[House Report 118-452]
[From the U.S. Government Publishing Office]


118th Congress  }                                             {    Report
                        HOUSE OF REPRESENTATIVES
 2d Session     }                                             {  118-452

======================================================================



 
                        REFRIGERATOR FREEDOM ACT

                                _______
                                

 April 10, 2024.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mrs. Rodgers of Washington, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 7637]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 7637) to prohibit the Secretary of Energy from 
prescribing or enforcing energy conservation standards for 
refrigerators, refrigerator-freezers, and freezers that are not 
cost-effective or technologically feasible, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Committee Action.................................................     3
Committee Votes..................................................     4
Oversight Findings and Recommendations...........................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     6
Statement of General Performance Goals and Objectives............     6
Duplication of Federal Programs..................................     6
Related Committee and Subcommittee Hearings......................     6
Committee Cost Estimate..........................................     7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     8
Minority Views...................................................     9

                          PURPOSE AND SUMMARY

    H.R. 7637, the ``Refrigerator Freedom Act'' was introduced 
by Representative Miller-Meeks (R-IA) on March 12, 2024. The 
legislation would prohibit the Secretary of Energy from 
prescribing or enforcing energy efficiency standards for a 
residential refrigerator, a residential refrigerator-freezer, 
or a residential freezer that not technologically feasible and 
economically justified, that are likely to result in additional 
net costs to consumers, or that are not likely to result in a 
significant conservation of energy.

                  BACKGROUND AND NEED FOR LEGISLATION

    Congress enacted the Energy Policy and Conservation Act 
(EPCA) in 1975 with the goal of increasing domestic energy 
production and supply, reducing demand, encouraging more 
efficient use of energy, and to improve energy security.\1\ 
EPCA authorized the Department of Energy's (DOE) Appliance and 
Equipment Standards Program in 1975. The program sets minimum 
energy efficiency standards for approximately 60 product 
categories. These standards were initially nonbinding targets 
until 1978 when Congress amended EPCA and authorized the 
Secretary of Energy to set binding standards through 
regulations. Title III of EPCA established the requirements for 
standards that remain in effect today. For a new standard to be 
promulgated, DOE must find that the standard would be cost-
effective, technologically feasible, and result in significant 
conservation of energy.
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    \1\42 U.S.C. Sec. 6201.
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    Pursuant to EPCA, the DOE is required to follow specific 
statutory criteria for prescribing new or amended standards for 
covered products and covered equipment. Covered products 
include refrigerators, kitchen ranges and ovens, water heaters, 
dishwashers, clothes washers and dryers, television sets, 
general service incandescent lamps, and showerheads.\2\ Covered 
equipment includes, but is not limited to, electric motors and 
pumps, commercial refrigerators, automatic commercial ice 
makers, walk-in freezers, and commercial clothes washers.\3\
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    \2\42 U.S.C. Sec. 6292(a).
    \3\42 U.S.C. Sec. 6312.
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    Under EPCA, DOE is required to review energy efficiency 
standards of covered products no later than six years after the 
issuance of a final rule. DOE is required either to publish a 
determination that the standard does not need amending or issue 
a Notice of Proposed Rulemaking (NOPR) including a new proposed 
standard.\4\ The DOE may only propose a new standard if the new 
standard results in a significant conservation of energy, is 
technologically feasible, and economically justified. EPCA also 
includes a provision which categorically prohibits any new or 
amended standard if the Secretary finds, by preponderance of 
evidence, that the standard is likely to result in the 
unavailability in the United States in any covered product type 
(or class) of performance characteristics (including 
reliability), features, sizes, capacities, and volumes that are 
substantially the same as those generally available in the 
United States at the time of the Secretary's finding.\5\ This 
provision prohibits DOE from setting efficiency standards that 
would sacrifice the availability of a product or any desired 
product characteristics.
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    \4\42 U.S.C. Sec. 6295(m)(1).
    \5\42 U.S.C. Sec. 6295(o)(4).
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    The Committee finds that the DOE has continuously ignored 
the consumer protections built into the underlying statute, 
EPCA, when setting efficiency standards. As a result, the DOE's 
excessive standards have increased the cost of appliances, 
undercut appliance product quality, and jeopardized consumer 
choice. The Committee has found that multiple recently proposed 
and finalized rules do not save a significant amount of energy 
and are not cost-effective. On January 17, 2024, the DOE's 
Office of Energy Efficiency and Renewable Energy issued a NOPR 
for refrigerators, refrigerator-freezers, and freezers.\6\ 
These proposed standards are neither technologically feasible 
nor economically justified. For example, according to the DOE's 
own analysis, at TSL 6, for the largest product classes, which 
are 3, 5, 5A, and 7 and together account for approximately 76 
percent of annual shipments, there is a life-cycle cost 
(``LLC'') savings of $0.03, $20.22, $122.18, and $69.71 and a 
payback period of 9.3 years, 8.6 years, 6.0 years and 6.8 
years, respectively.\7\ The simple payback period for 
refrigerator-freezers could be 10 years, and that is for a 
product that is only expected to last 14 or 15 years.
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    \6\89 FR 2886.
    \7\89 FR 2887.
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    The Committee finds these numbers violate the rulemaking 
framework prescribed in EPCA, which requires the implementation 
of new standards to be technologically feasible, economically 
justified, and result in a significant conservation of energy. 
Because this administration has continuously proposed 
efficiency standards that violate EPCA, the Committee believes 
that this legislation is necessary to prevent the DOE from 
prescribing or enforcing energy efficiency standards for 
refrigerators, refrigerator-freezers, or freezers that are not 
technologically feasible and economically justified, that are 
likely to result in additional net costs to consumers, or that 
are not likely to result in a significant conservation of 
energy. The Committee finds the DOE continuously downplays and 
ignores the consumer protections in EPCA and prescribes 
standards that run contrary to the statute's original intent. 
This legislation is necessary to protect consumers from Federal 
mandates that increase costs, fail to result in significant 
energy savings, are not technologically feasible, or eliminate 
performance features or product choices.

                            COMMITTEE ACTION

    On September 13, 2023, the Subcommittee on Energy, Climate, 
and Grid Security held a hearing on a discussion draft of H.R. 
6192. The title of the hearing was ``Keeping the Lights On: 
Enhancing Reliability and Efficiency to Power American Homes.'' 
The purpose of H.R. 6192 was to amend the Energy Policy and 
Conservation Act (EPCA) to reform the Department of Energy's 
(DOE's) procedures for issuing energy efficiency standards by 
prohibiting the Secretary of Energy from prescribing any new or 
amended energy conservation standard for a product that is not 
technologically feasible and economically justified. H.R. 6192 
informed the development of H.R. 7637. The Subcommittee 
received testimony from:
           Gene Rodrigues, Assistant Secretary for 
        Electricity, Office of Electricity, U.S. Department of 
        Energy;
           David Ortiz, Director, Office of Electric 
        Reliability, Federal Energy Regulatory Commission;
           Kevin Messner, Executive Vice President and 
        Chief Policy Officer, Association of Home Appliance 
        Manufacturers;
           B. Robert Paulling, President and Chief 
        Executive Officer, Mid-Carolina Electric Cooperative on 
        behalf of the National Rural Electrical Cooperatives 
        Association;
           Ben Lieberman, Senior Fellow, Competitive 
        Enterprise Institute; and,
           Andrew deLaski, Executive Director, 
        Appliance Standards Awareness Project.
    On March 6, 2024, the Subcommittee on Energy, Climate, and 
Grid Security met in open markup session and forwarded a 
discussion draft of H.R. 7637, without amendment, to the full 
Committee by a record vote of 15 yeas and 10 nays.
    On March 20, 2024, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 7637, 
without amendment, favorably reported to the House by a record 
vote of 25 yeas and 21 nays.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration:


                 OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held a hearings and made findings that 
are reflected in this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 7637 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII, at the time this 
report was filed, the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to protect 
consumers from Federal mandates on refrigerators, refrigerator-
freezers, or freezers that (1) are not technologically 
feasible, (2) increase the cost of appliances, and (3) do not 
conserve a significant amount of energy.

                    DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 7637 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

              RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS

    Pursuant to clause 3(c)(6) of rule XIII, the following 
related hearing was used to develop or consider H.R. 7637:
           On September 13, 2023, the Subcommittee on 
        Energy, Climate, and Grid Security held a hearing on a 
        discussion draft of H.R. 6192. The title of the hearing 
        was ``Keeping the Lights On: Enhancing Reliability and 
        Efficiency to Power American Homes.'' The purpose of 
        H.R. 6192 was to amend the Energy Policy and 
        Conservation Act (EPCA) to reform the Department of 
        Energy's (DOE's) procedures for issuing energy 
        efficiency standards by prohibiting the Secretary of 
        Energy from prescribing any new or amended energy 
        conservation standard for a product that is not 
        technologically feasible and economically justified. 
        H.R. 6192 informed the development of H.R. 7637.
                   Gene Rodrigues, Assistant 
                Secretary for Electricity, Office of 
                Electricity, U.S. Department of Energy;
                   David Ortiz, Director, Office of 
                Electric Reliability, Federal Energy Regulatory 
                Commission;
                   Kevin Messner, Executive Vice 
                President and Chief Policy Officer, Association 
                of Home Appliance Manufacturers;
                   B. Robert Paulling, President 
                and Chief Executive Officer, Mid-Carolina 
                Electric Cooperative on behalf of the National 
                Rural Electrical Cooperatives Association;
                   Ben Lieberman, Senior Fellow, 
                Competitive Enterprise Institute; and,
                   Andrew deLaski, Executive 
                Director, Appliance Standards Awareness 
                Project.

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 7637 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    Section 1 provides that the Act may be cited as the 
``Refrigerator Freedom Act.''

Section 2. Prescribing and enforcing energy conservation standards for 
        refrigerators, refrigerator-freezers, and freezers

    Section 2(a) prohibits the Secretary of Energy from 
prescribing or enforcing a new or an amended energy 
conservation standard for a refrigerator, a refrigerator-
freezer, or a freezer that is not technologically feasible or 
economically justified. Nothing in this section amends 
subsections (m), (n), or (o) of section 325 of EPCA.
    Section 2(b) prohibits the Secretary of Energy from 
prescribing or enforcing a new or an amended energy 
conservation standard for a refrigerator, a refrigerator-
freezer, or a freezer that is likely to result in additional 
net costs to the consumer. Nothing in this section amends 
subsections (m), (n), or (o) of section 325 of EPCA.
    Section 2(c) prohibits the Secretary of Energy from 
prescribing or enforcing a new or an amended energy 
conservation standard for a refrigerator, a refrigerator-
freezer, or a freezer that will not result in a significant 
conservation of energy. Nothing in this section amends 
subsections (m), (n), or (o) of section 325 of EPCA.
    Section 2(d) provides the terms ``covered product'' and 
``energy conservation standard'' have the same meaning as such 
terms in section 321 of EPCA (42 U.S.C. 6291).

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation does not amend any existing Federal 
statute.

                             MINORITY VIEWS

    H.R. 7637, the ``Refrigerator Freedom Act,'' would prevent 
Americans from benefitting from the cost and energy savings 
made possible by the appliance standards set through the Energy 
Policy and Conservation Act (EPCA).
    While H.R. 7637 is drafted to look like a consumer 
protection bill, this bill is designed to weaken the Department 
of Energy's popular and successful energy conservation program. 
H.R. 7637 fails to acknowledge or account for the fact that 
EPCA already requires standards to result in significant energy 
conservation and be technologically feasible and economically 
justified.\1\ The bill also does not specify when it would go 
into effect, potentially blocking enforcement of both recent 
and pending updated standards. H.R. 7637 also does not include 
definitions for any of its terms, leaving the door open for 
drastically different interpretations from administration to 
administration. By failing to account for life cycle cost 
savings from refrigerators and failing to define ``significant 
conservation of energy,'' this bill creates a vague set of 
standards that would conflict with what already exists in EPCA.
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    \1\Congressional Research Service, The Department of Energy's 
Appliance and Equipment Standards Program (Feb. 2023) (R47038).
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    H.R. 7637 also runs counter to a consensus agreement 
reached for refrigerators and freezers, in addition to other 
home appliances. In September 2023, home appliance 
manufacturers, along with energy efficiency advocates, came 
together to announce a consensus agreement on energy and water 
efficiency for refrigerators and freezers, clothes dryers, 
clothes washers, beverage and wine chillers, dishwashers, and 
cooking products.\2\ In the Committee Report for H.R. 7637, the 
Majority fails to recognize that industry and energy efficiency 
advocates were able to reach a consensus agreement on 
refrigerator and freezer efficiency standards. The Department 
of Energy based its finalized standards for refrigerators, 
refrigerator- freezers, and freezers in 2024 on the agreed 
upon, consensus standards.\3\ The recently finalized standards 
for these appliances will result in energy savings of 5.6 
quadrillion British thermal units over 30 years of shipments, 
or about 11 percent savings compared with current products.\4\ 
DOE estimates show that this will save consumers $36.4 billion 
over 30 years of shipments.\5\ The Department of Energy already 
has a robust process for engaging stakeholders in the 
development of conservation standards, and we strongly support 
this existing process.
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    \2\Association of Home Appliance Manufacturers, Agreement on Home 
Appliance Efficiency Standards Will Preserve Consumer Features and 
Deliver Remarkable Energy Savings (Sept. 13, 2023) (press release).
    \3\Appliance Standards Awareness Project, Refrigerator Standards 
Set to Cut Utility Bills and Climate Pollution (Dec. 29, 2023) (press 
release).
    \4\Department of Energy, DOE Finalizes Efficiency Standards for 
Residential Refrigerators and Freezers, Closing Out Remarkable Year of 
Cost-Saving Progress (Dec. 29, 2023) (press release).
    \5\Id.
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    In the Committee report for H.R. 7637, the Majority cites a 
Subcommittee on Energy, Climate, and Grid Security hearing on 
September 13, 2023 as the basis for H.R. 7637. This hearing, 
titled ``Keeping the Lights On: Enhancing Reliability and 
Efficiency to Power American Homes,'' did not include testimony 
on H.R. 7637. As a result, the Committee did not receive any 
expert witness testimony on the need for the bill or its 
effects on finalized rules.
    Energy conservation standards are popular. Three out of 
five Americans support stricter energy efficiency standards for 
appliances and buildings.\6\ Additionally, the Biden 
Administration's past and planned energy efficiency actions 
will save Americans $570 billion over the next 30 years.\7\ We 
believe that the energy conservation program should be 
strengthened, not weakened by vague and duplicative statutory 
language.
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    \6\Attitudes on Natural Gas Bans Aren't Changing Much--but Support 
is Rising for Strengthened Energy Efficiency Standards, Morning Consult 
(Apr. 27, 2023).
    \7\Department of Energy, DOE Announces Efficiency Standards to Save 
Americans More Than $1 Billion Annually in Utility Bills (July 28, 
2023) (press release).
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    For the reasons stated above, we oppose H.R. 7637.

                                        Frank Pallone, Jr.,
                                                    Ranking Member.