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DEPARTMENT OF JUSTICE

Antitrust Division

CHRISTINE A. VARNEY

Assistant Attorney General

Main Justice Building

950 Pennsylvania Avenue, N.W.

Washington, D.C. 20530-0001

(202) 514-2401 / (202) 616-2645 (f)

E-mail: antitrust@justice.usdoj.gov

Web site: http://www.usdoj.gov

JAN 2 5 2010

Robert H. Edwards, Jr.

Deputy General Counsel for Energy Policy

Department ofEnergy

Washington, D.C. 20585

Dear Deputy General Counsel Edwards:

I am responding to your November 19, 2009 letter seeking the views ofthe Attorney

General about the potential impact on competition ofproposed energy conservation standards for

small electric motors. Your request was submitted pursuant to Section 325(0)(2)(B)(i)(V) ofthe

Energy Policy and Conservation Act, as amended, ("EPCA"), 42 U.S.C. § 6295(0)(B)(i)(V),

which requires the Attorney General to make a determination ofthe impact of any lessening of

competition that is likely to result from the imposition ofproposed energy conservation

standards. The Attorney General's responsibility for responding to requests from other

departments about the effect of a program on competition has been delegated to the Assistant

Attorney General for the Antitrust Division in 28 CFR § OAO(g).

In conducting its analysis the Antitrust Division examines whether a proposed standard

may lessen competition, for example, by substantially limiting consumer choice, leaving

consumers with fewer competitive alternatives, placing certain manufacturers of a product at an

unjustified competitive disadvantage compared to other manufacturers, or by inducing avoidable

inefficiencies in production or distribution ofparticular products.

We have reviewed the proposed standards contained in the Notice ofProposed

Rulemaking ("NOPR")(74 Fed. Reg. 61410) and attended the December 17,2009 public hearing

on the proposed standard.

Based on our review ofthe record, the proposed standards for small electric motors could

increase costs for consumers who need to replace small electric motors in existing equipment.

Proposed Trial Standard Level (TSL) 5 for polyphase small electric motors and TSL 7 for all

capacitor-start small electric motors apply to motors sold as replacements as well as to those built
EERE-2007-BT-STD-0007 COMMENT 29

into original equipment. We understand that compliance with those standards could require

manufacturers to increase the size oftheir motors such that the larger motors will not fit into

existing space constrained equipment. In such a case, owners of existing equipment with a

broken motor would have to either replace the entire piece of equipment or attempt to repair the

motor. Such equipment owners would not have the option ofsimply replacing the existing small

electric motor, thus limiting the range of competitive alternatives available to them. This may be

quite onerous to consumers when the motor is only a small component ofthe total cost ofthe

item and repairing the motor is difficult or costly. We ask the Department ofEnergy to take this

possible impact into account and consider, as is warranted, exempting from the proposed

standard the manufacture and marketing of certain replacement small electric motors for a

limited period in time.

Christine

~JtA. Varney

Assistant Attorney Generat/