ENERGY STAR Program

ENERGY STAR Program

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Updated May 10, 2018
ENERGY STAR Program
Overview
lead agency for ENERGY STAR and DOE as the lead
ENERGY STAR® is an internationally recognized
agency for the National Building Rating program.
voluntary labeling program for energy-efficient products,
Generally, EPA sets performance levels for ENERGY
homes, buildings, and manufacturing plants that is managed
STAR products and buildings, and DOE provides technical
jointly by the U.S. Environmental Protection Agency (EPA)
support, including the development of testing procedures
and the U.S. Department of Energy (DOE). The intended
and metrics for performance and program monitoring.
purposes of the program are to reduce energy consumption;
realize cost savings for citizens on their utility bills; and
Certain actions of note in ENERGY STAR history are
reduce emissions of pollutants—including greenhouse
highlighted in Table 1, including two Government
gases (GHGs)—from electric power production, and limit
Accountability Office (GAO) reports that examined various
associated health and environmental impacts through non-
aspects of the program’s voluntary approach.
regulatory means. According to EPA, in 2014 the program
saved consumers $34 billion on annual utility bills and
Table 1. Chronology of Selected Actions Related to
avoided 300 million metric tons of GHGs. Issues of
the ENERGY STAR Program
possible consideration for 115th Congress involve the
program’s appropriations, organization, and authorizations.
Timelin
e
Action
 Appropriations: The President’s FY2019 budget request
1992
EPA establishes ENERGY STAR under the authority
includes a proposal to convert the ENERGY STAR
of the Clean Air Act, Section 103(g)
program to a fee-funded program in FY2019 with an
upfront FY2019 appropriation of $46 million. The intent
1995
First international agreement for ENERGY STAR
of the fee collection would be to provide funding to
established with Japan regarding qualified office
replace “to the extent allowable” the upfront
products
appropriation to maintain the program.
1996
EPA and DOE issue MOC on Energy Efficient,
Environmentally Beneficial Buildings
 Organization: In the explanatory statements for EPA and 2001
United States and Canada agree to partner on
DOE of the FY2018 omnibus (P.L. 115-141, Division G
ENERGY STAR
and Division D, respectively), the agencies are directed
to review the 2009 Memorandum of Understanding
2001
United States and European Union (EU) agree to
(MOU), which shifted some functions related to home
partner on ENERGY STAR
appliance products from DOE to EPA, and to report to
2005
Energy Policy Act, Section 131 formally codifies the
Congress on whether the expected efficiencies for home
ENERGY STAR program within EPA and DOE
appliance products have been achieved.
2006
United States and EU enter into an agreement on

the Coordination of Energy-Efficient Labelling
Authorizations: Legislation proposed in the 115th
Programs for Office Equipment
Congress includes provisions to codify third-party
certification and direct EPA to revise the certification
2009
EPA and DOE issue MOU on Improving the Energy
requirements for certain program partners.
Efficiency of Products and Buildings
History and Development
2010
GAO-10-470, ENERGY STAR Program: Covert Testing
Shows the ENERGY STAR Program Certification Process
The ENERGY STAR program portfolio expanded over
is Vulnerable to Fraud and Abuse
time. EPA established ENERGY STAR in 1992 under the
authority of the Clean Air Act, Section 103(g). Initially,
2011
GAO-11-888, ENERGY STAR: Providing Opportunities
for Additional Review of EPA’s Decisions Could
EPA introduced the ENERGY STAR label for computers
Strengthen the Program
and monitors. Since 1992, EPA has expanded the number
of product categories to more than 70. In 1995, ENERGY
2013
Update of the EU and U.S. agreement
STAR was expanded to include labeling for buildings and
2018
The EU-U.S. ENERGY STAR agreement expired on
new homes. The program added manufacturing facilities in
February 20, 2018
2006. In 2007, manufactured homes were incorporated.
Source: Clean Air Act (P.L. 101-549); EPA 2012, ENERGY STAR:
DOE’s role with ENERGY STAR was established through
Celebrating 20 Years; Energy Policy Act (P.L. 109-58); GAO-10-470;
a Memorandum of Cooperation (MOC) with EPA in 1996.
GAO-11-888; MOU (2009); MOC (1996); Agreements between
Congress codified the program and this relationship in the
United States and the EU.
Energy Policy Act of 2005 (P.L. 109-58, §131). The most
Notes: MOC is Memorandum of Cooperation; MOU is
recent MOU between EPA and DOE identifies EPA as the
Memorandum of Understanding.
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ENERGY STAR Program
Program Design
International Partnerships
ENERGY STAR supports voluntary partnerships with
ENERGY STAR is recognized as an international standard
manufacturers, retailers, and organizations committed to
for energy-efficient products. EPA entered into agreements
improving energy efficiency. Partners are provided access
with foreign governments including Canada, the European
to seminars and networking events, recognition for
Union (EU), the European Free Trade Association, Japan,
achievement, and marketing materials. ENERGY STAR
Switzerland, and Taiwan to promote specific ENERGY
establishes voluntary certification requirements for
STAR product categories in their markets. These
products, buildings, and industrial facilities. Specifications
agreements are intended to unify voluntary energy efficient
are based upon energy efficiency, energy savings, product
labeling programs and facilitate partner participation
features, and performance as demanded by consumers. If
through a single set of energy efficiency qualifications.
the cost is more than conventional products, purchasers of
International programs coordinate with ENERGY STAR on
certified products are expected to recoup their investment
the labeling of office equipment and the creation of
within a reasonable period of time. Product energy
consistent targets for manufacturers. In the case of Canada,
consumption must also be measurable and verifiable with
Natural Resources Canada administers the ENERGY STAR
testing. Once ENERGY STAR products meet 50% market
program directly through an agreement with EPA and DOE.
share or higher in a category, the product specifications are
typically reviewed by EPA.
Federal Appropriations
According to GAO, combined appropriations for ENERGY
The ENERGY STAR label (Figure 1) is affixed to
STAR averaged $58 million annually between FY2007 and
products, commercial buildings, industrial plants, and new
FY2011 for both EPA and DOE. During that period, EPA
homes that use less energy but perform at least as well as
received approximately 87% of the total appropriations,
standard models. Through labeling, consumers can quickly
with an average of $50 million. More recently, ENERGY
be informed about available energy-efficient product
STAR funding has decreased. The FY2017 enacted level
options when making purchasing decisions.
for EPA was $42 million, according to the agency.
Figure 1. ENERGY STAR Promotional Mark
The President’s FY2018 budget request proposed to
eliminate the ENERGY STAR program and explore options
to transfer the program to non-governmental entities. The
FY2018 omnibus (see P.L. 115-141, Division G, Title II,
Explanatory Statement) maintains funding for ENERGY
STAR at the FY2017 level.
For FY2019, the Administration requests an upfront
appropriation of $46 million that would support the

program during rulemaking and development—pending
Source: U.S. Environmental Protection Agency, ENERGY STAR
authority for a proposed fee collection system. The proposal
program.
would allow EPA to collect fees from program participants
and deposit collections into the general fund.
Third-Party Certification
In 2010, GAO identified vulnerabilities within the self-
ENERGY STAR Legislation in the 115th
certification requirements of ENERGY STAR (GAO-10-
There are a number of issues related to ENERGY STAR for
470). In response to these findings, since 2011, ENERGY
consideration in the 115th Congress. Congress may consider
STAR has required products to be third-party certified and
the President’s request for authorization of a fee-based
qualification tested in an EPA-recognized laboratory.
program. Congress may also consider the modifying roles
and responsibilities between EPA and DOE in legislation.
The certified laboratories are required to conduct annual
ENERGY STAR bills in the 115th Congress include:
verification testing. A percentage of certified models in a
product category are tested. At least half of the models that
 S. 385, H.R. 1443, and S. 1460 would direct DOE to
undergo testing are to be randomly selected. The remainder
revise third-party certification requirements for program
may be selected according other factors, including prior
partners that have been in compliance for 18 months.
testing failures, high sales volumes, referrals from EPA or
other parties such as consumer groups, or requests to verify
 H.R. 515 would authorize the Department of Housing
the performance of a competitor’s product. The verification
and Urban Development (HUD) to provide assistance
testing program is manufacturer-funded.
for ENERGY STAR-qualified manufactured or modular
homes.
DOE implements a complementary testing program that
does not test randomly. Instead, DOE targets products for
 H.R. 1682 would clarify that no warranty is provided
testing based on factors including a history of failing to
through participation in the ENERGY STAR Program.
meet ENERGY STAR program requirements, new
technologies, and categories with known performance
Corrie E. Clark, Analyst in Energy Policy
issues. DOE’s verification testing is agency-funded.
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ENERGY STAR Program

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