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ENERGY BASICS: energy efficiency

State of Play:

The energy price spikes of the 1970s drove consumers, businesses and government to calculate opportunities for energy efficiency — investments, practices, and regulations to avoid some of the energy costs associated with particular products or services. Those calculations ran counter to a lot of engrained practices, and the friction between business and government is a feature of energy and environment policy discussions. Now, energy efficiency decisions — whether involving building practices, appliance efficiency, or vehicle mileage and emissions standards — are a complex mix of government regulation and market behavior.

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FAQs

What are Corporate Average Fuel Economy standards?

The Energy Policy and Conservation Act of 1975 requires vehicle manufacturers to meet minimum fuel economy standards across the average of their fleets. The standard is set annually by the U.S. Department of Transportation. DOT’s National Highway Traffic Safety Administration announced on April 1, 2022, new CAFE standards for the 2026 model year of 49 miles per gallon for cars and light trucks. 

What are appliance efficiency standards?

The Energy Policy and Conservation Act of 1975 authorized the adoption of non-binding electricity and water efficiency standards across a broad array of appliances and equipment. Congress amended the law in the National Energy Conservation Policy Act of 1978 to make those standards mandatory. Congress has since amended the law several times to expand the list of equipment covered under the program. The standards are set by the U.S. Department of Energy.

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