The government’s popular Energy Star program claims to help people choose appliances and other products that use less energy, save money, and help the environment. Last year, we’re told, “Americans…saved enough energy to avoid greenhouse gas emissions equivalent to those from 30 million cars — all while saving nearly $17 billion on their utility bills.”

But a government sting has called those figures into question.

This isn’t the first time questions have been raised. In 2008, Consumer Reports performed independent testing and found that some popular refrigerators were rated by Energy Star at less than half of their actual energy usage. How could that be? Apparently, government guidelines allowed them to be tested with their ice-makers turned off, a loophole that some manufacturers used to post large—and unrealistic—theoretical energy gains.

Consumer Reports found other problems, including lax qualifying standards, out-of-date tests, and widespread reliance on self-reported results. Now, eighteen months later, an independent government watchdog finds little improvement; the Government Accountability Office concludes (PDF) that “Energy Star is for the most part a self-certification program vulnerable to fraud and abuse.” In a nine-month sting, the GAO was able to register the majority (15 out of 20) of its bogus products made by fake manufacturers.

The products range from the realistic to the ridiculous (PDF). Mainstream appliances, like a refrigerator and a computer monitor, got quick approvals (in one case, in less than 30 minutes) without any independent verification, but other items should probably have raised flags. Three applications for products were certified, despite claiming to be at least 20% more energy efficient(!) than their nearest competitors; one of them initially triggered questions, but its improbable claims were accepted after the (fake) manufacturer responded by email without supplying any proof.

Setting a new bar for creativity by government employees, the GAO included several obviously bogus products in the sting, including a gas-powered clock radio the size of a small electrical generator (described in the application as “easy on your electric bill, and surprisingly quiet”!), and an air room cleaner that was actually a feather duster attached to a space heater. To the chagrin of late-night TV comedians everywhere, we may never know what an “electric office hammer” is or whether it would have been approved; Energy Star failed to respond to three of the applications.

In his inaugural address, President Obama promised that “those of us who manage the public’s dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.”

The Environmental Protection Agency and the Department of Energy, who oversee Energy Star, have finally been embarrassed into promising some much-needed reforms, including independent testing of all new and existing Energy Star products. But questions remain:

• Why did it take so long to address problems raised years ago?
• Will consumers be compensated for products they purchased on the basis of exaggerated energy savings estimates?
• And, will there be an audit of the $300 million of the Recovery Act designated for Energy Star appliance rebates, with the goal of recovering taxpayer subsidies spent on improperly certified products?

Now, that would be real government accountability!