The administration set strong targets for the cost savings and climate pollution reductions it would achieve through efficiency standards. We calculate it is about 85% of the way there—and can finish the job by finalizing pending rules.
The Biden administration has made great progress updating appliance and equipment efficiency standards that reduce energy waste and save consumers and businesses money. Now it’s time to finish the job.
A year ago, the administration projected that standards completed this term would save nearly $1 trillion and cut climate change emissions by 2.5 billion metric tons over 30 years. Since then, the Department of Energy (DOE) has completed new standards for water heaters, clothes dryers, and rooftop air conditioners, among other products. The agency has repeated the targets but has not provided an accounting of its progress, a gap we’re filling here.
Based on DOE’s various rulemaking analyses, we calculate that the Biden administration is about 85% of the way to meeting the projection for reducing greenhouse gas emissions. Standards already completed this term will reduce emissions by 2.1 billion metric tons. While we were not able to calculate a corresponding figure for the progress on cost savings, it is likely in the same 85% ballpark—hundreds of billions of dollars. In other words, the administration has made tremendous progress but still has work to do.
The good news is rules that could more than fill the gap are in the White House’s hands, and it can give DOE the green light to finalize them. These standards are waiting at the Office of Information and Regulatory Affairs (OIRA), which conducts final reviews before rules are published; OIRA received many of these rules from DOE months ago.
Many of these potential new standards have substantial support from product manufacturers. For example, potential new standards covering certain electric motors used primarily in commercial and industrial applications are supported by motor manufacturers. And manufacturers of commercial and industrial fans have been working collaboratively with DOE for years to develop standards that will move the market to better, more efficient fans for applications ranging from building ventilation and air circulation to exhaust systems. Completing these two standards would reduce monthly energy bills for businesses such as restaurants, farms, and commercial building owners.
The standards for motors and fans are the two biggest-impact rules awaiting publication—and finalizing them is critical for reaching the target. These rules have been under review at OIRA since August and September, respectively. Other big-impact pending standards include those for battery chargers, commercial refrigerators, residential boilers, and walk-in coolers.
Based on the proposed rules for these and another four products (dehumidifiers, ceiling fans, gas instantaneous water heaters, and external power supplies), the pending standards could reduce consumer and business utility bills by $8.7 billion annually. While the compliant products can cost a bit more upfront, the lower utility bills far exceed the additional expense. Over 30 years of product sales, the pending standards also could cut climate-warming emissions by more than 850 million metric tons—more than enough for the Biden administration to hit its projection.
Finalizing the remaining standards would help meet the public demand for lower household and business costs. And updating appliance standards is simply popular. A YouGov poll last summer found that nearly 60% of Americans support tougher appliance efficiency standards, while only 25% oppose them, with the rest not having a view. A Morning Consult poll in 2023 found very similar results.
The Biden administration should get the job done and complete the pending efficiency standards.
