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Washington D.C.— Today, the House Small Business Committee held a hearing examining the impact of Department of Energy (DOE) energy efficiency standards on American small businesses. During the hearing, Ranking Member Nydia M. Velázquez (D-NY) discussed the need for DOE to implement well-crafted common-sense conservation standards that can create certainty for small businesses and help lower energy bills. 

“As Members of the Small Business Committee, we understand that complying with Federal, state, and local regulations can be burdensome for small business owners. That is why Congress created the Office of Advocacy to ensure that Federal agencies consider small businesses’ views throughout the rule-writing process,” said Ranking Member Velázquez. “Today’s hearing allows us to discuss energy conservation standards that lower energy bills for small businesses and the steps DOE is taking to consider small businesses throughout their rule-writing process, as well as help them comply with the new standards.”

The Department of Energy (DOE) is required under the Energy Policy and Conservation Act (EPCA) to establish energy conservation standards for approximately 60 consumer products and reevaluate them every six years. The products covered are used by consumers and businesses each day, and include space heating and cooling, refrigeration, cooking, clothes washers and dryers, and lighting. DOE standards are legally required to save energy, be cost-effective, and be technologically feasible, and DOE must demonstrate how the rules meet each of the criteria.

During the hearing, experts testified on how DOE rules are crafted to ensure the concerns of small businesses are reflected and how energy conservation standards can result in savings for small firms.  

“DOE ensures that its energy conservation standards are developed in a transparent, participatory process that is open to all stakeholders, with a special focus on the interests of small businesses,” said Professor Emily Hammond, Professor of Law at George Washington University. “What is special about this program, however, goes beyond the agency’s careful effort developing rules: This program brings concrete benefits to householders, small businesses, and other commercial enterprises in the form of real and meaningful savings.”

During the hearing, Ranking Member Velázquez also discussed how the Trump administration’s illegal refusal to release updated energy conservation standards has resulted in a rush of new rules. 

“The previous Administration violated the law and missed 26 deadlines to issue new energy standards. The Trump DOE was sued, and as part of a court settlement, the Biden Administration is required to review these long overdue standards,” said Ranking Member Velázquez. “This isn’t a case of federal overreach. The reality is the Trump delays hurt small businesses, costing them more to do business.”

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