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‘‘(A) The minimum energy efficiency ratio of
air-cooled central air conditioners at or above 65,000
Btu per hour (cooling capacity) and less than
135,000 Btu per hour (cooling capacity) shall be—
‘‘(i) 11.2 for equipment with no heating or
electric resistance heating; and
‘‘(ii) 11.0 for equipment with all other heat-
ing system types that are integrated into the
equipment (at a standard rating of 95 degrees F
db).
‘‘(B) The minimum energy efficiency ratio of
air-cooled central air conditioner heat pumps at or
above 65,000 Btu per hour (cooling capacity) and less
than 135,000 Btu per hour (cooling capacity) shall
be—
‘‘(i) 11.0 for equipment with no heating or
electric resistance heating; and
‘‘(ii) 10.8 for equipment with all other heat-
ing system types that are integrated into the
equipment (at a standard rating of 95 degrees F
db).
‘‘(C) The minimum coefficient of performance in
the heating mode of air-cooled central air condi-
tioning heat pumps at or above 65,000 Btu per hour
(cooling capacity) and less than 135,000 Btu per
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hour (cooling capacity) shall be 3.3 (at a high tem-
perature rating of 47 degrees F db).
‘‘(8) Large commercial package air conditioning and
heating equipment manufactured on or after January 1,
2010, shall meet the following standards:
‘‘(A) The minimum energy efficiency ratio of
air-cooled central air conditioners at or above 135,000
Btu per hour (cooling capacity) and less than
240,000 Btu per hour (cooling capacity) shall be—
‘‘(i) 11.0 for equipment with no heating or
electric resistance heating; and
‘‘(ii) 10.8 for equipment with all other heat-
ing system types that are integrated into the
equipment (at a standard rating of 95 degrees F
db).
‘‘(B) The minimum energy efficiency ratio of
air-cooled central air conditioner heat pumps at or
above 135,000 Btu per hour (cooling capacity) and
less than 240,000 Btu per hour (cooling capacity)
shall be—
‘‘(i) 10.6 for equipment with no heating or
electric resistance heating; and
‘‘(ii) 10.4 for equipment with all other heat-
ing system types that are integrated into the
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equipment (at a standard rating of 95 degrees F
db).
‘‘(C) The minimum coefficient of performance in
the heating mode of air-cooled central air condi-
tioning heat pumps at or above 135,000 Btu per hour
(cooling capacity) and less than 240,000 Btu per
hour (cooling capacity) shall be 3.2 (at a high tem-
perature rating of 47 degrees F db).
‘‘(9) Very large commercial package air conditioning
and heating equipment manufactured on or after January
1, 2010, shall meet the following standards:
‘‘(A) The minimum energy efficiency ratio of
air-cooled central air conditioners at or above 240,000
Btu per hour (cooling capacity) and less than
760,000 Btu per hour (cooling capacity) shall be—
‘‘(i) 10.0 for equipment with no heating or
electric resistance heating; and
‘‘(ii) 9.8 for equipment with all other heat-
ing system types that are integrated into the
equipment (at a standard rating of 95 degrees F
db).
‘‘(B) The minimum energy efficiency ratio of
air-cooled central air conditioner heat pumps at or
above 240,000 Btu per hour (cooling capacity) and
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less than 760,000 Btu per hour (cooling capacity)
shall be—
‘‘(i) 9.5 for equipment with no heating or
electric resistance heating; and
‘‘(ii) 9.3 for equipment with all other heat-
ing system types that are integrated into the
equipment (at a standard rating of 95 degrees F
db).
‘‘(C) The minimum coefficient of performance in
the heating mode of air-cooled central air condi-
tioning heat pumps at or above 240,000 Btu per hour
(cooling capacity) and less than 760,000 Btu per
hour (cooling capacity) shall be 3.2 (at a high tem-
perature rating of 47 degrees F db).’’.
(c) STANDARDS FOR COMMERCIAL REFRIGERATORS,
FREEZERS, AND REFRIGERATOR-FREEZERS.—Section 342
of the Energy Policy and Conservation Act (42 U.S.C.
6313) is amended by adding at the end the following:
‘‘(c) COMMERCIAL REFRIGERATORS, FREEZERS, AND
REFRIGERATOR-FREEZERS.—(1) In this subsection:
‘‘(A) The term ‘AV’ means the adjusted volume
(ft3) (defined as 1.63 x frozen temperature compart-
ment volume (ft3) + chilled temperature compart-
ment volume (ft3)) with compartment volumes meas-
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ured in accordance with the Association of Home Ap-
pliance Manufacturers Standard HRF1–1979.
‘‘(B) The term ‘V’ means the chilled or frozen
compartment volume (ft3) (as defined in the Associa-
tion of Home Appliance Manufacturers Standard
HRF1–1979).
‘‘(C) Other terms have such meanings as may be
established by the Secretary, based on industry-ac-
cepted definitions and practice.
‘‘(2) Each commercial refrigerator, freezer, and refrig-
erator-freezer with a self-contained condensing unit de-
signed for holding temperature applications manufactured
on or after January 1, 2010, shall have a daily energy con-
sumption (in kilowatt hours per day) that does not exceed
the following:
‘‘Refrigerators with solid doors ..................................
0.10 V + 2.04
Refrigerators with transparent doors ........................
0.12 V + 3.34
Freezers with solid doors ............................................
0.40 V + 1.38
Freezers with transparent doors ................................
0.75 V + 4.10
Refrigerators/freezers with solid doors the greater of
0.27 AV – 0.71 or 0.70.
‘‘(3) Each commercial refrigerator with a self-con-
tained condensing unit designed for pull-down temperature
applications and transparent doors manufactured on or
after January 1, 2010, shall have a daily energy consump-
tion (in kilowatt hours per day) of not more than 0.126
V + 3.51.
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‘‘(4)(A) Not later than January 1, 2009, the Secretary
shall issue, by rule, standard levels for ice-cream freezers,
self-contained commercial refrigerators, freezers, and refrig-
erator-freezers without doors, and remote condensing com-
mercial refrigerators, freezers, and refrigerator-freezers,
with the standard levels effective for equipment manufac-
tured on or after January 1, 2012.
‘‘(B) The Secretary may issue, by rule, standard levels
for other types of commercial refrigerators, freezers, and re-
frigerator-freezers not covered by paragraph (2)(A) with the
standard levels effective for equipment manufactured 3 or
more years after the date on which the final rule is pub-
lished.
‘‘(5)(A) Not later than January 1, 2013, the Secretary
shall issue a final rule to determine whether the standards
established under this subsection should be amended.
‘‘(B) Not later than 3 years after the effective date of
any amended standards under subparagraph (A) or the
publication of a final rule determining that the standards
should not be amended, the Secretary shall issue a final
rule to determine whether the standards established under
this subsection or the amended standards, as applicable,
should be amended.
‘‘(C) If the Secretary issues a final rule under subpara-
graph (A) or (B) establishing amended standards, the final
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rule shall provide that the amended standards apply to
products manufactured on or after the date that is—
‘‘(i) 3 years after the date on which the final
amended standard is published; or
‘‘(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final rule is published.’’.
(d) STANDARDS FOR AUTOMATIC COMMERCIAL ICE
MAKERS.—Section 342 of the Energy Policy and Conserva-
tion Act (42 U.S.C. 6313) (as amended by subsection (c))
is amended by adding at the end the following:
‘‘(d) AUTOMATIC COMMERCIAL ICE MAKERS.—(1)
Each automatic commercial ice maker that produces cube
type ice with capacities between 50 and 2500 pounds per
24-hour period when tested according to the test standard
established in section 343(a)(7) and is manufactured on or
after January 1, 2010, shall meet the following standard
levels:
Equipment Type
Type of
Cooling
Harvest Rate
(lbs ice/24 hours)
Maximum
Energy Use
(kWh/100 lbs Ice)
Maximum
Condenser
Water Use
(gal/100 lbs Ice)
Ice Making Head
Water
<500
7.80–0.0055H
200–0.022H
≥500 and <1436
5.58–0.0011H
200–0.022H
≥1436
4.0
200–0.022H
Ice Making Head
Air
<450
10.26–0.0086H
Not Applicable
≥450
6.89–0.0011H
Not Applicable
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Equipment Type
Type of
Cooling
Harvest Rate
(lbs ice/24 hours)
Maximum
Energy Use
(kWh/100 lbs Ice)
Maximum
Condenser
Water Use
(gal/100 lbs Ice)
Remote Condensing
(but not remote
compressor)
Air
<1000
8.85–0.0038H
Not Applicable
≥1000
5.10
Not Applicable
Remote Condensing
and Remote
Compressor
Air
<934
8.85–0.0038H
Not Applicable
≥934
5.3
Not Applicable
Self Contained
Water
<200
11.40–0.019H
191–0.0315H
≥200
7.60
191–0.0315H
Self Contained
Air
<175
18.0–0.0469H
Not Applicable
≥175
9.80
Not Applicable
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.
‘‘(2)(A) The Secretary may issue, by rule, standard
levels for types of automatic commercial ice makers that
are not covered by paragraph (1).
‘‘(B) The standards established under subparagraph
(A) shall apply to products manufactured on or after the
date that is—
‘‘(i) 3 years after the date on which the rule is
published under subparagraph (A); or
‘‘(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final rule is published.
‘‘(3)(A) Not later than January 1, 2015, with respect
to the standards established under paragraph (1), and, with
respect to the standards established under paragraph (2),
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not later than 5 years after the date on which the standards
take effect, the Secretary shall issue a final rule to deter-
mine whether amending the applicable standards is techno-
logically feasible and economically justified.
‘‘(B) Not later than 5 years after the effective date of
any amended standards under subparagraph (A) or the
publication of a final rule determining that amending the
standards is not technologically feasible or economically
justified, the Secretary shall issue a final rule to determine
whether amending the standards established under para-
graph (1) or the amended standards, as applicable, is tech-
nologically feasible or economically justified.
‘‘(C) If the Secretary issues a final rule under subpara-
graph (A) or (B) establishing amended standards, the final
rule shall provide that the amended standards apply to
products manufactured on or after the date that is—
‘‘(i) 3 years after the date on which the final
amended standard is published; or
‘‘(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final amended standard is pub-
lished.
‘‘(4) A final rule issued under paragraph (2) or (3)
shall establish standards at the maximum level that is tech-
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nically feasible and economically justified, as provided in
subsections (o) and (p) of section 325.’’.
(e) STANDARDS FOR COMMERCIAL CLOTHES WASH-
ERS.—Section 342 of the Energy Policy and Conservation
Act (42 U.S.C. 6313) (as amended by subsection (d)) is
amended by adding at the end the following:
‘‘(e) COMMERCIAL CLOTHES WASHERS.—(1) Each
commercial clothes washer manufactured on or after Janu-
ary 1, 2007, shall have—
‘‘(A) a Modified Energy Factor of at least 1.26;
and
‘‘(B) a Water Factor of not more than 9.5.
‘‘(2)(A)(i) Not later than January 1, 2010, the Sec-
retary shall publish a final rule to determine whether the
standards established under paragraph (1) should be
amended.
‘‘(ii) The rule published under clause (i) shall provide
that any amended standard shall apply to products manu-
factured 3 years after the date on which the final amended
standard is published.
‘‘(B)(i) Not later than January 1, 2015, the Secretary
shall publish a final rule to determine whether the stand-
ards established under paragraph (1) should be amended.
‘‘(ii) The rule published under clause (i) shall provide
that any amended standard shall apply to products manu-
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factured 3 years after the date on which the final amended
standard is published.’’.
(f) TEST PROCEDURES.—Section 343 of the Energy
Policy and Conservation Act (42 U.S.C. 6314) is
amended—
(1) in subsection (a)—
(A) in paragraph (4)—
(i) in subparagraph (A), by inserting
‘‘very large commercial package air condi-
tioning and heating equipment,’’ after
‘‘large commercial package air conditioning
and heating equipment,’’; and
(ii) in subparagraph (B), by inserting
‘‘very large commercial package air condi-
tioning and heating equipment,’’ after
‘‘large commercial package air conditioning
and heating equipment,’’; and
(B) by adding at the end the following:
‘‘(6)(A)(i) In the case of commercial refrigerators,
freezers, and refrigerator-freezers, the test procedures shall
be—
‘‘(I) the test procedures determined by the Sec-
retary to be generally accepted industry testing proce-
dures; or
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‘‘(II) rating procedures developed or recognized
by the ASHRAE or by the American National Stand-
ards Institute.
‘‘(ii) In the case of self-contained refrigerators, freezers,
and refrigerator-freezers to which standards are applicable
under paragraphs (2) and (3) of section 342(c), the initial
test procedures shall be the ASHRAE 117 test procedure
that is in effect on January 1, 2005.
‘‘(B)(i) In the case of commercial refrigerators, freez-
ers, and refrigerators-freezers with doors covered by the
standards adopted in February 2002, by the California En-
ergy Commission, the rating temperatures shall be the inte-
grated average temperature of 38 degrees F (± 2 degrees
F) for refrigerator compartments and 0 degrees F (± 2 de-
grees F) for freezer compartments.
‘‘(C) The Secretary shall issue a rule in accordance
with paragraphs (2) and (3) to establish the appropriate
rating temperatures for the other products for which stand-
ards will be established under subsection 342(c)(4).
‘‘(D) In establishing the appropriate test temperatures
under this subparagraph, the Secretary shall follow the pro-
cedures and meet the requirements under section 323(e).
‘‘(E)(i) Not later than 180 days after the publication
of the new ASHRAE 117 test procedure, if the ASHRAE
117 test procedure for commercial refrigerators, freezers,
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and refrigerator-freezers is amended, the Secretary shall, by
rule, amend the test procedure for the product as necessary
to ensure that the test procedure is consistent with the
amended ASHRAE 117 test procedure, unless the Secretary
makes a determination, by rule, and supported by clear and
convincing evidence, that to do so would not meet the re-
quirements for test procedures under paragraphs (2) and
(3).
‘‘(ii) If the Secretary determines that 180 days is an
insufficient period during which to review and adopt the
amended test procedure or rating procedure under clause
(i), the Secretary shall publish a notice in the Federal Reg-
ister stating the intent of the Secretary to wait not longer
than 1 additional year before putting into effect an amend-
ed test procedure or rating procedure.
‘‘(F)(i) If a test procedure other than the ASHRAE
117 test procedure is approved by the American National
Standards Institute, the Secretary shall, by rule—
‘‘(I) review the relative strengths and weaknesses
of the new test procedure relative to the ASHRAE 117
test procedure; and
‘‘(II) based on that review, adopt 1 new test pro-
cedure for use in the standards program.
‘‘(ii) If a new test procedure is adopted under clause
(i)—
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‘‘(I) section 323(e) shall apply; and
‘‘(II) subparagraph (B) shall apply to the adopt-
ed test procedure.
‘‘(7)(A) In the case of automatic commercial ice mak-
ers, the test procedures shall be the test procedures specified
in Air-Conditioning and Refrigeration Institute Standard
810–2003, as in effect on January 1, 2005.
‘‘(B)(i) If Air-Conditioning and Refrigeration Insti-
tute Standard 810–2003 is amended, the Secretary shall
amend the test procedures established in subparagraph (A)
as necessary to be consistent with the amended Air-Condi-
tioning and Refrigeration Institute Standard, unless the
Secretary determines, by rule, published in the Federal Reg-
ister and supported by clear and convincing evidence, that
to do so would not meet the requirements for test procedures
under paragraphs (2) and (3).
‘‘(ii) If the Secretary issues a rule under clause (i) con-
taining a determination described in clause (ii), the rule
may establish an amended test procedure for the product
that meets the requirements of paragraphs (2) and (3).
‘‘(C) The Secretary shall comply with section 323(e)
in establishing any amended test procedure under this
paragraph.
‘‘(8) With respect to commercial clothes washers, the
test procedures shall be the same as the test procedures es-
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tablished by the Secretary for residential clothes washers
under section 325(g).’’; and
(2) in subsection (d)(1), by inserting ‘‘very large
commercial package air conditioning and heating
equipment, commercial refrigerators, freezers, and re-
frigerator-freezers, automatic commercial ice makers,
commercial clothes washers,’’ after ‘‘large commercial
package air conditioning and heating equipment,’’.
(g) LABELING.—Section 344(e) of the Energy Policy
and Conservation Act (42 U.S.C. 6315(e)) is amended by
inserting ‘‘very large commercial package air conditioning
and heating equipment, commercial refrigerators, freezers,
and refrigerator-freezers, automatic commercial ice makers,
commercial clothes washers,’’ after ‘‘large commercial pack-
age air conditioning and heating equipment,’’ each place
it appears.
(h) ADMINISTRATION, PENALTIES, ENFORCEMENT,
AND PREEMPTION.—Section 345 of the Energy Policy and
Conservation Act (42 U.S.C. 6316) is amended—
(1) in subsection (a)—
(A) in paragraph (7), by striking ‘‘and’’ at
the end;
(B) in paragraph (8), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
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‘‘(9) in the case of commercial clothes washers,
section 327(b)(1) shall be applied as if the National
Appliance Energy Conservation Act of 1987 was the
Energy Policy Act of 2005.’’;
(2) in the first sentence of subsection (b)(1), by
striking ‘‘part B’’ and inserting ‘‘part A’’; and
(3) by adding at the end the following:
‘‘(d)(1) Except as provided in paragraphs (2) and (3),
section 327 shall apply with respect to very large commer-
cial package air conditioning and heating equipment to the
same extent and in the same manner as section 327 applies
under part A on the date of enactment of this subsection.
‘‘(2) Any State or local standard issued before the date
of enactment of this subsection shall not be preempted until
the standards established under section 342(a)(9) take effect
on January 1, 2010.
‘‘(e)(1)(A) Subsections (a), (b), and (d) of section 326,
subsections (m) through (s) of section 325, and sections 328
through 336 shall apply with respect to commercial refrig-
erators, freezers, and refrigerator-freezers to the same extent
and in the same manner as those provisions apply under
part A.
‘‘(B) In applying those provisions to commercial re-
frigerators, freezers, and refrigerator-freezers, paragraphs
(1), (2), (3), and (4) of subsection (a) shall apply.
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‘‘(2)(A) Section 327 shall apply to commercial refrig-
erators, freezers, and refrigerator-freezers for which stand-
ards are established under paragraphs (2) and (3) of section
342(c) to the same extent and in the same manner as those
provisions apply under part A on the date of enactment
of this subsection, except that any State or local standard
issued before the date of enactment of this subsection shall
not be preempted until the standards established under
paragraphs (2) and (3) of section 342(c) take effect.
‘‘(B) In applying section 327 in accordance with sub-
paragraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
‘‘(3)(A) Section 327 shall apply to commercial refrig-
erators, freezers, and refrigerator-freezers for which stand-
ards are established under section 342(c)(4) to the same ex-
tent and in the same manner as the provisions apply under
part A on the date of publication of the final rule by the
Secretary, except that any State or local standard issued
before the date of publication of the final rule by the Sec-
retary shall not be preempted until the standards take effect.
‘‘(B) In applying section 327 in accordance with sub-
paragraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
‘‘(4)(A) If the Secretary does not issue a final rule for
a specific type of commercial refrigerator, freezer, or refrig-
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erator-freezer within the time frame specified in section
342(c)(5), subsections (b) and (c) of section 327 shall not
apply to that specific type of refrigerator, freezer, or refrig-
erator-freezer for the period beginning on the date that is
2 years after the scheduled date for a final rule and ending
on the date on which the Secretary publishes a final rule
covering the specific type of refrigerator, freezer, or refrig-
erator-freezer.
‘‘(B) Any State or local standard issued before the date
of publication of the final rule shall not be preempted until
the final rule takes effect.
‘‘(5)(A) In the case of any commercial refrigerator,
freezer, or refrigerator-freezer to which standards are appli-
cable under paragraphs (2) and (3) of section 342(c), the
Secretary shall require manufacturers to certify, through an
independent, nationally recognized testing or certification
program, that the commercial refrigerator, freezer, or refrig-
erator-freezer meets the applicable standard.
‘‘(B) The Secretary shall, to the maximum extent prac-
ticable, encourage the establishment of at least 2 inde-
pendent testing and certification programs.
‘‘(C) As part of certification, information on equip-
ment energy use and interior volume shall be made avail-
able to the Secretary.
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‘‘(f)(1)(A)(i) Except as provided in clause (ii), section
327 shall apply to automatic commercial ice makers for
which standards have been established under section
342(d)(1) to the same extent and in the same manner as
the section applies under part A on the date of enactment
of this subsection.
‘‘(ii) Any State standard issued before the date of en-
actment of this subsection shall not be preempted until the
standards established under section 342(d)(1) take effect.
‘‘(B) In applying section 327 to the equipment under
subparagraph (A), paragraphs (1), (2), and (3) of sub-
section (a) shall apply.
‘‘(2)(A)(i) Except as provided in clause (ii), section
327 shall apply to automatic commercial ice makers for
which standards have been established under section
342(d)(2) to the same extent and in the same manner as
the section applies under part A on the date of publication
of the final rule by the Secretary.
‘‘(ii) Any State standard issued before the date of pub-
lication of the final rule by the Secretary shall not be pre-
empted until the standards established under section
342(d)(2) take effect.
‘‘(B) In applying section 327 in accordance with sub-
paragraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
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‘‘(3)(A) If the Secretary does not issue a final rule for
a specific type of automatic commercial ice maker within
the time frame specified in subsection 342(d), subsections
(b) and (c) of section 327 shall no longer apply to the spe-
cific type of automatic commercial ice maker for the period
beginning on the day after the scheduled date for a final
rule and ending on the date on which the Secretary pub-
lishes a final rule covering the specific type of automatic
commercial ice maker.
‘‘(B) Any State standard issued before the publication
of the final rule shall not be preempted until the standards
established in the final rule take effect.
‘‘(4)(A) The Secretary shall monitor whether manufac-
turers are reducing harvest rates below tested values for the
purpose of bringing non-complying equipment into compli-
ance.
‘‘(B) If the Secretary finds that there has been a sub-
stantial amount of manipulation with respect to harvest
rates under subparagraph (A), the Secretary shall take steps
to minimize the manipulation, such as requiring harvest
rates to be within 5 percent of tested values.
‘‘(g)(1)(A) If the Secretary does not issue a final rule
for commercial clothes washers within the timeframe speci-
fied in section 342(e)(2), subsections (b) and (c) of section
327 shall not apply to commercial clothes washers for the
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period beginning on the day after the scheduled date for
a final rule and ending on the date on which the Secretary
publishes a final rule covering commercial clothes washers.
‘‘(B) Any State or local standard issued before the date
on which the Secretary publishes a final rule shall not be
preempted until the standards established under section
342(e)(2) take effect.
‘‘(2) The Secretary shall undertake an educational pro-
gram to inform owners of laundromats, multifamily hous-
ing, and other sites where commercial clothes washers are
located about the new standard, including impacts on wash-
er purchase costs and options for recovering those costs
through coin collection.’’.
SEC. 137. EXPEDITED RULEMAKING.
(a) ADMINISTRATIVE PROCEDURE.—The first sentence
of section 325(p) of the Energy Policy and Conservation
Act (42 U.S.C. 6295(p)) is amended by striking ‘‘Any’’ and
inserting ‘‘Except as provided in subsection (u), any’’.
(b) ADMINISTRATIVE PROCEDURE AND JUDICIAL RE-
VIEW.—The first sentence of section 336(b)(2) of the Energy
Policy and Conservation Act (42 U.S.C. 6306(b)(2)) is
amended by striking ‘‘such chapter.’’ and inserting ‘‘that
chapter, except, notwithstanding section 706(2)(D) of title
5, United States Code, no direct final rule prescribed or
withdrawn under section 325(u) may be held unlawful or
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set aside because of the failure of the Secretary to observe
a procedure required by law other than the procedures re-
quired under section 325(u).’’.
(c) CONFORMING AMENDMENT.—Section 345(b)(1) of
the Energy Policy and Conservation Act (42 U.S.C.
6316(b)(1)) is amended by inserting ‘‘section 325(u),’’ be-
fore ‘‘section 326(a)’’.
SEC. 138. ENERGY LABELING.
(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER
PRODUCT LABELING.—Section 324(a)(2) of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6294(a)(2)) is amend-
ed by adding at the end the following:
‘‘(F)(i) Not later than 90 days after the date of enact-
ment of this subparagraph, the Commission shall initiate
a rulemaking to consider—
‘‘(I) the effectiveness of the consumer products la-
beling program in assisting consumers in making
purchasing decisions and improving energy efficiency;
and
‘‘(II) changes to the labeling rules (including cat-
egorical labeling) that would improve the effectiveness
of consumer product labels.
‘‘(ii) Not later than 2 years after the date of enactment
of this subparagraph, the Commission shall complete the
rulemaking initiated under clause (i).’’.
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(b) RULEMAKING
ON LABELING
FOR ADDITIONAL
PRODUCTS.—Section 324(a) of the Energy Policy and Con-
servation Act (42 U.S.C. 6294(a)) is amended by adding
at the end the following:
‘‘(5)(A) For covered products described in subsections
(u) through (ee) of section 325, after a test procedure has
been prescribed under section 323, the Secretary or the
Commission, as appropriate, may prescribe, by rule, under
this section labeling requirements for the products.
‘‘(B) In the case of products to which TP–1 standards
under section 325(y) apply, labeling requirements shall be
based on the ‘Standard for the Labeling of Distribution
Transformer Efficiency’ prescribed by the National Elec-
trical Manufacturers Association (NEMA TP–3) as in effect
on the date of enactment of this paragraph.
‘‘(C) In the case of dehumidifiers covered under section
325(dd), the Commission shall not require an ‘Energy
Guide’ label.’’.
SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS
UTILITIES STUDY.
(a) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, the Secretary, in consultation with
the National Association of Regulatory Utility Commis-
sioners and the National Association of State Energy Offi-
cials, shall conduct a study of State and regional policies
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that promote cost-effective programs to reduce energy con-
sumption (including energy efficiency programs) that are
carried out by—
(1) utilities that are subject to State regulation;
and
(2) nonregulated utilities.
(b) CONSIDERATION.—In conducting the study under
subsection (a), the Secretary shall take into consideration—
(1) performance standards for achieving energy
use and demand reduction targets;
(2) funding sources, including rate surcharges;
(3) infrastructure planning approaches (includ-
ing energy efficiency programs) and infrastructure
improvements;
(4) the costs and benefits of consumer education
programs conducted by State and local governments
and local utilities to increase consumer awareness of
energy efficiency technologies and measures; and
(5) methods of—
(A) removing disincentives for utilities to
implement energy efficiency programs;
(B) encouraging utilities to undertake vol-
untary energy efficiency programs; and
(C) ensuring appropriate returns on energy
efficiency programs.
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(c) REPORT.—Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Con-
gress a report that includes—
(1) the findings of the study; and
(2) any recommendations of the Secretary, in-
cluding recommendations on model policies to pro-
mote energy efficiency programs.
SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.
(a) IN GENERAL.—The Secretary shall establish a
pilot program under which the Secretary provides financial
assistance to at least 3, but not more than 7, States to carry
out pilot projects in the States for—
(1) planning and adopting statewide programs
that encourage, for each year in which the pilot
project is carried out—
(A) energy efficiency; and
(B) reduction of consumption of electricity
or natural gas in the State by at least 0.75 per-
cent, as compared to a baseline determined by
the Secretary for the period preceding the imple-
mentation of the program; or
(2) for any State that has adopted a statewide
program as of the date of enactment of this Act, ac-
tivities that reduce energy consumption in the State
by expanding and improving the program.
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(b) VERIFICATION.—A State that receives financial as-
sistance under subsection (a)(1) shall submit to the Sec-
retary independent verification of any energy savings
achieved through the statewide program.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$5,000,000 for each of fiscal years 2006 through 2010, to
remain available until expended.
SEC. 141. ENERGY EFFICIENCY RESOURCE PROGRAMS.
(a) ELECTRIC UTILITY PROGRAMS.—Section 111 of
the Public Utilities Regulatory Policy Act of 1978 (16
U.S.C. 2621) is amended by adding at the end the following:
‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) DEMAND
BASELINE.—The term ‘de-
mand baseline’ means the baseline determined by
the Secretary for an appropriate period pre-
ceding the implementation of an energy effi-
ciency resource program.
‘‘(B) ENERGY EFFICIENCY RESOURCE PRO-
GRAMS.—The term ‘energy efficiency resource
program’ means an energy efficiency or other de-
mand reduction program that is designed to re-
duce annual electricity consumption or peak de-
mand of consumers served by an electric utility
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by a percentage of the demand baseline of the
utility that is equal to not less than 0.75 percent
of the number of years during which the pro-
gram is in effect.
‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.—
‘‘(A) As soon as practicable after the date of
enactment of this subsection, but not later than
3 years after that date, each State regulatory au-
thority (with respect to each electric utility over
which the State has ratemaking authority) and
each nonregulated electric utility shall, after no-
tice, conduct a public hearing on the benefits and
feasibility of implementing an energy efficiency
resource program.
‘‘(B) A State regulatory authority or non-
regulated utility shall implement an energy effi-
ciency resource program if, on the basis of a
hearing under subparagraph (A), the State regu-
latory authority or nonregulated utility deter-
mines that the program would—
‘‘(i) benefit end-use customers;
‘‘(ii) be cost-effective based on total re-
source cost;
‘‘(iii) serve the public welfare; and
‘‘(iv) be feasible to implement.
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‘‘(3) IMPLEMENTATION.—
‘‘(A) STATE REGULATORY AUTHORITIES.—
If a State regulatory authority makes a deter-
mination under paragraph (2)(B), the State reg-
ulatory authority shall—
‘‘(i) require each electric utility over
which the State has ratemaking authority
to implement an energy efficiency resource
program; and
‘‘(ii) allow such a utility to recover
any expenditures incurred by the utility in
implementing the energy efficiency resource
program.
‘‘(B) 
NONREGULATED
ELECTRIC
UTILI-
TIES.—If a nonregulated electric utility makes a
determination under paragraph (2)(B), the util-
ity shall implement an energy efficiency resource
program.
‘‘(4) UPDATING
REGULATIONS.—A State regu-
latory authority or nonregulated utility may update
periodically a determination under paragraph (2)(B)
to determine whether an energy efficiency resource
program should be—
‘‘(A) continued;,
‘‘(B) modified; or
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‘‘(C) terminated.
‘‘(5) EXCEPTION.—Paragraph (2) shall not
apply to a State regulatory authority (or any non-
regulated electric utility operating in the State) that
demonstrates to the Secretary that an energy effi-
ciency resource program is in effect in the State.’’.
(b) GAS UTILITIES.—Section 303 of the Public Utili-
ties Regulatory Policy Act of 1978 (15 U.S.C. 3203) is
amended by adding at the end the following:
‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) DEMAND
BASELINE.—The term ‘de-
mand baseline’ means the baseline determined by
the Secretary for an appropriate period pre-
ceding the implementation of an energy effi-
ciency resource program.
‘‘(B) ENERGY EFFICIENCY RESOURCE PRO-
GRAMS.—The term ‘energy efficiency resource
program’ means an energy efficiency or other de-
mand reduction program that is designed to re-
duce annual gas consumption or peak demand of
consumers served by a gas utility by a percent-
age of the demand baseline of the utility that is
equal to not less than 0.75 percent of the number
of years during which the program is in effect.
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‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.—
‘‘(A) As soon as practicable after the date of
enactment of this subsection, but not later than
3 years after that date, each State regulatory au-
thority (with respect to each gas utility over
which the State has ratemaking authority) and
each nonregulated gas utility shall, after notice,
conduct a public hearing on the benefits and fea-
sibility of implementing an energy efficiency re-
source program.
‘‘(B) A State regulatory authority or non-
regulated utility shall implement an energy effi-
ciency resource program if, on the basis of a
hearing under subparagraph (A), the State regu-
latory authority or nonregulated utility deter-
mines that the program would—
‘‘(i) benefit end-use customers;
‘‘(ii) be cost-effective based on total re-
source cost;
‘‘(iii) serve the public welfare; and
‘‘(iv) be feasible to implement.
‘‘(3) IMPLEMENTATION.—
‘‘(A) STATE REGULATORY AUTHORITIES.—
If a State regulatory authority makes a deter-