The elimination of a longstanding program that offers energy-efficiency certification to homes and appliances could have a detrimental domino effect, the National Association of Home Builders warned last week.
The Environmental Protection Agency told employees that a reorganization would do away with Energy Star, according to a recording of the meeting and agency documents The New York Times obtained. In his first term, President Trump said Energy Star wasn't essential to the EPA's core mission, tried to eliminate funding and floated the idea of privatizing the program, but both Democrat and Republican lawmakers pushed back on the plan, The Times noted.
In an emailed statement to Homes.com, the EPA confirmed a reorganization affecting four divisions but did not address the future of Energy Star.
Under the voluntary program, known for its blue label, appliances earn the certification if they meet certain EPA standards, and the agency also offers guidance on new homes and improvements for existing properties. Builders and consumers receive cost savings and tax credits.
If Energy Star is eliminated, that also could mean the end of local, state and utility programs that tie certification to certain incentives, including rebates, according to the homebuilder trade group.
"NAHB is also seeking clarification on how the potential elimination of the Energy Star program would affect tax credits linked to an Energy Star certification, such as the Section 45L tax credit for new energy efficient homes," the group said in a recent blog post. Section 45L is a tax credit for builders.
Federal lawmakers are working on a comprehensive tax bill and likely will try to eliminate many of the existing energy tax credits to lower the cost of the overall measure, according to NAHB. Homeowners currently can qualify for up to $3,200 annually in tax credits for home upgrades, the Energy Star website states.
Since the EPA launched the program in 1992 under President George H. W. Bush, it has saved U.S. families and businesses 5 trillion kilowatt-hours of electricity and helped them avoid more than $500 billion in energy costs, according to the website.
'This is the baseline for how we build'
The end of the program would be a major step back for the homebuilding industry and product manufacturers that have kept up with Energy Star standards as they have evolved, according to Nicole Tysvaer, founder and CEO of Symbi Homes in Kensington, Maryland.
"This is now the baseline for how we build," she said in an interview.
Tysvaer said privatizing Energy Star is not an acceptable outcome.
"You can't put this program in the hands of organizations, corporations and companies that have their own interests going after profits rather than creating standards that work for everyone," she said.