Key Takeaways
Energy Secretary Chris Wright has announced 47 deregulatory actions as part of his efforts to comply with President Trump’s “Zero-Based Regulation to Unleash American Energy,” which is designed to lower costs, increase consumer choice, and improve the quality of life for Americans.
The process covers household appliances such as stoves, ovens, washers, and other items. It includes streamlining processes for natural gas imports and exports, electricity transmission abroad, and improving management of the Strategic Petroleum Reserve.
Consumers have been confronted with increasingly expensive and complicated appliances, driven by federal regulations of questionable benefit, which have priced some consumers out of the market.
Manufacturers have also struggled with changing efficiency standards, with which some have been unable to comply.
The deregulatory effort will begin the process of putting consumers back in charge of their products rather than regulators in Washington, D.C.
DOE and Secretary Wright expect the effort to save taxpayers $11 billion and will take public comments as they undertake the department’s largest deregulatory effort in history.
The U.S. Department of Energy (DOE) announced the first step in the Energy Department’s largest deregulatory effort in history, proposing the elimination or reduction of 47 regulations that drive up costs and lower the quality of life for Americans. These actions will save Americans an estimated $11 billion and cut more than 125,000 words from the Code of Federal Regulations. DOE Secretary Chris Wright is complying with President Trump’s Executive Order, “Zero-Based Regulation to Unleash American Energy.” This initial step does not immediately remove the regulations but launches the first step of that process. The 47 deregulatory actions are posted on the DOE website and are being published in the Federal Register.
The department plans to cut a long list of efficiency regulations, including those pertaining to stoves, ovens, showerheads, clothes washers, dishwashers, and microwaves, which limit consumer choice. One rule change allows electronic submissions of applications for natural gas imports and exports, and another simplifies the permit process for transmitting electric energy abroad. Other changes target federal energy conservation programs by removing water and energy efficiency standards for faucets, commercial ice makers, microwave ovens, clothes washers, and other appliances. The actions will also remove products, including portable air conditioners, fans, and blowers, from coverage under the Energy Policy and Conservation Act. This law directs the DOE to set efficiency standards for certain consumer goods. The proposed Trump administration rules also would affect procedures for the Strategic Petroleum Reserve and rules for some renewable incentives, among other things.
Opponents indicate that an anti-backsliding clause in existing law blocks new standards from being weaker for a covered product than what is already on the books. But, according to the DOE, it has “reevaluated” its statutory authority and tentatively determined that rescinding a rule does not violate the backsliding clause, which applies to “amended standards.”
Examples of Biden’s Energy Efficiency Rules
In 2023, the Biden administration proposed 30 regulations affecting everything from refrigerators and freezers to gas stoves and furnaces, and the first-ever standards for fans and blowers. Biden’s DOE finalized energy efficiency standards for residential refrigerators and freezers, taking less efficient and less expensive models off the market. According to Biden’s DOE, the standards “follows the lead” of efficiency standards established by California — a state whose regulations and standards the Biden administration likes to imitate. Refrigerator standards are much like dishwashers and clothes washer standards in that there have been so many revised standards over the decades that they come at diminishing or even negative returns.
The Biden administration’s efficiency standard for dishwashers sold in the United States was designed to cut water use by more than one-third and cut energy use by 27%. Manufacturers would be forced to limit dishwashers to using 3.2 gallons of water per cycle, far below the previous federal limit of 5 gallons, and reduce their products’ energy consumption by nearly 30%. The result of the dishwasher standard, however, was higher upfront prices for the appliance, making it more difficult for lower-income Americans to afford them. Biden’s DOE indicated that, over time, homeowners would save on their utility bills as the higher efficiency standard for dishwashers would result in less energy use. Past dishwasher standards, however, have resulted in dirtier dishes, much longer cycle times, and higher upfront costs.
Another example is Biden’s efficiency standard for home water heaters that required 90%efficiency for tankless and 70%efficiency for tank gas-fired water heaters, as his administration continued to make it harder to use low-cost natural gas in residences. A major manufacturer of tankless water heaters indicated, when the efficiency standard was proposed, that it was impossible to meet. Increasing the efficiency standards for manufacturing water heaters raises their cost because they become more expensive to manufacture. The Biden administration insisted that the energy savings would compensate for the higher upfront costs. Energy-saving mandates, however, have historically led to more expensive and less effective appliances.
In its analyses, the Biden administration found positive returns to support the finalization of its standards, often due to hidden assumptions in its models. These resulted in higher-cost products for Americans that may not work as well. For example, new standards for dishwashers have led to cycles taking twice as long to finish. The standards are essentially authoritarian dictates for consumers and manufacturers.
Conclusion
The Trump Energy Department has announced a set of deregulatory actions that target 47 rules for revision or elimination, including appliance efficiency standards, Strategic Petroleum Reserve procedures, and diversity protections. The plan, expected to deliver $11 billion in savings to taxpayers, also helps to streamline energy trade by allowing electronic applications for natural gas imports and exports and simplifying permits for international electricity transmission. According to Secretary Chris Wright, “While it would normally take years for the Department of Energy to remove just a handful of regulations, the Trump Administration assembled a team working around the clock to reduce costs and deliver results for the American people in just over 110 days. Thanks to President Trump’s leadership, we are bringing back common sense — slashing regulations meant to appease Green New Deal fantasies, restrict consumer choice and increase costs for the American people. Promises made, promises kept.”
