Energy efficiency rollbacks could cost Americans $43 billion in higher utility bills

The Trump administration’s attempts to gut 12 energy efficiency standards could cost Americans billions of dollars in higher electricity bills. 

The Department of Energy (DOE) recently announced that it plans to rollback dozens of policies in what it called its “largest deregulatory effort in history.” While the DOE claims that getting rid of “burdensome and costly” rules would save $11 billion, that doesn’t take into account the costs Americans would bear if they have to use more energy-hungry appliances. 

Adding up those costs, the deregulation spree would ultimately lead to about $43 billion in higher electricity bills for households and businesses, according to an analysis by the Appliance Standards Awareness Project (ASAP) that was first shared with The Verge. 

“The department is looking at the savings these rollbacks would provide while completely ignoring the costs.”

“The department is looking at the savings these rollbacks would provide while completely ignoring the costs. It turns out that the costs would be nearly five times greater than the savings,” says Joanna Mauer, deputy director of ASAP.

ASAP compiled data on 12 of the efficiency standards DOE targeted, for which the department had previously published its own estimates for costs and savings it expected the rules to generate for consumers.

A common criticism of energy efficient appliances is that they often cost more to purchase than a less efficient alternative. Upon finalizing the efficiency standard for portable air conditioners in 2020, for example, the DOE expected the cost of buying more efficient technologies to add up to $1 billion for consumers who purchase those products during the 30 years following the rule going into effect. Taking those costs into account adds up to the roughly $11 billion in savings the DOE says it’s achieving by getting rid of those 12 standards. 

But that’s an incomplete picture, ASAP argues. When the DOE finalizes a standard, it typically also calculates the cumulative savings consumers would benefit from with a more efficient appliance. Those savings primarily come from lower energy bills (although the metric also considers other potential costs like repairs). The portable air conditioner standard, for instance, was expected to save consumers $4.1 billion over the lifetime of products purchased during the same 30 year time period. 

That leads to a net savings of $3.1 billion for consumers as a result of the efficiency standard for portable air conditioners. The net savings the DOE has previously estimated for the 12 rules on the chopping block now add up to $43.2 billion — which is what ASAP says is the more important number to consider. Those standards apply to an array of common products including microwave ovens, conventional cooking tops and ovens, air purifiers, dehumidifiers, external power supplies, battery chargers for phones and other devices, and more.

The DOE didn’t immediately respond to The Verge’s press inquiry. “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,” Secretary of Energy Chris Wright said in the agency’s announcement last week.

Its proposals are likely to face legal challenges because energy efficiency standards are subject to an anti-backsliding provision within the Energy Policy and Conservation Act (EPCA). Earlier this month, President Donald Trump signed a presidential memorandum directing the Secretary of Energy to stop enforcing a slate of efficiency rules the administration plans to rescind or revise. News also broke this month that the Environmental Protection Agency plans to shutter the Energy Star program that can save a typical household $450 a year on energy bills.