The Energy Star Program

What is Energy Star?

Energy Star is a partnership program between government and industry that identifies and labels energy-efficient products, helping businesses, consumers, and state and local governments save money, which in turn protects the environment, saves energy and yields multiple other private and public benefits. By providing clear information on which products and practices are energy efficient, Energy Star builds awareness of energy-saving opportunities, and provides recognition and support for organizations that are committed to energy efficiency.

Why Increase Funding?

America, as President Bush says, “is addicted to oil.” The Energy Star program has a proven track record of saving both energy and money, thereby combating this addiction. In 2006 alone, Energy Star helped Americans save enough peak energy required to power about 25 million vehicles and prevent over 37 million metric tons of greenhouse gas emissions – all while saving about $14 billion on their utility bills.

Furthermore, the Energy Star program is extremely cost-effective. In fact, every federal dollar spent on program costs yields savings of more than $75 in consumer energy bills and more than a $15 investment in the private sector. But the Energy Star program could do even more with greater funding. Unfortunately, despite the program’s noted success, President Bush’s budget recommendations for FY 2008 include a $5.7 million cut to the Energy Star program – more than 10 percent of its budget.

Bottom line: The Energy Star program cost-effectively uses market-based measures to reduce pollution; promotes economic growth by stimulating investment in new technology; and helps ensure the reliability of our electric system by reducing peak demand.

The multiple benefits of Energy Star make it worthy of a meaningful funding increase for FY 2008.

Energy Star Works in Every State, Addresses Many Constituencies.

• Energy Star includes over 1,700 manufacturing partners of the more than 50 different product types, who make and market 44,000 different models of Energy Star qualifying products.
• Energy Star counts 3,500 builder partners and partners who supply products and services for energy-efficient home construction. To date, 725,000 families now live in Energy Star Homes – locking in financial savings for homeowners of more than $170 million annually. That is double the number of Energy Star homes than just two years ago.

The Energy Star program is extremely cost-effective and its success proves its value.

• The program produces average energy bill savings of $75 and initiates $15 of investment in new technology for every federal dollar spent on program costs.
• Last year alone, Americans, with the help of ENERGY STAR, saved enough energy to avoid greenhouse gas emissions equivalent to those from 25 million cars – all while saving $14 billion, nearly triple the amount saved in 2000.

Increased funding would allow Energy Star to expand its programs and achieve further successes.

The multiple benefits of Energy Star make it worthy of a meaningful funding increase for FY2007, noted in a line item.

For Further Information Contact the Policy Team at policyinfo@ase.org