Americans staring at $43 billion in higher utility bills as US government plans to rollback several energy policies in "largest deregulatory effort in history"

The Trump administration’s push to dismantle 12 energy efficiency standards may face significant legal hurdles due to the Energy Policy and Conservation Act’s (EPCA) anti-backsliding provision, which prohibits weakening established efficiency rules. Environmental and consumer advocacy groups are expected to challenge the rollbacks in court, arguing that the Department of Energy’s (DOE) actions violate federal law. According to a report in The Verge, the DOE’s proposals, part of what it calls its “largest deregulatory effort in history,” have already sparked controversy, with critics warning of long-term economic and environmental consequences.

On May 1, 2025, President Donald Trump signed a presidential memorandum instructing the DOE to halt enforcement of several efficiency standards targeted for revision or elimination. This directive aligns with the administration’s broader deregulatory agenda but has drawn criticism for undermining decades of progress in energy conservation. The DOE has not yet responded to inquiries from The Verge regarding the rollback plans or their potential impacts.

Energy Star Program may be 'killed'
Adding to the controversy, reports surfaced in May 2025 that the Environmental Protection Agency (EPA) plans to terminate the Energy Star program. This voluntary certification, which identifies energy-efficient products, reportedly saves the average household in America approximately $450 annually on energy bills. The program’s potential closure, combined with the DOE’s rollbacks, signals a broader retreat from energy efficiency initiatives.

Consumer Costs vs Promised Savings
The Appliance Standards Awareness Project (ASAP) estimates that scrapping these 12 standards could cost households and businesses $43.2 billion in higher electricity bills over the lifetime of affected products. This figure starkly contrasts with the DOE’s claim that deregulation would save $11 billion by eliminating “burdensome and costly” rules. ASAP’s deputy director, Joanna Mauer told The Verge, “The department is looking at the savings these rollbacks would provide while completely ignoring the costs. It turns out that the costs would be nearly five times greater than the savings.”

How Efficiency Standards Work and Why They Matter
Energy efficiency standards set minimum performance requirements for appliances, ensuring they consume less energy while maintaining functionality. These rules cover a wide range of products, including microwave ovens, cooking tops, air purifiers, dehumidifiers, battery chargers, and portable air conditioners. For example, the 2020 efficiency standard for portable air conditioners was projected to cost consumers $1 billion upfront due to higher purchase prices but save $4.1 billion in energy bills over 30 years, yielding a net savings of $3.1 billion. ASAP’s analysis, reportedly based on DOE’s own data, shows that the 12 targeted standards would collectively deliver $43.2 billion in net savings.

DOE’s Deregulatory Agenda Divides
In a recent announcement, Secretary of Energy Chris Wright defended the rollbacks, stating, “We are bringing back common sense — slashing regulations meant to appease Green New Deal fantasies, restrict consumer choice and increase costs for the American people.” The DOE argues that eliminating these standards reduces manufacturing costs and provides consumers with more affordable, less efficient options. However, ASAP contends that this approach ignores the long-term financial burden of higher energy consumption, particularly for low-income households that spend a larger share of their income on utility bills.