Department of Energy

Washington, DC 20585

June 10, 2010

MEMORANDUM FOR:

FROM:

SUBJECT:

FINDING:

Daniel C~h,--'­

Assistant General Counsel for Legislation, Regulation and

Energy Efficiency

Certification under Section 605(b) oftbe Regulatory

Flexibility Act (RFA) for Final Regulations Establisbing

Test Procedures for Metal Halide Lamp Ballasts under the

Energy Policy and Conservation Act

I certify that as adopted, the test procedures for metal halide lamp ballasts set

fortb in the attached final rule issued under the authority ofthe Energy Policy and

Conservation Act (EPCA), as amended, would not have a significant economic impact on

a substantial number ofsmall entities.

Pursuant to the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.), as

amended, tbe Department ofEnergy (DOE) presents its analyses and test procedures for

metal halide lamp ballasts based on tbese analyses. As required by EPCA, these test

procedures will measure the energy efficiency ofthese products in active mode and

standby mode (off mode was determined not to apply to the metal halide lamp ballasts

covered by tbis rulemaking).

As required by Executive Order 13272, "Proper Consideration of Small Entities in

Agency Rulemaking," DOE published procedures and policies to ensure that the potential

impacts of its rules on small entities are properly considered during the rulemaking

process. Tbese procedures and policies were publisbed in the Federal Register on

February 19,2003, and are available on DOE's Office ofthe General Counsel's website

(www.gc.doe.gov). DOE reviewed today's final rule under the provisions ofthe

Regulatory Flexibility Act and tbese procedures and policies.

*Printed with soy ink on recycled paper

EERE-2008-BT-TP-0017 COMMENT 24
FACTUAL BASIS FOR CERTIFICATION:

The Small Business Administration (SBA) has set size thresholds for

manufacturers of metal halide lamp ballasts that define those entities classified as small

businesses for the purposes ofthe RFA. DOE used the SBA's small business size

standards to determine whether any small manufacturers of metal halide lamp ballasts

would be subject to the requirements ofthe new test procedure. 65 FR 30836, 30849

(May 15, 2000), as amended at 65 FR 53533, 53545 (Sept. 5, 2000) and codified at 13

CFR part 121. The size standards are listed by North American Industry Classification

System (NAICS) code and industry description and are available at

http://www.sba.gov/idc/groups/public/documellts/sba homepage/serv sstd tablepdf.pdf.

Metal halide lamp ballast or fixture manufacturing is classified under one ofthe relevant

NATCS categories in Table I below (i.e., NAICS 335110, 335121, 335122, or 335129).

The SBA sets a threshold of 1,000 (NArCS 335110) or 500 (NATCS 335121,335122,

335129) employees or less for an entity to be considered as a small business.

Table 1. SBA and NAICS Classification of Small Businesses Potentially Affected by

this Rule

Industry Description Revenue Limit Employee NAICS

Limit

Electric Lamp Bulb and Part N/A 1,000 33511 0

Manufacturing

Residential Electric Lighting N/A 500 335121

Fixture Manufacturing

Commercial, Industrial and N/A 500 335122

Institutional Electric Lighting

Fixture Manufacturing

Other Lighting Equipment N/A 500 335129

Manufacturing

To better assess the potential impacts ofthe test procedures for metal halide lamp

ballast manufacturers, DOE conducted a more focused inquiry ofthe companies that

could be manufacturers of metal halide lamp ballasts. During its market survey, DOE

used all available public information to identifY small manufacturers to determine the size

ofthe manufacturers related to the specific NAICS codes.

In overview, the metal halide lamp fixtures and ballasts industries include both

domestic and international manufacturers. The covered equipment is manufactured by

both large and small companies that specialize primarily in lighting equipment. During its

market survey, DOE created a list of companies that manufacture covered fixtures and

ballasts for sale in the United States. DOE also asked stakeholders and industry

representatives if they were aware of any other small manufacturers. DOE then reviewed

publicly-available data to determine whether the identified manufacturers met the SBA's

defmition of a small business manufacturer in the metal halide lamp fixtures and ballasts

industries.

EERE-2008-BT-TP-0017 COMMENT 24
It should be noted that the AlCS classifications are very broad, and include

manufacturers that do not produce equipment covered by this rulemaking. To focus on

manufacturers of metal halide lamp ballasts covered by this rulemaking, DOE reviewed a

lighting manufacturer directory compiled by the llluminating Engineering Society of

North America (IESNA) and conducted independent internet research, which identified

165 manufacturers of metal halide fixtures. DOE's review of company websites showed

that 90 companies are actually owned by five major lighting conglomerates with more

than 1,000 employees, and, thus, do not meet the small business employee limit. An

estimated 75 metal halide fixture manufacturers are not owned by larger lighting

conglomerates, and may be considered small business manufacturers of metal halide

fixtures or ballasts. Through examination of publicly-available data, DOE confirmed that

54 companies are U.S.-based or manufacture in the U.S. and would be considered small

businesses according to the applicable SBA size standards. For the remaining 21

companies, it was not possible to determine through the publicly-available data whether

they met the threshold to be considered a small business manufacturer under the

Regulatory Flexibility Act. Therefore, for purposes ofthis analysis, DOE considered all

75 metal halide fixture manufacturers as potentially being small businesses in order to

provide a conservative estimate.

The test procedure incorporates by reference provisions from the American

National Standards Institute (ANSn Standard C82.6-2005, titled "Ballasts for HighIntensity Discharge Lamps - Method of Measurement," which is the current industry

testing standard for metal halide lamp ballasts. In referencing this industry test method,

DOE anticipates that there would be no incremental increase in testing cost or burden for

covered equipment from the testing currently being conducted under the industry test

procedure to ensure compliance with the statutory energy conservation standard levels.

Because DOE understands that manufacturers of covered equipment are already using

this industry test method when they make any representations oftheir products'

efficiency, DOE believes that manufacturers are familiar with the application of ANSI

Standard C82.6-2005 and have the equipment necessary to conduct the performance

measurements.

The test procedure final rule also establishes a methodology for the measurement

ofstandby mode power consumption for certain metal halide lamp fixtures. DOE based

its method on techniques and approaches in ANSI Standard C82.6-2005 and in the

Intemational Electrotechnical Commission (IEC) Standard 6230 I, titled "Household

electrical appliances - Measurement ofstandby power," which are commonly-used

industry standards. In addition, because manufacturers are already required to measure

active mode energy consumption, a test procedure employing the same equipment and

measurements to the standby mode test procedure, the incremental costs of implementing

the standby mode test procedure are likely to be small. The standby mode test procedure

requires two measurements: (I) the input power into the ballast (already measured in the

active mode test procedure), and (2) the control signal power. Measurement ofthe

control signal is a minimal additional test, taking less than one hour and using the same

measurement equipment as the ballast input power measurement. Assuming a labor rate

of $100 per hour for a technician experienced in electrical measurements, this would

EERE-2008-BT-TP-0017 COMMENT 24
incur an additional cost of approximately $100 per ballast tested for standby power.

DOE did not receive any comments regarding tbe impact on small business

manufacturers of metal halide lamps fixtures or ballasts at the proposed rule stage. (74

FR 33171 (July 10, 2009))

CONCLUSION

On the basis ofthe foregoing, I certify that the test procedures for metal halide

lamp ballasts set forth in the final rule would not have a significant economic impact on a

substantial number ofsmall entities.

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