Court Repels Bush Attempt to Cut Air Conditioner Efficency

NEW YORK, New York, January 13, 2004 (ENS) - A federal appeals court ruled today that the U.S. Energy Department must enforce an air conditioner efficiency standard which represents a 10 percent increase over the standard currently in force.

The Bush administration discarded the higher standard for central home air conditioners, crafted in the Clinton administration, and imposed a less stringent one.

Today's ruling by the U.S. Court of Appeals for the Second Circuit is the result of a lawsuit filed by 10 states, the National Resources Defense Council, the Consumer Federation of America, other consumer groups, and state utility regulators.

The court ruled that the Energy Department lacks the authority to revoke such rules once they are published as final rules.

Air conditioning equipment (Photo credit Underwriters Laboratory)

The Court concluded that NAECA "unambiguously operates to constrain DOE's ability to amend efficiency standards once they are published as final rules in the Federal Register."

The court wrote, "It is inconceivable that Congress intended to allow such unfettered agency discretion to amend standards, given the appliance program's goal of steadily increasing the energy efficiency of covered products."

The coalition of states opposing the efficiency standards rollback was led by New York State Attorney General Eliot Spitzer, who said it is "unconscionable that the Bush administration sought to weaken a common sense measure to reduce electricity use."

"Energy conservation makes economic and environmental sense and should be the cornerstone of any sensible energy policy," said Spitzer.

But an Energy Department spokesperson said the Bush administration's approach would have increased air conditioner efficiency more than the standard upheld by the court today. "It is unfortunate and we are disappointed that our efforts to increase the efficiency standards of air conditioners by 20 percent was overturned by the Court today," the official said. "We are currently reviewing the Court's opinion."

Also involved in the lawsuit to preserve the stricter energy conservation regulations are the attorneys general of California, Connecticut, Maine, Massachusetts, Nevada, New Jersey, New Hampshire, Rhode Island, and Vermont.

Natural Defense Resources Council senior attorney Katherine Kennedy said, "New York Attorney General Eliot Spitzer deserves special thanks for his leadership on this issue, which was crucial to winning the day in court."

The Energy Policy and Conservation Act requires the Department of Energy to set efficiency standards for major appliances at the highest level that is technologically feasible and economically justified, Spitzer explained.

This energy efficient home in Pittsburgh, Pennsylvania, was constructed as part of the U.S. Department of Energy's Building America in 1999 during the Clinton administration. It features a highly efficient air conditioner. (Photo courtesy NREL)

In the last days of the Clinton administration, the Department of Energy released the efficiency standard, known as the seasonal energy efficiency ratio (SEER) 13 standard, that would result in at least a 30 percent energy savings on air conditioners.

The Bush administration, within the first few days of taking office, first delayed and then withdrew these standards and replaced them with the SEER 12 standard, requiring only a 20 percent improvement.

Given the vast numbers of air conditioners and the large amount of electricity they use, the Bush administration's weaker standard would require, according to the Energy Department's own numbers, at least 3.9 more gigawatts of energy over the next 20 years, the output of 10 power plants.

The court's decision will improve the reliability of the U.S. national electric grid. The higher efficency standards will result in less electricity being needed especially on hot summer days when air conditioners can account for about a third of all U.S. power use.

It is anticipated that the reduced energy demand that results from the court's decision will cut air pollution and global warming and will save New York consumers millions on their utility bills, Spitzer said.

This prototype home in Tucson, Arizona employs active and passive solar technologies, including a hidden, rooftop solar air conditioner. (Photo courtesy NREL)

And by 2030, the stricter standard could help utilities avoid the need to build 200 new power plants and save consumers $20 billion, according to the American Council for an Energy Efficient Economy (ACEEE).

"This important ruling will save consumers money, reduce the risk of blackouts, and cut emissions of air pollutants and greenhouse gases." said ACEEE Executive Director Steven Nadel.

In August 2003 the nation's largest power blackout affected millions of people, and Nadel points out that it was driven in part by peak air conditioning loads on the power grid. A SEER 13 standard would reduce peak power demand limiting the risk of future blackouts.

The SEER 13 standard can also help address problems in the natural gas industry, said Nadel. With supplies tightly constrained, prices have risen to record levels. ACEEE recently completed a study of the impact energy efficiency can have on natural gas prices, showing that as little as a two percent reduction in demand can cut wholesale gas prices by 20 percent.

"The blackout and natural gas situations make strong air conditioner standards more important than ever." said Nadel.

Alliance to Save Energy President Kateri Callahan also hailed the ruling, saying, "Today's federal appeals court decision upholding a higher minimum air conditioner energy efficiency standard is a great victory for consumers, the environment, and national security."