A new energy-savings standard was established for refrigerators and freezers. The result is a 20 to 25 percent reduction in energy use associated with refrigerators and freezers. What does this mean for consumers? An estimated $215 and $270 on their annual utility bills compared to a refrigerator that just met the first state standards in 1978. The energy-saving targets were effective for manufacturers on Sept. 15, 2014.
How does DOE know what the maximum levels in the standard should be? All levels should be cost effective at the time.
Do these standards inhibit manufacturers and stagnate technology growth? Standards are technology neutral so manufacturers are free to innovate and find new ways to achieve higher levels of efficiency and at lower costs.
A look back at 2013 and looking forward to 2014
“At the macro level, Energy Information Administration data through September of 2013 indicate that both electricity consumption and transportation sector oil use are down relative to the same period in 2011 and 2012. Policies in areas like utility-run energy efficiency programs, equipment and vehicle standards, and investments in alternative transportation infrastructure seem to be having a noticeable effect on electricity and oil consumption.
Looking ahead….Final equipment standards are scheduled for a variety of products including electric motors, commercial refrigeration equipment, and residential furnace fans. DOE and HUD are working on several housing initiatives including new energy standards for manufactured homes, new energy efficiency requirements for federally-backed mortgages, and possibly modifications to mortgage underwriting criteria to include consideration of a home’s energy efficiency. Bipartisan energy efficiency legislation also might move in 2014—efforts are underway to bring an improved bipartisan bill to the Senate floor.” –Steven Nadel
Energy Efficiency Performance Standards: The Cornerstone of Consumer-Friendly Energy Policy
” Energy performance standards address many of the most important market barriers and imperfections. They tend to level the playing field, reduce risk and uncertainty by creating a market for energy saving technologies, lower technology costs by stimulating investment in and experience with new technologies, reduce the need for information and the effect of split incentives, all of which help to overcome the inertia of routine and habit.”