The Department of Energy (DOE) plans to prohibit the sale of certain less-efficient models of washers and dryers to save American households $2.2 billion annually on utility bills and reduce nearly 71 million metric tons of carbon dioxide emissions over the next three decades. The new energy standards aim to promote innovation while ensuring reliable performance for consumers. However, the Association of Home Appliance Manufacturers expressed concerns about the impact on low-income households, arguing that removing cheaper appliances from the market could be detrimental.
In a separate move, the Environmental Protection Agency (EPA) finalized a rule in 2023 to transition to advanced refrigeration technologies that do not use hydrofluorocarbons (HFCs) by 2025, with a goal of an 85% reduction by 2036. This regulation is expected to increase prices by up to 20%, according to manufacturers.
Furthermore, the DOE proposed regulations targeting gas-powered stovetops, initially affecting 50% of current models. Following backlash, the final regulations will impact only 3% of gas stove models, with a ban on stoves consuming more than 1,204 thousand kBtu per year.
Additionally, the Biden administration has doubled efficiency standards for light bulbs, requiring common light bulbs to have a minimum of 120 lumens per watt. This increase, applicable only to LED bulbs, is expected to reduce greenhouse gas emissions by 70 million metric tons over the next three decades. The new rule, effective in 2028, will raise the average price of LEDs from $2.98 to $5.68 per bulb.
A new rule has been finalized by the Biden administration to prohibit new non-condensing gas furnaces by 2028. The rule mandates that non-weatherized gas furnaces must achieve an annual fuel utilization efficiency of 95%. This move has been met with opposition from various entities, including the American Gas Association, American Public Gas Association, National Propane Gas Association, and manufacturer Thermo Products, who have filed a lawsuit against the Department of Energy (DOE). They argue that the regulation could result in increased costs for a significant portion of households and small businesses.
The lawsuit contends that if the regulation comes into effect, expenses could rise for 30% of senior-only households, 26% of low-income households, and 27% of small business consumers. The potential financial burden on these groups is a key point of contention in the legal challenge brought forward by the aforementioned industry organizations. Amidst these developments, a new Carrier natural gas furnace was installed at a residential home in Spanish Fork, Utah, on Tuesday, October 19, 2021.
Richard Meyer, the Vice President of Energy Markets, Analysis, and Standards at the American Gas Association, expressed concerns about the rule’s implications. Meyer highlighted that the rule, set to take full effect by Christmas 2028, could lead to substantial additional expenses for individuals needing to replace their gas furnaces to comply with the stringent efficiency requirements.
In addition to the gas furnace regulations, the Biden administration has also made changes to energy conservation standards, implementing stricter requirements for ceiling fans. An analysis conducted by the Department of Energy indicates that the new standards could result in savings of approximately $39 over the lifespan of energy-efficient ceiling fans.
Despite the anticipated benefits in terms of energy efficiency and cost savings for consumers, the regulatory changes have faced criticism from the House Small Business Committee. In a letter addressed to the Secretary of Energy, concerns were raised regarding the potential adverse impact on small business ceiling fan manufacturers. The committee warned that between 10% and 30% of these manufacturers could face significant challenges or even closure due to the new regulations.
Looking ahead, the future of Biden’s appliance regulations could be uncertain, with the impending presidency of Donald Trump in 2025. It is expected that President-elect Trump will prioritize overturning a substantial portion of the current administration’s climate agenda, including the regulations related to household appliances and energy efficiency standards.
As the debate surrounding these regulatory changes continues, it remains to be seen how the legal challenges and political shifts will shape the landscape of energy efficiency standards and appliance regulations in the United States.
