The Department of Energy’s Appliance and Equipment Standards Program

Since 1978 Congress has authorized mandatory federal programs to regulate the energy and water consumption of appliances and commercial equipment used in buildings. The Department of Energy (DOE) has implemented this authority for over 60 categories of devices with the statutory aim of setting standards that achieve significant conservation of energy. In the 1978 law, Congress expressed its desire “to reduce the growth in demand for energy in the United States, and to conserve nonrenewable energy resources produced in this Nation and elsewhere, without inhibiting beneficial economic growth.” Covered products and equipment are those units, devices, or appliances that are deemed subject to the national standards program developed by DOE. Congress specifies these in many instances while in others DOE makes the coverage determination. Some of the better-known covered products and equipment include refrigerators, furnaces, and commercial air conditioning. The standards describe energy conservation in one of two ways. First, the standards establish a maximum energy consumption expressed in units found on utility bills such as kilowatt-hours (kWh) or British thermal units (Btus). For example, standard-sized dishwashers shall not exceed 307 kWh/year. Second, the standards can address the performance of the device in terms of its minimum energy efficiency. Efficiency is sometimes a simple percentage value; for example, gas-fired water boilers must be 84% efficient at converting fuel into heat used in the home. Efficiency can also be a combination of units, and, for example, general service lamps (i.e., light bulbs) meet standards specified in lumens per watt. The Energy Policy and Conservation Act (EPCA) states that any standard must result in significant energy conservation and be technologically feasible and economically justified. DOE must typically reconsider standards every six years and issue an amended standard if warranted, though such an amended standard cannot result in increased energy use by the product in question. EPCA allows DOE to preserve certain features such as glass oven doors that strictly speaking do not result in energy conservation. This protection of features has become important in the case of natural-gas consuming products. Acknowledging the role of civil society, EPCA has required the Secretary to follow the energy conservation standards set by groups such as the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) for certain commercial equipment. DOE sets these standards using a multi-year process of analyses and stakeholder interactions. Standards, test procedures, and coverage determinations are set utilizing rulemaking processes defined by statutory and other requirements. EPCA further lists the factors DOE must consider in choosing the quantitative level for an energy conservation standard for a given product. Some standards are in statute, and DOE regulations codify these. In other cases DOE considers the standards and test methods (i.e., the procedures used to establish compliance) set by engineering societies, independent standards organizations, or industry groups—ASHRAE, for example. The program requires the sale or adoption of equipment that consumes less energy while providing the same service—e.g., a refrigerator with the same storage volume that consumes less electricity. According to a 2017 DOE estimate, the program was expected to deliver energy savings of 71 quadrillion British thermal units (quads) from inception through 2020, which is three-quarters of one year’s U.S. primary energy consumption. Congress could amend EPCA to address the effectiveness of the program and its ability to influence energy conservation. The setting of standards for appliances that use natural gas is subject to an unresolved debate on fuel-switching. Also, DOE has gone back and forth on its own requirements for utilizing the standards and test methods set by ASHRAE, with the key question being whether DOE should adopt ASHRAE standards as is’ or has latitude to change them. Lastly, DOE’s ability to maintain the tempo of issuing amended standards and follow the every-six-year review requirement of EPCA has been challenged in recent years; the statute does not allow the agency to prioritize the backlog. All of these issues have been the subject of recent or ongoing federal litigation.