Chairman Lee Introduces Energy Efficiency Reform Act of 2026
WASHINGTON — Today, Senator Mike Lee (R-Utah), Chairman of the Senate Committee on Energy and Natural Resources, introduced the Energy Efficiency Reform Act of 2026, legislation to reform the Department of Energy’s Appliance Standards Program.
DOE sets energy conservation standards for roughly 60 household and commercial products under the Energy Policy and Conservation Act (EPCA). However, Congress has not updated EPCA since 2007, when it expanded many of the efficiency requirements for covered products.
In recent years, manufacturers have raised concerns that DOE’s efficiency requirements have raised appliance costs and yielded minimal savings for consumers.
“Climate alarmism turned ordinary appliances into political targets,” said Chairman Lee. “Under the Biden administration, regulators repeatedly pursued standards that narrowed consumer choice without adequately accounting for performance or cost. The Energy Efficiency Reform Act changes that approach by requiring the government to prove that a new standard is achievable and economically justified before American families are required to live with the consequences.”
“AGA applauds Chairman Lee’s introduction of the Energy Efficiency Reform Act of 2026, critical legislation to return the Energy Policy and Conservation Act back to its original intent of ensuring fuel-neutral energy efficiency standards that improve energy efficiency without placing an undue cost burden on American families and small businesses,” said American Gas Association President and CEO Karen Harbert. “For too long, EPCA has been manipulated to force changes that raise costs and eliminate options for cooking, clothes drying and heating. This bill rolls back harmful standards that would eliminate access to natural gas furnaces and water heaters while ensuring future efficiency standards focus on saving energy and money rather than playing politics and eliminating consumer choice.”
The Energy Efficiency Reform Act of 2026 would:
Codify the Process Rule
The Process Rule governs how DOE conducts its analyses and determines whether new or revised standards are technologically feasible and economically justified.
The 2020 Process Rule made several changes intended to provide greater stability to manufacturers. The Biden administration rolled back many of those provisions in 2021 and 2024.
The bill requires DOE to finalize the proposed Process Rule released on July 7, 2026, within 270 days. If the Secretary fails to finalize the rule, the regulations would revert to the 2020 Process Rule.
Remove the six-year lookback requirement
Current law requires DOE to review product standards every six years to determine whether they should be updated.
In practice, DOE often takes so long to issue new standards that another review is required before manufacturers can implement them. DOE also regularly misses the statutory deadline and is then subjected to litigation.
The bill removes the six-year review requirement, while maintaining the ability of the public and industry to petition DOE for a new or amended standard. However, it raises the evidentiary standard for those petitions to ensure there is sufficient evidence that a standard should be increased or lowered.
Clarify the criteria for creating a product class
DOE regulates covered products through product classes. These classes can affect consumer choice by eliminating features or prioritizing efficiency over performance.
The bill adds requirements and considerations DOE must meet before creating a new product class.
Strengthen federal preemption
EPCA preempts state laws that set standards for covered products that are inconsistent with federal standards. However, some states have passed laws banning covered products based on their fuel source or imposing state standards where federal standards have been repealed.
The bill clarifies that states may not ban covered products based on their fuel source, emissions requirements, or impose their own standards in the absence of a current federal standard. In those cases, the previously issued federal standard would remain in effect.
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