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119-s-5338119th CongressWALLET

Energy Efficiency Reform Act of 2026

Sponsored By: Senator Lee, Mike [R-UT]

In Committee

Summary

This bill would impose strict new procedural and substantive guardrails on Department of Energy rulemaking for energy conservation standards. It raises evidence thresholds, tightens public-disclosure rules, and narrows when and how standards can be changed.

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  • Families and consumers: Rulemakers would have to preserve defined "consumer‑valued characteristics" such as reliability, features, sizes, fuel types, and installation methods. Amended standards generally could not apply to products manufactured sooner than five years after a final rule.
  • Manufacturers and small businesses: The bill would create a single‑submission reporting system coordinated with the Federal Trade Commission and the Environmental Protection Agency and assign component‑level reporting to component makers. Standards could be changed only with "clear and convincing" evidence and must respect at least a six‑year gap after the prior standard.
  • Rulemakers, states, and specific equipment: The Department of Energy would need to issue binding procedures within 270 days and face limits on revising rules 181 days after enactment. The bill would require venting‑category standards, expand federal preemption of state and local fuel‑use or installation rules, and ban any new or revised standard for distribution transformers.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Federal block on local fuel bans

If enacted, the bill would preempt state and local laws that ban or restrict installation or use of covered products because of fuel source or emissions. The preemption would apply to all state and local governments, including home-rule cities and special districts. It would bar rules that require removal or substitution of appliances because of fuel type. When a Federal standard is revoked, the previously issued Federal standard would remain in effect. The preemption would take effect on enactment.

Slower appliance efficiency rule process

If enacted, the bill would impose new, binding procedures on DOE rulemaking for appliance standards. The Secretary would have 270 days to issue a final procedures rule. Starting 181 days after enactment, appendix A to DOE part 430 would have the force of law. A final test procedure would have to be published at least 180 days before DOE could propose a related standard. Amended standards would apply only to products made five years after a final rule. They could not require compliance earlier than ten years after the most recent compliance date. Petitions to amend standards would require clear and convincing evidence and grants must respect a six-year wait after the prior final standard. The Secretary would need a preponderance of evidence that a standard will not make consumer-valued features unavailable. The bill would set a 10% reduction over 30 years as the threshold for "significant energy savings." The Secretary would have to publicly disclose meetings with entities tied to the People's Republic of China when prescribing a standard. The bill would bar new or revised distribution transformer standards on enactment. If the Secretary misses the 270-day deadline, certain recent DOE revisions could be voided the day after.

One joint reporting rule for makers

If enacted, manufacturers would report only new, changed, or revoked product models covered by section 324 rulemakings. DOE, the Federal Trade Commission, and EPA would accept one joint submission using the same data fields and formats. Component manufacturers, not finished-product makers, would submit component-level information. The FTC or EPA could ask for extra submissions only by agreement or when a law explicitly requires it, and an agency would have to explain why the data cannot be obtained through the joint requirements.

Sponsors & CoSponsors

Sponsor

Lee, Mike [R-UT]

UT • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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