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Energy Star Program Secures Dedicated Funding Following Prior Administration Budget Cuts

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Energy Star Program Secures Bipartisan Funding Amidst Past Challenges

The Energy Star program has received dedicated funding through bipartisan budget legislation signed by President Trump. This action comes despite earlier attempts by the Trump administration to discontinue it, and has the potential to strengthen the energy efficiency initiative.

Opposition to ending Energy Star was broad, coming from various stakeholders. These included the real estate and construction industries, along with over 1,000 manufacturers, home builders, advocacy groups, and local governments.

Ben Evans, federal legislative director for the U.S. Green Building Council, stated that this outcome demonstrates strong bipartisan congressional support for the program's continuation.

A Decade of Budget Reductions Reversed

Congress allocated over $33 million to the Environmental Protection Agency (EPA) for Energy Star, a sum slightly surpassing the 2024 fiscal year's allocation. This legislative move reverses a decade-long trend of budget reductions for the program. The funding aims to ensure the program's financial health, although staffing challenges persist.

Disruptions and Persistent Staffing Concerns

While consumers may not have observed immediate changes, advocates report disruptions, particularly in the certification process for new Energy Star products. These issues are attributed to past staff reductions. Evans indicated his group would closely monitor the EPA's management of the program with the new funding.

Nearly 90% of Americans recognize the Energy Star logo, which identifies energy-efficient appliances. The EPA estimates the program has saved Americans over $500 billion in energy costs since its inception in 1992. EPA Administrator Lee Zeldin questioned these savings calculations at a congressional hearing, but the EPA's own staff provided technical notes supporting the figures, which remain on the agency's website.

Overcoming Efforts to Discontinue or Privatize

President Trump's proposed budget had previously sought to eliminate Energy Star funding at the EPA. Conservative groups, such as the Competitive Enterprise Institute and Heritage Foundation, advocated for ending or privatizing the program. Zeldin had also expressed support for privatization, but congressional funding stipulations now make such a transition improbable.

The Energy Star program already utilizes the private sector for much of its work, including efficiency testing. The budget package, which included the Energy Star funding, passed the House with 397 votes to 28 and the Senate with 82 votes to 15, indicating significant bipartisan approval.

Challenges Remain Despite Support

Despite the renewed funding, concerns about staffing remain. The Trump administration's reorganization of the EPA led to a reduction in Energy Star employees. The EPA stated it is reviewing the program to ensure responsible use of taxpayer dollars and compliance with statutory requirements.

Advocates express hope that the strong bipartisan support for the legislation will contribute to a stable future for the Energy Star program, enabling effective planning within the allocated budget.