Andrew Gilbertson

November 17, 2006

On Monday, November 12, 2006 a settlement was announced between the Department of Energy (DOE) and a coalition of states in which the federal government will increase the efficiency standards on 22 household products; including heaters, freezers, dishwashers and ovens.

In 1987, Congress set initial efficiency standards and required the Department of Energy to strengthen them by certain deadlines to ensure that new products remain as efficient as technology allows. These standards have resulted in an estimated average savings of $2,000 per household. The DOE has since missed deadlines to update the standards for 22 products and, in some cases, by as much as 14 years.

In September 2005, New York City, various consumer interest groups, and a coalition of states including New Hampshire, California, Connecticut, Illinois, Iowa, Maine, Massachusetts, New Jersey, New Mexico, North Carolina, Pennsylvania, Rhode Island, Vermont, and Wisconsin sued the federal government to force compliance with the deadlines established by Congress. Trade organizations which represented gas appliance and air-conditioning manufacturers supported the suit as well, citing the need for more predictable timelines for energy efficiency requirements.

Elliot Spitzer, Attorney General for the state of New York and lead office of the suit, announced the agreement under which the Department of Energy will update the efficiency standards for 22 products over five years starting in 2007. The new standards benefit both consumers and the environment by reducing electricity bills in homes that use various appliances. It also delays the need for new power plants by reducing demand for electricity. Supporters of the lawsuit expect the impact of the new standards to be significant over time as newer more efficient products replace older, less efficient ones.

For more information:

http://www.oag.state.ny.us/press/2006/nov/nov13a_06.html

http://www.oag.state.ny.us/press/2006/nov/Consent Decree.pdf

http://www.nrdc.org/media/pressreleases/061113.asp

http://www.newsobserver.com/100/story/510280.html