Climate Progress Possible With Energy Efficiency Standards for Appliances -- Under Laws Congress Already Passed

President Obama's focus in his second inaugural address on the need to address climate change was welcome after many months of near silence on this critical issue. While tackling climate change will require significant efforts limiting emissions from power plants, automobiles, and other sources, the President has recognized in the past that improving energy efficiency in general, and setting stricter energy efficiency standards for appliances specifically, can have a major impact on reducing both U.S. greenhouse gas emissions and consumer energy costs. Indeed, according to one recent study: taking into account products sold from the inception of each national appliance standard through 2035, existing standards will net consumers and businesses more than $1.1 trillion in savings cumulatively. ... On an annual basis, products meeting existing standards reduced U.S. electricity use in 2010 by about 280 terawatt-hours (TWh), a 7% reduction. The electricity savings will grow to about 680 TWh in 2025 and 720 TWh in 2035, reducing U.S. electricity consumption by about 14% in each of those years. Until 2009, with the rise of the Tea Party, energy efficiency had been one of the few bipartisan issues surrounding energy policy, with both Republic and Democratic Congresses and Presidents recognizing that new standards benefit a range of interests, including business groups, consumers and the environment. Moreover, appliance manufacturers and interest groups often favor new standards, which can lead to economies of scale, cost savings, and more predictability for the future development of products. Because of Congressional actions mandating stricter efficiency standards for a range of products, current legislation does not stand as a major barrier to improving appliance efficiency standards. Instead, the problem more often lies within Department of Energy and reviewing agencies such as the Office of Management and Budget. The lengthy and expensive process of setting efficiency standards, and then OMB review of those standards, has consistently resulted in significant delays and less-than-optimal standards, despite Congressional mandates and deadlines. Indeed, a report published last week by the Appliance Standards Awareness Project and American Council for an Energy-Efficient Economy concludes that "[d]elays in updating energy efficiency standards for certain appliances and devices could cost consumers and businesses $3.7 billion in lost savings -- and lead to an extra 40 million metric tons of excess carbon dioxide emissions." The report found that "[d]uring the first two years of the Obama administration, DOE and OMB worked well to complete new standards on time. But over the past two years, OMB's reviews have become lengthy - as long as 16 months in one case - and DOE has fallen behind."