (INPV) and LCC 

increases for some users of this equipment. 

Energy prepared estimates of annualized benefits and costs of the final rule. Using a 7 percent 

discount rate for benefits and costs other than carbon dioxide (C02) reduction, for which Energy 

used a 3 percent discount rate along with the average social cos' of carbon (SCC} series that 

uses a 3 percent discount rate, the cost of the standards in this rule is $511 million per year in 

increased equipment costs, while the benefits are $879 million per year in reduced equipment 

operating costs, $287 million in C02 reductions, and $16.93 million in reduced nitrogen oxides 

(NOx) emissions. In this case, the net benefit amounts to $671 million per year. Using a 3 

percent discount rate for all benefits and costs and the average SCC series, the cost of the 

standards in this rule is $528 million per year in increased equipment costs, while the benefits 

are $1,064 million per year in reduced operating costs, $287 million in C02 reductions, and 

$19.82 million in reduced NOx emissions. In this case, the net benefit amounts to $842 million 

per year. 

(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603-605, 607, 

and 609 

Energy certified that the final rule would not have a significant impact on small businesses with 

respect to the walk-ins panel industry or the refrigeration equipment industry. Energy certified 

that the final rule would not have a significant impact on a large number of small entities with 

respect to the door industry, but it prepared a complete regulatory flexibility analysis with regard 

to the door industry. 

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 

2 U.S.C. §§ 1532-1535 

Energy determined that the final rule would likely require expenditures of $100 million or more 

on the private sector. Energy responded to the requirement to prepare a cost-benefit analysis 

relative to the private sector mandate as part of its cost-benefit analysis noted above. In 

addition, Energy determined that it selected the alternative that was the most cost-effective and 

least burdensome alternative that achieved the objectives of the rule. 

GA0-14-682R 
(iv) Other relevant information or requirements under acts and executive orders 

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. 

On September 11, 2013, Energy published a notice of proposed rulemaking in the Federal 

Register. 78 Fed. Reg. 55,781. Energy held a public meeting in Washington, D.C., on 

October 9, 2013, to receive oral comments. Energy responded to the comments received at the 

public hearing and in response to the notice of proposed rulemaking in the final rule. 

Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501-3520 

The final rule contains collection of information requirements subject to review and approval by 

the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA). This 

requirement has been approved by OMB under OMB control number 1910-1400. Energy 

estimated that the public reporting burden for the certification will average 20 hours per 

response, including the time for reviewing instructions, searching existing data sources, 

gathering and maintaining the data needed, and completing and reviewing the collection of 

information. 

Statutory authorization for the rule 

The final rule is authorized by the Energy Policy and Conservation Act of 1975, as amended, as 

codified at 42 U.S.C. §§ 6311-17 and 6295(0). 

Executive Order No. 12,866 (Regulatory Planning and Review) 

Energy determined that the final rule is an "economically significant rule" for purposes of the 

Executive Order. As a result, Energy prepared a regulatory impact analysis for the rule and 

submitted the rule to OMB for review. 

Executive Order No. 13, 132 (Federalism) 

The Executive Order requires agencies to examine the constitutional and statutory authority 

supporting any action that would limit the policymaking discretion oLthe states and to carefully 

assess the necessity for such actions. The Executive Order also requires agencies to have an 

accountable process to ensure meaningful and timely input by state and local officials in the 

development of regulatory policies that have federalism implications. Energy has a statement of 

policy describing the intergovernmental consultation process it will follow in the development of 

such regulations, which was published in the Federal Register on March 14, 2000. 65 Fed. 

Reg. 13,735. EPCA governs and prescribes federal preemption of state regulations as to 

energy conservation for the equipment that are the subject of the final rule, and sets forth 

criteria by which states can petition Energy for exemption from such preemption. 42 U.S.C. 

§ 6297. 

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