[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


                 BURDENSOME REGULATIONS: EXAMINING THE 
                    EFFECTS OF DEPARTMENT OF ENERGY 
                 REGULATIONS ON AMERICA'S JOB CREATORS

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

                                HEARING

                               BEFORE THE

                      COMMITTEE ON SMALL BUSINESS
                             UNITED STATES
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION
                              __________

                              HEARING HELD
                            NOVEMBER 8, 2024
                               __________

                  [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
                               

            Small Business Committee Document Number 118-029
             Available via the GPO Website: www.govinfo.gov
             
                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE
                    
54-085                   WASHINGTON : 2024                
             

                   HOUSE COMMITTEE ON SMALL BUSINESS

                    ROGER WILLIAMS, Texas, Chairman
                      BLAINE LUETKEMEYER, Missouri
                        PETE STAUBER, Minnesota
                        DAN MEUSER, Pennsylvania
                         BETH VAN DUYNE, Texas
                         MARIA SALAZAR, Florida
                          TRACEY MANN, Kansas
                           JAKE ELLZEY, Texas
                        MARC MOLINARO, New York
                         MARK ALFORD, Missouri
                           ELI CRANE, Arizona
                          AARON BEAN, Florida
                           WESLEY HUNT, Texas
                         NICK LALOTA, New York
               NYDIA VELAZQUEZ, New York, Ranking Member
                          JARED GOLDEN, Maine
                         KWEISI MFUME, Maryland
                        DEAN PHILLIPS, Minnesota
                          GREG LANDSMAN, Ohio
                       MORGAN MCGARVEY, Kentucky
                  MARIE GLUESENKAMP PEREZ, Washington
                       HILLARY SCHOLTEN, Michigan
                        SHRI THANEDAR, Michigan
                          JUDY CHU, California
                         SHARICE DAVIDS, Kansas
                      CHRIS PAPPAS, New Hampshire

                  Ben Johnson, Majority Staff Director
                 Melissa Jung, Minority Staff Director

                            C O N T E N T S

                           OPENING STATEMENTS

                                                                   Page
Hon. Roger Williams..............................................     1
Hon. Nydia Velazquez.............................................     2

                               WITNESSES

Mr. Marlo Lewis, Senior Fellow, Competitive Enterprise Institute, 
  Washington, DC.................................................     4
Ms. Alicia Huey, President, AGH Homes, Inc., Birmingham, AL......     6
Mr. Jeff Bauman, Manager of Regulatory Affairs, National 
  Refrigeration & Air Conditioning Products, Inc., Bensalem, PA..     7
Prof. Emily Hammond, Professor of Law, The George Washington 
  University, Washington, DC.....................................     9

                                APPENDIX

Prepared Statements:
    Mr. Marlo Lewis, Senior Fellow, Competitive Enterprise 
      Institute, Washington, DC..................................    32
    Ms. Alicia Huey, President, AGH Homes, Inc., Birmingham, AL..    35
    Mr. Jeff Bauman, Manager of Regulatory Affairs, National 
      Refrigeration & Air Conditioning Products, Inc., Bensalem, 
      PA.........................................................    43
    Prof. Emily Hammond, Professor of Law, The George Washington 
      University, Washington, DC.................................    46
Questions for the Record:
    None.
Answers for the Record:
    None.
Additional Material for the Record:
    Appliance Standards Awareness Project Letter.................    52
    Manufactured Housing Institute (MHI).........................    61

 
 BURDENSOME REGULATIONS: EXAMINING THE EFFECTS OF DEPARTMENT OF ENERGY 
                     REGULATIONS ON AMERICA'S JOB 
                                CREATORS

                              ----------                              


                      WEDNESDAY, NOVEMBER 8, 2023

                  House of Representatives,
               Committee on Small Business,
                                                    Washington, DC.
    The Committee met, pursuant to call, at 10:20 a.m., in Room 
2360, Rayburn House Office Building, Hon. Roger Williams 
[chairman of the Committee] presiding.
    Present: Representatives Williams, Stauber, Meuser, Van 
Duyne, Mann, Molinaro, Alford, Bean, Velazquez, Golden, 
Landsman, McGarvey, Gluesenkamp Perez, Scholten, Thanedar, and 
Chu.
    Chairman WILLIAMS. Good morning, and I want to apologize 
for being late to both my democratic colleagues and Republican 
colleagues.
    Before we get started, I want to recognize Representative 
Bean here to lead us in the pledge and prayer.
    Okay. I will do that if you all stand, please.
    I pledge allegiance to the flag of the United States of 
America and to the Republic for which it stands, one nation, 
under God, indivisible, with liberty and justice for all.
    Please bow your heads.
    Heavenly Father, God of all people, thank you for allowing 
us to be here today to talk about the greatness of our country 
and how both sides can do everything we can in your name to 
improve, but we have the opportunity to do so with. We 
appreciate our witnesses coming today. In your name we pray. 
Amen.
    I now call the committee on small business to order. 
Without objection, the Chair is authorized to declare a recess 
of the committee at any time.
    I now recognize myself for my opening statement.
    Good morning to all of you again. Thank you for being here, 
and welcome to today's hearing which will focus on examining 
the detrimental effects of the Department of Energy's 
regulations on our nation's job creators.
    First I want to thank our witnesses for joining us today, 
and I know you traveled to be with us this morning. We 
appreciate, again, all of you taking time to do so.
    The Biden administration seemingly has it out for Main 
Street America. Through their misguided economic policies and 
increased regulatory requirements, small businesses are finding 
it harder to make ends meet.
    Rather than looking for growth opportunities, small 
businesses are forced to play defense in order to deal with a 
whole host of new regulations coming down the pipeline.
    President Biden's Energy Department has been especially 
active in the past few years in passing new rules that have 
dramatic repercussions on small businesses. By implementing 
tighter energy-efficient standards, manufacturers are being 
forced to change significant portions of their operations.
    This is increasing the cost of producing this equipment 
which is ultimately passed along to businesses and the American 
people. The actions are forcing Main Street America to foot the 
bill for this administration's radical climate agenda.
    Inflation remains a top concern for job creators, yet the 
DOE's new regulations on gas stoves, ceiling fans, and 
transformers are increasing costs for businesses and consumers 
alike.
    Not only are these new standards forcing businesses to 
purchase updated equipment, but they are reducing consumer 
choice in the marketplace. Competition and consumer preference 
should be what determines what is produced, not government 
mandates.
    These policies provide minimal benefit to our small 
businesses and only make it harder for them to operate. So 
while small businesses suffer under this administration, their 
concerns continue to be ignored.
    It is the job of this committee to be main street's voice 
in Washington, and we are proud to have this hearing to shine a 
light on the devastating effects of these new actions taken by 
the Biden administration.
    And if we want to ensure America continues to have a 
thriving small business economy, our agencies must do better by 
listening to main street--repeat, listening to main street--
throughout the rulemaking process and limit the negative 
impacts of new regulations.
    The government should be in the business of ensuring the 
economy works for Americans and guaranteeing regulations aren't 
hamstringing job creators. This committee's goal is to ensure 
Main Street America is given a fair shot at the American Dream.
    Our nation's job creators have been forced to endure 
profound challenges over the past--last couple of years, and I 
hope this hearing helps spotlight some of the detrimental 
consequences of this administration's regulatory policies and 
will help us come up with solutions to support our nation's 
small businesses.
    Again, I want to thank you all for being here today with 
us. I am looking forward to today's conversation.
    With that, I want to yield to our distinguished Ranking 
Member from New York, Ms. Velazquez, for her opening remarks.
    Ms. VELAZQUEZ. Thank you, Chairman Williams. As Members of 
the Small Business Committee, we understand that complying with 
federal, state, and local regulations can be burdensome for 
small business owners, and that is why Congress created the 
Office of Advocacy to ensure that federal agencies are taking 
the views of small businesses into consideration throughout the 
rule-writing process.
    In our oversight role, we can send letters, hold hearings, 
and request meetings in an effort to hold agencies accountable 
to the Regulatory Flexibility Act.
    The Department of Energy is required, under the bipartisan 
Energy Policy and Conservation Act, to establish energy 
conservation standards for approximately 60 consumer products 
and reevaluate them every 6 years.
    Unfortunately, the previous administration violated the law 
and missed 26 deadlines, including one for distribution 
transformers.
    Don't be fooled by some of the rhetoric you may hear today. 
The Trump DOE was sued, and as part of a court settlement, the 
Biden administration is required to review these long overdue 
standards. This isn't a case of federal overreach.
    The reality is, the Trump delays hurt small businesses, 
costing them more to do business. Since taking office, the 
Biden administration has issued efficiency standards for more 
than 20 product categories, saving Americans $570 billion and 
reducing greenhouse gas emissions by more than 2.4 billion 
metric tons over 30 years.
    That translates into significant energy savings for small 
businesses.
    Today I hope to have a productive discussion about energy 
conservation standards that lower energy bills for small 
businesses, and I would like also to learn more about the steps 
that the Department of Energy is taking to consider small 
businesses throughout the rule-writing process.
    Maybe in the near future we can bring the federal agencies 
to hear directly from them, and to give them an opportunity to 
explain their thinking.
    I would like to request that the written testimony of 
Andrew deLaski, the Executive Director of the Appliance 
Standards Awareness Project be entered into the record.
    Chairman WILLIAMS. So ordered.
    Ms. VELAZQUEZ. Thank you, and I yield back.
    Chairman WILLIAMS. Thank you. And I will now introduce our 
witnesses. Unfortunately, our original witness, Mr. Ben 
Lieberman is sick and unable to testify. So, Mr. Marlo Lewis, 
we have gone to the bullpen and brought you out, and we 
appreciate you being here today on such short notice.
    So Mr. Lewis is a senior fellow at the Competitive 
Enterprise Institute located here in Washington, D.C. Mr. Lewis 
specializes in energy and public policy issues, and previously 
he served as the director of external relations at the Reason 
Foundation Los Angeles and the staff director of the House 
Government Reform Subcommittee on National Economic Growth, 
Natural Resources, and Regulatory Affairs.
    Mr. Lewis, thank you for being with us again today, and we 
look forward to hearing your conversation with us.
    Our next witness here today is Ms. Alicia Huey. Ms. Huey is 
president of AGH Homes located in Birmingham, Alabama. AGH 
Homes is a custom homebuilding company which specializes in 
high-end custom homes for buyers on individual lots.
    Ms. Huey has also been an active Member of the National 
Association of Home Builders and is currently serving as the 
Chairman of the Board of Directors.
    And while attending the University of Montevallo and 
volunteering for Habitat for Humanity, she decided to switch 
careers from early childhood education to homebuilding.
    Ms. Huey, thank you for being here today, and we look 
forward to this important conversation ahead.
    Our next witness here with us today is Mr. Jeff Bauman. Mr. 
Bauman is manager of regulatory affairs at National 
Refrigeration located in Pennsylvania. Mr. Bauman has been with 
National Refrigeration, a full-service HVAC and plumbing 
mechanical contractor since 2008.
    Prior to working at National Refrigeration, he spent 21 
years as director of the engineering at Victory Refrigeration. 
Mr. Bauman attended Drexel University where he received his 
bachelor of science in mechanical engineering.
    Mr. Bauman, thank you for being here today, and we look 
forward to your testimony.
    And now I recognize the Ranking Member from New York, Ms. 
Velazquez, to briefly introduce our last witness appearing 
before us today.
    Ms. VELAZQUEZ. Thank you. It is my pleasure to introduce 
Professor Emily Hammond who is a nationally recognized expert 
in energy, environment, and administrative law. Professor 
Hammond's research on policy work has focused on transparency 
and public participation in the regulatory processes. She has 
served as the Deputy Counsel for litigation, regulations, and 
enforcement at the Department of Energy as well.
    Welcome, Professor, and thank you for being here with us 
today.
    Chairman WILLIAMS. Thank you. And we appreciate, again, all 
of you being with us on this date.
    So before recognizing the witnesses, I would like to remind 
them that their oral testimony is restricted to 5 minutes in 
length. If you hear me do this, you need to shut it down. Okay?
    And if you see the light turn red in front of you, it means 
your 5 minutes has concluded and you should wrap up your 
testimony.
    So with that, I now recognize Mr. Lewis for his 5-minute 
opening remarks.

     STATEMENTS OF MARLO LEWIS, SENIOR FELLOW, COMPETITIVE 
ENTERPRISE INSTITUTE; ALICIA HUEY, PRESIDENT, AGH HOMES, INC.; 
     JEFF BAUMAN, MANAGER OF REGULATORY AFFAIRS, NATIONAL 
   REFRIGERATION & AIR CONDITIONING PRODUCTS, INC; AND EMILY 
  HAMMOND, PROFESSOR OF LAW, THE GEORGE WASHINGTON UNIVERSITY

                    STATEMENT OF MARLO LEWIS

    Mr. LEWIS. Chairman Williams, Ranking Member Velazquez, and 
Committee Members, thank you for the opportunity to testify. I 
am Marlo Lewis, a senior fellow at the Competitive Enterprise 
Institute, and as you have heard, I am filling in today for my 
colleague, Ben Lieberman, who is ill and can't be here, but he 
sends his regrets, and I want to thank the committee for 
understanding these last-minute circumstances.
    Appliance overregulation has been a problem for years, and 
things have gotten worse since January 2023. The year began 
with the Chair of the Consumer Product Safety Commission 
telling the media that a ban on gas stoves is a real 
possibility.
    That sparked a powerful public backlash, followed by 
strenuous denials from the Biden administration that any such 
ban was under consideration.
    And then only weeks later, the Department of Energy opened 
a second regulatory front against gas stoves. While DOE did not 
propose an outright ban, compliance stoves would have to 
sacrifice product features that have helped make gas the choice 
of 38 percent of homeowners and the strong preference of many 
serious cooks--and all for the energy savings that DOE 
estimated at $1.51 per year.
    Other DOE efficiency rulemakings in 2023 target 
dishwashers, water heaters, ceiling fans, furnaces, and washing 
machines.
    Each proposed or final rule likely entails higher appliance 
prices, compromised performance, and reduced choices.
    With a regulatory agenda so out of touch with what most 
people want, it is not surprising that Congress is pushing back 
with legislative initiatives to repeal specific appliance 
regulations, defund their implementation, or reform the entire 
program.
    So far most of the attention has been on the adverse 
consumer impacts. This hearing adds a much needed focus on the 
equally concerning small business impacts. As with homeowners, 
small businesses already face hardship and risk from high 
gasoline prices, rising interest rates, and regulatory 
campaigns to transform America's motor vehicle electricity and 
financial sectors.
    The last thing small businesses need is a bunch of new 
appliance mandates that they didn't ask for.
    I would note that DOE efficiency standards need not target 
commercial-grade equipment to hinder small businesses. For 
example, many catering businesses operate out of people's homes 
and use consumer stoves.
    Many home-based chefs depend on the high heat setting of 
gas stoves for searing and stir-frying. So for them, an 
electrification mandate is simply unacceptable.
    I should also note that DOE's stove and furnace rules are 
part of the Biden administration's climate policy plan to phase 
out natural gas usage and electrify everything. Yet DOE admits 
that electricity is three times more expensive than gas on a 
per-unit energy basis.
    The electrification agenda disfavors small businesses that 
rely on natural gas for cooking, heating, and other purposes.
    DOE's efficiency standards also impose costs on small 
businesses that manufacture appliances. That topic deserves 
more attention and study.
    And in general, I think we would all agree that small 
businesses already incur a higher per-employee regulatory costs 
than do large firms.
    The best reform, it seems to me, is to sunset DOE's 
standard-setting authority entirely. Doing so would have no 
down side for small businesses, only an up side. Any business 
owner that actually wants to purchase or manufacture the kinds 
of appliances favored by DOE will always be free to do so, with 
or without such regulations.
    The only thing that appliance efficiency mandates 
accomplish is to force government's particular preference on 
everyone, including the businesses that don't want them.
    So we recommend--CEI recommends that Congress use the 
Congressional Review Act and other authorities to take on each 
and every rule that imposes hardships on small businesses.
    Thank you very much, and I look forward to your questions.
    Chairman WILLIAMS. Thank you very much, Mr. Lewis.
    I now recognize Ms. Huey for her 5-minute opening remarks.

                    STATEMENT OF ALICIA HUEY

    Ms. HUEY. Thank you, and I am pleased to appear before you 
today on behalf of the National Association of Home Builders to 
share our views on how the Department of Energy regulations are 
adding to the affordability crisis.
    Access to safe, decent, and affordable housing is essential 
to the well-being of all Americans. While today's hearing is 
focused specifically on Department of Energy regulations, there 
are a vast array of regulatory burdens imposed on the 
homebuilding industry.
    On average, regulations imposed by all levels of government 
account for nearly 25 percent of the price of a single-family 
home and over 40 percent of the cost of a typical multifamily 
development.
    Government policies and regulations are making it harder 
for homebuilders and multifamily developers to build housing 
that is affordable. I would like to share three examples of how 
excessive regulations originating from the Department of Energy 
worsen the housing affordability.
    Number one is the transformer standards. Soaring costs and 
shortages of electrical distribution transfers are delaying 
housing projects across the nation. Some projects face an 18- 
to 24-month wait for a transformer.
    The administration is well aware of the shortages of 
electrical transformers, yet DOE is pursuing a regulatory 
change that will make the situation much worse.
    Specifically, DOE is seeking to increase the energy 
efficiency of transformers by a mere one-tenth of a percentage 
point. This requirement would force manufacturers to retool 
production lines and worsen the historic backlog.
    Transformers are an essential part of the electrical grid, 
and homes cannot be sold unless a transformer is installed and 
working.
    DOE's proposal will have little impact on energy efficiency 
and will exacerbate the current transformer shortage. This is 
why NAHB supports the Protecting America's Distribution 
Transformer Supply Chain Act.
    The legislation would prohibit the Secretary of Energy from 
changing energy conservation standards for distribution 
transformers for a period of 5 years, which would allow time 
for the market to stabilize and so manufacturers could catch up 
with the demand.
    The next DOE regulation concerns gas stoves. DOE has 
proposed a rule that would ban the sale of most current gas 
cook top models sold in the United States.
    Currently more than 187 million Americans use natural gas 
appliances, saving them an average of $1,068 each year.
    Each American deserves to live in a home of their choice, 
in a location of their choice, and fueled by the energy type of 
their choice. Neither DOE, nor the administration, should take 
these options away.
    And finally the Building Energy Codes. The Inflation 
Reduction Act included $1 billion in grants to States that 
adopt updated Energy Codes, specifically, the 2021 Energy Code.
    Adoption of the 2021 Code adds as much as $31,000 to the 
price of a new home.
    NAHB understands the importance of energy efficiency, but 
the savings from the 2021 Code can take a homeowner as long as 
90 years to see payback. That is not a reasonable trade-off.
    If you want to make a difference on energy efficiency, we 
must focus on existing housing, particularly older homes built 
before the introduction of modern Energy Codes.
    According to the National Renewable Energy Laboratory, 
upgrades to the existing housing stock could yield a projected 
reduction of 5.7 percent of the total annual U.S. electricity 
consumption by 2030.
    Given this potential, upgrading the existing housing stock 
must be the primary focus if the nation is going to make 
measurable progress.
    That billion dollars could have been spent smarter by 
focusing on upgrading older homes versus making new, already 
energy-efficient housing unaffordable for many American 
families.
    Improving the nation's housing supply and easing housing 
affordability challenges will take a coordinated and concerted 
effort at all levels of government. Let's begin by fixing the 
broken regulatory process.
    Congress should pass legislation such as the Small Business 
Regulatory Flexibility Improvement Act to ensure that all 
regulations are designed with small businesses in mind, that 
regulatory rulemaking agencies are required to consider the 
true cost of regulations on small businesses, and that agencies 
comply with the letter and intent of the law in crafting new 
legislation.
    Thank you again for the opportunity, and we look forward to 
working with you.
    Chairman WILLIAMS. Thank you, Ms. Huey.
    And now I want to recognize Mr. Bauman for his 5-minute 
opening remarks.

                  STATEMENT OF JEFFREY BAUMAN

    Mr. BAUMAN. Thank you, Chairman Williams, Ranking Member 
Velazquez, and distinguished Members of the Committee. My name 
is Jeffrey Bauman. I am the manager of regulatory affairs for 
National Refrigeration and Air Conditioning Products, which 
embodies Continental Refrigerator and National Comfort 
Products.
    I am truly thankful and honored for the opportunity to 
discuss the impact of Department of Energy regulations on small 
businesses like ours.
    I have worked in the commercial, food service equipment 
industry for over 34 years, including the past 15 years with 
Continental where I previously held the position of engineering 
manager.
    Approximately 2 years ago our company made the decision 
that a new full-time position was needed to help manage the 
barrage of multiple regulatory actions that continue to 
confront our companies, and I took over that role.
    National Refrigeration and Air Conditioning Products is a 
small, domestic manufacturer that represents approximately 250 
high quality manufacturing jobs in Bensalem, Pennsylvania.
    Continental Refrigerator is a leading manufacturer of 
commercial refrigeration equipment, offering over 2,500 
different model configurations. We design, build, and certify 
all of our products to provide superior performance, to 
maintain safe food temperatures in the harsh environments of 
commercial kitchens.
    Our products must comply with numerous regulations for 
safety and sanitation as well as DOE energy regulations. The 
refrigerants and foam insulations that are critical components 
of these products, must comply with EPA global warming 
potential, or GWP, limits.
    Our company has made significant investments in research 
and development, and production changes over the past 6 years 
to transition to extremely low GWP insulation and convert over 
99 percent of our products to self-contained R-290 refrigerant, 
with the lowest GWP available for these types of products.
    Multimillion dollar capital expenditures made for new 
production equipment, including new temperature-controlled foam 
fixtures to address flow issues with the new low-GWP foams, and 
new charging stations required for flammable refrigerants.
    We also built in-house, state-of-the-art, laboratory-grade 
test chambers. These labs continue to run around the clock 7 
days a week to evaluate product performance and manage the 
multitude of energy testing required for regulatory compliance.
    As a small manufacturer in a heavy regulated industry, 
Continental is particularly challenged by continual changes in 
regulations while working to control rising costs and develop 
innovative products in a highly competitive market.
    In 2017, we discontinued a line of horizontal freezers that 
could not economically meet new DOE energy standards. We 
compete with numerous, low-cost, imported products from foreign 
manufacturers who benefit from government subsidies.
    Despite our resource limitations, Continental is an active 
member of industry associations, including AHRI, NAFEM, ASHRAE, 
ASTM, and the NSF Standards Task Force. We hold positions on 
numerous committees that are critical to developing robust and 
reliable industry test methods and standards.
    Our company actively works to engage with the Department of 
Energy and the EPA in rulemaking. We analyze and regularly 
submit comments in response to Requests for Information and 
proposed rules.
    This effort is critical to our business because compliance 
with excessive regulations significantly impedes our ability to 
develop new products, which have been a keystone to the 
successful growth of our business.
    We also work with the Small Business Administration Office 
of Advocacy and helped initiate a small business roundtable to 
discuss concerns in the commercial refrigeration industry that 
we participated in last year with other stakeholders.
    On October 10th of this year, DOE published a Notice of 
Proposed Rulemaking in regards to energy conservation standards 
for commercial refrigerators and freezers. Our company, along 
with other manufacturers and industry associations, are 
extremely concerned with DOE's unrealistic proposals in this 
notice.
    Analysis of the proposed standard level shows extremely 
excessive reductions that are up to 60 percent lower than 
currently allowed. We have been unable to identify any 
potential paths to these types of extraordinary cuts.
    DOE's consultants conducted manufacturing interviews that 
we participated prior to this proposed rule, but it appears the 
information was not thoroughly evaluated for this rulemaking.
    Technology options that DOE indicates would reduce energy 
consumption in the near future, such as fan controls and high 
efficiency fans motors, are already in use.
    Other proposed technologies, such as microchannel condenser 
coils, have so far proven to be impractical for many 
applications. Proposed technologies, such as variable-speed 
compressors, have shown some promise in reducing energy 
consumption but have not proven to be economically viable 
options for many of our products over the next few years.
    Increasing our costs to adopt this technology would impede 
our ability to compete against other products, particularly 
those from foreign manufacturers.
    A review of information in DOE's Compliance Certification 
Database indicates that more than 85 percent of self-contained 
products currently certified would fail to meet the new 
standards.
    Manufacturers would have to redesign almost every product 
to significantly reduce energy consumption in a very short 
period of time, using proposed technologies that are not 
proven.
    Another example of what we believe is DOE overreach is DOE 
adding refrigerated chef bases to the scope. There is no test 
procedure for this product that has been proven to be tested, 
and DOE is proposing new standards for products that have not 
been evaluated properly.
    Thank you again for this opportunity to share the 
information about our company, and the significant burden 
presented by DOE regulations on small businesses like ours. We 
look forward to working with Congress to address these concerns 
and will continue to engage with regulatory agencies.
    Chairman WILLIAMS. Thank you, Mr. Bauman.
    I now recognize Professor Hammond for her 5-minute opening 
remarks.

                   STATEMENT OF EMILY HAMMOND

    Ms. HAMMOND. Thank you, Chairman Williams, Ranking Member 
Velazquez, and distinguished Members of the Committee for the 
opportunity to testify today.
    I will be testifying concerning the Department of Energy's 
approach to rulemaking for its Energy Conservation Standards 
Program, how the process is structured to ensure that the 
voices of small businesses are heard and how these standards 
benefit small businesses.
    As you noted, I am a professor of law, and I previously 
served at the Department of Energy, but the testimony I offer 
today is my own, and I don't represent or speak for any party.
    Before I speak about the legal requirements DOE must follow 
to complete its standards, I want to emphasize that my 
experience with the Agency revealed a committed group of 
professionals, whether lawyers, engineers, or economists, who 
did not treat these legal requirements as boxes to check but 
rather thoughtfully carried out both the letter and the spirit 
of these laws in service of good governance.
    I will begin with the Energy Policy and Conservation Act, 
or EPCA. As you know, Congress passed EPCA in 1975 at a time 
when consumer energy costs were rising and there was a scarcity 
of energy resources to meet rising demand.
    Congress, itself, set the first energy efficiency 
standards, and it directed DOE to periodically reassess those 
standards and update them using a detailed set of criteria.
    The standards must achieve the maximum improvement in 
energy efficiency that are technologically feasible and 
economically justified, and the standards must result in a 
significant conservation of energy.
    Congress explicitly instructed the agency to consider seven 
factors for this analysis, which include economic impact of the 
standards on manufacturers as well as consumers.
    DOE always sets forth its methodology for evaluating these 
factors in its proposed and final rules, and that methodology 
allows it to hone in on costs and benefits to small businesses.
    In formulating these standards, DOE offers far more 
opportunities to participate than required by the 
Administrative Procedure Act or EPCA, and indeed it will even 
interview small business owners to ensure that it is fully 
considering their interests.
    This process also helps the agency ensure that it complies 
with the Regulatory Flexibility Act, the analysis for which is 
detailed in every proposed rule. That offers further 
opportunities for engagement with the Agency before the rule is 
final.
    Once a standard is adopted, there is usually a 3- to 5-year 
timeframe before compliance is expected, and under EPCA, small 
businesses can seek an additional 2-year exception.
    Moreover, DOE offers guidance to small businesses in plain 
language on the website, complete with real phone numbers to 
call, and a searchable FAQ section. So small businesses can 
easily learn how to seek an exception or to get assistance in 
understanding their obligations.
    It bears emphasis that this program brings concrete 
benefits on householders, small businesses, and other 
commercial enterprises in the form of real and meaningful 
savings.
    For example, one recent study concluded that energy 
conservation standards saved businesses almost $23 billion 
nationwide.
    Each proposed and final rule also documents these kinds of 
savings, like the $9 billion that consumers will save under the 
proposed battery charger standards.
    These consumers are small businesses themselves, and also 
the owners and employees of these small businesses whose 
financial pressures at home are diminished when their bills are 
lower.
    There are other benefits too. By reducing energy use, these 
standards reduce air pollution, which brings health benefits 
and avoids lower worker productivity and lost work days.
    Those kinds of disruptions are especially hard on small 
businesses, which are already feeling the strain of labor 
supply shortages.
    And as climate disruption presents even more risks to the 
economy and worker well-being, this important program's 
additional benefits should not be understated.
    Reduced energy reliance translates to grid resiliency, and 
of course reduced cost to consumers alleviate the burdens of 
those who are most impacted by climate disasters.
    DOE values its avoided greenhouse gas emissions and the 
billions of dollars for its major rules, and these benefits 
extend to small businesses too.
    Thank you again for the opportunity to testify today, and I 
look forward to your questions.
    Chairman WILLIAMS. Thank you very much, and we will now 
move to the Member questions under the 5-minute rule. I 
recognize myself for 5 minutes.
    The Department of Energy is not typically thought of as a 
regulatory entity. However, it appears the Biden administration 
is working to undo these norms.
    Mr. Lewis, in your testimony, you highlight that you 
believe the best thing that Congress could do to protect small 
business and consumers is to take away DOE's standard-setting 
authority entirely.
    So, question, can you expand on why you feel this is an 
important step and why DOE should not be the one responsible 
for setting these standards?
    Mr. LEWIS. Well, these standards have been developed over 
decades----
    Chairman WILLIAMS. Microphone.
    Mr. LEWIS. Oh, I am sorry. DOE has been setting these 
standards ever since EPCA was adopted--and perhaps parts of the 
federal government even before that--and EPCA was enacted in 
1975.
    So we have had literally decades of mandatory increases in 
energy efficiency of appliances, and we have, I think, long 
passed the point of capturing all the low-hanging fruit.
    And so we had an example that was mentioned before of 
improving energy efficiency by one-tenth of 1 percent, and it 
is really hard to believe that that translates into gigantic 
net savings to small businesses or the economy.
    At a certain point, you have to, I think, trust that there 
are--that consumers are--have the primary interest in looking 
out for what is best for them and that they can make their own 
choices, and that DOE doesn't need to continually put its thumb 
on the scales.
    So I think, you know, DOE should just declare a victory, 
say that, yes, you know, mission accomplished and now it is up 
to competitive forces and the economy to determine to what 
extent we prioritize energy efficiency versus other product 
features, qualities, and consumer choices.
    Chairman WILLIAMS. Competition always works.
    Ms. Huey, I am concerned that the Department of Energy is 
prioritizing expensive and burdensome energy efficiency 
standards, while providing meager efficiency benefits.
    Distribution transformers you have talked about are a clear 
example of this. The critical devices are already 99.5 percent 
efficient, and they are hard to come by due to supply chain 
pressure.
    So, question, please tell us how this new rule would impact 
homebuilders and hurt your industry.
    Ms. HUEY. We have several areas that have houses that are 
sitting waiting on transformers. I believe in one area of the 
country, we have over 4,000 homes that are ready, but--and also 
time is money, so those houses are costing more. As they are 
sitting there, builders and developers, are paying interest.
    And then ultimately it comes down to the American consumer 
having to wait to buy the American Dream.
    Chairman WILLIAMS. Bad timing right now with interest, 
right?
    Ms. HUEY. Yes, sir.
    Chairman WILLIAMS. Let me follow-up on that. Given the 
challenges you just outlined, do you think the Department of 
Energy appropriately balanced consumer needs and energy 
efficiency when drafting this rule?
    Ms. HUEY. No, sir, I don't think so. With the efficiency 
that there already is, if we could just put a pause on 
increasing the efficiency right now until we can narrow down 
the backlog, get rid of the 18- to 24-month waiting period, and 
then look at the energy efficiency again.
    Chairman WILLIAMS. Okay. With what I have remaining, Mr. 
Bauman, a few years ago, your company created a new position to 
help manage the regulatory burden by the federal government. 
Please share with us what led your company to make that 
decision.
    Mr. BAUMAN. Our company primarily does commercial 
refrigeration equipment. We have had new standards that came 
out in 2014, additional new standards that have been--or first 
comes the test procedures, and we--when we looked at what the 
test procedures, as I mentioned in my testimony, that we are 
involved in, which did not--not a lot of small businesses are 
able to do, that we are involved in those many organizations 
that I mentioned because those are the organizations that write 
the test procedures.
    And we have seen test standards that came out previously 
that were excessive that just, when it came down to it, we had 
to shut down production and development, we had to shut down 
other programs, and we realized a need to really dedicate a lot 
of resources to that effort to get the regulations.
    Chairman WILLIAMS. Okay. Quickly, regulatory compliance is 
expensive, and can you describe quickly what endeavors your 
business has had to forego so that you can keep up with 
changing regulatory standards.
    Mr. BAUMAN. We had a line of freezers that we had to 
discontinue. We also have to annually recertify all of our 
products with the Department of Energy.
    We also have, as I mentioned, we built a new test lab, and 
that was primarily because of the onslaught of numerous energy 
regulations that we had to comply with, and that lab is running 
continuously primarily doing energy testing.
    Chairman WILLIAMS. All right. Thank you for that, and I now 
recognize the Ranking Member for 5 minutes of questions.
    Ms. VELAZQUEZ. Thank you, Mr. Chairman.
    Mr. Bauman, I heard you mention that you have worked with 
the Office of Advocacy. Is that true?
    Mr. BAUMAN. Yes, we have.
    Ms. VELAZQUEZ. Okay. How has that experience been?
    Mr. BAUMAN. I would say we have had conversations. In all 
honesty, we----
    Ms. VELAZQUEZ. Good? Bad?
    Mr. BAUMAN. Good conversations with some, I will say, some 
of the previous staff. We have had less responses back in 
recent months.
    Ms. VELAZQUEZ. Okay. This week, we are debating the SBA 
funding on the floor, and Republicans cut the Office of 
Advocacy budget by $800 million, yet right now we are 
discussing how regulations affect small firms.
    Does it make sense to cut the budget of an office that 
exists to monitor federal agency regulatory small business 
compliance, and advocate for small firms? It seems disingenuous 
to me.
    Professor Hammond, how many years does the Department of 
Energy typically give small businesses to transition to new 
standards?
    Ms. HAMMOND. It gives typically 3 to 5 years with the 
opportunity for an exception for up to an additional 2 more.
    Ms. VELAZQUEZ. So there is an extension allowed?
    Ms. HAMMOND. That is right.
    Ms. VELAZQUEZ. And have small firms utilized this 
extension?
    Ms. HAMMOND. Yes. And those are all published in the 
Federal Register.
    Ms. VELAZQUEZ. Is this enough time to comply, in your 
opinion?
    Ms. HAMMOND. Yes.
    Ms. VELAZQUEZ. Do any standards apply retroactively?
    Ms. HAMMOND. No. They all apply in the future.
    Ms. VELAZQUEZ. Okay. Professor, the Energy Policy and 
Conservation Act allows DOE to adopt consensus standards that 
were negotiated by the industry and energy efficiency experts. 
Could you please discuss this option.
    Ms. HAMMOND. Yes. The agency convened a federal advisory 
committee to enable negotiated rulemaking, which is an 
alternative to typical notice-and-comment procedures that 
allows for a consensus-based process, promoting deeper 
collaboration between the Agency and stakeholders.
    Ms. VELAZQUEZ. So, the industry is part of the negotiations 
and at the table?
    Ms. HAMMOND. Yes.
    Ms. VELAZQUEZ. Correct?
    Ms. HAMMOND. [Nonverbal response.]
    Ms. VELAZQUEZ. Mr. Lewis, CEI's testimony failed to mention 
that DOE was presented with a private consensus agreement for a 
proposed final standard for gas stoves in September 2023. Yes 
or no, are you aware of this agreement?
    Mr. LEWIS. No, I am not.
    Ms. VELAZQUEZ. Okay. Would you support it?
    Mr. LEWIS. I would have to look at it first.
    Ms. VELAZQUEZ. Okay. Professor Hammond, can you discuss the 
previous administration's failure to meet the statutory 
deadlines under the Energy Policy and Conservation Act and why 
DOE is issuing standards more frequently?
    Ms. HAMMOND. Yes. Congress instructed the agency to 
reconsider these standards every 6 years, and the Trump 
administration didn't do what Congress instructed, and it got 
sued. So now DOE is operating under a consent decree where it 
has to play catch-up, and it has to maintain its regular rhythm 
of review that Congress has set forth.
    Ms. VELAZQUEZ. Professor, there is a tremendous amount of 
misinformation circulating about DOE's appliance standards. Can 
you discuss the benefits of the new energy efficient standards 
for small firms?
    Ms. HAMMOND. Yes. Small firms save in a number of ways, and 
a number of these ways are itemized in the rulemaking record. 
They save on energy, and then of course they also save on the 
indirect benefits like the health benefits from reduced air 
pollution.
    Ms. VELAZQUEZ. Thank you. And knowing that small 
manufacturers may be disproportionately impacted by the new 
standards, how does DOE seek out the input of the smallest of 
small firms?
    Ms. HAMMOND. It does a significant amount of research on 
the front end to make sure it has identified all of the small 
businesses that might be impacted, and among other things, it 
reaches out to them individually and offers the opportunity for 
a conversation.
    Ms. VELAZQUEZ. Thank you.
    Ms. Huey, the DOE standards apply to new products and give 
small firms 3 to 5 years to comply. Moreover, DOE's process 
allows small manufacturers, advocates, and states to work 
together to jointly recommend regulations.
    Given the flexibility built into the process, why doesn't 
NAHB work collaboratively with the agency rather than opposing 
regulations that can lower energy bills for homeowners?
    Ms. HUEY. I wouldn't say that we were against the 
regulation. We just have such a backlog now that we would like 
to catch up before we implement any new energy efficiency 
standards for the transformers.
    Ms. VELAZQUEZ. I yield back, Mr. Chairman.
    Chairman WILLIAMS. Okay. Thank you very much.
    And I now recognize Representative Stauber from the great 
State of Minnesota for 5 minutes.
    Mr. STAUBER. Thank you very much, Mr. Chair and Ranking 
Member Velazquez, for holding this hearing today, and thank you 
to our witnesses for taking time away from your busy schedules 
to help shed light on this important topic.
    Today we are here to talk about the devastating effects of 
the DOE's efficiency standards on small businesses and families 
in our districts.
    These standards are designed to reduce energy consumption 
in our homes and businesses. However, they have had the 
unintended consequence of making our homes less affordable and 
more expensive to build.
    Ms. Huey, you mentioned in your testimony that you think 
federal regulatory agencies should include the, quote, true, 
end quote, cost of the regulations in the rulemaking process. 
Can you expand a bit what you mean by the ``true cost''?
    Ms. HUEY. Yes, sir. Thank you for the question. What I have 
come to learn in the regulatory rulemaking process here in 
Washington is that agencies are only required to consider the 
direct cost of crafting new regulations. They don't take into 
consideration sometimes just the waiting time. Time is money.
    Time that I have to spend waiting for water taps to be 
installed, waiting for zoning approval, waiting for permitting, 
all of those sorts of things need to be taken into 
consideration as well.
    Mr. STAUBER. So when we talk about gas furnaces, the 
Department of Energy wants to get rid of gas furnaces or change 
the way they operate.
    Water heaters. A new water heater, their recommendation is 
to get water heaters that reduce energy. To replace a water 
heater is $2,800.
    Ms. HUEY. And that is just the water heater. That doesn't 
include installing the electrical plug for it.
    Mr. STAUBER. Exactly right.
    Dishwashers----
    Ms. HUEY. Yes, sir, same.
    Mr. STAUBER.--$225 more.
    Gas stoves, between $800 and $3,200 it is going to cost the 
American people. Light bulbs, $140 more. Washers, $200. Air 
conditioners, pushing $2,000.
    And would you believe our federal government wants to 
regulate ceiling fans? Think about the overreach by this 
federal government.
    Ms. Huey, these aren't my numbers. These are 
administration's numbers. $320 billion--that is with a B--$320 
billion of additional regulations on American small businesses 
and manufacturers.
    What do you--give us an estimate of the cost per household 
if these changes were made. Can the American people afford 
this?
    I mean, the government wants to be in every part of our 
lives--ceiling fans, dishwashers, water heaters, light bulbs. 
It is unbelievable. Give us a cost from the builders, and what 
is their sense?
    Ms. HUEY. And, you know, we are talking about costs for 
small businesses, but in my business it is ultimately passed 
down to the consumer.
    With the new Energy Codes, the 2021 Energy Codes, that is 
an additional cost of $31,000 to a new home. That is something 
that a teacher or a firefighter or a nurse cannot afford.
    Mr. STAUBER. Or a police officer like myself?
    Ms. HUEY. Or a police officer, yes, sir.
    Mr. STAUBER. I just--Mr. Chair, Mr. Chair, $31,000 these 
bureaucrats put on somebody that wants to build a new home, not 
through Congress, through these three-letter agencies, 
unaccountable, nonelected, to put on the American people.
    And this is just what you are talking about--$31,000. The 
median income in the district that I represent is 60-ish-
thousand dollars. This is unbelievable.
    And the interest rates right now, it is simply--it is 
simply unacceptable. I can't imagine what folks are thinking 
when the government is telling us what type of water heaters we 
can use or gas furnaces we need to change, gas stoves--banning 
gas stoves.
    My 90-year-old father says, what am I going to cook at the 
hunting shack with? It is a gas stove. He has been doing it for 
60 years.
    This is overreach, Mr. Chair, by our federal government, in 
every aspect of our lives, complete overreach, and it is 
unacceptable. I think the American people have had it, and I 
yield back.
    Chairman WILLIAMS. Thank you very much.
    I now recognize Representative Golden from the great State 
of Maine for 5 minutes.
    Mr. GOLDEN. Thank you, Mr. Chair.
    Professor Hammond, I really only have two questions, I 
believe. I reserve the right for follow-ups, but by all means, 
take your time and answer them as best you can.
    You mentioned in your opening testimony that the Agency 
does a good job of speaking in very plain terms to businesses 
to help them understand new regulations and compliance, and I 
am hoping you can treat the committee the same way here and not 
assume that we are deep in the weeds.
    If you were to hand us some kind of blueprint, like a one-
pager, that would tell us a little bit about the process that 
DOE conducts to do outreach to small businesses as part of the 
rulemaking process, what would it show us? What concrete steps? 
If you could be, you know, detailed.
    Ms. HAMMOND. It would show a very--a years' long process to 
not only develop the standards themselves but also the test 
procedures that come before the standards.
    These begin with Requests for Information--which are widely 
extended and as well as published in the Federal Register--the 
development of technical support documents, webinars, and then 
specific research to identify particular small businesses who 
may be impacted, to seek them out directly. And that is all 
before a rulemaking is even proposed.
    Once it is proposed, it goes through that process again. It 
works with the Office of Advocacy as well to make sure that it 
is properly considering the interests of small businesses, and 
again----
    Mr. GOLDEN. You bring specific industry, small business 
owners in and actually sit around the table with them?
    Ms. HAMMOND. Well, yes. For example, I am aware that 
yesterday DOE hosted a public meeting on the commercial 
refrigeration standards.
    Mr. GOLDEN. Okay. And how--could you describe, like, 
attendance? What is the update?
    Ms. HAMMOND. I haven't checked on the attendance yesterday. 
The ones that I previously participated in were very well 
attended.
    Mr. GOLDEN. Thank you. So kind of moving on from there, how 
often do you think that input is received and then acted upon 
such that between a proposal and a final rule, changes are 
actually made that incorporate what small businesses have given 
back to DOE?
    Ms. HAMMOND. Very often. It is extremely common for the 
Agency to adjust its final rule in response to all of the input 
it received during the proposed rule.
    And I should note that a number of the standards we are 
talking about today are proposed standards, so there is still 
an opportunity for lots of engagement with the Agency, and it 
indeed will address those comments.
    Mr. GOLDEN. Are there any specific examples that you can 
recall in your own time in the Department where you saw that 
process play out and changes made and incorporated?
    Ms. HAMMOND. I--yes. And of course I was serving as 
counsel, so I--I will maybe not be quite as detailed, but I 
will say an example is for the general standard--the general 
service lamp, the light bulb standard which, of course, 
Congress directed the agency to undertake.
    And the Agency considered all of the feedback of 
businesses, and it developed a different enforcement timeline 
to provide even further a glide path to make sure that people 
had a chance to be ready for the standard going into effect.
    Mr. GOLDEN. Sure. And finally in your testimony you 
mentioned Congress built in a relief valve for small 
businesses. Can you talk a little bit about the flexibility 
that that affords the Agency and small businesses? And can you 
think of any examples where that has actually been utilized?
    Ms. HAMMOND. I don't have a concrete example right at hand, 
but essentially this is written into the statute, and the 
Department has very clear guidance on its website about what a 
small business would need to do.
    Once a small business does present a request, then that is 
published in the Federal Register, and assuming it is granted, 
that is also published in the Federal Register. So it is----
    Mr. GOLDEN. Is that like a specific waiver request from one 
business or is it----
    Ms. HAMMOND. That is right.
    Mr. GOLDEN. Okay. So it is not a broad waiver across an 
entire industry?
    Ms. HAMMOND. That is right. A small business can take 
advantage of that.
    For the test procedures, there is also a waiver process 
available, and that relates to the procedures themselves and 
the technology.
    Mr. GOLDEN. All right. Thank you. I yield back.
    Chairman WILLIAMS. The gentleman yields back.
    I now recognize Representative Alford from the great State 
of Missouri for 5 minutes.
    Mr. ALFORD. Thank you, Mr. Chair, and thank you, Ranking 
Member Velazquez. Thank you to all of our witnesses here today. 
I know you come here on your own dime and own time, and we 
really appreciate that.
    Hey, this is a very important hearing for us for a couple 
of reasons. You know, the past few months, we have all seen the 
news about the Department of Energy--or I think I am going to 
rename it the department of encroachment now--and their new 
energy efficiency rules.
    And now we are really learning the impact that it is going 
to have on our businesses and our American families.
    The Biden-Harris administration time and time again, I 
think, fails to consider the impact of these erroneous over-
regulations, what it is going to have on our homebuilders, our 
families, and our businesses.
    If we do not champion main street interests, then we will 
lose the small businesses that are part of the fabric of 
America, and a contributing factor to the closure of small 
business is the current regulatory environment.
    Ms. Huey, I want to start with you if I can, ma'am.
    In your testimony you said regulatory burdens account for 
25 percent of the cost of a typical newly built home. I just 
gave up my real estate license, sold new homes actually in the 
Kansas City area for many years.
    The average or median price there for a home is $270,000. 
That would bump it up to $337,500. And when you consider the 
interest rates now that, especially younger folks, new families 
are trying to get into homes, it seems like the Biden 
administration does not believe in the American Dream.
    It is trying to kill the American Dream, the American Dream 
of homeownership, moving our society from owners into renters.
    I have had conversations with Will Ruder, the president of 
our local Home Builders Association there in Kansas City. He 
says the exact same thing, that this 25 percent increase is 
going to drive people out of the Kansas City area and into 
places that are not having to conduct, because of other 
regulations--the Kansas City Council is imposing on Building 
Codes there, but it is a monstrous really burden that people 
are having to pay to get into the American Dream of 
homeownership.
    How do you see this playing out long-term for builders? How 
did they keep building when the Biden administration keeps 
putting a foot on their neck?
    Ms. HUEY. It does make it extremely more difficult because 
we have federal, state, and regulations all to follow.
    It is noted that NAHB illustrates that for every $1,000 
increase in the price of a median home, which is about 
$425,700, that prices out 140,436 households out of the 
market--for every $1,000 increase in the price of a house.
    Mr. ALFORD. Well, when you consider this--and this is 
getting off into another topic, I realize it, but investment 
companies like BlackRock that are also investing in build-to-
rent communities--we have seen that in the Kansas City area--
where they are building entire neighborhoods of rental homes 
that look like regular, single-family homes, and they are, but 
they are like apartments.
    And you know what else, it is a lot easier to get people 
into rentals and apartments especially. You can ballot harvest 
a lot easier in an apartment than you can walking a single-
family neighborhood.
    It is scary what is happening to the American Dream, and I 
applaud you and the homebuilders of America who are trying to 
make that dream possible and affordable for the American 
people. I am running out of time.
    Mr. Lewis, in your testimony, you mentioned the RFA's and 
lack of Agency's willingness to take it seriously. Please talk 
about how we can better utilize or improve the RFA so we can 
use it as effective tool rather than just a check box.
    Mr. LEWIS. Yes. Well, one thing that--oh, sorry, the mike 
again. Yeah. I mean, the agencies have flexibility--they get 
flexibility in determining what is a significant impact or what 
is a substantial number of small entities.
    So I would think that maybe tightening up or clarifying 
those definitions. Like I was just trying to think--I was 
talking to my colleague on the way over here and kicking some 
ideas around, and what is a significant impact, it seems to me, 
would be relative to the profit margin of the business that is 
affected.
    And so maybe there could be some standard that will be 
adopted that would say, you know, for the industrywide 
average----
    Mr. ALFORD. Sir, we are out of time. I am sorry.
    Mr. LEWIS. Okay.
    --the regulation cannot cost more than, say, 3 percent of 
your profit margin. I mean, that might be an idea.
    Mr. ALFORD. I like that idea.
    Mr. Chairman, I yield back.
    Chairman WILLIAMS. The gentleman yields back.
    I now recognize Representative McGarvey from the great 
State of Kentucky for 5 minutes.
    Mr. MCGARVEY. Thank you, Mr. Chairman. Thank you all for 
being here today.
    Thank you, Professor Hammond. I want to especially thank 
you for highlighting some of the contributions of our civil 
servants who do a really good job in trying to do the best they 
can for all of us in this country.
    I am going to repeat a little bit of myself from one of the 
previous hearings we had in this committee, and that is, we are 
here to talk about regulations. We care about how regulations 
impact people and how they impact businesses.
    And that well written and well executed regulations are 
important--they save lives. They save money. They save money 
for our government. They save money for our consumers. They 
also can save our planet--and I want to go to these specific 
standards as an example of that.
    The American Council for an Energy-Efficient Economy 
estimates that efficiency standards for appliances and lighting 
would save the average Kentuckian, where I am from, an 
estimated 15 percent of their annual bill.
    This isn't surprising. I see in my own home, which was 
built in the late 1920s, early 1930s, the importance of having 
energy-efficient items.
    The DOE estimates that by 2030, cumulative savings from all 
standards in effect since 1987 will reach nearly $2 trillion.
    So I want to go back and, Professor Hammond, I want to 
start with you, in part because I am a recovering lawyer and I 
have always wanted to ask a law professor a question instead of 
having them ask me a question.
    But the administration is required by law to issue these 
regulations, correct?
    Ms. HAMMOND. That is right.
    Mr. MCGARVEY. And it is a result of a court decision from 
the Trump administration not issuing these regulations that is 
requiring them to not just issue the regulations but to have to 
play catch-up for what the Trump administration didn't do in 
the 4 years it was in office?
    Ms. HAMMOND. That is right.
    Mr. MCGARVEY. Okay. So these are required by law, and 
obviously this committee is not suggesting that the 
administration break the law. So let's talk about what these 
standards are doing.
    And it has been shown that the standards we are examining 
today will help benefit small businesses and save them money in 
the long run.
    Again, we care about small businesses. Small businesses are 
the backbone of my community in Louisville, Kentucky. We want 
them to succeed and thrive and do well.
    So how do these standards benefit the broader economy and 
the country, including small business, small business 
employees, and those who do business with them?
    Ms. HAMMOND. In a number of ways. There is, of course, the 
direct benefit, which is lower energy bills, and I should note, 
lower water bills too for some of the standards.
    So that is a direct impact that is true for a business that 
is using any of these appliances or equipment, as well as the 
homeowners or householders who also use them in the house and 
also work at small businesses.
    Then of course there are the broader impacts, like the 
health benefits and the climate benefits that I mentioned.
    Mr. MCGARVEY. Thank you. Okay. So kind of just reframing 
this again, the court has said the administration has to issue 
these. They have to issue more because the Trump administration 
didn't do it.
    They can be helpful, but we want to make sure they are 
helpful to small businesses. Is there a process by which the 
administration is considering the needs of small businesses? Do 
they have community engagement sessions? Must they take into 
consideration any of these comments in the proposed rule?
    Ms. HAMMOND. Yes. First of all, to answer your final 
question, they are required by law to respond--not just 
consider but respond--to significant comments raised, and of 
course the overall process is very much designed to consider 
interests of all stakeholders but particularly small 
businesses.
    Mr. MCGARVEY. Thank you. And when they find a legitimate 
concern, how do they work to address it?
    Ms. HAMMOND. They work first to just understand what it is 
and make sure that they have thoroughly considered the issue. 
They look to see whether there are adjustments to be made and 
how those trade off against the other factors that Congress 
required the Agency to consider.
    So it is very much a case-by-case decision, but those 
comments do have an impact.
    Mr. MCGARVEY. Thank you, Professor, I appreciate that 
because, again, we want to make sure that our small businesses 
are being heard, that they are being represented, that these 
regulations make sense for them. So I appreciate that very 
much.
    Mr. Chairman, I yield back.
    Chairman WILLIAMS. The gentleman yields back.
    I now recognize Representative Van Duyne from the great 
State of Texas for 5 minutes.
    Ms. VAN DUYNE. Thank you very much, Mr. Chairman.
    This hearing today is one of tremendous importance. With 
Americans suffering under 3 years of disastrous policies from 
the Biden administration that have been painfully driving up 
cost of living.
    It has made food, electricity, housing, and transportation 
impossible to afford, and it has made new homeownership an 
impossibly distant dream for many young Americans.
    Now we need to deal with a reckless agenda from the 
Department of Energy, pushing overreaching energy-efficiency 
rules that will burden small manufacturers.
    Earlier this year, this committee passed my bill, the Small 
Business Regulatory Reduction Act, which requires the Small 
Business Administration to ensure, for each fiscal year, the 
cost to small businesses of the administration's rulemaking is 
not greater than zero, and while also requiring the SBA to 
issue a report on any regulations issued by other federal 
agencies that impact small businesses.
    And I am looking to expand this to obviously the Department 
of Energy now, and I think it is a perfect place to start.
    This hearing is a great example of why my bill is 
necessary, and which is to ensure Congress is reigning in the 
power of out-of-control, regulatory, glutton executive branch. 
And I look forward to continuing to work with the committee to 
see my bill move forward and to work to strengthen small 
businesses across the country.
    We just heard testimony on, in answers to some of the 
questions, that said that these regulations benefit small 
businesses.
    Mr. Bauman, I want to ask you--you work for a small 
business--how often do you guys Go, Oh, goody, we got more 
regulations, these are going to benefit us?
    Mr. BAUMAN. We don't--it hurt us, as I said, from the 
product side, our competitiveness and ability to offer--
innovate products and work along those lines versus we are 
taking time to address regulations to meet with and--as Ms. 
Hammond mentioned, we were in a meeting yesterday with DOE in 
regards to commercial refrigeration equipment, and I was there. 
I was basically the only small business. There were a few 
others, there were a handful, but a lot of small businesses 
don't have the opportunity like we have invested in to do that. 
So it has absolutely been a burden. And the other----
    Ms. VAN DUYNE. So this is going to cost small businesses 
money?
    Mr. BAUMAN. Yes, yes.
    Ms. VAN DUYNE. But we just heard about all of these cost 
savings that they were going to have. Do you actually see that? 
I mean, there is one thing to say that that is going to happen 
on paper, but in reality do you see that that is happening?
    Mr. BAUMAN. We do not see that happening. It continues to 
be a burden on our sales and on our manufacturing.
    Ms. VAN DUYNE. So you have got increased inflation as well, 
and that is being coupled with increased federal regulations. 
Has that made it more difficult for your business to grow?
    Mr. BAUMAN. Yes, it has. We are privately owned. We are 
very short-term borrowers. We try to not do a lot of 
investments that we can't afford to invest ourselves. But, 
yeah, there is all different types of capital expenditures that 
are harsh on our business.
    Ms. VAN DUYNE. And, Ms. Huey, I am going to ask you the 
same question. I mean, do your home builders--are they excited 
with these new regulations? Do they see all of the cost savings 
that we have heard are going to come? Are they actually seeing 
that in reality?
    Ms. HUEY. Yeah, no. Thank you for the question.
    As I talked about earlier, one-quarter of the cost of new 
construction of a single-family home is government regulations, 
and that is at all levels. For me I looked back at a house I 
built recently. I spent $35,000 before I ever started building 
the house. That was permit--building permit, land disturbance 
permit, water tap, sewer tap, driveway permit, gravel, silt 
fence. All of those add up before I ever really started 
building the house.
    Ms. VAN DUYNE. What State?
    Ms. HUEY. Alabama.
    Ms. VAN DUYNE. In Alabama. So be happy that you are not 
building in California because pre-pandemic it was 40 percent 
regulatory costs.
    Ms. HUEY. Yes, ma'am.
    Ms. VAN DUYNE. But, you know, have you found that in your 
increased inflation as well, coupled with increased 
regulations, has that made it difficult for you to grow your 
business?
    Ms. HUEY. It has. And it is difficult for the consumers. 
They don't understand that when I give them a price of what--
that estimate of what their house is going to be and then when 
those estimates grow because of things like fuel surcharge, you 
know, in the last couple of years that we have had. Now I 
understand the fuel prices are down, but in the last couple of 
years they were up. So it is things like that that added on to 
the top that we didn't expect.
    Ms. VAN DUYNE. So you are saying that not only are these 
regulations overburdensome and harmful to small businesses, but 
you are saying actually people who want to buy homes are also 
affected negatively by this?
    Ms. HUEY. Absolutely.
    Ms. VAN DUYNE. So how much more have homes cost in the last 
3 years, if you could, in Alabama or anywhere in the country?
    Ms. HUEY. I know that in the last couple of years, one 
point of reference I have is during the pandemic--and I know 
that we are not talking about lumber prices, but our lumber 
package went from $35,000 to $125,000, and it settled somewhere 
around $75,000.
    Ms. VAN DUYNE. Well, I would look forward to hearing if you 
guys have any solutions. I know typically what I hear is we 
just want the government to stay out of our business. That was 
the best way to help it grow.
    I appreciate you guys being here. And I yield back.
    Chairman WILLIAMS. The gentlelady yields back.
    I now recognize Representative Chu from the great State of 
California for 5 minutes.
    Ms. CHU. While those on the other side of the aisle are 
trying to make it sound like the Biden administration decided 
to just do rulemaking on its own, but let me emphasize this is 
the law. And the Department of Energy is required by law to 
evaluate energy efficiency standards for various products and 
appliances every 6 years. Once an updated standard is 
published, small businesses get 3 years to comply and get an 
extra 2 years' grace period before they have to come into 
compliance. So that is 5 years total to do so. And let's not 
forget that these standards only apply to newly manufactured 
products, not to existing products that consumers already 
owned.
    We also heard from Professor Hammond's testimony that there 
is ample opportunity for small businesses' and small 
manufacturers' concerns to be considered at every step of the 
department's process when they decide how to update a 
particular standard. And, in fact, she said that the department 
even goes further than what is required, offering webinars and 
conducting other types of direct outreach to small business 
stakeholders. So, actually, the Biden administration is going 
above and beyond to consider small business voices in the 
rulemaking.
    Actually, we are in this situation because the previous 
administration missed scores of deadlines violating the 
requirements in the law. And, in addition, there was a lawsuit 
over the previous administration's failure to meet the 
standards. It was settled, and the settlement was that the DOE 
was required to review these regulations.
    So, Professor Hammond, can you explain why the Department 
of Energy is being required to issue so many new standards now 
and give an example of how this benefits small businesses?
    Ms. HAMMOND. Sure. As you described, it is required to do 
so many now because it has its existing statutory obligations, 
plus the backlog that now a court is enforcing that it has to 
comply with.
    And then in terms of the kinds of benefits, these benefits 
can be for all kinds of small businesses. We are not just 
talking about manufacturers here. We are talking about all 
small businesses. It is the convenience store owner. It is the 
person who has the restaurant or cooks out of their home. Any 
number of businesses who use appliances are going to be saving 
on their bills because of these standards.
    Ms. CHU. Well, let's talk about one particular appliance 
because there is so much misinformation about the proposed gas 
stove standards. The Department of Energy is not proposing to 
ban gas cooking products any more than it is trying to ban 
light bulbs.
    Does the DOE even have the authority to ban gas stoves?
    Ms. HAMMOND. No, it doesn't.
    Ms. CHU. When would these proposed standards for gas stoves 
go into effect? And, by the way, can you explain what the 
standard is now?
    Ms. HAMMOND. Well, I will mention that the proposed rules, 
they are not even finalized yet, so they will still benefit 
from input, the types of which we are hearing today. The 
proposed rules are not just for gas stoves. They are for gas 
and electric stoves as the department is required to do. And 
they will go into effect, I think it is 3 to 5 years from when 
the rule is final. I just want to note, those are future-
looking for new stoves. It has nothing to say about what 
happens for people who already have gas stoves.
    Ms. CHU. And, in fact, the DOE does not have the authority 
to take products out of consumers' homes or small businesses. 
Is that correct?
    Ms. HAMMOND. Absolutely.
    Ms. CHU. Now, can you also give us an example of where the 
DOE did a review and maybe cite a standard that the DOE decided 
not to update because it did not meet the criteria?
    Ms. HAMMOND. One that comes to mind is space heaters. DOE 
decided not to set efficiency standards for those. So it does 
look at these and decide whether it is called for under the 
statutory requirements.
    Ms. CHU. So the process works, and the DOE is not 
overreaching. Correct?
    Ms. HAMMOND. That is right.
    Ms. CHU. And let me ask also about the particular savings 
that the average American household is saving, because it is 
not just small businesses. It is every American that is saving 
on their utility bills. Can you talk more about that?
    Ms. HAMMOND. Sure. And that is true. All of these rules 
have to be cost justified. That means the costs have to be 
outweighed by the benefits, and DOE published those 
transparently for everyone to see. The deLaski and Mauer study 
that I cite in my written testimony provides State-by-State 
analyses of benefits not just to businesses but also to 
consumers.
    Ms. CHU. Thank you.
    I yield back.
    Chairman WILLIAMS. The gentlelady yields back.
    I now recognize Representative Meuser from the great State 
of Pennsylvania for 5 minutes.
    Mr. MEUSER. Thank you, Chairman. I appreciate it very much. 
Thank you very much to our witnesses.
    So we just heard--and I say this in all due respect--how 
wonderful the DOE's regulations and rulemaking is and how 
positive it must be for small business.
    Mr. Lewis, do you find that from gas stoves to other rules 
being made that that has been beneficial to the industry that 
you are familiar with?
    Mr. LEWIS. Well, I don't have much industry specific 
experience, but I will say that--mike. Oh, sorry, the mike.
    I can't----
    Mr. MEUSER. Well, Competitive Enterprise Institute, you 
must--that deals with businesses. Right?
    Mr. LEWIS. Yes, that's right. But, in other words, we 
don't--we are not spokespersons for any particular industry. My 
colleague, Ben Lieberman, who was supposed to testify, actually 
does have much more contact with industry experts. I wish he 
were here.
    Mr. MEUSER. And I will move on down the line. Ms. Huey.
    Mr. LEWIS. But if I could----
    Mr. MEUSER. Yeah, go ahead.
    Mr. LEWIS. Yeah. But if I could mention, you know, some of 
these costs are in the form of degraded performance. Like many 
people complain that the dishwasher has to be run twice in 
order to get the dishes clean, that clothes washers now, they 
are so efficient in their use of, say, water that you have to 
wash the clothes twice.
    Mr. MEUSER. Right.
    Mr. LEWIS. And we actually had an ad back a few years ago 
which was billed ``Send Your Underpants to the 
Undersecretary,'' because a lot of people were complaining that 
they had to run the same load twice.
    So those are costs that the agency is really not terribly 
concerned about.
    Mr. MEUSER. Good. Great points.
    And if they actually were to talk with stakeholders, as we 
are hearing, that the overreach is just phenomenal--you know, I 
was in business for nearly 25 years. And, Mr. Bauman, I want to 
ask you, when you all have improved air-conditioners, when you 
make air-conditioners more efficient, you make them less cost, 
you make them utilize less energy, did any of that come from a 
mandate or a rule from the government?
    Mr. BAUMAN. No. We----
    Mr. MEUSER. It is laughable. Right?
    Mr. BAUMAN. Yeah. We look at what the regulations are, but 
in the air-conditioning and on the refrigeration side, we are 
because of the competitive market----
    Mr. MEUSER. You make it better?
    Mr. BAUMAN. Right.
    Mr. MEUSER. So your customers--so it costs them less, so 
they are using less fuel, so as they are cooling the area in 
the best manner and most effective way possible. It is called 
American innovation. It is called entrepreneurship. Would you 
call it government rulemaking and mandates?
    Mr. BAUMAN. I would say the innovation is where we--not the 
mandates, but having products that are innovative and, again, 
primarily that are providing refrigeration for safe food or 
those that really are providing safety and comfort.
    Mr. MEUSER. And, Chairman, I am sorry I sound a little 
sarcastic, but it is a little hard to take.
    So, Ms. Huey, I would like to ask you a couple of questions 
on the transformer issue that you spoke about in your testimony 
and the shortage that exists and the Department of Energy now 
submitting that it needs to have some new standards for these 
transformers, and yet they have gone through all kinds of 
efficiency measures over the last several years.
    Do you want to just speak on that a little bit further, 
please?
    Ms. HUEY. Yes. So as we have talked about, they are 
already, you know, like 97.9 percent energy efficient, and we 
are only increasing the efficiency by 1/10 of a percent while 
we have an 18- to 24-month backlog of people that need them, 
the houses that are sitting. I think it is in the Houston area 
there is about 4,000 houses that are sitting. And then recently 
the tornadoes that ripped through Mississippi, I think there 
was about 400 transformers that were torn out there. So it only 
adds to the backlog and the time.
    Mr. MEUSER. Sure. Has your industry been in--has the DOE 
been in contact with you folks and said, Hey, what do you think 
about this action? Give us some input. We are very interested 
in whether or not we should pursue this.
    Ms. HUEY. We did participate in the SBA's advocacy. We had 
over 60 of our builders that were part of a round table 
discussion, and they expressed all of their concerns. It will 
be very interesting to see if the DOE will heed those concerns.
    Mr. MEUSER. Okay. So you haven't had a response yet?
    Ms. HUEY. No.
    Mr. MEUSER. You have only had the original rule, so nothing 
has been affected or changed as of yet?
    Ms. HUEY. That is my understanding, yes.
    Mr. MEUSER. Okay. Well, maybe we can help you follow up on 
that with them and see because, in the end, we are interested 
in reasonable initiatives. However, at this point in time, you 
think the current rule is quite unreasonable for your industry?
    Ms. HUEY. Right now because we have a backlog I do believe 
that it is, yes.
    Mr. MEUSER. Okay.
    Ms. HUEY. When you think about the energy efficiency that 
we already have in homes right now and in the transformers, to 
go another step when we have such a backlog and the American 
dream is unaffordable and unattainable for so many.
    Mr. MEUSER. All right. Thank you very much.
    I yield back, Mr. Chairman.
    Chairman WILLIAMS. The gentleman yields back.
    I now recognize Representative Scholten from the great 
State of Michigan for 5 minutes.
    Ms. SCHOLTEN. Thank you so much, Mr. Chair. And thank you 
to all of our witnesses for coming here today. Your testimony 
is incredibly enlightening. This is such an important topic.
    My district is home to a very large portion of the Grand 
River Watershed, the largest river in the State of Michigan. 
And we also represent miles of beautiful Lake Michigan 
shoreline, the Great Lakes region multibillion dollar economy. 
I am very serious about protecting these natural resources, not 
only for their inherent worth, but what they contribute to our 
economy.
    That being said, there is nothing more frustrating to a 
west Michigan small business owner than regulations that do 
nothing and just stand in their way, impede their business and 
don't even do what they purport to do.
    My colleagues on this committee know that I have been the 
first among Democrats many times to push back against 
unnecessary regulations. But one of the things that I want to 
talk about today is the process that the department goes 
through to make sure that these regulations are doing what they 
intend to do.
    And so I have two questions for you, Professor Hammond. I 
am wondering if you can explain how the Department of Energy's 
current rulemaking process takes into consideration the 
priorities of small businesses and consumers and what DOE does 
to ensure that regulations are cost-effective and not overly 
burdensome for consumers--or for businesses. Excuse me. Yeah, 
thank you.
    Ms. HAMMOND. Sure. So the process itself has that seven-
factor analysis that Congress required, and that looks at both 
costs and benefits to consumers, to manufacturers. And then, of 
course, DOE further evaluates specifically the interests of 
small businesses in that process. It always has to be cost 
justified.
    And then further--I am sorry. Could you just remind me of 
your second question?
    Ms. SCHOLTEN. Yeah. So how is the DOE ensuring that these 
regulations are cost-effective and not overly burdensome for 
small businesses? What is the process beyond maybe those seven 
steps?
    Ms. HAMMOND. It also complies, of course, with Executive 
Order 12866, and it does a cost-benefit analysis that is 
reviewed both by OIRA. It collects interagency comments on, 
again, not just the proposed rules but also the final rules, 
and for many of the standards we are talking about today, they 
are still just proposed.
    Ms. SCHOLTEN. Okay. Thank you so much.
    And what's your impression of that process, the feedback 
loop that happens and the consideration that is taken in? You 
know, are small businesses being heard when they weigh in about 
how that would impact their business?
    Ms. HAMMOND. They are. My experience is that the agency 
takes small business feedback very seriously and thinks long 
and hard about how these standards will affect those 
businesses.
    Ms. SCHOLTEN. Thank you.
    My second question is, you know, I hear so much from 
constituents who regard regulations as unnecessary government 
intervention in the market. Can you explain how regulations 
around energy conservation standards actually serve to bolster 
innovation and positively impact the economy?
    Ms. HAMMOND. Sure. And I want to say maybe two things about 
the EPCA standards. The first is that these are national 
standards to avoid additional costs that manufacturers would 
have to comply with if they had to go State by State for 
various standards. So there is an efficiency built in right 
there. And they push innovation. Typically the standards do 
apply in a way that already there are existing products on the 
market, but it allows new entrants to the market and invites 
innovation to even push forward.
    Ms. SCHOLTEN. Thank you so much.
    Yield back the remainder of my time.
    Chairman WILLIAMS. The gentlelady yields back.
    I now recognize Representative Molinaro from the great 
State of New York for 5 minutes.
    Mr. MOLINARO. Thank you, Mr. Chairman. Although great State 
of New York, it may not be the right moniker for the purposes 
of this hearing as New York has created--made a science and art 
form of overregulating even the most basic behaviors.
    I came at the right moment. I take no--I don't want to take 
much issue, but, you know, uniformity of regulation is nice and 
efficiencies to achieve that. It might come out of uniformity 
of regulation, but we live in a Republican democracy, and in 
that form of government, the States have certain 
responsibilities, the federal government has certain 
responsibilities. And we are not supposed to tread on those. 
And small businesses in particular, they understand the burden, 
the challenge of overregulation.
    I have often said, having spent the last 30 years in both 
State and local government, that when it comes to federal 
regulation or federal government, not only doesn't the federal 
government know what the left--the right hand doesn't know what 
the left hand is doing. In the federal government, sometimes 
the left hand doesn't even know there is a right hand.
    And that overburdensome bureaucracy, if you will, that 
labyrinth of regulation adds enormous burden, pressure, 
compliance concerns, and costs to small businesses. And so I 
happen to think that we ought to expect greater consolidation 
of regulation. We ought to demand greater transparency, and 
there needs to be better understanding by the small business 
owners in particular as to what regulation they are to follow, 
when, how, and what the impact is to them.
    And so to that end, I joined in introducing the POST It Act 
which requires federal agencies to post guidance on rules that 
will have significant impact on small businesses. I represent 
small communities all across Upstate New York. Small business 
is, as it is across America, the engine of economic opportunity 
in our community. 70 percent of new jobs created by existing 
small business, they are overburdened.
    To that end, Mr. Marlo Lewis, I want to just get your take 
and opinion on the necessity of the POST It Act, the benefit it 
might provide, and how small businesses might be helped should 
it be adopted.
    Mr. LEWIS. Yes. This is a straight-up transparency and 
accountability reform. It is almost unbelievable that anyone 
would oppose this or that the access to regulatory guidance 
wasn't already readily available. It was for a period under the 
Trump administration that we have heard so much about, but the 
Biden administration, one of its first moves in the regulatory 
sphere was to repeal the requirement that every agency provide 
a portal with a database, a searchable database so that 
businesses could find out what guidance documents--and there 
are literally thousands of them--apply to them and that they 
must know in order in turn to comply with regulations.
    So we are all behind your bill. We think it is great and it 
is long overdue. And we are also flabbergasted that it is even 
necessary.
    Mr. MOLINARO. Yeah, I thought you might say that. And not 
only is it important for transparency purposes, but the lack of 
transparency allows the federal government and, by extension, 
State governments to enforce without either understanding or 
the ability by small businesses to effectively react or even 
prevent such enforcement.
    Ms. Huey, I wanted to--because I only have a minute left. I 
just wanted to acknowledge, in your testimony you talk a little 
bit about recent efforts by the DOE to use the rulemaking 
process to limit consumer access to residential gas stoves. New 
York has already taken such an action, which for me, you know, 
I come from a part of the country where, by the way, the modern 
day environmental movement was born in the Hudson River Valley. 
I get it. We understand the value of both environmental 
protection and addressing climate change. However, the policy 
is misguided, and it does focus a heavy bureaucracy on a 
fragile industry and overtaxed individuals. And I did join in 
opposing Governor Hochul's proposed ban and requiring the 
federal government to evaluate the actual costs of such a ban 
to small businesses.
    Could you just speak quickly about how the DOE's proposed 
rule on gas stoves might affect your business and, by 
extension, customers?
    Ms. HUEY. Yes, sir. Thank you for the question.
    I recently built a home for a customer that cooked, loved 
to cook. When we walked through the house at the rough-in, she 
said, I guess we need to add an electrical plug because they 
are going to come and take my gas stove. She really said that 
to me. And she said, And I guess we need to put one upstairs 
for the hot water heater too. And I said, No, ma'am, they are 
not going to come take it out of your house.
    Mr. MOLINARO. Mr. Chairman, I just would add, this is 
precisely why we need the transparency. I yield with we have 
consumers that are unduly burdened and worried that the federal 
government is looking around their kitchen tables.
    Chairman WILLIAMS. Thank you very much. The gentleman 
yields back.
    I now represent Representative Gluesenkamp from the great 
State of Washington for 5 minutes.
    Ms. GLUESENKAMP PEREZ. Thank you, Mr. Chair.
    And I think I know the answer to this. And I want to say I 
sincerely appreciate the witnesses. I know you all pay your own 
way to be here. I really appreciate that you are here. But do 
any of you--have any you of you--none of you currently work as 
technicians fixing appliances. Correct? Have any of you been 
technicians?
    Okay. Thank you to the committee staff who ensured that 
someone on the panel has worked actually fixing appliances, 
because I think that is a critical piece that has been missing 
from this discussion.
    I want to say that I appreciate the department's statutory 
obligation to review the standards, but I am deeply concerned 
why these washing machines can play Tchaikovsky, but they only 
last 2 years now. And it is something that--you know, they say 
there is lies, damn lies, and statistics. And I am very 
concerned about the horizon.
    So, Professor Hammond, I don't know if you know the answer 
to this, but when they do these cost-benefit analysis, like, 
how do they reflect back the durability of an appliance? And 
what's the horizon that they are expected to last?
    Ms. HAMMOND. They do consider the lifetime of the 
appliance. And, of course, that varies by appliance. I will say 
they also consider the efficacy. I know they just did a test 
procedure for dishwashers to ensure that there is a washability 
standard there too.
    Ms. GLUESENKAMP PEREZ. Do you know what the timeline--like, 
how many years are they expected to last?
    Ms. HAMMOND. I would have to go look for which specific 
appliances we are talking about, but sometimes, you know, 10 to 
12 years.
    Ms. GLUESENKAMP PEREZ. Because every time I am driving 
around I see these front-loading washing machines out on the 
street, you know, and it is a huge environmental impact, and it 
is a huge cost to consumers and small businesses to have 
appliances that do not last anymore. Like, my washing machine 
is from 2003. My fridge is from 1997. You know, like, the old 
stuff can last if we support it. But often we are seeing a huge 
explosion in the number of chips involved in any given 
appliance. Everything is made out of plastic now. I, you know, 
work on cars. Right? Like, the quality of parts is very, very 
concerning to me, of components within them. And so that is 
what I am--you know, I think these standards can be useful, but 
I am very, very concerned the horizon under which they are 
considered.
    So I had a question for Mr. Bauman. I understand that you 
have an obligation to abide by these standards, and you have 
expressed concerns today about this process and its impact on 
your business. But I am also curious and thinking about how we 
make sure that manufacturers, like, are prioritizing 
durability.
    What is the thing--like, what can we do to put more 
pressure on increasing the life cycle and the durability? Why 
do some brands, like--you know, I probably shouldn't say this--
Speed Queen still pretty good. Right? But a lot of these things 
have just gone through the floor.
    Mr. BAUMAN. Thank you for the question.
    And I personally have very similar home appliances, our 
front-loading washing machine, we have had to replace our 
refrigerator where we had refrigerators that lasted, you know, 
20 years. I think trying to regulate that, I think that is 
really a market control issue, because one of the things on our 
refrigeration side particularly--and, again, we always talk 
about on that side of it--is that in commercial refrigeration, 
those are the harshest. I mean, your kitchen is harsh, but your 
commercial kitchen is many times even more harsh. And, 
competitively, that is what we promote in our products. That 
has always been our kind of baseline is making sure we have 
safe temperatures. We use heavier gauged materials and such 
than others. And I have to say that, unfortunately, with 
meeting, again, very aggressive energy standards like the 
Department of Energy is actually proposing actually hurts that 
because we have to take out materials in other areas to try 
to----
    Ms. GLUESENKAMP PEREZ. But, like, any technician can look 
at something and say what is trash and what is going to last, 
you know. Like, you can--you know, mechanical engineers I don't 
think have that brain necessarily, but----
    Mr. BAUMAN. I'm both.
    Ms. GLUESENKAMP PEREZ. But do you see any way that you can 
implement or is this going to be more regulation?
    Mr. BAUMAN. Because of the complexity, again, as you get 
into electronic controls, fan speeds, a number of the things I 
mentioned as far as, again, talking about commercial 
refrigeration and also on the air-conditioning side with the 
new refrigerants that are required, they all required a lot 
more electronics, a lot more things that all--additional 
components that break down and reduce the overall life of the 
product as it is used, again, in very harsh conditions.
    Ms. GLUESENKAMP PEREZ. Okay. Well, thank you sincerely to 
all of our witnesses for being here today.
    I yield back.
    Chairman WILLIAMS. The gentlelady yields back.
    I would like to--we are right on time. I would like to 
thank our witnesses for their testimony today and for appearing 
here.
    Without objection, the Members have 5 legislative days to 
submit additional materials and written requests, questions for 
the witnesses to the Chair which will be forwarded to the 
witnesses. I ask the witnesses to please respond promptly.
    If there is no further objection, without objection, the 
committee is adjourned.
    [Whereupon, at 11:50 a.m., the committee was adjourned.]

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