WASHINGTON — Sen. Mike Lee (R-Utah), chairman of the Senate Committee on Energy and Natural Resources, introduced the Energy Efficiency Reform Act of 2026 on Aug. 6. The legislation would change how the Department of Energy (DOE) develops and reviews energy conservation standards for household and commercial products.

DOE currently sets energy conservation standards for roughly 60 products under the Energy Policy and Conservation Act (EPCA). Congress last updated EPCA in 2007.

The proposed Energy Efficiency Reform Act of 2026 would revise several elements of the DOE Appliance Standards Program, including the analysis used to establish standards, the frequency of required reviews, product classifications, and federal preemption of state requirements.

The bill would require DOE to finalize its proposed Process Rule, released July 7, 2026, within 270 days. If the Secretary does not finalize the rule, regulations would revert to the 2020 Process Rule.

The Process Rule governs how DOE determines whether proposed or revised efficiency standards are technologically feasible and economically justified.

The legislation also would eliminate EPCA’s current six-year review requirement. DOE would retain the ability to consider petitions from the public and industry seeking new or amended standards, but those petitions would face a higher evidentiary standard.

Another provision would establish additional requirements for DOE when creating new product classes. Product classifications can affect which features and technologies are available under federal efficiency standards.

The bill also would strengthen federal preemption. It would clarify that states could not ban covered products based on fuel source or emissions requirements. States also could not impose their own standards when no current federal standard exists; in those cases, the previously issued federal standard would remain in effect.

The legislation also aligns with several priorities that the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) has raised in its campaign to modernize EPCA. AHRI has called for greater regulatory predictability, longer review cycles for efficiency standards, stronger federal preemption, and requirements that future standards be technologically feasible and economically justified. The association has argued that updating EPCA would help manufacturers and contractors plan for regulatory changes, reduce compliance challenges, and support investment in next-generation energy-efficient equipment.

Manufacturers have raised concerns in recent years that DOE efficiency requirements have increased appliance costs while providing limited consumer savings, according to the announcement.

“AGA applauds Chairman Lee’s introduction of the Energy Efficiency Reform Act of 2026, critical legislation to return the Energy Policy and Conservation Act back to its original intent of ensuring fuel-neutral energy efficiency standards that improve energy efficiency without placing an undue cost burden on American families and small businesses,” said American Gas Association President and CEO Karen Harbert. “For too long, EPCA has been manipulated to force changes that raise costs and eliminate options for cooking, clothes drying and heating. This bill rolls back harmful standards that would eliminate access to natural gas furnaces and water heaters while ensuring future efficiency standards focus on saving energy and money rather than playing politics and eliminating consumer choice.”

ACCA also supports the legislation as a step in the right direction for HVAC contractors and the customers they serve. 

“For too long, the Department of Energy’s standards process has too often overlooked real-world installation requirements, consumer costs, product reliability, and the practical challenges contractors face in the field," said Sean Robertson, ACCA vice president of government relations. "[The legislation] would give contractors, consumers, and manufacturers a more predictable and practical regulatory framework and help ensure energy policy does not unnecessarily raise costs or limit the equipment choices. Its requirements to account for venting, drainage, installation methods, fuel types, product characteristics, and replacement needs recognize the reality that equipment must function properly in the homes and buildings where it is installed and serviced. Requiring DOE to evaluate each incremental efficiency level against the next-lowest option, and account for equipment, installation, maintenance, and consumer costs, will lead to more honest and workable standards."

The legislation now moves forward as a proposed change to the federal framework governing energy efficiency standards for covered appliances and equipment.