[House Report 118-452]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-452
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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.