HWG LLP Energy Advisory
By: Sean A. Lev, John A. Hodges, and Jason E. Neal
On his first day in office, President Trump issued a series of Executive Orders (EOs)1 that are likely to represent a significant shift in federal policy on appliance and industrial equipment energy efficiency. This advisory highlights new EOs bearing on appliance and equipment efficiency. Industry should consider how best to engage with the Department of Energy (DOE) on these issues.
Freeze Order. As expected, President Trump issued an EO, “Regulatory Freeze Pending Review2 (Freeze Order), temporarily freezing activity on administrative rules. This affects numerous DOE efficiency rules in the pipeline3 pursuant to the Energy Policy and Conservation Act (EPCA).4 President Biden had similarly frozen a number of efficiency-related actions of the first Trump Administration.5
The Freeze Order directs each agency not to propose or issue any rule, including by sending a rule to the Office of the Federal Register, until the new Trump-appointed agency head reviews and approves the rule. (Chris Wright was confirmed as Secretary of Energy on February 3, 2025.) This directive is subject to exceptions: The Office of Management and Budget (OMB) may exempt any rule that it deems necessary to address emergency situations or other urgent circumstances, including rules subject to statutory or judicial deadlines that require prompt action. The Freeze Order defines the term “rule” to include not only actions traditionally deemed as rules, but also notices of inquiry; advance notices of proposed rulemaking; notices of proposed rulemaking; and agency statements of general applicability and future effect that set forth a policy on a statutory, regulatory, or technical issue or an interpretation of a statutory or regulatory issue. Accordingly, there is likely to be some delay in DOE action on pending rulemakings.
The Freeze Order also directs agencies to withdraw any rules that have been sent to the Office of the Federal Register but not yet published in the Federal Register, so that they can be reviewed and approved as discussed above. Indeed, DOE has already done this in relation to the rulemaking for expanded scope electric motors (ESEM). DOE under the Biden Administration had sent a final rule for ESEM to the Federal Register for publication, scheduled for January 22. After the change in Administration, DOE withdrew the rule from submission to the Federal Register.6
The Freeze Order further directs agencies to consider postponing for sixty days the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise. This agency review may include opening a public comment period, and an agency may extend the sixty-day period. It bears note that EPCA contains a so-called anti-backsliding provision that prohibits DOE from prescribing “any amended standard which increases the maximum allowable energy use, or, in the case of showerheads, faucets, water closets, or urinals, water use, or decreases the minimum required energy efficiency, of a covered product.”7
Pursuant to the EO, DOE has issued orders delaying the effective dates of recently published final rules amending the test procedures for general service lamps,8 central air conditioners and heat pumps,9 and residential and commercial clothes washers and consumer clothes dryers.10 The effective dates of the final rules are being delayed until March 21, 2025. DOE also is seeking comment on any further delays of the effective dates of these rules, including the impacts of such delays, as well as comment on the legal, factual, or policy issues raised by the rules. Written comments and information will be accepted on or before March 7, 2025.
Consumer Choice for Appliances. President Trump’s EO, “Unleashing American Energy,”11 sets forth numerous energy-related policies. They include the directive “to safeguard the American people’s freedom to choose from a variety of goods and appliances, including but not limited to lightbulbs, dishwashers, washing machines, gas stoves, water heaters, toilets, and shower heads, and to promote market competition and innovation within the manufacturing and appliance industries.” In furtherance of this policy, the EO directs that agencies review all existing agency actions to identify those that are otherwise inconsistent with the policy regarding “restrictions on consumer choice of vehicles and appliances.”
Within thirty days of the EO’s issuance on January 20, 2025, agencies are, in consultation with OMB and the National Economic Council, to develop and begin implementing action plans to suspend, revise, or rescind all agency actions identified as unduly burdensome as expeditiously as possible and as consistent with applicable law. The agency review process will undoubtedly involve scrutiny of DOE appliance efficiency rules. The new EO also revokes several Biden energy-related actions, including ones that had revoked Trump actions.12
Price Relief on Appliances. The EO, “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis,”13 asserts that Biden policies inflicted an historic inflation crisis on the American people. The EO orders agencies to deliver emergency price relief, consistent with applicable law, including, among many other provisions, “eliminat[ing] counterproductive requirements that raise the costs of home appliances.” The EO requires regular reporting to President Trump on implementation of the EO. It is unclear at this point how DOE will respond to this EO.
Process Rule. One of the most significant areas of difference on energy efficiency between the first Trump Administration and the Biden Administration was the DOE rule on the process for adopting efficiency standards and test procedures. 10 C.F.R. Part 430, Subpart C, App. A (Process Rule). The new Trump EOs14 will likely result in further rulemaking on the Process Rule.
In 2020, the Trump-era DOE twice revised the Process Rule, which had been in place since 1996. The Biden-era DOE rejected many of the Trump-era changes to the Process Rule. The back-and-forth between the Administrations included such matters as whether the Process Rule should be binding on DOE or discretionary; determination of what constitutes significant energy savings of standards; criteria to be taken into account by DOE in determining economic justification for standards; and the special regulatory scheme for DOE rulemakings on certain covered equipment addressed by ASHRAE Standard 90.1, Energy Standard for Buildings Except Low-Rise Residential Buildings.
The new Trump EOs revoke the Biden-era EO 13990, which had led to Biden DOE revisions to the Process Rule. As a result, the Process Rule will likely be subject to further proposed changes to bring the Rule into conformity with Trump policies. Changes to the Process Rule could have a broad effect on stakeholders, as DOE currently has efficiency rules for more than sixty categories of products.
Withdrawal from Paris Agreement. The EO, “Putting America First in International Environmental Agreements,”15 asserts that, in recent years, the United States has “purported to join international agreements and initiatives that do not reflect our country’s values or our contributions to the pursuit of economic and environmental objectives.” First on the list of actions under the EO is that the U.S. Ambassador to the United Nations must immediately submit formal written notification of the United States’ withdrawal from the Paris Agreement under the United Nations Framework Convention on Climate Change. The intent of the Paris Agreement is to combat climate change and adapt to its effects, including through countries submitting climate action plans. The U.S. Ambassador must also immediately submit written formal notification of the United States’ withdrawal from any agreement, pact, accord, or similar commitment made under the Convention. The EO also requires ceasing or revoking any purported financial commitment made by the Convention.
This withdrawal has significant implications for energy efficiency. For example, at the 2023 United Nations Climate Change Conference (COP28) in Dubai a consensus agreement called on the Parties to the Paris Agreement to contribute to “doubling the global average annual rate of energy efficiency improvements by 2030.”16
Conclusion. The new Trump EOs reflect a significant shift in policy regarding energy efficiency of appliances and industrial equipment. It is important for industry to stay abreast of developments and to weigh in on regulatory activity that will affect their interests.
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For more information on HWG LLP’s energy practice, please contact Sean A. Lev, John A. Hodges, or Jason E. Neal. Sean Lev has served as Acting General Counsel and Deputy General Counsel for Environment and Nuclear Programs at DOE.
Abigail T. Phillips, a Legal Analyst at HWG LLP, contributed to the preparation of this advisory under the supervision of John Hodges.
This advisory is not intended to convey legal advice. It is circulated publicly as a convenience and does not reflect or create an attorney-client relationship.
1 See Presidential Actions, The White House, https://www.whitehouse.gov/presidential-actions/ (Feb. 4, 2025).
2 Regulatory Freeze Pending Review, The White House (Jan. 20, 2025), https://www.whitehouse.gov/presidential-actions/2025/01/regulatory-freeze-pending-review/.
3 Agency Rule List – Fall 2024: Department of Energy, Office of Information and Regulatory Affairs, Office of Management and Budget, https://tinyurl.com/DOERuleList (last visited Jan. 29, 2025). DOE energy efficiency rulemakings that are currently in the final rule stage and will be affected by the regulation freeze include: Energy Conservation Standards for External Power Supplies, Energy Conservation Standards for Consumer Water Heaters, Energy Conservation Standards for Automatic Commercial Ice Makers, Energy Conservation Standards for Dehumidifiers, Energy Conservation Standards for Refrigerated Bottled or Canned Beverage Vending Machines, Energy Conservation Standards for Single Package Vertical Air Conditioners and Heat Pumps, Energy Conservation Standards for Ceiling Fans, Energy Conservation Standards for Small Electric Motors, Energy Conservation Program: Energy Conservation Standards for Metal Halide Lamp Fixtures, Energy Conservation Standards for Expanded Scope Electric Motors, Energy Conservation Program: Energy Conservation Standards for Consumer Water Heaters, Test Procedures for Dedicated-Purpose Pool Pumps, Energy Conservation Program: Energy Conservation Standards for Manufactured Housing and Enforcement Procedures, and Adjudication and Civil Penalty Procedures Under the EPCA.
4 42 U.S.C. § 6291 et seq.
5 Executive Order 13990 of January 20, 2021, Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis, 86 Fed. Reg. 7037 (Jan. 25, 2021).
6 See This Document Was Withdrawn, Federal Register, https://public-inspection.federalregister.gov/2025-00768.pdf (last visited Feb. 5, 2025).
7 42 U.S.C. § 6295(o)(1).
8 DOE, Office of Energy Efficiency and Renewable Energy, Test Procedure for General Service Lamps, Final Rule & Delay of Effective Date, 90 Fed. Reg. 9001 (Feb. 5, 2025).
9 DOE, Office of Energy Efficiency and Renewable Energy, Test Procedures for Central Air Conditioners and Heat Pumps, Final Rule & Delay of Effective Date, 90 Fed Reg. 9001 (Feb. 5, 2025).
10 DOE, Office of Energy Efficiency and Renewable Energy, Test Procedures for Residential and Commercial Clothes Washers and Consumer Clothes Dryers, Final Rule & Delay of Effective Date, 90 Fed. Reg. 9002 (Feb. 5, 2025).
11 Unleashing American Energy, The White House (Jan. 20, 2025), https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/ (“Unleashing American Energy”).
12 These include, e.g., EO 13990 (Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis); EO 13992 (Revocation of Certain Executive Orders Concerning Federal Regulation); EO 14008 (Tackling the Climate Crisis at Home and Abroad); EO 14007 (President’s Council of Advisors on Science and Technology); EO 14027 (Establishment of the Climate Change Support Office); EO 14030 (Climate-Related Financial Risk); EO 14037 (Strengthening American Leadership in Clean Cars and Trucks); EO 14057 (Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability); EO 14082 (Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022); and EO 14096 (Revitalizing Our Nation’s Commitment to Environmental Justice for All).
13 Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis, The White House (Jan. 20, 2025), https://www.whitehouse.gov/presidential-actions/2025/01/delivering-emergency-price-relief-for-american-families-and-defeating-the-cost-of-living-crisis/.
14 Unleashing American Energy; Initial Rescissions of Harmful Executive Orders and Actions, The White House (Jan. 20, 2025), https://www.whitehouse.gov/presidential-actions/2025/01/initial-rescissions-of-harmful-executive-orders-and-actions/.
15 Putting America First in International Environmental Agreements, The White House (Jan. 20, 2025), https://www.whitehouse.gov/presidential-actions/2025/01/putting-america-first-in-international-environmental-agreements/.
16 Conference of the Parties serving as the meeting of the Parties to the Paris Agreement, Report of the Conference of the Parties Serving as the Meeting off the Parties to the Paris Agreement on its Fifth Session, Held in the United Arab Emirates from 30 November to 13 December 2023, United Nations Climate Change (Mar. 15, 2024), https://unfccc.int/documents/637073.