Energy Efficiency: Long-standing Problems with DOE's Program for Setting Efficiency Standards Continue to Result in Forgone Energy Savings

In the 1st quarter of 2008, DOE began using a system for managing and tracking its appliance standards rulemaking process. The system tracks progress by reviewers and program staff and identifies the length of time used for each stage of the process. According to the program's manager, the system has been instrumental in enabling the program to significantly increase the number of rulemakings issued. In using this system to monitor progress in development of rules, concurrence by internal reviewers, and publication of rules in the Federal Register, DOE has implemented the recommendation.

Beginning in mid-2007, DOE has made on-going process changes to improve the transparency of interim goals and timeframes to all stakeholders to better hold reviewers and program staff accountable to the timeframes. For example, DOE has developed standardized document templates, analysis guidelines and procedural instructions for rulemaking staff and technical contractors and made the tools readily available by posting them on an internal website. DOE rulemaking staff are expected to meet review schedules and they are rated on their performance, thus the staff are held accountable to the timeframes. In 2009, DOE also streamlined the review and concurrence process for developing and approving rules, including allowing for parallel reviews and, according to the program manager, decreasing the rulemaking timeline by more than 50 percent. DOE further decreased review times in 2010 by creating a leadership stakeholder group responsible for reviewing key policy issues early in the rulemaking cycle. DOE also standardized the information that accompanies rulemaking documents to provide more efficient and effective communication to higher-level reviewers. To provide further transparency to stakeholders outside of the department, DOE puts information on its Web site about the most recent rulemaking action it has taken for each product. According to the program manager, DOE also sends timely notices of planned regulatory actions to stakeholders via email.

DOE has implemented our recommendation by allocating additional resources to the appliance standards program. Since 2007, DOE has nearly doubled the program staff (from 7 to 13)and increased its budget for contractor support from $10 million/year to $35 million for fiscal year 2011. Also, in 2010, DOE hired a new program manager to improve program management and operations. As a result of these resource increases, in conjunction with process improvements, DOE has made significant progress toward updating the standards that we reported were backlogged.