Industry, Advocacy Groups Agree on New Efficiency Standards for Appliances

Major home appliance manufacturers, their trade organization and a
nationwide coalition of energy and water efficiency supporters have
called for new national minimum efficiency standards, production tax
credits for super-efficient appliances and inclusion of "smart grid"
readiness as a feature of future ENERGY STAR-qualified appliances. 

The groups said they will pursue adoption of
these recommendations through administrative action by the Department of
Energy and through legislative action by Congress. 

Based on Department of Energy (DOE) analysis, the recommended standards
and tax credits will save more than 9 quads of energy over 30 years, or
roughly enough to meet the total energy needs of 40% of American
homes for one year. 

The recommended water efficiency standards and tax
credits for clothes washers and dishwashers will save about 5 trillion
gallons over 30 years, or approximately the amount of water necessary to
meet the current water needs of every customer in the City of Los
Angeles for 25 years. 

Global warming CO2 will be reduced by 550 million
metric tons over the same time period, without considering the
emissions reductions from smart appliances. These reductions are
equivalent to taking 100 million of today’s typical cars off the road
for a year. 

Senator Jeff
Bingaman, Chairman of the Senate Energy and Natural Resources Committee, said consensus agreements such as this generally attract
bipartisan support. He added that "increased energy efficiency through cost-effective energy
standards for appliances and consumer products remains the single most
cost-effective strategy for strengthening our nation’s economic and
energy security."

The recommended new standards will reduce new refrigerator and freezer
energy use by up to 30% by January 2014. For top loading clothes
washers, 26% energy savings and 16% water savings would
kick in for 2015 relative to current standards, increasing to 37%
energy and water savings in 2018.  For front loading clothes washers,
the savings will be 43% for energy and 52% for water in
2015 compared to today’s standards. 

Clothes dryers will increase in
efficiency by 5% in 2015.  In addition, changes to the dryer test
procedure will reduce over-drying, saving additional energy and
extending the life of clothes. Room air conditioners will see a 10% to
15% increase in efficiency effective June 2014 and dishwashers
will see 14% energy savings and 23% water savings
beginning in January 2013. Many of the new standards are based on
levels of efficiency that previously earned federal tax credits,
illustrating how these tax credits can contribute towards transforming
markets towards higher efficiency products.

"This joint proposal will make the next generation of major home appliances the thriftiest ever when it comes to energy and water use," said Steven Nadel, executive director of the American Council for an Energy-Efficient Economy (ACEEE). "The resulting energy and water savings will cut bills for consumers by billions of dollars and reduce global warming emissions for decades to come."

For a typical household, products just meeting the new standards would cut their total electric bill by about 6% relative to products just meeting the current standards. Based on analysis by ACEEE, the net total national benefits for consumers for products purchased through 2030 will reach nearly $30 billion. ACEEE analysis shows that estimated upfront cost increases to make products more efficient will pay back in lower energy bills well within the life of the affected products, often within just a few years.

Additional key features of the agreement include:

  • Support for a three-year extension and update of an existing manufacturers’ tax credit for the production of super-efficient clothes washers, dishwashers, refrigerators and freezers.  
  • A planned petition to the ENERGY STAR program to provide a 5% credit to the required energy levels for smart appliances. 
  • Recommendations that DOE improve test methods for dryers and refrigerators to better represent actual product energy use. 

The agreement was signed by major appliance manufacturing members of the Association of Home Appliance Manufacturers (AHAM) and by major energy and water efficiency organizations, consumer groups and environmental organizations including the American Council for an Energy-Efficient Economy, Alliance for Water Efficiency, Alliance to Save Energy, Appliance Standards Awareness Project, Consumer Federation of America, National Consumer Law Center, Natural Resources Defense Council, Northwest Power and Conservation Council, and Northeast Energy Efficiency Partnerships.

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