Department of Energy charts new course ahead

Just 20 days into its new leadership, the Department of Energy has begun reshaping the Biden administration’s previous efforts, signaling a clear shift in direction for the agency over the next four years.

Why it matters: The Trump administration’s energy agenda, which focuses on cutting red tape, prioritizing commonsense regulations, and consumer choice, has earned support from the HVAC industry.

Driving the news: Energy Secretary Chris Wright on February 14 announced that the department will postpone several Biden-era efficiency mandates, including those for central air conditioners and gas water heaters.

• “The people, not the government, should be choosing the home appliances and products they want at prices they can afford,” Wright said in a statement.

Zoom out: “These directives represent a significant departure from the restrictive regulatory environment of recent years, offering potential relief to contractors and consumers,” ACCA wrote following the President’s inauguration. 

• The previous DOE withdrew two proposed rules — a boiler and a fan and blower rule — prior to Trump taking office, citing the new administration’s aims.
• Building on the rollback, the current DOE will also consider industry input on potentially reversing another rule banning non-condensing gas water heaters, set to take effect in 2029.

The moves follow an executive order that President Trump signed on January 20, which required the Energy Department to halt spending under the Inflation Reduction Act, including the HVAC-focused Home Energy Rebates programs. 

• While the pause has created uncertainty for rebate programs already live in several states, the Department is conducting an internal review before determining the programs’ future with the administration — the pause is expected to last until March.
• Alongside the review, the agency is examining its ‘appliance standards program,’ which regulates HVAC products, with Wright noting, “Affordability and consumer choice will be our guiding light.”

The bottom line: Though timelines remain unclear for both the efficiency mandate postponements and the Home Energy Rebates’ future, the department’s regulatory direction for the next four years is clear.

• “The President has outlined a bold and ambitious agenda for restoring American energy dominance,” said Wright.
• “Our department is critical in accomplishing these goals by cutting red tape, prioritizing common-sense solutions, and fostering American ingenuity.”