Lighting, Appliances, and Other Equipment

• Author: Kit Kennedy
• Pages: 217-255

Page 217

I. Introduction

e Deep Decarbonization Pathways Project (DDPP)

report emphasizes the major increase in building and

equipment eciency that will be needed to reduce U.S.

greenhouse gas (GHG) emissions by at least 80% from

1990 levels by 2050.1 is chapter will discuss legal and

Author’s Note: e author’s views expressed in this chapter are her

own and not necessarily those of the Natural Resources Defense

Council (NRDC). Ms. Kennedy would like to acknowledge

and thank the following for their excellent research and drafting

assistance in preparing this chapter: Pablo Rojas (NYU Law School,

class of 2018); Emily Hush (Columbia Law School, class of 2018);

Vartan Badalian (Lewis and Clark Law School, class of 2018); Ben

Civiletti (Vermont Law School, class of 2019); and Marlena Jewett

(Colgate University, class of 2020). Much appreciation and thanks

also to the following NRDC colleagues for their review of portions of

the chapter: Kaitlin Brazill; Pierre Delforge; Rachel Fakhry; Noah

Horowitz; and Jackie Wong. Andrew deLaski, executive director of

the Appliance Standards Awareness Project, also provided invaluable

comments as an external reviewer. All errors are the author’s own.

1. J H. W  ., P  D D  

U S, U.S. 2050 R, V 1: T R xiv

(Deep Decarbonization Pathways Project & Energy and Environmental

Economics, Inc., 2015), available at http://usddpp.org/downloads/2014-

technical-report.pdf [hereinafter DDPP T R]. A 2017 Natural

Resources Defense Council (NRDC) report, America’s Clean Energy Frontier:

policy pathways at the federal, state, and loca l levels to

ensure that the energy eciency of residential, commer-

cial, and industrial products, i ncluding lighting, consu mer

electronics, and computer servers, continues to improve at

the scale necessary to meet this “80% by 2050” goal.

e DDPP policy report observes that in a decarbon-

ized energy system, investment in clean technologies such

as high-eciency appliances and equipment will need to

increase sixfold in residentia l buildings and triple in com-

mercial buildings.2 e DDPP policy report also notes

that some of the fundamental paradigms behind energy-

eciency standards and other energy-e ciency pol icies

will need to adjust in order to help drive deep decarbon-

e Pathway to a Safer Climate Future (Vignesh Gowrishankar & Amanda

Levin), available at https://www.nrdc.org/resources/americas-clean-energy-

frontier-pathway-safer-climate-future, nds even greater potential for energy

eciency. e NRDC report concludes that the United States can meet its

2050 climate goals based primarily on clean energy technologies, including

by implementing energy-eciency technologies and systemwide approaches

to reduce total U.S. energy demand by 40%.

2. J H. W  ., P  D D  

U S, U.S. 2050 R, V 2: P Itions of

D D   U S 24 (Deep Decarbonization

Pathways Project & Energy and Environmental Economics, Inc., 2015), avail-

able at http://usddpp.org/downloads/2015-report-on-policy-implications.

pdf. In residential buildings, investment in clean technologies will increase

from $35 billion annually today to $220 billion in 2050, and in commercial

buildings, the increase will be from $70 billion annually today to $210 billion

annually in 2050.

Chapter 9

Lighting, Appliances, and Other Equipment

by Kit Kennedy

Summary

e Deep Decarbonization Pathways Project reports call for major increases in building and equipment e-

ciency to reduce U.S. greenhouse gas emissions by at least 80 percent from 1990 levels by 2050. While the U.S.

Department of Energy eciency standards program is one of the most successful U.S. energy-eciency poli-

cies in driving energy savings, carbon reductions, and consumer savings, it will need to be made even stronger,

and an integrated suite of additional and more ambitious energy-eciency laws and regulations at the federal,

state, and local level will be needed to meet the deep decarbonization challenge. Additional action from private

actors, such as utilities and businesses, will also be necessary to drive energy-eciency investments. is chapter

discusses the various legal and policy pathways at the federal, state, and local levels to ensure that the energy

eciency of residential, commercial, and industrial products continues to improve at the scale and speed neces-

sary to meet this “80% by 2050” goal.

Page 218 Legal Pathways to Deep Decarbonization in the United States

ization. ese include such potential changes a s shifting

from a focus on reducing primary energy use to a focus on

reducing carbon emissions, and incentivizing fuel switch-

ing from fossil fuel-derived natura l gas to renewable gas

and electrication, as the elect ric grid is increasingly decar-

bonized. Building electrication, which is a key decarbon-

ization tool with signicant energy-eciency benets, is

discussed in Chapter 10 (New Buildings) and Chapter 11

(Existing Buildings).

Today, residential appliances, commercial appliances,

industrial equipment, and lighting products account for

a signicant percentage of U.S. energy use a nd carbon

emissions.3 e residential and commercial end-use sec-

tors accounted for 18.6% and 17.0%, respectively, of car-

bon dioxide (CO2) emissions from fossil fuel combustion

in 2 017.4 Both sectors rely chiey on electricity for meet-

ing energy demands, with 68% and 73%, respectively, of

their emissions attributable to electricity consumption for

lighting, heating, cooli ng, and operating appliances; the

remaining emissions were due mainly to natu ral gas and

petroleum c onsumption for heating a nd cooking.5 Carbon

emissions from the residential and commercial sectors have

decreased by 1% and increased by 10%, respectively, since

199 0. 6 is modest decrease i n carbon emissions from

the residential sector reect the combination of a strongly

declining energy intensity per household and an increa se in

the number of U.S. households and associated square foot-

age. Energy intensity per household has declined during

this period due in large part to increased energy eciency

of household products; structural shifts in the residential

sector also play a large part.7

In both the residential and commercial sectors, growth

in electricity consumption has slowed over the past 15

years and is expected to slow even further. Residential

electricity sales grew just 0.8% per year from 2000-2017,

according to the U.S. Energy Information Administration

(EIA) of the U.S. Department of Energy (DOE).8 In its

2018 reference case, EI A predicts that residential sales will

grow at an even lower rate, just 0.4% per year through

3. Residential appliances comprise products used in the home such as refrigera-

tors, air conditioners, clothes washers, and dishwashers. Commercial products

comprise products used in businesses such as commercial air conditioning

systems and walk-in coolers and freezers. Industrial products comprise

products used in manufacturing such as motors and air compressors.

4. U.S. Egy Info. A., Monthly Energy Review, Environment, https://

www.eia.gov/totalenergy/data/monthly/ (last visited Aug. 2, 2018).

5. Id.

6. Id.

7. U.S. E I A, D  U.S. H

E C, 1980-2009 (2015), available at https://www.eia.

gov/analysis/studies/buildings/households/pdf/drivers_hhec.pdf. Note that

the U.S. Energy Information Administration (EIA) reference case includes

implementation of the Obama administration’s Clean Power Plan, which

establishes carbon pollution limits for power plants, and which the Trump

administration has now proposed to repeal.

8. U.S. E I. A, Electricity, Form EIA-861M (formerly EIA-826)

detailed data, https://www.eia.gov/electricity/data/eia861m/index.html (last

visited Aug. 2, 2018).

2050, noting that increases in residential eciency, par-

ticularly in lighting (as well a s increased deployment in

rooftop solar), will oset expected growth in the number

of U.S. households and increased elec tricity use for cool-

ing and ot her miscellaneou s uses.9 Commercial-sector

electricity sales also grew just 1.4% per year from 2000-

2017 and EIA predicts that the growth rate will decline to

0.5% annually through 2050 as energy-eciency improve-

ments in lighting and refrigeration, increased deployment

of on-site solar, and commercial combined heat and power

(CHP) systems partially oset electricity increases from

computers and m iscellaneou s uses.10 For the industrial sec-

tor, electricity sales decreased by 0.6% per year from 2000 -

2017, but EIA predicts that industrial electricity sa les will

increase by 0.8% per year from 2018-2050 due to expected

increases in industria l activity.11

e challenge addressed in this chapter is to identify

legal pathways to improve the eciency of residential,

commercial, and industrial appliances and equipment at

much faster rates than EI A assumes in order to achieve the

U.S. decarbonization goals set fort h in the DDPP.

e primary focus of this chapter is on mandatory

energy-eciency standards at the federal and state levels.

e DOE energy-eciency standards progra m, described

in Part II, is one of the most successful U.S. energy-e-

ciency policies in driving energy savings, carbon reduc-

tions, and consumer savings. Furt her strengthening federal

and state energy-eciency standa rds will play a critical role

in driving the needed eciency investments. Appliance,

product, and equipment eciency standards (often simply

referred to as “appliance standards” or “energy-eciency

standards”) require that specic products achieve a mini-

mum level of energy or water eciency. At the national

level, these standards are set either by the U.S. Congress

or DOE and are then periodically reviewed and updated

by DOE. e federal energy-eciency standards program

covers consumer, commercial, and industrial products, as

well as lighting in a ll three categories.12 Under federal law,

federal eciency standards generally preempt state stan-

9. U.S E I. A., A E O 2018 (Feb. 6, 2018),

https://www.eia.gov/outlooks/aeo/pdf/AEO2018.pdf; see also U.S. E

I. A., Today In Energy. U.S. Energy Demand Slows Except for Indus-

trial, Commercial Sectors (Apr. 29, 2015), http://www.eia.gov/todayinenergy/

detail.cfm?id=21012.

10. U.S. E I. A., A E O 2018, supra note

9.

11. Id.

12. Consumer products covered under the Energy Policy and Conservation

Act (EPCA) can be found at 42 U.S.C. §6295. e statute denes a “con-

sumer product” as a product that “in operation consumes, or is designed to

consume, energy or ... water; and ... which, to any signicant extent, is

distributed in commerce for personal use or consumption by individuals.” Id.

§6291(l). Commercial and industrial products covered by EPCA are found

at EPCA §§342 and 346 and 10 C.F.R. pt. 431. “Industrial equipment”

includes products that (1)in operation consume, or are designed to consume

energy; (2)are distributed in commerce for industrial or commercial use to

any signicant extent; and (3)are not covered under the consumer product

program. 42 U.S.C. §6311(2)(A)(i).

Lighting, Appliances, and Other Equipment Page 219

dards for federally regu lated products, with some signi-

cant exceptions, as discussed in Part II.F. But a number

of states currently maintain active programs mandating

minimum eciency levels for products not covered by

the federal program and these programs have also proven

successful. Establishing enforceable, minimum energy-

eciency standards for appliances and products helps to

overcome market barriers to energy eciency, including

consumer lack of information and “split incentives” such

as the diering economic incentives with re spect to energy

eciency for landlords, who tend to purchase appl iances

for their tenants and may prefer to buy the cheapest mod-

els, and renters, who typically pay t he energy bills and may

favor the most energy-ecient models.13

Importantly, policies requiring mandatory minimum

energy-eciency standards are most eective if they are

integrated with other legal approaches that help to incen-

tivize the development and accelerate the penetration of

increasingly ecient products. As a result, th is chapter also

discusses lega l pathways that encourage energy e ciency

in ways that complement energy-eciency standards,

including labeling programs such a s the federal ENERGY

STAR® program, which helps consumers identify products

that are more ecient than federal minimum standards;

nancial incentives such as t ax credits, which reward con-

sumers for purchasing more-ecient products and manu-

facturers for producing them; state utility energy-ecienc y

programs, which accelerate the uptake of ecient prod-

ucts by making it ea sier for utility customers to make their

homes and businesses more ecient; and voluntar y indus-

try approaches to incent industry and businesses to make

their operations and products more ecient for business

reasons. When well-integrated and synch ronized, this suite

of legal pathways, combined with mandatory energ y-e-

ciency standards, creates a virtuous cycle where the energy

eciency of appliances and products is ever improving, as

today’s voluntary premium energy-ecient products lead

to tomorrow’s mand atory st andards.

For greater context—and because these policies also

drive energy eciency in appliances a nd products, this

chapter also touches on legal pathways that limit carbon

pollution, establish overarching energy-eciency goals,

and reform the way that utilities are reg ulated. Carbon pric-

ing policies encourage energy eciency by putting a price

on carbon and requiring power plant owners to internaliz e

the pollution and public health impacts of fossil fuel gen-

eration. Some carbon policies also create revenue streams

for energy eciency. Overarching energy-eciency goals

require all segments of the economy to become more e-

13. J D, A   T M: A 

T  S 198-99 (Envtl. L. Inst. 2012).

cient and reforming utility regulation helps to align utility

business i nterests w ith energ y eciency.

In sum, to meet the scale of the deep decarbonization

challenge, an integrated su ite of additional and more ambi-

tious energy-eciency laws and regu lations will be needed

at the federal, state, and local levels to drive the necessary

energy-eciency investments, and additional action will

be needed from private actors such as utilities and busi-

nesses. Given the threatened rollbacks of climate a nd clean

energy laws, regulations, a nd standards under the current

presidential administration and Congress, greater and

more ambitious eort will be needed at the state, local,

and private levels to continue to make progress until the

federal government is ready to lead again.

e following is a road map to the areas covered by

this chapter:

Part II describes the regulatory framework for the fed-

eral energy-eciency standards program, which has been

one of the most successful drivers of eciency in residen-

tial appliances, commercial and industrial equipment,

and lighting. Part II summarizes the histor y of the federal

energy-eciency standards program; describes the DOE

energy-eciency standards rulemaking process; describes

the carbon benets and other co-benets of federal energ y-

eciency standards, with a specic discussion of the

benets of ener gy-eciency st andards for low-income c on-

sumers; and explains when and how state energy-eciency

standards are preempted by federal law.

Part III describes the roles of the federal, state, a nd

local governments and industry in improving the energy

eciency of appliances and products, with a focus a gain

on energy-e ciency st andard s and complement ary pol i-

cies, together with a set of recommendations for all lev-

els of government and industry on legal pathways to

drive energy-eciency improvements forward. Part III.A .

addresses energy-eciency lega l pathways at the federal

level, including overarching federal ca rbon and energy-

eciency pathways and legislative and adm inistrative legal

pathways for strengthening the federa l energy-eciency

standards program, as well as policies to accelerate turn-

over and penetration of energy-ecient appliances. Part

III.B. discusses energy-eciency legal pathways for states,

including overarching state carbon and energy-eciency

pathways, legal pathways to encourage utilities to invest

in energy eciency, and legal pathways for establishing or

strengthening state energy-eciency standards programs.

Part III.C. describes the importa nt role of cities in improv-

ing energy eciency and lega l pathways for cities to follow.

Part III.D. briey discusses legal pathways for industries,

businesses, and utilities to embrace energy eciency.

Part IV delves into the specic legal pat hways needed to

drive energy eciency in lighting, consumer electronics,