Energy efficiency policy is undergoing a broader shift as federal and state policymakers reconsider appliance standards, product choice and the division of regulatory authority between the federal government and the states. Recent federal legislation has sought to revise or reverse Department of Energy (DOE) efficiency requirements, while states are taking different approaches to preserving federal standards or limiting restrictions on certain appliances.
The result is an increasingly complex policy landscape for manufacturers, distributors, contractors, and other regulated entities that operate across multiple jurisdictions.
Federal Lawmakers Revisit Efficiency Standards
The U.S. Congress has already taken several steps to reconsider federal appliance and equipment requirements. In May 2025, Congress enacted resolutions overturning DOE efficiency rules for consumer gas-fired instantaneous water heaters, walk-in coolers and freezers, commercial refrigeration equipment, and certain appliance certification requirements.
Additional legislation has continued that trend:
- Home Appliance Protection and Affordability Act: HR 4626, which passed the House in February 2026, would revise how the DOE establishes or updates energy conservation standards, including additional considerations related to costs and product availability. It would also prohibit new or revised efficiency standards for distribution transformers.
- LIT Act: HR 3341 and 1568, introduced in May 2026, would remove general service lamps from the DOE’s appliance standards program and repeal specified federal lighting efficiency requirements.
- Energy Efficiency Reform Act: Introduced August 6, 5338 would make broader changes to the Energy Policy and Conservation Act. Among other provisions, the bill would revise DOE rulemaking procedures, establish a 10 percent threshold for “significant energy savings,” void certain furnace and water heater standards, and expand federal preemption of state and local requirements.
States Take Different Approaches
States are responding to changing federal policy in different ways:
- New Jersey AB 163 and companion SB 1339, both introduced in January 2026, would prohibit state agencies and local governments from banning the installation or use of fossil fuel-powered kitchen appliances, including natural gas stoves and ovens.
- New Jersey AB 4614 and companion SB 1929, the proposed Affordable Home Energy Protection Act, introduced in March and January 2026, respectively, would more broadly restrict state and local requirements that prohibit or limit certain natural gas, propane, or fuel oil appliances and heating systems.
- Pennsylvania HB 515, introduced in February 2026, would restrict state agencies and municipalities from prohibiting the sale, installation, or use of certain appliances based on their energy source.
- Virginia HB 672/Chapter 928 and SB 256/Chapter 999, enacted in April 2026, generally preserves certain federal energy and water conservation standards in Virginia if those standards are withdrawn, repealed or otherwise voided. The law excludes standards where federal law preempts state action.
The state activity highlights two emerging approaches: preserving efficiency requirements if federal standards are withdrawn or limiting state and local restrictions on particular appliance technologies and fuel sources.
Federal-State Authority Takes Center Stage
These approaches could increasingly intersect. U.S. SB 5338, for example, would expand federal preemption to prevent states from establishing their own efficiency standards when a federal standard is revoked and would restrict state and local laws that prohibit covered products based on fuel source or air emissions.
As federal efficiency policy continues to change, questions surrounding preemption, product standards, fuel choice, and state regulatory authority are likely to remain central to the broader energy efficiency debate.
FOCUS will continue to monitor developments on energy efficiency policy across the country.
by Maggie Valadez 8/24/26