Department of Energy: Energy Conservation Program—Energy Conservation Standards for General Service Lamps

B-334299

May 23, 2022

The Honorable Joe Manchin
Chairman
The Honorable John Barrasso
Ranking Member
Committee on Energy and Natural Resources
United States Senate

The Honorable Frank Pallone, Jr.
Chairman
The Honorable Cathy McMorris Rodgers
Republican Leader
Committee on Energy and Commerce
House of Representatives

Subject: Department of Energy: Energy Conservation Program—Energy Conservation Standards for General Service Lamps

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 (DOE) entitled “Energy Conservation Program: Energy Conservation Standards for General Service Lamps” (RIN: 1904-AF09). We received the rule on May 10, 2022. It was published in the Federal Register as a final rule on May 9, 2022. 87 Fed. Reg. 27439. The effective date is July 25, 2022.

According to DOE, it is codifying the 45 lumens per watt (“lm/W”) backstop requirement for general service lamps (“GSLs”) that Congress prescribed in the Energy Policy and Conservation Act, as amended. Pub. L. No. 94-163, 89 Stat. 871 (Dec. 22, 1975), 42 U.S.C. 6291–6317. DOE stated that it has determined this backstop requirement applies because DOE failed to complete a rulemaking regarding GSLs in accordance with certain statutory criteria. DOE stated further that this final rule represents a departure from its previous determination, published in 2019, that the backstop requirement was not triggered.

Enclosed is our assessment of DOE’s compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. 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 Shari Brewster, Assistant General Counsel, at (202) 512-6398.

Shirley A. Jones
Managing Associate General Counsel

Enclosure

cc: Ami Grace-Tardy
Assistant General Counsel
Legislation, Regulation & Energy Efficiency
Department of Energy

ENCLOSURE

REPORT UNDER 5 U.S.C. § 801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF ENERGY
ENTITLED
“ENERGY CONSERVATION PROGRAM: ENERGY CONSERVATION
STANDARDS FOR GENERAL SERVICE LAMPS”
(RIN: 1904-AF09)

(i) Cost-benefit analysis

The Department of Energy (DOE) provided a summary of the annualized costs and benefits of this final rule for 2022–2051. DOE estimates the primary net annualized benefit to be $ 4,497.7 million at a 3 percent discount rate and $4,238.8 million at a 7 percent discount rate. DOE also provided a summary of cumulative monetized economic benefits and costs of this final rule for 2022–2051. DOE estimates the cumulative net benefits to be $90.8 billion at a 3 percent discount rate and $60.4 billion at a 7 percent discount rate.

(ii) Agency actions relevant to the Regulatory Flexibility Act (RFA), 5 U.S.C. §§ 603–605, 607, and 609

According to DOE, because it is not imposing additional costs beyond those required by statute, it concluded and certified that this final rule would not have a significant economic impact on a substantial number of small entities. DOE also stated that the preparation of a Final Regulatory Flexibility Analysis is not warranted.

(iii) Agency actions relevant to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535

According to DOE, because this final rule would incorporate requirements specifically set forth in law, the assessment provided for under the Act is not required and has not been conducted.

(iv) Other relevant information or requirements under acts and executive orders

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

DOE stated that on May 25, 2021, it published a request for information (“RFI”) initiating a re‑evaluation of its prior determination that the Secretary was not required to implement the statutory backstop requirement for general service lamps (“GSLs”). 86 Fed. Reg. 28001. DOE also stated that on December 13, 2021, it published a notice of proposed rulemaking proposing to codify in the Code of Federal Regulations the 45 lumens per watt backstop requirement for GSLs and welcomed comments on the proposal. 86 Fed. Reg. 70755. DOE received comments from trade associations, individuals, energy efficiency organizations, state officials/agencies, utilities, consumer advocacy organizations, manufacturers, an energy efficiency services company, state organizations, a research organization, and a retailer. DOE provided a table that lists the commenters. DOE stated that it summarized and addressed the comments in the final rule.

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

DOE determined that this final rule contains no information collection requirements under the Act.

Statutory authorization for the rule

DOE promulgated this final rule pursuant to section 2461 note of title 28 and sections 6291–6309 of title 42, United States Code.

Executive Order No. 12866 (Regulatory Planning and Review)

DOE determined that this final rule is economically significant under the Order and submitted it to the Office of Management and Budget for review.

Executive Order No. 13132 (Federalism)

DOE determined that this final rule will not have a substantial direct effect on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. DOE stated that the Energy Policy and Conservation Act, as amended, governs and prescribes federal preemption of state regulations as to energy conservation for the products that are the subject of this proposed rule. Pub. L. No. 94-163, 89 Stat. 871 (Dec. 22, 1975), 42 U.S.C. 6291–6317. DOE stated further that states can petition the agency for exemption from such preemption to the extent, and based on criteria, set forth under 42 U.S.C. § 6297.