U.S. ENERGY SAVING $1 BLN

U.S. DOE - JULY 28, 2023 - WASHINGTON, D.C. — The U.S. Department of Energy (DOE) today announced three new energy efficiency actions that will save Americans more than $1 billion in utility bills every year. The Congressionally-mandated final standards for commercial water heaters and dedicated-purpose pool pump motors along with the proposed standards for residential boilers will each conserve energy and water while cutting harmful carbon pollution. DOE expects the final standards for commercial water heaters will save American businesses approximately $149 million per year on energy costs, while the final standards for dedicated-purpose pool pumps and proposed standards for residential boilers will save American consumers approximately $926 million per year on their utility bills. These actions represent DOE’s latest steps—together with the private-sector—to promote innovation and reduce costs for American families and businesses through appliance efficiency, as directed by Congress.

“Today’s announcement reinforces President Biden’s efforts to update and strengthen outdated energy efficiency standards that cut costs for working families and businesses while slashing greenhouse gas emissions,” said U.S. Secretary of Energy Jennifer M. Granholm. “This Administration remains laser-focused on promoting innovation that saves Americans money, and we’ll continue to work with our industry partners to improve consumers’ options and increase the reliability and performance of household appliances and critical commercial and industrial products.”

Commercial Water Heaters

The efficiency standards being adopted today for commercial water heaters, which have not been revised since 2003, will result in significant gains in energy efficiency and savings for American businesses. For commercial gas-fired storage, instantaneous, and hot water supply boilers, DOE is adopting a performance standard that will require condensing technology for new models starting in 2026. The energy savings over 30 years of shipments is 0.7 quadrillion British thermal units, which represents a savings of 5.6% relative to the energy use of products currently on the market. DOE estimates that the standards would result in cumulative emission reductions of 38 million metric tons of carbon dioxide—an amount roughly equivalent to the combined annual emissions of 4.8 million homes.

Dedicated-Purpose Pool Pump Motors

The final rule for dedicated-purpose pool pump motors would lower utility bills by $738 million annually and follows the lead of the efficiency standards already established by the state of California, extending savings to consumers nationwide. DOE is finalizing this rulemaking, in coordination with our industry partners and stakeholders, to help ensure savings are fully realized and that replacement motors are as efficient as new pool pump systems commercially available today. Once compliance is required in the next 2 to 4 years for different motor types, DOE expects the new rule to save consumers nearly $14 billion in utility bill savings over the ensuing 30 years of shipments and reduce carbon dioxide emissions by 31 million metric tons—an amount roughly equivalent to the combined annual emissions of 3.9 million homes. 

Consumer Boilers

DOE also released a proposal for consumer boilers that would reduce energy costs for American homes by $188 million annually. For gas-fired hot water boilers, the most common type, DOE is proposing a standard that essentially would require modern condensing technology to provide efficiency gains. If adopted within DOE’s proposed timeframe, the new rules will come into effect in 2029. DOE estimates the new rule will save consumers $3.1 billion in utility bills over 30 years of shipments while reducing carbon dioxide emissions by 39 million metric tons—an amount roughly equivalent to the combined annual emissions of 8.7 million passenger vehicles.  

Accelerating Innovation and Delivering Consumer Savings

As of today, DOE has issued proposed or final efficiency standards for 21 product categories so far this year—actions critical to carrying out Congressional direction for energy savings while increasing reliability and performance across household appliances and commercial and industrial equipment.  

Collectively, DOE’s past and planned energy efficiency actions under the Biden-Harris Administration will save Americans $570 billion and reduce greenhouse gas emissions by more than 2.4 billion metric tons cumulatively over 30 years, supporting the President’s ambitious efforts to tackle the climate crisis.

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