Audit Finds Vulnerability of EnergyStar Program

(From the N.Y. Times) Does a “gasoline-powered alarm clock” qualify for the EnergyStar label, the government stamp of approval for an energy-saving product? Like more than a dozen other bogus products submitted for approval since last June by Congressional auditors posing as companies, it easily secured the label, according to a Congressional report to be issued Friday. So did an “air purifier” that was essentially an electric space heater with a feather duster pasted on top, the Government Accountability Office said.

In a nine-month study, four fictitious companies invented by the accountability office also sought EnergyStar status for some conventional devices like dehumidifiers and heat pump models that existed only on paper. The fake companies submitted data indicating that the models consumed 20 percent less energy than even the most efficient ones on the market. Yet those applications were mostly approved without a challenge or even questions, the report said.

Auditors concluded that the EnergyStar program was highly vulnerable to fraud.

Maria Vargas, an official with the Environmental Protection Agency, which runs the program with the Energy Department, said the approvals did not pose a problem for consumers because the products never existed. There was “no fraud,” Ms. Vargas emphasized. She said she doubted that many of the 40,000 genuine products with EnergyStar status had been mislabeled.

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