December ’24 at-a-glance … energy

NAFEM leverages last opportunity for comments as CRE standards enter final review

Review by the White House Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) is the last stop before the Department of Energy (DOE) issues its final rule on energy-conservation standards for Commercial Refrigeration Equipment (CRE). On Monday, Dec. 9, NAFEM presented its case before OIRA that the rule doesn’t meet the requirements of the Energy Policy and Conservation Act that new standards be technologically feasible and economically justified. NAFEM had 30-minutes to share its perspective to OIRA and once again advocate for a “no-new standard” standard, as it has done for nearly two years. Helping do so were members:

  • Jeff Bauman, manager of regulatory affairs, Continental Refrigerator
  • Scott Martin, senior director, industry relations and compliance, Hill Phoenix, Inc.
  • Stephen Schaefer, compliance engineer V, Hoshizaki America, Inc.
  • Ron Shebik, director, government affairs and product regulation, Hussmann Corporation

Fred Andes and Alex Bandza, NAFEM legal counsel, Barnes &Thornburg, also made the points that the DOE rule actually:

  • Increases energy consumption
  • Creates food safety issues
  • Has unreasonably associated costs and limited benefits, including up to a 93.7-year payback

Concern with CRE energy-conservation standards escalated to President-elect Trump

The National Association of Manufacturers (NAM), along with more than 100 manufacturing associations, sent a letter to President-elect Donald Trump laying out a roadmap for actions that would put a stop to the regulatory onslaught costing manufacturers $350 billion each year.

Included in 21-page list is a specific request to either pause energy-efficiency standards for commercial refrigeration equipment (CRE) or issue a “no-new standard” standard, as NAFEM has been advocating for almost two years.

“Manufacturers urge your administration to pause these unrealistic efficiency standards, which will drive up costs to the small businesses that use and purchase CRE, causing them to hold on to their outdated, less-efficient equipment or seek cheap, noncompliant CRE from other countries. This is bad for America, bad for America’s CRE manufacturers and bad for the scores of American small businesses that purchase and use CRE.”

According to Felicia Jaeger, NAFEM’s director, regulatory & technical affairs, “It is highly unusual for NAM to include such a specific ask in its outreach to an incoming administration. However, in this case, the burdensome nature of the CRE final rule is a perfect example of how regulations affecting manufacturers are strangling the economy.”

DOE issues WIC/F energy-conservation standards

The U.S. Department of Energy (DOE) issued a pre-publication final rule addressing energy-conservation standards for walk-in coolers/freezers Nov. 29. The rule is effective 60 days after publication in the Federal Register.

  • Compliance with the amended standards for walk-in non-display doors is required on and after three years after the notice is published in the Federal Register.
  • Compliance with the amended standards established for walk-in refrigeration systems in this final rule is required on and after Dec. 31, 2028.
  • DOE also provided product information for walk-in coolers and walk-in freezers including current standards and test procedures, statutory authority, waivers, exceptions and contact information.

ACIM energy-conservation standards final rule pending

Final energy-efficiency standards for Automatic Commercial Ice Makers (ACIM) remain with the White House Office of Management and Budget (OMB), which is expected to issue them any day.

Congressional Review Act could be used to overturn rules issued after ~Aug. 1

In 2017, Congress passed and President Trump signed an unprecedented number of resolutions “disapproving” rules previously passed by the Obama administration using the Congressional Review Act (CRA), according to the George Washington University Regulatory Studies Center. The CRA allows congress to “disapprove” regulations that had previously been finalized, meaning the rules simply do not go into effect. It is reasonable to expect similar measures this time around. In fact, NAFEM is already exploring this strategy with legal counsel. More information will follow in the new year.