EPA Transfers 'Energy Star' Program to Energy Dept.

Earlier this month, the U.S. Environmental Protection Agency (EPA) ended nearly a year of uncertainty about the fate of its popular ENERGY STAR® program with a memorandum of agreement (MOA) that transfers its lead administration to the U.S. Dept. of Energy (DOE). But the debate is far from over.

On March 3rd, EPA and DOE formally signed the MOA, assigning lead responsibilities for the voluntary program which had been authorized by Section 131 of the Energy Policy Act of 2005. Section 131 had amended the Energy Policy and Conservation Act to establish within EPA a "voluntary program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through voluntary labeling of, or other forms of communication about, products and buildings that meet the highest energy conservation standards."

Now in effect for a period of 10 years, the new memorandum states:

"Henceforth, DOE will be the lead Federal agency for the ENERGY STAR® Program, in consultation with other Federal agencies as needed, including EPA and the Small Business Administration. DOE and EPA agree to initiate the orderly transition of primary management of ENERGY STAR® activities, including partnership agreements, trademark(s), as well as IT systems and databases, from EPA to DOE. These specific activities and timing will be detailed through a transition plan (hereafter referred to as the 2026 ENERGY STAR® Program Transition Plan) agreed to by the Agencies within 90 days ofthe approval ofthis MOA."

Moving forward, "the MOA will be the primary applicable agreement on ENERGY STAR® responsibilities upon its effective date and replaces coordination between the Agencies as outlined in the 1996 EPA and DOE Memorandum of Cooperation on Energy Efficient,
Environmentally Beneficial Buildings and the 2009 Memorandum of Understanding on
Improving the Energy Efficiency of Products and Buildings Between the U.S. Environmental Protection Agency and the U.S. Department of Energy."

Surprise Move Prompts Industry Concern

For its part, the U.S. Green Building Council (USGBC) expressed alarm over the unexpected announcement.

Posting on LinkedIn, Ben Evans, USGBC's federal legislative director said on March 5, "Just weeks after Congress approved full funding for ENERGY STAR at EPA, the U.S. Department of Energy (DOE) and EPA have released a Memorandum of Agreement to move the program to DOE. This raises many questions about how the program will be funded and staffed, and poses risks of disruption to a program that impacts broad swaths of the economy."

In a formal statement from USGBC, Evans added, "Given EPA's statutory responsibility and strong institutional knowledge in managing the program, a change of this magnitude calls for more transparency, oversight and public engagement. ENERGY STAR is an incredibly valuable public asset, and its value relies on continued public trust in the ENERGY STAR brand that can only be maintained with steady investment and leadership. ENERGY STAR partner organizations, the public, and Congress need to know more about how DOE would operate and fund the program moving forward."

Last spring, after new EPA Administrator Lee Zeldin had expressed doubt about the future of ENERGY STAR, USGBC was one of over 1,000 manufacturers, contractors, designers, organizations, and 16 municipalities who all signed a letter urging EPA to maintain full funding and staffing levels for the program. Signatories also included: 

• American Institute of Architects (AIA)
• A.O. Smith
• ACCO Engineered Systems
• American Council for an Energy-Efficient Economy (ACEEE)
• Association of Energy Engineers
• Baker Engineering
• Building Performance Association
• Caldwell Associates
• CannonDesign
• Clayco
• Cushman & Wakefield
• Ford Motor Co.
• Fujitsu General America
• International WELL Building Institute
• LEO A DALY LLC
• LG Electronics USA Inc.
• National Institute of Building Sciences
• NBBJ
• Portland Cement Association
• Samsung Electronics America
• Trane Technologies