United States Makes Significant Progress in Updating Appliance Standards

The US government is well on its way to saving consumers one trillion USD on their energy bills over 30 years while avoiding 2.5 billion tons of greenhouse gas emissions

The past four years have been significant years for energy conservation standards in the United States. Since 2021, the United States Department of Energy (DOE) has published over 20 final rules containing minimum energy performance standards for appliances and equipment. The Biden Administration is well on its way to meeting its objective of setting and revising appliance standards that could save consumers nearly a trillion dollars collectively on their energy bills over 30 years while avoiding 2.5 billion tons of greenhouse gas emissions.

Notable standards adopted over the last four years include:

Electric motors: In June 2023, DOE issued a final rule containing minimum energy conservation standards for electric motors with a rated power ranging from 1-750 horsepower. Most notably, the standard requires motors between 100 and 250 hp motors to meet NEMA Super Premium Efficiency standards (similar to IE4). The new standard also expands regulations to 501-750 horsepower motors, which were not covered under previous regulations. DOE estimates this policy will save American businesses about $464 million annually and reduce CO2 emissions by 92 million metric tons over a 30-year period. The new policy will take effect in June 2027.

Lighting: In April 2024, DOE issued a final rule containing minimum energy conservation standards for general service lamps (GLSs). The policy requires the most common GSLs to meet 124.6 lumens per watt, nearly triple the previous requirement. However, some efficiency requirements for select directional and omnidirectional lamps are lower than the 124 lumens per watt threshold. The new standard will take effect in July 2028 and phase out all incandescent and compact fluorescent lighting. DOE estimates consumers will save 27 billion USD on utility bills over 30 years and avoid 70.3 million metric tons of carbon dioxide emissions.

Water heaters: In April 2024, DOE published a final rule detailing minimum energy conservation standards for residential water heaters, which were last updated in 2010. The new standard requires most electric water heaters to use heat pumps, resulting in the largest energy savings from a single DOE efficiency standard (17.6 quadrillion British thermal units over 30 years). The standards will have large impacts, avoiding 332 million metric tons of carbon dioxide emissions, reducing household utility bills by about 170 USD annually, and increasing the adoption of heat pump technology in over half of new electric water heaters. While gas-fired instantaneous water heaters are not impacted, DOE is considering future standards for them.

Refrigerators: In January 2024, DOE published a final rule containing energy conservation standards for residential refrigerators, freezers, and refrigerator-freezers, marking the first update in over a decade. To meet the new standard, manufacturers will likely use a combination of more efficient compressors (like variable speed compressors) and fan motors and better insulation. These changes are expected to save consumers 36.4 billion USD over 30 years and reduce energy use by 10-15%. The standards will lower carbon emissions by nearly 101 million metric tons, equivalent to the annual emissions of 12.7 million homes. Compliance is required by 2029 or 2030, depending on the appliance configuration.

Furnaces: Gas furnaces account for 19% of residential energy consumption in the United States. In 2023, DOE published a final rule containing standards for non-weatherized gas furnaces and mobile-home gas furnaces. These standards, which enter into force in December 2028, mandate a minimum efficiency 95%, effectively requiring the use of condensing technology.

Distribution transformers: In April 2024, DOE issued a final rule containing energy conservation standards for distribution transformers that will enter into force in 2029. The final rule extends compliance timelines by two years and adjusts efficiency targets. This decision comes after utilities warned that the original proposal would exacerbate transformer shortages, delaying the clean energy transition. The new standard is expected to save 14 billion USD in energy costs and cut 85 million metric tons of CO2 emissions over 30 years.

Other standards include: