What’s Next for U.S. Energy Efficiency: Legal Battles or Continued Progress?

July 5, 2024
What’s Next for U.S. Energy Efficiency: Legal Battles or Continued Progress?

Energy efficiency has made significant strides in recent years, particularly in 2024, thanks to proactive efforts by the Biden administration and the U.S. Department of Energy (DOE). This period has been marked by the finalization of numerous new energy efficiency standards aimed at reducing energy consumption and cutting emissions. The advancements include updated regulations for various appliances such as distribution transformers, commercial rooftop heating and cooling units, circulator pumps, dishwashers, and residential water heaters. These efforts are projected to save consumers billions of dollars while significantly reducing climate emissions, illustrating a robust commitment to energy conservation and sustainability.

Driving this progress is a 2022 settlement between the DOE and environmental groups, including the Natural Resources Defense Council, which established a schedule for completing overdue standard reviews. This agreement has allowed the DOE to address a backlog of efficiency standards that had accumulated over previous administrations, meeting deadlines that have set the stage for current advancements. Moreover, the Biden administration has allocated millions of dollars to states and localities to bolster their energy efficiency efforts. Through programs like the Energy Efficiency and Conservation Block Grant Program, which awarded nearly $150 million to 175 communities since October, local initiatives have been empowered to adopt and implement energy-saving measures effectively.

Significant Progress in 2024

Over the first half of 2024, the U.S. Department of Energy (DOE) under the Biden administration has made significant headway in the realm of energy efficiency. One of the most remarkable advancements has been the finalization of numerous new energy efficiency standards aimed at reducing energy consumption and emissions. These newly instituted standards encompass a diverse range of appliances and commercial equipment, including distribution transformers, commercial rooftop heating and cooling units, circulator pumps, dishwashers, and residential water heaters. The overall objective of these standards is to conserve energy while reducing costs for consumers, which could potentially save billions of dollars in the long run.

The progress made thus far in 2024 is a manifestation of efforts set in motion by a 2022 settlement with environmental groups such as the Natural Resources Defense Council. This settlement established a timetable for completing overdue standard reviews, effectively addressing a backlog that had built up over previous administrations. The DOE’s ability to adhere to this schedule has been pivotal in expediting the process, enabling the agency to finalize around ten new efficiency standards this year alone. These new measures have not only been instrumental in advancing the nation’s energy-saving goals but also in making a significant impact on reducing climate emissions.

Adding to these regulatory advancements, the Biden administration has allocated substantial financial resources to states and localities to further enhance their energy efficiency initiatives. For instance, the Energy Efficiency and Conservation Block Grant Program has disbursed nearly $150 million to 175 communities since October, allowing local governments to adopt and implement energy-saving measures effectively. These grants have been instrumental in fostering local projects aimed at energy reduction and greenhouse gas emissions, highlighting a comprehensive approach to improving energy efficiency nationwide.

Funding and Support for States

The Biden administration has significantly ramped up financial support for states and localities in their quest to enhance energy efficiency. This increased funding is geared towards helping communities adopt and enforce building energy codes, which are critical for ensuring that new constructions and renovations meet modern efficiency standards. Noteworthy among these initiatives is the Energy Efficiency and Conservation Block Grant Program, which has provided nearly $150 million in funding to various communities since October. This program has empowered local governments to implement projects aimed at reducing energy consumption and greenhouse gas emissions, thereby contributing to broader national energy-saving goals.

Beyond these block grants, the Department of Energy (DOE) has also made $90 million available specifically for state energy efficiency programs. These funds are crucial in enabling states to enact and enforce building codes, conduct energy assessments, and implement other measures designed to enhance energy efficiency. By providing these financial resources, the administration ensures that state and local governments have the necessary tools to take meaningful actions toward reducing energy consumption and emissions. This substantial financial support underscores the administration’s commitment to a sustainable and energy-efficient future, laying the groundwork for continued progress in the coming years.

The allocation of these funds has resulted in a significant boost to local energy efficiency efforts. Communities across the country have been able to initiate and expand projects aimed at improving energy performance in both residential and commercial buildings. The financial support has also facilitated the training and deployment of energy-efficiency professionals, ensuring that there is adequate expertise to implement and uphold newer, more stringent energy codes. This holistic approach not only addresses immediate energy concerns but also builds long-term capacity for sustainable energy practices at the local level.

Addressing the Backlog of Standards

One of the most significant achievements of the Department of Energy (DOE) in 2024 has been its success in addressing a backlog of energy efficiency standards that accumulated under previous administrations. This progress can largely be attributed to a 2022 settlement with the Natural Resources Defense Council and other groups, which set a clear timetable for completing overdue standard reviews. By adhering to this schedule, the DOE has managed to finalize around ten new efficiency standards in 2024 alone, covering a wide range of appliances and commercial equipment.

The prompt resolution of these backlog issues has been instrumental in advancing the nation’s energy-saving goals. The new standards reflect a comprehensive approach to improving energy efficiency across various sectors, ensuring that both residential and commercial settings benefit from updated regulations. The DOE’s ability to quickly implement these standards has not only facilitated immediate energy savings but also set the stage for continued progress in the future.

In addition to finalizing new standards, the DOE has made changes to the “process rule,” which governs how appliance efficiency standards are set. These adjustments aim to streamline procedures, making it easier and faster to establish new standards. The modifications to the process rule ensure that future efficiency standards can be developed and implemented more swiftly, reducing the risk of backlogs and delays. This regulatory refinement is expected to play a crucial role in maintaining momentum in the years to come.

Legal Challenges from the Gas Industry

While the progress in energy efficiency has been commendable, the road ahead is not without its obstacles. The American Gas Association (AGA) and other gas trade groups have launched legal challenges against some of the new DOE standards. Their primary contention revolves around the standards for residential gas furnaces and commercial gas water heaters, which they argue effectively ban certain types of non-condensing appliances. The gas industry claims that these new standards impose venting requirements that make retrofitting these appliances in existing buildings impractical and costly.

The gas industry asserts that the new regulations unfairly target non-condensing technology, limiting consumer choice and potentially increasing costs. They argue that these rules create an undue burden for both manufacturers and consumers, potentially stifling innovation and leading to higher installation and operational costs. This legal battle is expected to continue, with oral arguments anticipated this fall and a potential decision likely in 2025.

In response, the Department of Energy (DOE) has defended its regulations, stating that condensing technology does not significantly alter installation requirements or costs. The agency argues that the new standards are essential for achieving substantial energy savings and emission reductions. By advocating for the new regulations, the DOE emphasizes the broader benefits of enhanced energy efficiency, including long-term cost savings for consumers and a reduced carbon footprint. This ongoing legal dispute highlights the tension between regulatory agencies and industry groups, which will likely play out in court in the coming months and years.

The Role of the Upcoming Presidential Election

The Biden administration has substantially increased financial support for state and local efforts to enhance energy efficiency. This funding boost aids communities in adopting and enforcing building energy codes that ensure new constructions and renovations meet contemporary efficiency standards. One key initiative is the Energy Efficiency and Conservation Block Grant Program, which has allocated nearly $150 million to various communities since October. This program enables local governments to undertake projects aimed at reducing energy use and greenhouse gas emissions, contributing to national energy-saving goals.

In addition to these grants, the Department of Energy (DOE) has earmarked $90 million for state-specific energy efficiency programs. These funds help states enact and enforce building codes, conduct energy assessments, and implement other energy-saving measures. By offering these financial resources, the administration supports state and local governments in taking meaningful steps to cut energy consumption and emissions. This significant financial backing highlights the administration’s commitment to a sustainable, energy-efficient future, laying the groundwork for ongoing progress.

The influx of funds has considerably bolstered local energy efficiency initiatives. Communities nationwide have been able to launch and expand projects to improve energy performance in both residential and commercial buildings. The financial support has also enabled the training and employment of energy-efficiency professionals, ensuring enough expertise is available to implement and uphold the stringent new energy codes. This comprehensive approach not only addresses immediate energy issues but also fosters long-term sustainable energy practices at the local level.

Subscribe to our weekly news digest.

Join now and become a part of our fast-growing community.

Invalid Email Address
Thanks for subscribing.
We'll be sending you our best soon.
Something went wrong, please try again later