“The end-result [from ignoring one properly identified modelling “error”], unwittingly or otherwise, massively skewed EERE’s economic ‘determinations’ in favor of stricter standards for commercial packaged boilers. This ‘error’ also exists in other proposed rulemakings. In other words, EERE likely ignored this correction request to avoid embarrassment by exposing deep analytical biases within EERE, its Labs and contractors.”

This post concludes a three-part series on the highs and lows of the DOE’s Office of Energy Efficiency and Renewable Technology during the Trump window of opportunity. Part I was an overview, and Part II examined EERE’s process rule and overhaul efforts to date.

Historically, Final Rules become that when published in the Federal Register. Prior, such rules have been subject to change pursuant to the “error correction” procedure codified at 10 C.F.R. § 430.5 (etc.).…

“In the past, economic justification could be attained by simply providing, on average, cumulative energy savings that barely exceeded the additional costs of energy improvements over the life of the appliance. The “career professionals” within EERE–its National Labs and subcontractors–have become very adept at gaming (skewing) the determinations in favor of more regulations. Unfortunately for consumers, this trend continues virtually unabated.”

In 1996, EERE published a Process Rule for developing and issuing new or revised appliance efficiency standards and test procedures. The generally useful initiative is embodied in the Code of Federal Regulations (CFR) under 10 CFR Appendix A to Subpart C of Part 430.

The Process Rule has been treated by EERE as a guide (think Barbossa and the Pirate code). Among its original and retained objectives was (ostensible) regulatory transparency.…

“DOE acknowledged that if non-condensing gas appliances were eliminated, there would likely be extensive problems (e.g., economics and safety); especially in the case of existing buildings whose venting systems are not designed for lower vent temperatures associated with condensing furnaces and water heaters.”

“… an undersurface administrative state has steadily entrenched its ‘virtuous cycle’ for energy efficiency that limits consumer choice and costs them dearly.”

While hopes were high for the Trump Administration to provide common-sense, market-based regulatory reform at all levels of the Federal government, the Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) fell short. There have been some relatively bright spots, and maybe more to come in the next weeks. But the performance of Trump’s appointees to EERE was meh.

The underwhelming performance can be attributed in part to a very late start getting new appointments.…

“FERC appears to have ignored the track record of top-down state and regional climate policies, which have increased costs and negligibly impacted the environment.”

“Prior to providing a blanket endorsement for state carbon pricing, the commission needs to hear from families, small businesses, and workers who will pay substantially more for electricity.”

Last week, the Federal Energy Regulatory Commission (FERC) announced that President Trump had replaced then-Chairman Neil Chatterjee with Commissioner James Danly. Media reports suggested that the President’s decision to swap Republican Commissioners – both of whom he had nominated – was driven by dissatisfaction with Chatterjee’s push to accommodate state carbon dioxide (CO2) taxation.

Background

The change followed an unusual move by FERC to host a September 30 Technical Conference on Carbon Pricing in Organized Wholesale Electricity Markets.…