DOE Proposes Significant Changes to Energy Conservation Standards Rulemaking Process

On July 7, 2026, the Department of Energy (DOE) published a notice of proposed rulemaking (NOPR) proposing substantial revisions to DOE’s “Process Rule,” which governs the process DOE uses to develop energy conservation standards and test procedures for consumer products and commercial/industrial equipment pursuant to the Energy Policy and Conservation Act (EPCA). If finalized, the proposal would significantly alter how DOE develops and evaluates new and amended energy conservation standards, with important implications for manufacturers, importers, and distributors of products subject to DOE’s energy efficiency regulations.

The proposal is explicitly framed as an effort to curb appliance and equipment efficiency mandates that DOE believes raises product costs and restricts consumer choice. As discussed below, the NOPR would restore many features of DOE’s 2020 Process Rule, reverse portions of later revisions, and add new procedural and substantive constraints that would make it more difficult for DOE to justify more stringent standards in future rulemakings.

Background

Under EPCA, DOE has the authority to establish and amend energy conservation standards and test procedures for certain consumer products and commercial equipment. The Process Rule, codified at 10 C.F.R. Part 430, subpart C, appendix A, was first adopted in 1996 to provide transparency regarding how DOE develops standards and test procedures.

The rule was significantly revised in 2020 to make key rulemaking procedures binding on DOE, establish thresholds for determining “significant energy savings,” expand stakeholder engagement, and require a comparative analysis when developing energy conservation standards. The Biden Administration later reversed or modified many of these provisions, restoring greater agency discretion and removing thresholds and procedural requirements.

The current proposal reflects the Trump Administration’s broader deregulatory agenda and is consistent with Executive Order 14154, “Unleashing American Energy,” which emphasizes market competition and regulatory restraint.

Key Proposed Changes

Binding process requirements for more stringent actions. One of the most important changes proposed by the NOPR is that the Process Rule would again become binding on the agency. However, unlike under the 2020 Process Rule, the current proposal introduces a bifurcated approach, requiring prescribed procedural steps only for any actions expected to increase the stringency or expand the scope of energy conservation standards. Deregulatory actions, and actions that otherwise would not be expected to increase stringency (e.g., determinations not to further regulate), would retain greater flexibility. In DOE’s view, more stringent actions warrant more procedural safeguards because they are more likely to increase manufacturer costs, require redesigns, affect product availability, and impose downstream burdens on consumers.
A new definition of “significant energy savings.” Although EPCA requires new or amended standards for many covered products to result in “significant” conservation of energy, the statute does not define that term. Under the current proposal, DOE would treat energy savings as “significant” only if a rule would result in either:
- at least a 10% reduction in full-fuel-cycle (FFC) energy use over 30 years, or
- at least 2 quads of FFC energy savings over 30 years.
Reinstatement of a comparative “walk-up” analysis. DOE would compare each more-stringent trial standard level both to the status quo and to the next less-stringent efficiency level, rather than focusing primarily on the most stringent feasible level. DOE intends this framework to place greater emphasis on balancing incremental energy savings against incremental costs, consumer impacts, and potential reductions in product utility or features.
New consumer economic thresholds. DOE also proposes presumptive thresholds under which a standard level may not be economically justified if it would result in the following:
- more than a 10% increase in installed cost,
- net costs for more than 20% of consumers, or
- a simple payback period exceeding 50% of average product life.
Enhanced emphasis on consumer choice, product utility and affordability. The proposal would revise the Process Rule’s objectives and analytical provisions to expressly prioritize:
- preservation of consumer choice,
- continued availability of product features, performance characteristics, sizes, capacities, and volumes,
- affordability,
- market competition and innovation, and
- elimination of requirements DOE views as counterproductive or cost-raising.
DOE also proposes to remove express references to environmental impacts from certain portions of the Process Rule and instead refer more generally to “other factors the Secretary considers relevant.”
Restoration of additional procedural requirements. The proposal would restore several procedural protections from the 2020 Process Rule, including early stakeholder engagement, preliminary rulemaking documents, longer comment periods, and a 180-day gap between final test procedures and standards proposals.

What Does This Mean for Regulated Entities?

If finalized, the proposal may change the product life cycle and lifespan of individual appliance lines for product manufacturers by making it more difficult for DOE to adopt further energy conservation standards and reducing the frequency of standards updates, particularly where projected energy savings are relatively small. Manufacturers and other regulated entities may benefit from the following:

more opportunities for early input,
stronger procedural protections,
greater ability to challenge standards based on cost, utility, and product availability,
more time to evaluate test procedure changes before standards proposals are issued, and
additional support for arguments grounded in consumer choice, affordability, and market impacts.

Regulated entities should review the proposal carefully and consider participating in the rulemaking process, as the changes could significantly influence the development of future energy efficiency regulations.

All comments are due no later than August 6, 2026.