U.S. consumers and businesses are expected to save $19 billion during the next 30 years as a result of new efficiency standards for household appliances.

The new regulations established by the Department of Energy apply to residential central air conditioners and heat pumps, clothes washers, water heaters and commercial heating and cooling equipment. The energy savings, says the Department, will eliminate the need to build 91 new 400-megawatt power plants.

In addition to the four standards just announced, the Department had previously-issued energy efficiency standards for residential refrigerators, residential room air conditioners, and fluorescent lamp ballasts. DoE says these seven standards will save a total of 25 quadrillion Btu (quads) of energy by 2030, enough to light all U.S. households for 20 years and avoid the need to build 124 new 400-megawatt power plants.

The changes are generally applauded by industry. Joseph McGuire of the Association of Home Appliance Manufacturers praised the clothes washer standard as a balanced approach to energy savings, consumer preferences and manufacturer input.

"While its energy savings will be great," McGuire said, "it also provides adequate time for manufacturers to comply."

Among the new rules:

• Residential central air conditioners and heat pumps. By 2030, residential central air conditioners and heat pumps are projected to save 4.2 quads, enough to light all U.S. homes for 3.3 years. The standards go into effect in January 2006 and will increase the efficiency of central air conditioners by 30 percent. These energy savings will avoid the need to build 53 power plants.

• Residential clothes washers. By 2030, clothes washer standards will cut water use by 10.5 trillion gallons and save 5.5 quads, enough to light all U.S. homes for 4.3 years. The standards go into effect in two stages. The first stage goes into effect on January 1, 2004, and will reduce clothes washer energy use by 22 percent. The second stage goes into effect on January 1, 2007, and will reduce energy use by 35 percent. These energy savings will avoid the need to build 18 power plants. The new standards can be met by either top- or front-loading clothes washers. Already, says DoE, there are top-loading washers on the market today that meet the higher 2007 standard.

• Residential water heaters. By 2030, residential water heater standards are projected to save consumers more than $2 billion and reduce electricity and natural gas usage by 4.6 quads. The standards go into effect on January 12, 2004, and will increase the efficiency of electric water heaters by 4 percent and increase the efficiency of gas water heaters by 8 percent. These energy savings will avoid the need to build 13 power plants.

• Commercial heating, air conditioning and water heating equipment. Over a 25-year period, these standards are projected to save 1.1 quads of electricity and natural gas, and will avoid the need to build seven power plants. They cover 18 product categories of commercial air conditioners, heat pumps, furnaces, water heaters, and hot water storage tanks, and become effective on October 29, 2003. They are expected to save U.S. businesses approximately $0.9 billion.

Howard Geller of the American Council for an Energy-Efficient Economy said the new DoE requirements will save consumers money and will also help avoid future power supply shortages and reducing pollutant emissions.

Since 1997, the agency has issued a total of seven new appliance standards that, when taken together, should reduce greenhouse emissions by 518 metric tons, the equivalent of taking 14.7 million cars off the streets. They also will result in a net energy savings of some $27 billion through 2030.

For more articles by Lew Sichelman, please press here.

Published: January 31, 2001

Use of this article without permission is a violation of federal copyright laws.

When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.