Latest news with #EnergyStarProgram
Time of India
21-05-2025
- Business
- Time of India
Americans may be staring at $43 billion in higher utility bills as the US government plans to rollback several energy policies in "largest deregulatory effort in history"
The Trump administration's push to dismantle 12 energy efficiency standards may face significant legal hurdles due to the Energy Policy and Conservation Act's (EPCA) anti-backsliding provision, which prohibits weakening established efficiency rules. Environmental and consumer advocacy groups are expected to challenge the rollbacks in court, arguing that the Department of Energy's (DOE) actions violate federal law. According to a report in The Verge, the DOE's proposals, part of what it calls its 'largest deregulatory effort in history,' have already sparked controversy, with critics warning of long-term economic and environmental consequences. On May 1, 2025, President Donald Trump signed a presidential memorandum instructing the DOE to halt enforcement of several efficiency standards targeted for revision or elimination. This directive aligns with the administration's broader deregulatory agenda but has drawn criticism for undermining decades of progress in energy conservation. The DOE has not yet responded to inquiries from The Verge regarding the rollback plans or their potential impacts. Energy Star Program may be 'killed' Adding to the controversy, reports surfaced in May 2025 that the Environmental Protection Agency (EPA) plans to terminate the Energy Star program. This voluntary certification, which identifies energy-efficient products, reportedly saves the average household in America approximately $450 annually on energy bills. The program's potential closure, combined with the DOE's rollbacks, signals a broader retreat from energy efficiency initiatives. Consumer Costs vs Promised Savings The Appliance Standards Awareness Project (ASAP) estimates that scrapping these 12 standards could cost households and businesses $43.2 billion in higher electricity bills over the lifetime of affected products. This figure starkly contrasts with the DOE's claim that deregulation would save $11 billion by eliminating 'burdensome and costly' rules. ASAP's deputy director, Joanna Mauer told The Verge, 'The department is looking at the savings these rollbacks would provide while completely ignoring the costs. It turns out that the costs would be nearly five times greater than the savings.' How Efficiency Standards Work and Why They Matter Energy efficiency standards set minimum performance requirements for appliances, ensuring they consume less energy while maintaining functionality. These rules cover a wide range of products, including microwave ovens, cooking tops, air purifiers, dehumidifiers, battery chargers, and portable air conditioners. For example, the 2020 efficiency standard for portable air conditioners was projected to cost consumers $1 billion upfront due to higher purchase prices but save $4.1 billion in energy bills over 30 years, yielding a net savings of $3.1 billion. ASAP's analysis, reportedly based on DOE's own data, shows that the 12 targeted standards would collectively deliver $43.2 billion in net savings. DOE's Deregulatory Agenda Divides In a recent announcement, Secretary of Energy Chris Wright defended the rollbacks, stating, 'We are bringing back common sense — slashing regulations meant to appease Green New Deal fantasies, restrict consumer choice and increase costs for the American people.' The DOE argues that eliminating these standards reduces manufacturing costs and provides consumers with more affordable, less efficient options. However, ASAP contends that this approach ignores the long-term financial burden of higher energy consumption, particularly for low-income households that spend a larger share of their income on utility bills. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Scientific American
08-05-2025
- Business
- Scientific American
Shuttering of EPA's Energy Star Program Would Impact Electric Bills and the Environment
The Environmental Protection Agency (EPA) plans to do away with its Energy Star program, the New York Times has reported—signaling the end of the efficiency certification project that has helped families and business to save more than $500 billion in energy costs since 1992, by the agency's own metrics. The EPA has not yet made the cut official, but employees were told in an internal meeting that Energy Star would be eliminated, according to the Times. What Is Energy Star? First put into place 33 years ago under the administration of George H.W. Bush, Energy Star is a testing and certification program for appliances and electronics. Businesses can use the Energy Star logo if their products are third-party certified as meeting the EPA's energy efficiency benchmarks; the agency also oversees continued post-market testing of appliances and electronics to ensure they are still performing up to snuff. On supporting science journalism If you're enjoying this article, consider supporting our award-winning journalism by subscribing. By purchasing a subscription you are helping to ensure the future of impactful stories about the discoveries and ideas shaping our world today. Consumers can also get rebates and tax credits on purchases of Energy Star-labeled products. The program additionally extends to certifying energy-efficient homes and apartment buildings, commercial buildings and industrial plants. These certifications affect local building code benchmarks and tax incentives for homeowners, says Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, a nonprofit research organization focused on reducing energy waste. 'The consumer labeling is the headline, if you will, but there are all sorts of other implications of this that aren't as well understood,' Nadel says. What Are the Impacts of the Energy Star Program? According to an annual Energy Star report released by the EPA in May 2024, the program has saved more than 5 trillion kilowatt-hours of electricity since 1992 and prevented 4 billion metric tons of greenhouse gas emissions in the same period. More than $100 billion of Energy Star products are sold each year, and a 2022 survey found that 89 percent of Americans recognized the Energy Star label. Fifty-seven percent of respondents said an Energy Star designation was very or somewhat influential in their purchasing decisions. According to the EPA's 2024 report, each dollar spent on the Energy Star program spurred $230 in spending on energy-efficient infrastructure and services by homes and businesses. The EPA estimates the program saves a typical household $450 on energy bills each year. In April, a group of over 1,000 manufacturers, building owners and small businesses signed a letter asking EPA Administrator Lee Zeldin to keep the program, which today has an annual budget of about $32 million. 'Most economists would agree it's generally a pretty good use of federal funds,' says Joe Craig, the chair of the department of economics at the University of Colorado Colorado Springs. Companies voluntarily participate in the program, and consumers voluntarily decide whether to buy products with the label. 'You could argue, in theory, it should be done by the private market, and the government shouldn't be involved at all,' Craig says. But he notes that few private companies are well-funded enough to run such programs. What Will Happen without Energy Star? There are a few other energy certifications that consumers and industry can turn to in the absence of energy star: LEED certification for buildings, for example, or specifications from the nonprofit Consortium for Energy Efficiency (CEE), Inc., for products. Unlike the EPA, however, CEE does not independently test or certify products, and LEED certification is limited to architecture. States and the federal government set energy efficiency standards, but these are minimum requirements—not the higher bar of efficiency set by Energy Star. 'If it disappears, will there be something?' Nadel says. 'Probably, but my guess is it will probably be very ad hoc.' Utilities and states might set their own energy efficiency benchmarks, but that situation will be challenging for manufacturers to navigate, he says. 'People like that uniformity around the country,' Nadel explains. Outreach to consumers is also more difficult for a patchwork of local and state-level programs, compared to one well-established, widely recognizable federal one, he adds. 'They haven't worked out most of the details,' Nadel says, 'so time will tell how this evolves.'
Newsweek
06-05-2025
- Business
- Newsweek
How Trump's Elimination of the Energy Star Program Could Affect Tax Credits
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Trump administration is poised to eliminate the U.S. Environmental Protection Agency's (EPA) Energy Star program, a measure that would reverberate through millions of U.S. households and businesses that rely on it for energy efficiency guidance and tax benefits. The Washington Post reported the cuts on Tuesday, citing sources familiar with the move. Officials in President Donald Trump's administration announced during a meeting on Monday at the EPA's Office of Atmospheric Protection that the office would be dissolved and the Energy Star program discontinued. Energy Star, known for its blue label and yellow EnergyGuide sticker found on appliances and homes, certifies products and buildings that meet certain energy-efficiency standards. Since its inception in 1992, the program has helped consumers save energy and money on utility bills, per the Energy Star website. A spacious kitchen with stainless-steel appliances, marble countertops and gray cabinets is pictured. A spacious kitchen with stainless-steel appliances, marble countertops and gray cabinets is pictured. sheilasay/Getty Images Newsweek has contacted the EPA and Energy Star for comment on Tuesday. What Is the Energy Star Program? First launched by the EPA, the Energy Star program identifies and promotes energy-efficient products and practices. Goods from refrigerators to air conditioners, as well as entire buildings and homes, can receive the Energy Star label when they meet energy efficiency benchmarks. According to the Department of Energy, in 2010, Americans saved nearly $18 billion on utility bills by way of the program. Trump first suggested canceling or privatizing Energy Star in his first term. How Does Energy Star Work? First, Energy Star creates guidelines. From there, manufacturers voluntarily submit products for certification to earn the Energy Star label. Products must meet energy performance guidelines established by the EPA, and third-party certification is involved to ensure credibility of the label. According to Energy Star, thousands of manufacturers and retailers have partnered with the EPA to sell these products. How Could Energy Star Affect Tax Credits? Beyond savings on energy bills, the Energy Star program ties directly into federal tax credits, which many homeowners use to offset costs of upgrading to energy-efficient equipment. As it stands now, through 2032, federal income tax credits are available to homeowners that allow up to $3,200 annually, to lower the cost of energy efficient home upgrades by up to 30 percent, according to Energy Star's tax credit page. Through the program, some homeowners can save $2,000 on costs just to upgrade air source heat pumps, heat pump water heaters, and biomass stoves and boilers to eco-friendly options. Consumers can also claim credits for other Energy Star-certified systems, including insulation, windows and solar energy systems. These credits were expanded under the Inflation Reduction Act 2022. Paula Glover, president of nonprofit Alliance to Save Energy, told CNN: "Eliminating the Energy Star program would directly contradict this administration's promise to reduce household energy costs." Glover continued: "For just $32 million a year, Energy Star helps American families save over $40 billion in annual energy costs. That's a return of $350 for every federal dollar invested." A portion of the Inflation Reduction Act does reference Energy Star requirements in defining eligible improvements. But it's unclear how federal tax credits under the act would change if the program gets cut. If the program is axed, it's possible that consumers who opted for eco-friendly appliances could be denied tax benefits for which they may have budgeted. If Energy Star is eliminated before the end of the 2025 tax year, homeowners who purchase upgrades in anticipation of tax credits could also face challenges down the line.
