What are Implications of EPA’s Energy Star Scheme Ending?
The United States Environmental Protection Agency (EPA) is facing strong political and public backlash over its recent proposal to phase out the Energy Star programme.
The programme is a voluntary labelling scheme that has guided consumers towards energy-efficient appliances and homes for more than three decades.
Every dollar spent on the Energy Star program has resulted in nearly US$350 in energy cost savings for businesses and households, according to Senator Ruben Gallego.
Energy Star at risk
In May, the EPA announced a set of “organisational improvements” that would effectively end the Energy Star initiative.
The decision sparked widespread concern from both lawmakers and energy efficiency advocates.
“At a time when American families are grappling with rising energy and housing costs and our nation faces mounting energy and climate challenges, eliminating a highly successful programme that lowers utility bills and reduces emissions is indefensible,” wrote Ruben.
Critics of the EPA's plan argue that dismantling the Energy Star programme not only undermines environmental and economic progress, but also violates federal law.
In a May 20 letter to EPA Administrator Lee Zeldin and Secretary of Energy Chris Wright, 22 senators wrote: “The programme is protected under federal statute and thus illegal for the Administration to terminate unilaterally.”
The Energy Policy Act of 2005 outlines that responsibility for Energy Star “shall be divided between the Department of Energy and the Environmental Protection Agency in accordance with the terms of applicable agreements between those agencies.
“This programme saves families and businesses more than US$40bn every year with a budget of less than US$40m,” explains Steven Nadel, Executive Director of the American Council for an Energy-Efficient Economy.
“It’s an astonishingly good deal. Congress directed the government to run the Energy Star programme.Until now, the EPA has implemented that statutory obligation.”
Proven impact and strong support
Energy Star was established in 1992 under President George H.W. Bush.
According to EPA data, the programme has helped save more than US$500bn in energy costs and five trillion kWh of electricity, while preventing four billion metric tons of GHG emissions.
Today, more than 2,500 builders, developers and manufactured housing plants participate in the programme.
In 2023 alone, around 12% of new homes built in the US were Energy Star certified.
Support for the initiative remains high – in April, more than 1,000 companies and organisations urged the EPA to maintain the programme, noting that “a typical household can save about US$450 on energy costs each year” through Energy Star labelled products.
How Energy Star works
The Energy Star programme uses a straightforward, voluntary labelling approach.
Products, homes and commercial buildings that meet or exceed energy efficiency criteria set by the EPA are awarded the distinctive blue Energy Star label.
This provides consumers with reliable information when choosing appliances and energy systems.
The programme currently spans more than 75 product categories, from white goods and lighting to HVAC systems, electronics and full building certifications.
It has contributed to market transformation by driving innovation and accelerating the uptake of cleaner, more efficient technologies.
By promoting energy efficiency, the programme reduces air pollution, improves air quality and contributes to public health by lowering emissions from power generation.
“Congress directed the government to run the ENERGY STAR program,” says Steven.
“Until now, the EPA has implemented that statutory obligation, and it’s been an enormous success.
“This programme saves families and businesses more than US$40bn every year with a budget of less than US$40m. It’s an astonishingly good deal.”
A critical moment for climate and energy policy
Energy Star is more than just a label.
It is a powerful public-private partnership, encompassing organisations from across the economy, including nearly 40% of Fortune 500 companies.
With benefits that touch affordability, energy security, innovation and public health, advocates argue that eliminating the programme would set the US back on multiple policy fronts.
Steven comments: “Major industry associations have rightly rejected this notion that someone else could simply pick up this programme and run it as EPA has, with the decades of trust it has built with manufacturers, builders and consumers.
“Congress needs to step up now and ensure that the government keeps running this remarkably effective and popular programme."
Despite mounting criticism, the EPA has stated only that it "will review the letter and will respond through appropriate channels”.
With the climate crisis intensifying and economic pressures mounting, stakeholders across government, industry and civil society appear united in their defence of one of America’s most cost-effective energy efficiency programmes.
The future of Energy Star now hinges not just on bureaucratic restructuring but on the outcome of legal, legislative and public pressure.
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