Policy Context
Appliance efficiency standards provide a minimum requirement for energy
efficiency at the point of manufacture (or import). These standards seek to
overcome market failuresincluding price distortions and transaction coststhat have historically given rise to a gap between observed and attainable product efficiencies. In this way, appliance standards complement information programs, utility DSM and other incentive programs, and research on new technologies in improving energy and economic efficiencies.
The process of developing standards has evolved since the 1970s, with increasing participation by manufacturers and other interested parties in the early stages of the analysis of standards updates. This extensive participation promotes a standards process grounded in the best information, including proprietary data. Continued discussion between manufacturers and environmentalists, supported by objective analysis, reduces disagreements and helps resolve or bound uncertainties in the data.
The policy process has been especially inclusive for refrigeratorsthe product for which standards have been most successful. California set the first standards for refrigerators in the late 1970s. These standards were superseded, however, when national efficiency requirements were set in 1987 affecting refrigerators made in 1990. An updated standard, which became effective in 1993, further improved the efficiency of new refrigerators by 15%. A recent consensus agreement, if enacted into law, will improve refrigerator efficiency by another 25% for 1998 new units. This most recent consensus standard was the result of two years of active negotiation among industry representatives at the Association of Home Appliance Manufacturers, environmental advocates at the Natural Resources Defense Council, efficiency analysts at the American Council for an Energy Efficient Economy, and utility and regulatory representatives from the New York State Energy Office, the California Energy Commission, Pacific Gas and Electric, and Southern California Edison.
In energy terms, an average new auto-defrost refrigerator with top mount freezer in 1972 used about 2000 kWh/yr. A new unit in 1990 used about 900 kWh/yr, and in 1993 about 690. In 1998, a new unit will consume less than 500 kWh/yr.
Consumer Savings
For American consumers, energy-efficiency standards translate into dollar
savings every time utility bills come due. Looking at refrigerators alone, the
average consumer can expect to save about $140 over the 19-year life of a top-
mount auto-defrost refrigerator meeting existing standards versus one only
meeting initial federal standards (savings in 1993$ discounted at 7% real).
Purchasers of models meeting the 1998 consensus standard can expect further
savings. Moreover, market data indicate that refrigerator prices have not
increased, and that consumer choice has not been restricted as a result of
standards.
Adding savings from other appliances meeting federal efficiency requirements only increases the level of consumer gain. Table 1 gives a snapshot of annual energy consumption and cost savings for a list of typical home appliances. Values in the middle column are for appliance models meeting standards set in the National Appliance Energy Conservation Act of 1987 (NAECA).
1990 stock average | 1994 new unit | |
Appliance | annual energy use (kWh) | annual energy use (kWh) |
Refrigerator-freezer | 1220 | 670 |
Freezer | 1010 | 500 |
Clothes washer (1) | 890 | 670 |
Clothes dryer (electric) | 930 | 830 |
Dishwasher | 620 | 500 |
Room air conditioner | 970 | 830 |
Gas water heater | 300 therms | 270 therms |
Gas furnace | 610 therms | 530 therms |
Total Annual | 5640 kWh | 4000 kWh |
Energy Use: | 910 therms | 800 therms |
Total Annual Costs: | $1,090 | $880 |
($0.082/kWh & $0.69/therm) |
--Jim McMahon and Steve Pickle
Jim McMahon and Steve Pickle
Energy Conservation Policy Group
Energy Analysis Program
(510) 486-6049; (510) 486-6996 fax