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The U.S. Department of Energy (DOE or the Department) is considering potential revisions to the Department's current rulemaking guidance titled "Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment" (Process Rule), which was last modified in 2024.  DOE is considering a notice-and-comment rulemaking to amend its Process Improvement Rule to reflect statutory changes as well as innovative, collaborative approaches to reflect more efficient rulemaking. Any rulemaking action will be consistent with the President's direction in Executive Order 14154, Unleashing American Energy, to preserve consumer choice as well as DOE's statutory obligation to preserve appliance features in the market.

Statement of Need:

On January 20, 2025, the President issued Executive Order 14154, Unleashing American Energy (E.O. 14154).  90 FR 8353 (Jan. 29, 2025).  That order stated the policy of the United States with regard to energy production and management.  Among the stated elements of this policy, section 1(f)-(h) of E.O. 14154 cite the intent to safeguard the American people's freedom to choose from a variety of goods and appliances, including but not limited to lightbulbs, dishwashers, washing machines, gas stoves, water heaters, toilets, and shower heads, and to promote market competition and innovation within the manufacturing and appliance industries; to ensure that the global effects of a rule, regulation, or action shall, whenever evaluated, be reported separately from its domestic costs and benefits, in order to promote sound regulatory decision making and prioritize the interests of the American people; and to guarantee that all Executive departments and agencies provide opportunity for public comment and rigorous, peer-reviewed scientific analysis.  Section 6 of the Executive order also specifies policies for prioritizing accuracy in environmental analyses, specifically instructing that for Federal regulatory processes, all agencies shall adhere to only the relevant legislated requirements for environmental considerations and any considerations beyond those requirements are eliminated.  Section 6 of the Executive order also provides instructions regarding consideration of greenhouse gas emissions and the social cost of carbon.

On February 19, 2025, the President issued Executive Order 14219, Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative (E.O. 14219).  90 FR 10583 (Feb. 25, 2025).  That order stated the policy of the United States to end Federal regulatory overreach and restore the constitutional separation of powers.  Among the stated elements of this policy, E.O. 14219 calls for review of certain categories of regulations.  Among these, section 2(a)(v) cites regulations that impose significant costs upon private parties that are not outweighed by public benefits, and section 2(a)(vii) cites regulations that impose undue burdens on small business and impede private enterprise and entrepreneurship.

To implement E.O. 14154 and E.O. 14219, the Department, among other actions, is evaluating existing policy regarding its approach to consideration of new or amended energy conservation standards and test procedures for consumer products and certain commercial and industrial equipment.  In furtherance of this reassessment, DOE is considering revisions to the Process Rule, which DOE generally uses to prescribe energy conservation standards and test procedures for both consumer products and commercial equipment pursuant to the Energy Policy and Conservation Act of 1975, as amended (42 U.S.C. 6291, et seq.).

Summary of the Legal Basis:

The Energy Policy and Conservation Act, Pub. L. 94-163, as amended (EPCA), authorizes DOE to regulate the energy efficiency of a number of consumer products and certain industrial equipment.  (42 U.S.C. 6291-6317, as codified)  Title III, Part B of EPCA established the Energy Conservation Program for Consumer Products Other Than Automobiles.  (42 U.S.C. 6291-6309, as codified)  Title III, Part C of EPCA, added by Pub. L. 95-619, Title IV, section 441(a), established the Energy Conservation Program for Certain Industrial Equipment, which sets forth a variety of provisions designed to improve energy efficiency.  (42 U.S.C. 6311-6317, as codified)  Under EPCA, DOE’s energy conservation program consists essentially of four parts: (1) testing, (2) labeling, (3) the establishment of Federal energy conservation standards, and (4) certification and enforcement procedures.

In July of 1996, pursuant to EPCA, DOE published a final rule in the Federal Register that codified DOE's Procedures, Interpretations and Policies for Consideration of New or Revised Energy Conservation Standards for Consumer Products at 10 CFR part 430, subpart C, appendix A.  61 FR 36974 (July 15, 1996).  The goal of the Process Rule was to increase transparency by elaborating on the procedures, interpretations, and policies that would guide the Department in establishing new or revised energy conservation standards for consumer products.  DOE subsequently updated the Process Rule in 2020, 2021, and 2024 to reflect analytical best practices and technological and legal developments.  See 85 FR 8626 (Feb. 14, 2020); 85 FR 50937 (August 19, 2020); 86 FR 70892 (Dec. 13, 2021), and 89 FR 24340 (April 8, 2024).

This rulemaking advances the objectives of E.O. 14154 and E.O. 14219 by ensuring that the rulemaking process for the Appliance Standards Program meets the energy and cost savings objectives of EPCA while preserving consumer choice and minimizing regulatory burdens.

Alternatives:

DOE will issue a notice of proposed rulemaking (NOPR) considering amendments to the Process Rule, after a careful review of public comments on the April 17, 2025 RFI.  In determining whether and how to update the existing Process Rule, DOE may consider alternatives such as taking no further action or examining approaches different from those proposed in the NOPR, based upon public comments and additional information received in response to the NOPR.

Anticipated Costs and Benefits:

This proposed rulemaking has also been determined to be an E.O. 14192 deregulatory action because it intends to reduce the burden to society by streamlining the regulatory framework and improving efficiency for regulated entities and the interested public.  These benefits are difficult to quantify, but they may involve reduced manufacturer administrative burdens, lower appliance first costs, and expanded consumer choice.  

Risks:

N/A