### 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 FlexibilityAct (RFA) for Final Regulations Establisbing TestProcedures forMetal Halide Lamp Ballasts under the Energy Policy and Conservation Act

I certify that as adopted, the testprocedures 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 nothave a significanteconomic impacton
a substantial number ofsmall entities.

Pursuantto the Energy Policy and Conservation Act (42 U.S.C. 6291 etseq.), as amended, tbe DepartmentofEnergy (DOE) presents its analyses and testprocedures 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 (offmode was determined not to applyto the metal halide lamp ballasts covered bytbis rulemaking).

As required by Executive Order 13272, "Proper Consideration ofSmall Entities in Agency Rulemaking," DOE published procedures and policies to ensure that the potential impacts ofits rules on small entities are properly considered during the rulemaking process. Tbese procedures and policies were publisbed in theFederalRegisteron 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.



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Printed with soy ink on recycled paperFACTUAL BASIS FOR CERTIFICATION:

The Small Business Administration (SBA) has set size thresholds for manufacturers ofmetal 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 ofmetal halide lamp ballasts would be subjectto the requirements ofthe new testprocedure. 65 FR 30836, 30849 (May 15, 2000), as amended at 65 FR 53533, 53545 (Sept. 5, 2000) and codified at 13 CFRpart 121. The size standards are listed byNorth 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 orfixture manufacturing is classified underone ofthe relevant NATCS categories in Table I below (i.e., NAICS 335110, 335121, 335122, or 335129). The SBA sets athreshold 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 ofSmall 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 OtherLighting Equipment N/A 500 335129 Manufacturing

To better assess the potential impacts ofthe testprocedures for metal halide lamp ballast manufacturers, DOE conducted amore focused inquiry ofthe companies that could be manufacturers ofmetal 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 ofcompanies that manufacture covered fixtures and ballasts for sale in the United States. DOE also asked stakeholders and industry representatives ifthey were aware ofany other small manufacturers. DOE then reviewed publicly-available data to determine whether the identified manufacturers metthe SBA's defmition ofa small business manufacturerin the metal halide lamp fixtures and ballasts industries.It should be noted that the AlCS classifications are very broad, and include manufacturers that do notproduce equipmentcovered bythis rulemaking. To focus on manufacturers ofmetal 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 ofmetal halide fixtures. DOE's review ofcompany websites showed that 90 companies are actually owned by five major lighting conglomerates with more than 1,000 employees, and, thus, do not meetthe 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 ofmetal halide fixtures orballasts. Through examination ofpublicly-available data, DOE confirmed that 54 companies are U.S.-based ormanufacture in the U.S. and would be considered small businesses according to the applicable SBA size standards. Forthe remaining 21 companies, it was notpossible to determine through the publicly-available data whether they metthe threshold to be considered a small business manufacturer under the Regulatory Flexibility Act. Therefore, forpurposes ofthis analysis, DOE considered all 75 metal halide fixture manufacturers as potentially being small businesses in orderto provide aconservative estimate.

The test procedure incorporates by reference provisions from the American National Standards Institute (ANSn Standard C82.6-2005, titled "Ballasts for HighIntensityDischarge Lamps

- Method ofMeasurement," 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 orburden for covered equipment from the testing currently being conducted under the industry test procedure to ensure compliance with the statutory energyconservation standard levels. Because DOE understands that manufacturers ofcovered equipment are already using this industrytest method when they make any representations oftheirproducts' efficiency, DOEbelieves that manufacturers are familiar with the application ofANSI Standard C82.6-2005 and have the equipment necessaryto conductthe performance measurements.

The test procedure final rule also establishes a methodology for the measurement ofstandby mode powerconsumption 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 6230I, 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, atest procedure employing the same equipment and measurements to the standby mode test procedure, the incremental costs ofimplementing the standby mode test procedure are likely to be small. The standby mode test procedure requires two measurements: (I) the inputpowerinto the ballast (already measured in the active mode testprocedure), 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 inputpowermeasurement. Assuming a laborrate of$100 perhour for a technician experienced in electrical measurements, this wouldincur an additional cost ofapproximately $100 perballasttested for standby power. DOE did not receive any comments regarding tbe impacton small business manufacturers ofmetal halide lamps fixtures orballasts at the proposed rule stage. (74 FR 33171 (July 10, 2009))

CONCLUSION

On the basis ofthe foregoing, I certify that the testprocedures for metal halide lamp ballasts setforth in the final rule would nothave a significant economic impacton a substantial number ofsmall entities.