EPA chief floats privatizing Energy Star following shutdown reports

Just two weeks after reports emerged that the Trump administration is planning to shut down the Energy Star program, EPA administrator Lee Zeldin this week signaled a potential change of direction, telling a group of lawmakers it could be privatized instead. 

The big picture: Energy Star has been jointly managed by the EPA and the Department of Energy since 2005, following an Act that President Bush signed into law. 

What’s happening: “This program is an example of one that can be run outside of the government,” Zeldin said at a hearing on Tuesday. “I’ve actually had multiple entities reach out to EPA over the course of the last few weeks, because they want to take over Energy Star.”

Zoom out: In March, a slew of HVAC manufacturers and associations, including AHRI, signed onto a letter sent to Zeldin, urging him to preserve the program. “Eliminating it will not serve the American people,” it states. 

• “In fact, because the Energy Star brand is highly recognizable to consumers, it is likely that, should the program be eliminated, it will be supplanted by initiatives that drive results counter to the goals of this administration such as decreased features, functionality, performance, or increased costs,” it adds. 

What to watch: The EPA hasn’t issued a formal proposal to shut down Energy Star, as initial reports were based on a recording obtained from an internal staff meeting. 

• While Zeldin didn’t clarify which entities have reached out, AHRI’s Francis Dietz this week told nonprofit news site NOTUS, “[I]f it were to cease as such, it is not beyond the realm of possibility that we would be interested in running it.” 
• The Department of Energy didn’t return a request for comment, and the EPA and AHRI declined to comment.