Q. What are energy efficiency standards?

A. Energy efficiency standards require that certain appliances, like air conditioners, televisions, lamps, and refrigerators, meet specific energy requirements. Typically, these standards apply to all new appliances sold in the state. They serve to help remove energy-guzzling products from the market, and replace them with more environmentally-friendly and cost-effective products. The standards are usually set at levels that allow the new products to pay for themselves relatively quickly, by costing consumers less on their energy bills.

Q. Why should states set standards?

A. The federal government holds the exclusive right to regulate the efficiency of certain products such as refrigerators, cars, and dishwashers, but states are free to establish efficiency standards for most other products. And, states have been, and will continue to be, at the forefront of the policy debate with respect to energy efficiency. While the federal government is often slow to adopt new standards, states are uniquely poised to ensure that American companies are providing consumers with the most cost-effective, innovative, and efficient products that are within our technological capabilities.

Furthermore, state efficiency standards reduce the demand for energy, thereby reducing the need to build new power plants. The end result is less air pollution, less acid rain, fewer respiratory illnesses, and lower utility bills for consumers. All of these benefits can save your state money, be it in health care reimbursement, environmental remediation, or lower electricity bills for state buildings. In times of budgetary shortfalls, these cost-savings can make a significant impact on a state’s fiscal health.

Q. Doesn’t increasing efficiency standards raise the price of consumer goods?

A. While it is true that efficiency standards have led to a modest increase in the price of regulated consumer goods, estimates indicate that the benefits (i.e., the cost-savings associated with lower energy bills) are more than 3 times the additional costs. These standards are set in a way that most appliances pay for themselves within a few years, as a result of the corresponding reductions in consumers’ energy bills.