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Enact New Equipment Efficiency Standards and Strengthen Existing Standards
Federal appliance and equipment minimum-efficiency standards were signed into law by President Reagan in 1987 and expanded under President Bush in 1992. These standards were adopted because many market barriers (such as lack of awareness, rush purchases when an existing appliance breaks down, and purchases by builders and landlords) inhibit the purchase of efficient appliances in the unregulated market. Standards remove inefficient products from the market but still leave consumers with a full range of products and features to choose among. Appliance and equipment standards are clearly one of the federal government's most effective energy-saving programs. In 2000, federal appliance and equipment efficiency standards reduced consumer energy bills by approximately $9 billion, with energy bill savings far exceeding any increase in product cost. By 2020, standards already adopted will reduce peak electrical demand by an amount equal to the output of more than 400 power plants of 300 MW each. In order to provide additional cost-effective savings, we recommend that Congress and states adopt new efficiency standards for products now or soon to be covered by state efficiency standards, including distribution transformers, exit signs, traffic lights, and torchiere lighting fixtures. None of these standards have been controversial and all yield highly cost-effective energy savings. Congress and states should also adopt standards on commercial refrigeration equipment, commercial unit heaters, and standby power consumption for household appliances and electronic products (such as televisions, VCRs, cable boxes, and audio equipment). In addition, the U.S. Department of Energy (DOE), with adequate funding and encouragement from Congress, should complete equipment standard rulemakings in a timely manner. Finally, the Bush Administration should drop its efforts to roll-back the recently set SEER 13 efficiency standard for residential central air conditioners and heat pumps.
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