The Honorable Jennifer M. Granholm, Secretary, U.S. Department of Energy (August 24, 2023)

Summary

The House Committee on Small Business writes to Secretary Granholm of the U.S. Department of Energy to inquire about the recent proposed rule change to the energy conservation standards for ceiling fans. The letter states that the proposed rule would decrease the maximum estimated energy consumption permissible for large diameter and belt driven ceiling fans, and may put between 10 and 30 percent of small business ceiling fan manufacturers out of business. It requests information no later than August 30, 2023, including whether the DOE considered allowing small business fan manufacturers to attest that they are using a DOE compliant electric motor.

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Full text

                                               August 24, 2023

The Honorable Jennifer M. Granholm
Secretary
U.S. Department of Energy
1000 Independence Ave. SW
Washington, D.C. 20585

Dear Secretary Granholm:

        The House Committee on Small Business writes to inquire about the recent proposed rule
change to the energy conservation standards for ceiling fans. This proposed rule would decrease
the maximum estimated energy consumption permissible for large diameter and belt driven
ceiling fans.1 This rule would require numerous small business fan manufacturers to redesign
their products and may put between 10 and 30 percent of small business ceiling fan
manufacturers out of business.2 It appears that the Department of Energy (DOE) may not have
properly considered small entities during this rulemaking process.

       It is important for agencies to examine small businesses interests—which make up 99.9
percent of all businesses in the United States—when passing any new rule. America’s small
businesses deserve to have their voices heard and considered. We therefore request the following
information as soon as possible but no later than August 30, 2023:

    1. Did the DOE consider allowing small business fan manufacturers to attest that they are
       using a DOE compliant electric motor,3 or other forms of alternative compliance, as a
       means of complying with this proposed rule?

    2. In the impact calculation, did the DOE expect small businesses to abandon some of their
       product lines to comply with this rule, or that these businesses would redesign their
       products?

    3. Does the DOE expect this rule to decrease the availability of large diameter, or belt
       driven ceiling fans?

1
  Energy Conservation Standards for Ceiling Fans, 88 Fed. Reg. 40932, 40933-34 (To be codified at 10 C.F.R. §
430).
2
  Id. at 41007-08. (Table VI.1 shows that at least three of the ten large diameter ceiling fan manufactures will
experience conversion costs greater than 20 percent of triennial revenues).
3
  Energy Conservation Standards for Electric Motors, 10 C.F.R. § 431.25; See also Energy Conservation Standards
for Electric Motors, 88 Fed. Reg. 35765 (To be codified at 10 C.F.R. § 431).
Honorable Jennifer M. Granholm
August 24, 2023
Page 2 of 2


      4. What additional costs would a small business, such as a restaurant, incur when
         purchasing a new ceiling fan that complies with these updated standards?

      5. Does the DOE believe “Small Business 1” in Table VI.1 will go out of business as a
         result of this rule?4

               a. Does the DOE believe “Small Business 2” in Table VI.1 will go out of business as
                  a result of this rule?

               b. Does the DOE believe “Small Business 3” in Table VI.1 will go out of business as
                  a result of this rule?

       To schedule the delivery of your response or ask any related follow-up questions, please
contact Committee on Small Business Majority Staff at (202) 225-5821. The Committee on
Small Business has broad authority to investigate “problems of all types of small business” under
House Rule X. Thank you in advance for your cooperation with this inquiry.

                                                 In God We Trust,



_________________________                                      _________________________
Roger Williams                                                 Beth Van Duyne
Chairman                                                       Member of Congress
Committee on Small Business                                    Committee on Small Business


_________________________                                      _________________________
Maria Salazar                                                  Jake Ellzey
Member of Congress                                             Member of Congress
Committee on Small Business                                    Committee on Small Business



_________________________
Aaron Bean
Member of Congress
Committee on Small Business


cc:        The Honorable Nydia M. Velasquez, Ranking Member
           Committee on Small Business

4
    Conservation Standards for Ceiling Fans, 88 Fed. Reg. 40932, 41007-08 (To be codified at 10 C.F.R. § 430).


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