This article originally appeared at BusinessGreen.com, and is reprinted with permission.

From April 16, 2010 – James Murray, BusinessGreen.com – Undercover investigators gain Energy Star accreditation for phony gas-powered alarm clock.

The US Environmental Protection Agency and Department of Energy this week announced emergency measures to tighten the procedures governing the award of Energy Star certification after undercover investigators revealed the current system was so flawed that made up products were able to attain accreditation.

According to a report released late last month, investigators with the Government Accountability Office (GAO) were able to obtain Energy Star accreditation for 15 out of 20 fake products that they submitted under the energy efficiency labeling scheme.

The phony products included a gas-powered alarm clock and a “room air cleaner “, which was displayed in mocked up photos showing an electric space heater with a feather duster attached to it.

The GAO report, which was commissioned by Republican Senator Susan Collins, said the practice of approving products based on energy savings data presented by manufacturers themselves left the scheme “vulnerable to fraud and abuse”.

The agencies responsible for the scheme moved this week to address the issue, announcing that effective immediately all manufacturers applying for Energy Star certification would have to submit complete lab reports and results for review and approval by EPA prior to labeling.

The tightened procedure replaces the previous automated approval process that would dish out certification to any product that appeared to meet the necessary criteria.

Gina McCarthy, EPA Assistant Administrator for Air and Radiation, said the new rules would help to restore confidence in the scheme. “The safeguards we’re putting into effect are essential for the millions of consumers who rely on Energy Star products to help save energy, money and the environment,” she said.

The EPA added that the approval process would be further tightened at the end of the year when new rules will be introduced requiring all manufacturers to submit test results from an approved, accredited lab for any product seeking the Energy Star label.

However, it remains to be seen if the crack down will help restore the scheme’s badly bruised credibility.

The Energy Star scheme covers a huge range of products, including white goods, computers and building materials, and is meant to promote products that are between 10 and 25 per cent more efficient than minimum federal standards.

But it has been widely criticized over the years for failing to adequately police the scheme and update standards as technologies improve – a scenario that in some cases has seen Energy Star labels carried by virtually every product in a market.

The EPA launched a crack down on products that should not be carrying the label at the start of the year, claiming its first victim when LG was ordered to stop using the label on a number of fridges that failed to meet required energy efficiency standards in independent tests.

But the reforms did not come quick enough to halt the latest embarrassing revelations and the EPA is likely to require much more widespread testing if it wants to restore confidence in the scheme.