The recent proposals from the Trump administration to eliminate twelve energy efficiency standards could potentially lead to significant increases in electricity costs for American consumers, amounting to billions of dollars.
The Department of Energy (DOE) has stated its intention to roll back various policies, which it deems “burdensome and costly,” as part of what has been labeled the largest deregulatory initiative in U.S. history. While the DOE estimates a savings of $11 billion through these rollbacks, this figure does not reflect the additional costs incurred by consumers who might resort to using energy-intensive appliances.
A detailed analysis by the Appliance Standards Awareness Project (ASAP), shared first with Technology News, projects that the deregulation could ultimately result in approximately $43 billion in higher electricity expenses for both households and businesses.
“The department is looking at the savings these rollbacks would provide while completely ignoring the costs.”
Joanna Mauer, deputy director of ASAP, noted, “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.”
ASAP gathered information on the twelve efficiency standards targeted by the DOE, for which the department had earlier made its own projections regarding potential costs and savings for consumers.
Common criticisms surrounding energy-efficient appliances often center on their initial purchase cost, which is typically higher compared to less efficient models. When the DOE established the efficiency standard for portable air conditioners in 2020, it estimated that consumers would incur an additional $1 billion in upfront costs over a 30-year span due to the need for more efficient technologies. This figure contrasts with the $11 billion in savings that the DOE claims will result from the annulment of these twelve standards.
However, ASAP contends that this perspective lacks depth. Typically, when formulating a standard, the DOE also analyzes the cumulative savings consumers would reap from energy-efficient appliances, which primarily derive from reduced energy bills, alongside considerations for other associated costs like maintenance. The portable air conditioner standard, for example, was projected to save consumers $4.1 billion over the lifetime of products bought during the same 30-year period.
This leads to a net savings of $3.1 billion for consumers attributable to the efficiency standard for portable air conditioners. The net savings previously estimated by the DOE for the twelve standards under threat now total $43.2 billion, which ASAP emphasizes as the crucial metric to focus on. These standards cover a range of common products such as microwave ovens, conventional cooking tops, air purifiers, dehumidifiers, and battery chargers, among others.
In response, DOE spokesperson Ben Dietderich expressed in an email to Technology News, “The ASAP conclusions rely on flawed assumptions, selectively emphasizing potential operational savings that are not guaranteed and disregard the real-world burden these standards impose.”
Secretary of Energy Chris Wright defended the agency’s approach, 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,” during the announcement last week.
It is anticipated that these deregulation proposals will encounter legal hurdles, as energy efficiency standards are protected under an anti-backsliding provision within the Energy Policy and Conservation Act (EPCA). Recently, President Trump issued a presidential memorandum instructing the Secretary of Energy to cease enforcement of several efficiency regulations slated for revocation or modification. Additionally, reports surfaced this month indicating that the Environmental Protection Agency is set to dismantle the Energy Star program, which has enabled typical households to save approximately $450 annually on energy bills.
Update, May 21st: This report has been amended to include a response from a DOE spokesperson.
