(optimistic), it does not take into account that an aggressive level of technological innovation and cost
reduction could fuel a significantly greater tightening of building codes and associated energy savings
Appliance and Equipment Efficiency Standards. Appliance and equipment standards require
minimum efficiencies to be met by all regulated products sold; they thereby eliminate the least efficient
products from the market. First introduced in California in the 1970s, the state's efficiency standards
were followed a decade later by federal standards implemented through the National Appliance Energy
Conservation Act (NAECA) in 1987. By the end of 2001, federal standards were in effect for more than a
dozen residential appliances, as well as for a number of commercial sector products.
Many studies have found federal standards to be highly cost effective the established appliance
standards in effect in 2000 cut U.S. electricity use in that year by 2.5 percent, primary energy consump
tion by 1.3 percent (1.2 quads), and U.S. carbon emissions from fossil fuel use by 1.7 percent (25
The cumulative cost for establishing and implementing appliance standards between 1987
and 2000 was $200 to $250 million. The cumulative net benefit to consumers and businesses over this
same period is estimated to be $17 billion (in 2001$).
The federal standards covering clothes washers, water heaters, central air conditioners and heat
pumps, and fluorescent lighting ballasts are set to be updated between 2004 and 2007. These four
updated standards, along with the established appliance standards, are expected to reduce primary ener
gy use by 3.3 quads in 2010 and by 4.2 quads in 2020. Carbon emission reductions are estimated to
be 61 MMTC and 75 MMTC, respectively. (Were this rate to continue through 2025, 75 MMTC would
represent a 9% reduction in the forecasted 848 MMTC of emissions from buildings in that year.) In
addition, consumers and businesses are projected to save billions of dollars in reduced utility costs, as
previous rounds of standards have accomplished.
Two recent studies suggest that upgrading residential
and commercial codes and extending federal standard to a list of products not currently covered could
save 1.07 to 1.4 quads in 2010 to 2030.
In combination with the 4.2 quads to be saved in 2020
from the four most recent standards, this results in a total estimated energy savings of 5.27 quads in
2020. Carbon emission reductions are estimated to be 88 MMTC.
Towards a Climate Friendly