- The Trump administration is proposing to eliminate or sharply scale back ENERGY STAR by defunding and dismantling the EPA offices that administer it.
- Supporters say the voluntary label and tools like Portfolio Manager deliver huge consumer and business savings and emissions cuts for a small federal budget.
- Manufacturers, utilities, real estate interests, and bipartisan senators oppose the move, warning of higher energy costs, lost trusted information, and disrupted benchmarking.
- The outcome hinges on FY 2026 funding and legal/operational questions over whether Congress blocks the cuts or functions shift to DOE, states, or private entities.
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The proposal to eliminate the ENERGY STAR program reflects a marked shift in federal environmental policy, with the Trump administration contending that the Atmospheric Protection Program and related regulations impose burdensome costs on businesses, restricting economic growth and “choice.” The program, established in 1992, operates on voluntary certification of efficiency standards for appliances, buildings, and equipment, overseen by the EPA (performance standards, labeling) and DOE (testing, technical criteria).
ENERGY STAR has had outsized impacts for its relatively modest cost. Its operating budget—about US$35-40 million per year—has given rise to tens of billions of dollars in annual savings for consumers and businesses, emissions reductions equivalent to roughly 5 percent of U.S. total GHG emissions in strong years, and ancillary public health benefits from reductions in air pollutants. Its recognition and consumer trust are high—90% of households recognize the label; in 2021, over 300 million products were sold under it.
Commercial real estate and industrial sectors particularly rely on tools like ENERGY STAR Portfolio Manager, which benchmarks performance of over 330,000 buildings (about 25 percent of U.S. commercial floorspace), underlies energy disclosure laws in many states and municipalities, and enables benchmarking for performance and retrofit planning. The residential side also delivers savings: typical households save about USD$400-450/year on utility bills by purchasing ENERGY STAR certified products.
Opposition spans environmental, industry, and legislative groups. Senators of both parties have called the program “bipartisan” and emphasized its statutory foundation under the Clean Air Act and appropriations consistent with Congressional support. Industry stakeholders warn that eliminating federal support risks privatizing benchmarks, leading to inconsistent standards, potential fees, or proprietary control over data—especially if Portfolio Manager is defunded or sold off.
Key risks and uncertainties include: whether Congress will oppose or block the budget cuts for FY 2026; whether legal constraints derived from Congress’s authority and past appropriations will constrain unilateral termination; whether DOE or another agency might absorb certain functions (testing, criteria setting), and whether private or state entities could fill gaps but at higher cost or less consistency. Strategic implications involve volatility in appliance markets, shifting product labeling norms, potential consumer confusion and higher energy costs, and disruption to real estate valuation tied to energy performance.
Supporting Notes
- ENERGY STAR has saved Americans more than US$500 billion in energy costs since 1992; reduced CO₂ equivalent greenhouse gas emissions by about 4 billion metric tons.
- Annual electricity savings in 2020 totaled 520 billion kWh, with energy cost savings of about US$42 billion that year.
- Operating budget for ENERGY STAR is roughly US$35-40 million/year; return on investment estimates exceed US$230-US$350 in energy cost savings per dollar spent.
- Commercial uses: over 330,000 buildings (≈ 25 % of U.S. commercial floorspace) rely on Portfolio Manager; among those commercial buildings, more than 8,800 earned ENERGY STAR certification last year, saving >US$2.2 billion and avoiding ~5.7 million metric tons of emissions.
- Industry and agency economy: about 2,500 builders/developers participate in the Residential New Construction program; 7 states, 48 local governments, and multiple Canadian provinces rely on ENERGY STAR benchmarking.
- Legislative action: Senators Hirono, Shaheen, Welch, among others, and a bipartisan coalition writing to EPA and DOE to oppose elimination, citing cost savings to a typical household of US$450 annually.
- The proposed FY 2026 EPA budget would eliminate all funding for the Atmospheric Protection Program, which administers ENERGY STAR; administration describes it as an overreach of government authority.