US appliance industry says Energy Department plan could ease costs for homeowners

Trade associations representing HVAC and appliance companies are supporting a Department of Energy proposal that would alter the process for setting future efficiency standards, arguing that the change could help homeowners avoid higher purchase costs.

The debate, however, reaches beyond upfront prices. It may also affect how quickly Americans get access to appliances that use less energy, trim monthly utility bills, and reduce pollution over time, according to ACHR News.

What's happening?

ACHR News reported that, on July 2, the DOE issued a Notice of Proposed Rulemaking to revise its process rule. That process rule lays out how the agency develops appliance efficiency standards for products such as air conditioners, water heaters, and refrigerators.

Under the proposal, current standards would remain in place. The change instead would affect the procedures used for establishing future standards. The DOE has touted the rule change as a way to curb future appliance mandates, which it says increase costs and restrict consumer choice.

"For too long, the American people paid the price for mandates that restricted consumer choice and drove up costs. President Trump promised to end this nonsense, and that is exactly what we are doing," said Chris Wright, the Secretary of Energy. 

Industry groups say that Wright's characterization overstates the proposal's reach. Alex Ayers, the Heating, Air-conditioning, & Refrigeration Distributors International vice president of government affairs, argued that, rather than removing mandates, the proposal "revises the procedures DOE must follow when developing future efficiency standards under the Energy Policy and Conservation Act (EPCA)."

Still, some industry members welcomed the change. Sean Robertson, vice president of government relations for the Air-Conditioning Contractors of America, said the proposal may offer a more balanced path for rulemaking.

Why does it matter?

Appliance rules can affect three major factors at once: the upfront price, the choices available in the showroom, and the energy bills that arrive month after month.

In the debate over appliance mandates, industry groups are putting particular emphasis on the first two factors, especially for homeowners who must replace a failed furnace or water heater on short notice. In those cases, higher upfront costs can create a serious burden, particularly for lower-income households.

At the same time, slowing or complicating future efficiency standards could delay the adoption of more efficient appliances. More efficient appliances often cost less to operate, which, over time, can matter even more than the initial purchase price.

Policies that weaken the push for better-performing appliances can leave households locked into higher energy use for years to come while also slowing efforts to reduce the pollution that contributes to extreme weather and poor air quality.

What happens next?

DOE is taking public comments on its proposed rule change for 30 days following its publication in the Federal Register. This will give manufacturers, contractors, advocates, and consumers a chance to weigh in before any modifications are finalized.

Even among groups that support the proposal, there is concern that repeated policy shifts can create their own complications.

Kelly Mariotti, president and CEO of the Association of Home Appliance Manufacturers, said that too many changes can create "the kind of uncertainty and instability that makes it difficult for manufacturers to plan, invest, and innovate with confidence."

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