Comments to DOE re: the Social Cost of Carbon in the proposed energy conservation standards for General Service Fluorescent Lamps and Incandescent Reflector Lamps

RE: Docket No. EERE-2011-BT-STD-0006: Energy Conservation Program: Energy Conservation Standards for General Service Fluorescent Lamps and Incandescent Reflector Lamps; Proposed Rule; Federal Register Vol. 79, No. 82 (Tuesday, April 29, 2014); RIN 1904-AC43

Dear Ms. Edwards:

The U.S. Chamber of Commerce, the American Chemistry Council, the American Forest & Paper Association, the American Fuel & Petrochemical Manufacturers, the American Petroleum Institute, the Council of Industrial Boiler Owners, the National Association of Manufacturers, the National Mining Association, the National Oilseed Processors Association, and the Portland Cement Association (collectively, “the Associations”) submit these comments responding to the Department of Energy’s (“DOE”) Notice of Proposed Rulemaking and Public Meeting for Energy Conservation Standards for General Service Fluorescent Lamps and Incandescent Reflector Lamps.[1]

The U.S. Chamber of Commerce (“the Chamber”) is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. The Chamber is dedicated to promoting, protecting, and defending America’s free enterprise system.

The American Chemistry Council (“ACC”) represents the leading companies engaged in the business of chemistry. ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health and safety performance through Responsible Care®, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing. The business of chemistry is a $770 billion enterprise and a key element of the nation's economy. It is one of the nation’s largest exporters, accounting for twelve percent of all U.S. exports. Chemistry companies are among the largest investors in research and development. Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation’s critical infrastructure.

The American Forest & Paper Association (“AF&PA”) is the national trade association of the forest products industry, representing pulp, paper, packaging and wood products manufacturers, and forest landowners. AF&PA serves to advance a sustainable U.S. pulp, paper, packaging, and wood products manufacturing industry through fact-based public policy and marketplace advocacy.

The American Fuel & Petrochemical Manufacturers (“AFPM”) is a national trade association of more than 400 companies, including virtually all U.S. refiners and petrochemical manufacturers. AFPM members operate 122 U.S. refineries comprising approximately 98% of U.S. refining capacity. AFPM petrochemical members make the chemical building blocks that go into products ranging from medical devices, cosmetics, furniture, appliances, TVs and radios, computers, parts used in every mode of transportation, solar power panels and wind turbines. As an energy intensive industry, AFPM members are directly affected by the government’s use of the Social Cost of Carbon in cost-benefit analyses underlying federal regulations.

The American Petroleum Institute (“API”) is a national trade association representing over 500 member companies involved in all aspects of the oil and natural gas industry. API’s members include producers, refiners, suppliers, pipeline operators, and marine transporters, as well as service and supply companies that support all segments of the industry. API and its members are dedicated to meeting environmental requirements, while economically developing and supplying energy resources for consumers.

The Council of Industrial Boiler Owners (“CIBO”) is a broad-based association of industrial boiler owners, architect-engineers, related equipment manufacturers, and University affiliates with members representing 20 major industrial sectors. CIBO members have facilities in every region of the country and a representative distribution of almost every type of boiler and fuel combination currently in operation. CIBO was formed in 1978 to promote the exchange of information within the industry and between industry and government relating to energy and environmental equipment, technology, operations, policies, law and regulations affecting industrial boilers. Since its formation, CIBO has been active in the development of technically sound, reasonable, cost-effective energy and environmental regulations for industrial boilers. CIBO supports regulatory programs that provide industry with enough flexibility to modernize -- effectively and without penalty - the nation's aging energy infrastructure, as modernization is the key to cost-effective environmental protection.

The National Association of Manufacturers (“NAM”) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 12 million men and women, contributes more than $1.8 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for two-thirds of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States.

The National Mining Association (“NMA”) is a national trade association whose members produce most of America’s coal, metals, and industrial and agricultural minerals. Its membership also includes manufacturers of mining and mineral processing machinery and supplies, transporters, financial and engineering firms, and other businesses involved in the nation’s mining industries. NMA works with Congress and federal and state regulatory officials to provide information and analyses on public policies of concern to its membership, and to promote policies and practices that foster the efficient and environmentally sound development and use of the country’s mineral resources.

The National Oilseed Processors Association (“NOPA”) is a national trade association that represents 13 companies engaged in the production of vegetable meals and vegetable oils from oilseeds, including soybeans. NOPA’s member companies process more than 1.6 billion bushels of oilseeds annually at 63 plants in 19 states, including 57 plants which process soybeans.

The Portland Cement Association (“PCA”) represents 27 U.S. cement companies operating 82 manufacturing plants in 35 states, with distribution centers in all 50 states, servicing nearly every Congressional district. PCA members account for approximately 80% of domestic cement-making capacity.

The Associations object to DOE’s continued use of the Social Cost of Carbon (“SCC”) in the cost-benefit analysis performed in connection with this Proposed Rule and believe the SCC should be withdrawn as a basis for the Proposed Rule. The SCC calculation should not be used in any rulemaking or policymaking until it undergoes a more rigorous notice, review and comment process. These arguments were more fully developed in comments filed by AFPM, the Chamber, American Petroleum Institute, and several other trade associations on DOE’s Energy Conservation Standards for Commercial Refrigeration Equipment,[2] and more recent comments to the Office of Management and Budget on the Regulatory Impact Analysis of the Social Cost of Carbon,[3] and are incorporated by reference herein.

Thank you for your consideration of this important matter. If you have any further questions, please feel free to reach out to William Kovacs, Senior Vice President at the U.S. Chamber of Commerce at (202) 463‐5457 or by e‐mail at wkovacs@uschamber.com.

Respectfully submitted,

American Chemistry Council

American Forest & Paper Association

American Fuel & Petrochemical Manufacturers

American Petroleum Institute

Council of Industrial Boiler Owners

National Association of Manufacturers

National Mining Association

National Oilseed Processors Association

Portland Cement Association

U.S. Chamber of Commerce