Policy Alert: Repeal of Biden-era Appliance Standards

Action: The Congressional Review Act provides that Congress may overturn a Federal regulation with a joint resolution approved by both Houses of Congress and signed by the President. Congress recently advanced a series of joint resolutions rolling back standards on some consumer and commercial appliances. The resolutions target rules approved under the Biden Administration on labeling and standards, walk-in coolers and freezers, water heaters, and commercial refrigerators and freezers. Congress has voted for the resolutions mostly along party lines.

Key Insights

• In February, Energy Secretary Chris Wright announced that the Department of Energy (DOE) would not enforce Biden-era efficiency standards for various appliance categories including: central air conditioners, clothes washers and dryers, general service lamps, commercial refrigeration equipment, and air compressors. In March, the DOE withdrew conservation standards on electric motors, ceiling fans, dehumidifiers and external power supplies, and postponed the implementation on rules for central air conditioners and heat pumps, walk-in coolers and freezers, and gas instantaneous water heaters.
• Similarly, reports suggest that the Environmental Protection Agency is likely to terminate efficiency programs, including the Energy Star program, later this year. While manufacturers may already have been moving toward previously set standards, it is unclear if these rollbacks will result in the production of new lower standard appliances or release of previous models.
• With the disapprovals, regulatory standard revert to those in place before the adoption of the newer rules. The standards now being repealed focused on increasing energy efficiency standards to help reach climate goals lowering energy consumption and in turn lower consumer prices. New regulations were also paired with enhanced enforcement measures, including strengthening the Department of Energy’s Appliance and Equipment Standards Program. Aggressive enforcement measures by the DOE during this period resulted in large penalties against companies for non-compliance.
• DOE is also reducing its enforcement capacity; it was reported that the Department of Government Efficiency (DOGE) canceled DOE’s primary contract responsible for analyzing appliance standards in late March. Products covered by DOE regulations are prevented from being sold or imported without compliance certification, which also includes reporting requirements from manufacturers and labelers.
• Global demand for US appliances has steadily increased over the past decade, maintaining a significant share of the global market. Concurrently, appliance imports have risen from leading competitors in Asia and Europe.