Summary: The Department of Energy (DOE) is behind schedule in upgrading energy efficiency standards for household appliances, such as refrigerators, air conditioners, and heat pumps. This has happened because (1) the appliance program's budget has been cut and staffing has remained flat despite an increasing workload and (2) DOE officials generally review proposed standards sequentially, rather than using a faster concurrent review process. The upshot is that U.S. consumers, by continuing to buy less efficient appliances, will spend an estimated $1.7 billion more on energy costs through 2030 than they would have if DOE had upgraded the standards on time. The Federal Trade Commission's (FTC) labeling program is intended to inform consumers about appliance energy use and costs. Despite concerns voiced by consumers and manufacturers about the accuracy of existing appliance labels, which do not take into account changing energy prices, FTC has not reviewed the format and information content of labels, calling into question the program's effectiveness. To promote compliance with federal efficiency standards and accuracy in labels, DOE and FTC rely largely on voluntary tests done by industry associations. GAO did not determine the extent to which appliances met efficiency standards, but it did discover instances in which pool heaters and refrigerator-freezers fell short of the energy efficiency claims on their labels or were less efficient than the standards required. DOE and FTC do not systematically monitor and investigate compliance with the standards.
