Statement of Administration Policy: H.R. 5465 - National Appliance Standards

(House)
(Rep. Markey (D) Massachusetts and 20 others)

The Administration opposes enactment of H.R. 5465 because:

— it is unclear how much energy the bill would save — The claims of significant energy savings are overstated because (1) studies have shown that more energy efficient appliances, such as furnaces and air conditioners, tend to be used more intensively, and (2) the bill would encourage consumers to use older, less-efficient appliances longer than they would otherwise, because new ones would be more expensive;

— the bill is costly and could unintentionally harm consumers — On average, consumers would have to spend an estimated extra $1.4 billion per year on appliance purchases. Higher prices would force many to buy more expensive appliances than they would have otherwise, and may force some to delay or forego some appliance purchases altogether. By eliminating the lower-priced models, the bill would hit low-income consumers particularly hard. It could also discourage and slow the introduction of useful product innovations; and

— it is unclear whether State standards have burdened, or likely would burden, interstate commerce to the extent that justifies the bill's almost insurmountable obstacles to States attaining exemptions from Federal standards. Further, the bill allows no realistic way to adjust the Federal standards to regional or local priorities or conditions.