If Energy Star shutters, it’s more work for consumers

If the Trump administration ends the Energy Star program that for decades has clearly marked home appliances that meet energy efficient standards, consumers would have to do more legwork of their own to research products or risk paying higher utility bills.

Under his proposed federal budget, President Donald Trump is asking that Congress eliminate the Environmental Protection Agency’s entire Atmospheric Protection Program, which houses the offices that run Energy Star. The EPA did not confirm to reporters it was ending the program — CNN was the first to report it was, based on unnamed sources — but said the reorganization “is delivering organizational improvements to the personnel structure that will directly benefit the American people and better advance the agency’s core mission, while Powering the Great American Comeback.”

A home that buys Energy Star products can save $450 a year on energy costs, the program says. While energy efficient products would remain on the market if the program ends, it would fall to consumers to find them since they would no longer feature the familiar label. And incentives for manufactures to meet the standards could dwindle with the program’s demise, some energy experts predict.

Consumers “may give up and buy products with less efficiency that will cost them more in energy expenses,” said Tom Carsner, political director for the Iowa City Area’s chapter of the Sierra Club.

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The IRS and local utilities rely on Energy Star’s standards for tax credits and rebates for purchasing efficient products could put “their future in doubt,” he said.

“Homeowners may be discouraged (from) buying heat pumps, solar panels or insulation without the standards that help them save money,” Carsner said. “It will cost consumers more and will further damage our environment.”

How the program works

Administered by the EPA, the Energy Star program works as a voluntary labeling program on appliances — with over 80,000 products earning the certification.

If an appliance meets efficiency standards set by the EPA, the manufacturer can choose to add an Energy Star logo. The designation means consumers and businesses can purchase the approved products to save energy.

Kerri Johannsen, energy program director with the Iowa Environmental Council, said the program has “filled a critical gap in consumer choice and information” since its inception in 1992 under the administration of then-President George H.W. Bush.

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“The program also provides tools and standards for businesses, schools and local governments that want to keep energy bills as affordable as possible,” she said. “This is critical with rising electricity rates in Iowa, where many parts of the state are in the 90th percentile or higher for the portion of income they pay for energy.”

According to an April 2022 report from Energy Star, Iowa has about 120 businesses and organizations participating in the program that helps them become more energy efficient. Additionally, nearly 50,000 homes and apartments in Iowa are Energy Star-approved — scoring 75 or higher on a scale of 1 to 100 that shows how their energy consumption compares with similar facilities across the nation.

The Central Iowa Power Cooperative — known as CIPCO — is one of Iowa’s participants in the Energy Star program. While ending the program would not directly affect the cooperative, it would its members.

“We are participants in the sense that we support our member cooperatives in being participants,” said Kerry Koonce, vice president of communications and corporate relations for CIPCO, based in Cedar Rapids, a generation and transmission electric cooperative owned by 13 rural electric cooperatives and associations. A member — for instance, a rural electric cooperative — “would be the one that would be offering a rebate to somebody, if it was Energy Star.”

Local impacts

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If the program were shuttered, Koonce said one of the biggest challenges for utilities and electric cooperatives would be educating customers.

“It'll take a re-education of people, of just things to look for so that you understand how to look at ratings and make sure they are energy efficient,” she said. “I think you would see more (education efforts) coming out, but some of that's going to come from the manufacturers, too, because they want to make sure they you buy their product.”

Alliant Energy spokesperson Morgan Hawk said the company “always encourages” customers to implement energy efficiency tips to reduce their energy usage and save on their bill.

Hawk said that a list of “do-it-yourself” cost savings tips can be found at alliantenergy.com/waystosave. He said that customers also are encouraged to monitor their energy usage and set up high-usage alerts through their Alliant accounts.

“In addition, Alliant Energy has been offering energy efficiency programs for customers for nearly 35 years,” Hawk said in an emailed statement.

He said customers can visit Alliant’s website and click on the “Ways to Save” tab at the top to explore a variety of options, including instant discounts, rebates and the Alliant Energy Marketplace with energy-efficient products.

Geoff Greenwood, spokesperson for MidAmerican Energy, said the company will “continue to closely follow developments relating to the timeline and scope of changes from the EPA to better understand any impact those changes could have on the energy efficiency programs that MidAmerican offers to customers.”

If the EPA follows through on shuttering the program, Jim Martin-Schramm, policy analyst in Winneshiek County with the Clean Energy Districts of Iowa, said low-income consumers would pay a price.

“In Iowa, approximately 25 percent of all ratepayers are low-income households getting by on incomes at or below 200 percent of the federal poverty level,” he said.

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On average, Energy Star appliances can save homeowners 20 to 50 percent on the monthly energy bill to operate that appliance, compared with standard appliance models, Martin-Schramm said.

He said Energy Star laundry machines typically use about 20 percent less energy and 30 percent less water than typical washers; Energy Star refrigerators are about 15 percent more efficient than the federal minimum standard.

“It is hard to understand why the Trump administration would want to eliminate the Energy Star program, given that it simply provides consumers with valuable information and does not limit their choices in the marketplace,” Martin-Schramm said.

Tim Slager, president and owner of Slager Appliance, said that about 85 percent of the appliances in his three storefronts — in Iowa City, Cedar Rapids and Dubuque — are Energy Star-certified.

He said that since so many appliance models are Energy Star approved, not too many customers ask anymore about appliance efficiency. But a decade ago, before energy efficient thinking was mainstream, customers inquired about it much more often.

“If Energy Star goes away, that push to make an ultra-efficient appliance might go away,” Slager said.

The Associated Press contributed to this report.

Olivia Cohen covers energy and environment for The Gazette and is a corps member with Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues.

Comments: olivia.cohen@thegazette.com