Energy Efficiency Reform Act of 2026

This Act may be cited as the “Energy Efficiency Reform Act of 2026”.

(a) In general.— Not later than 270 days after the date of enactment of this Act, the Secretary of Energy (referred to in this section as the “Secretary”) shall issue a final rule for the notice of proposed rulemaking entitled “Energy Conservation Program: Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment” (91 Fed. Reg. 42034; July 7, 2026).

(b) Required contents.— The final rule issued under subsection (a) shall retain, at a minimum, the procedural requirements set forth in the notice of proposed rulemaking described in subsection (a) with respect to—

(1) the binding nature of the Process Rule on the Department of Energy;

(2) mandatory comparative walk-up analysis for economic justification; and

(3) the requirement that a final test procedure be published at least 180 days before the proposition of an energy conservation standard for the same product.

(c) Failure To comply.—

(1) In general.— If the Secretary fails to issue a final rule under subsection (a) by the deadline described in that subsection, effective on the day after that deadline—

(A) the revisions to part 430 of title 10, Code of Federal Regulations, made by the final rules described in paragraph (2) are void; and

(B) that part shall be in effect as if those revisions had not been made.

(2) Final rules described.— The final rules referred to in paragraph (1)(A) are the following:

(A) The final rule of the Department of Energy entitled “Energy Conservation Program for Appliance Standards: Procedures, Interpretations, and Policies for Consideration in New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Commercial/Industrial Equipment” (86 Fed. Reg. 70892 (December 13, 2021)).

(B) The final rule of the Department of Energy entitled “Energy Conservation Program for Appliance Standards: Procedures, Interpretations, and Policies for Consideration in New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Commercial/Industrial Equipment” (89 Fed. Reg. 24340 (April 8, 2024)).

(d) Limitation.— Effective beginning on the date that is 181 days after the date of enactment of this Act, unless specifically authorized by an Act of Congress, the Secretary may not make any revisions to part 430 of title 10, Code of Federal Regulations, that are substantially dissimilar to—

(1) the final rule issued under subsection (a); or

(2) if that final rule is not issued, the notice of proposed rulemaking described in subsection (a).

(e) Force of law.— Effective beginning on the date that is 181 days after the date of enactment of this Act, appendix A to subpart C of part 430 of title 10, Code of Federal Regulations (including any revisions made to that appendix), shall have the force and effect of law.

(f) Regulations voided.— Effective on the date of enactment of this Act, the following final rules shall be null and void:

(1) The final rule of the Department of Energy entitled “Energy Conservation Program: Energy Conservation Standards for Consumer Furnaces” (88 Fed. Reg. 87502 (December 18, 2023)).

(2) The final rule of the Department of Energy entitled “Energy Conservation Program: Energy Conservation Standards for Commercial Water Heating Equipment” (88 Fed. Reg. 69686 (October 6, 2023)).

Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended by adding at the end the following:

“(67) Significant energy savings.—

(A) In general.— The term significant energy savings means a reduction, over a 30-year period, of not less than 10 percent in full fuel cycle energy use, as determined by the Secretary using the applicable test procedure required under this Act.

(B) Full fuel cycle energy use.— For the purpose of subparagraph (A), full fuel cycle energy use includes all primary energy consumed in the extraction, processing, transportation, generation, transmission, and distribution of energy to the point of end-use.”.

(a) In general.— Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended—

(1) by redesignating paragraph (4) of subsection (m) as paragraph (7) of subsection (o), and moving the paragraph appropriately; and

(2) by striking subsection (m) and inserting the following:

“(m) Reserved.— ”.

(b) Conforming amendment.— Section 345(e)(1)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6316(e)(1)(A)) is amended by striking “(m)” and inserting “(n)”.

Section 325(n) of the Energy Policy and Conservation Act (42 U.S.C. 6295(n)) is amended—

(1) in paragraph (2)—

(A) by redesignating subparagraphs (A) through (C) as subclauses (I) through (III), respectively, and indenting appropriately;

(B) in the undesignated matter following subclause (III) (as so redesignated), by striking “The grant” and inserting the following:

“(B) No presumption.— The grant”; and

(C) by striking the paragraph designation and all that follows through “criteria—” in the matter preceding subclause (I) (as so redesignated) and inserting the following:

“(2) Grant of petition.—

(A) In general.— The Secretary shall grant a petition under paragraph (1)—

(i) if the Secretary finds that the petition contains clear and convincing evidence of the need for an amended standard; and

(ii) subject to the conditions that—”; and

(2) in paragraph (5)(B), by striking “3 years” and all that follows through the period at the end and inserting “at least 6 years after publication of the final rule establishing the standard.”.

(a) In general.— Section 325(o) of the Energy Policy and Conservation Act (42 U.S.C. 6295(o)) is amended—

(1) in paragraph (1), by striking “The Secretary” and inserting “Except as provided in paragraph (2), the Secretary”;

(2) by redesignating paragraphs (2), (3), (4), (5), (6), and (7) (as added by section 4(a)(1)) as paragraphs (4), (5), (6), (7), (8), and (9), respectively;

(3) by inserting after paragraph (1) the following:

“(2) Amended standard.— The Secretary may prescribe an amended standard that is less stringent than the previous standard or that results in an increased maximum allowable energy use if the Secretary demonstrates with clear and convincing evidence that the amended standard is necessary—

(A) to ensure availability of reliable, safe, and economically accessible products;

(B) to avoid undue burdens on small manufacturers, taking into consideration supply chain, technical feasibility, and cost impacts;

(C) to prevent the unavailability in the United States of any covered product type (or class) of performance characteristics that are substantially the same as those generally available in the United States at the time that the prior standard was applicable; or

(D) to prevent the influx into the United States of foreign market competitors.

(3) New product coverage determination.— The Secretary shall not—

(A) amend a standard to include a new product type unless the Secretary has first made a new product coverage determination under subsection (q) or section 322; or

(B) issue or finalize a rulemaking under this section that addresses multiple product types with similar but different functions.”;

(4) in paragraph (4)(B) (as so redesignated)—

(A) in clause (i)—

(i) in the matter preceding subclause (I), by striking “receiving views and comments furnished with respect to” and inserting “providing public notice in the Federal Register that includes at least 60 days for public comment, and receiving such comments, with respect to”;

(ii) in subclause (I), by striking “impact” and inserting “impact, including cumulative regulatory burdens,”;

(iii) in subclause (V), by adding “and” at the end;

(iv) in subclause (VI), by striking “; and” and inserting a period; and

(v) by striking subclause (VII); and

(B) by adding at the end the following:

“(iv) Defined consumer-valued characteristics.—

(I) In general.— In determining whether a standard is technologically feasible, the Secretary shall, after receiving comments, define “consumer-valued performance characteristics”, including reliability, product lifetime, features, sizes, capacities, installation and venting methods, fuel types, technologies, materials, volumes, and the ability to replace a product without changes to existing drainage and venting methods.

(II) Application.— The consumer-valued performance characteristics defined under subclause (I) shall not be eliminated or impacted by new or amended standards.”;

(5) in paragraph (5) (as so redesignated)—

(A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately;

(B) by striking the paragraph designation and all that follows through “a test” in clause (i) (as so redesignated) and inserting the following:

“(5) Limitation on prescribing new or amended standards.—

(A) In general.— The Secretary may not prescribe an amended or new standard under this section for a type (or class) of covered product if—

(i) a test”;

(C) in the undesignated matter following clause (ii) (as so redesignated), by striking “For purposes of section 327, a determination under subparagraph (B)” and inserting the following:

“(B) Determination as standard.— For purposes of section 327, a determination under subparagraph (A)(ii)”; and

(D) by adding at the end the following:

“(C) Ties to China.— The Secretary may not prescribe a new or amended energy conservation standard under this section for a type (or class) of covered product unless the Secretary, not later than the date on which the standard is prescribed, publicly discloses each meeting relating to covered products, if any, held by the Secretary with any entity that, during the 5-year period preceding that date—

(i) has had substantial ties to the People’s Republic of China or the Chinese Communist Party; and

(ii) has manufactured, sold, or shipped goods entering the United States that are of that type (or class) of covered product.”;

(6) in paragraph (6) (as so redesignated), by striking the paragraph designation and all that follows through “capacities,” in the first sentence and inserting the following:

“(6) Prohibition.— The Secretary shall not prescribe an amended or new standard under this section unless the Secretary finds (and publishes such finding) that, based on a preponderance of the evidence in the record, the standard will not result in the unavailability in the United States in any covered product type (or class) of performance characteristics (including reliability), product lifetime, features, sizes, capacities, installation methods, fuel types, technologies, materials,”;

(7) in paragraph (7) (as so redesignated), by striking the designation and all that follows through “may” and inserting the following:

“(7) Limitation regarding major functions.—

(A) Definition of major function.— In this paragraph, the term major function, with respect to a covered product type, means a fundamental use or purpose of the covered product type, including the fuel type.

(B) Limitation.— The Secretary shall not”;

(8) by striking paragraph (9) (as so redesignated) and inserting the following:

“(9) Application to products.—

(A) In general.— Except as provided in subparagraph (B) or subsection (p)(4), an amendment prescribed under this subsection shall apply to covered products or equipment manufactured after the date that is 5 years after publication of the final rule establishing the applicable standard.

(B) Compliance date.— No amended standard prescribed under this subsection may establish a compliance date for a covered product earlier than 10 years after the compliance date of the most recent standard applicable to that covered product.”; and

(9) by adding at the end the following:

“(10) Separate standards for vented products or equipment based on venting category.—

(A) In general.— In any rulemaking to establish a new or amended energy conservation standard for any type (or class) of product or equipment described in subparagraph (D), the Secretary shall establish separate energy conservation standards for such type (or class) of product or equipment—

(i) for each of the Category I, Category II, Category III, and Category IV venting categories, to the extent that such products or equipment exist in the market; and

(ii) that reflect the unique performance-related features of the relevant venting category, including with respect to technology, venting, installation, and performance.

(B) Venting category determination.— In establishing energy conservation standards pursuant to this paragraph, the Secretary shall determine and label the venting category for each type (or class) of product or equipment described in subparagraph (D) in accordance with the requirements for venting category determination under the applicable standard of the American National Standards Institute.

(C) Inapplicability of certain criteria.— Paragraph (1) shall not apply with respect to any energy conservation standard established pursuant to this paragraph.

(D) Applicability.— The type (or class) of product or equipment referred to in this paragraph are the following:

(i) Any covered product—

(I) that is classified into any of the Category I, Category II, Category III, or Category IV venting categories; and

(II) for which energy conservation standards are applicable under this part.

(ii) Any covered equipment (as defined in section 340)—

(I) that is classified into any of the Category I, Category II, Category III, or Category IV venting categories; and

(II) for which energy conservation standards are applicable under this part.”.

(b) Conforming amendments.—

(1) Section 321(33)(B)(i)(III) of the Energy Policy and Conservation Act (42 U.S.C. 6291(33)(B)(i)(III)) is amended by striking “325(o)(4)” and inserting “325(o)(6)”.

(2) Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended—

(A) in subsection (e)(6)(E)(ii), by striking “(m)(4)(A)(ii)” and inserting “(o)(9)(A)”;

(B) in subsection (n)(2)(C), by striking “(o)(2)(B)(i)(II)” and inserting “(o)(4)(B)(i)(II)”; and

(C) in subsection (p)(2)(A)—

(i) by striking “(o)(2)” and inserting “(o)(4)”; and

(ii) by striking “(o)(4)” and inserting “(o)(6)”.

Section 325(p) of the Energy Policy and Conservation Act (42 U.S.C. 6295(p)) is amended—

(1) by redesignating paragraphs (1) through (4) as paragraphs (2) through (5), respectively; and

(2) by inserting before paragraph (2) (as so redesignated) the following:

“(1) Not later than 1 year after the date of publication in the Federal Register of a final test procedure prescribed under section 323, if applicable, for a covered product specified in or classified pursuant to section 322, the Secretary may publish in the Federal Register a request for information or other preliminary rulemaking notice as to whether an energy conservation standard should be prescribed for such type (or class) of covered product.”.

Section 325 of the Energy Policy Conservation Act (42 U.S.C. 6295) is amended by striking subsection (q) and inserting the following:

“(q) Product classes.—

(1) Definition of performance-related feature.— In this subsection, the term performance-related feature, with respect to a covered product, means a feature that—

(A) measurably affects energy consumption, capacity, or another quantifiable characteristic relevant to energy use of that covered product; or

(B) is already present in a subset of existing products or is commercially mature and highly considered by consumers when choosing among comparable products, including reliability, product lifetime, features, sizes, capacities, installation methods, fuel types, technologies, materials, compatibility with existing systems, including other common vented appliances, and volumes.

(2) Rule.— The Secretary shall issue a rule establishing 1 or more product classes for covered products—

(A) that consume a different kind of energy than the energy consumed by other covered products within that type (or class);

(B)

(i) that have a performance-related feature that other products within that type (or class) do not have; and

(ii) the performance-related feature described in clause (i) of which justifies a higher or lower standard from the standard that applies (or will apply) to other products within that type (or class); or

(C) that materially affect operating and venting conditions or energy consumption or use in a way that cannot be captured by adjustments to test procedures.

(3) Procedural requirements.— To establish a new product class under subparagraph (B) or (C) of paragraph (2), the Secretary shall—

(A) publish a notice of proposed rulemaking in the Federal Register that—

(i) defines the proposed product class with precision, including function, performance-related feature, and product attribute; and

(ii) demonstrates whether the performance-related feature is imminently feasible; and

(B) allow a minimum public comment period of 60 days.”.

Section 326 of the Energy Policy and Conservation Act (42 U.S.C. 6296) is amended—

(1) in subsection (b)—

(A) by striking paragraph (4); and

(B) by redesignating paragraph (5) as paragraph (4); and

(2) in subsection (d)—

(A) by redesignating paragraph (3) as paragraph (6); and

(B) by inserting after paragraph (2) the following:

“(3) New, changed, or revoked models.— Information or reports required pursuant to this section shall be required only with respect to new, changed, or revoked models of covered products or test procedures to which a rule under section 324 applies.

(4) Single submission.—

(A) In general.— The Secretary shall coordinate with the Commission and the Administrator of the Environmental Protection Agency (referred to in this paragraph as the “Administrator”) to eliminate duplication among the reporting requirements required under this section and identical information collected by the Commission and the Administrator under the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.), respectively, so that only a single submission with such information is required to be submitted to the Secretary under this section.

(B) Administration.— In carrying out subparagraph (A), the Secretary shall, in coordination with the Commission and the Administrator—

(i) ensure that data elements, definitions, and reporting formats are harmonized; and

(ii) enable the secure sharing of information among the Department of Energy, the Commission, and the Environmental Protection Agency.

(C) Disputes.— The Secretary shall resolve disputes among the Commission, the Administrator, and the Secretary relating to carrying out this section.

(D) Separate submissions.— The Commission and the Administrator may not require separate or additional submission requirements beyond the single submission required under subparagraph (A) unless—

(i) those requirements are agreed to pursuant to subparagraph (A); or

(ii)

(I) the information is necessary to carry out an explicit statutory obligation; and

(II) the requesting agency explains in writing why the information cannot be obtained through the requirements agreed to pursuant to subparagraph (A).

(5) Manufacturer responsibility.— If a covered product or industrial equipment is a component in a finished product, the manufacturer of that component, not the manufacturer of the covered product, industrial equipment, or other finished product, shall be responsible for submitting information pursuant to this section.”.

Section 327 of the Energy Policy and Conservation Act (42 U.S.C. 6297) is amended—

(1) in subsection (b), in the matter preceding paragraph (1), by striking “Effective on” and all that follows through “any covered product” and inserting “Effective on the date the consumer product is specified in, or classified by the Secretary under, section 322 as a covered product”; and

(2) by adding at the end the following:

“(h) Rule of preemption on fuel use restrictions.— State restrictions on fuel use or requirements, including labeling, applicable to or affecting the sale and use of covered products are subject to and preempted under this section.

(i) General rule of preemption for energy conservation standards when Federal standard is revoked for a product.—

(1) In general.— No State regulation, or revision thereof, relating to energy efficiency, energy use, or water use of a covered product shall be effective even if the Federal standard relating to energy efficiency, energy use, or water use for that covered product has been revoked.

(2) Previous Federal standard in effect.— On revocation of a Federal standard described in paragraph (1), the previously issued Federal standard shall be in effect.

(3) Rule of construction.— A revocation of a Federal standard described in paragraph (1) does not permit a State to fill the void of the revoked Federal standard—

(A) by promulgating a new regulation, or revising an existing regulation; or

(B) with a previously established State regulation.

(j) Applicability.— This section—

(1) applies to all State and local governments, including municipalities exercising home-rule authority, special districts, commissions, and agencies created by or under State law; and

(2) preempts any State or local law, code, or regulation, whether legislative or administrative in origin, that prohibits, directly or indirectly, the installation or use of a covered product or requires removal or substitution of a covered product based on—

(A) its fuel source; or

(B) the emission of any air pollutant (as defined in section 302 of the Clean Air Act (42 U.S.C. 7602)).”.

Section 346 of the Energy Policy and Conservation Act (42 U.S.C. 6317) is amended by adding at the end the following:

“(g) No new or revised standards for distribution transformers.—

(1) In general.— Beginning on the date of enactment of the Energy Efficiency Reform Act of 2026, the Secretary may not prescribe any new or amended energy conservation standard under part B or this part for distribution transformers, including those distribution transformers for which the Secretary prescribed testing requirements under subsection (a)(1) and low-voltage dry-type distribution transformers.

(2) Effect on existing standards.— Paragraph (1) does not affect any energy conservation standards prescribed under part B or this part before the date of enactment of the Energy Efficiency Reform Act of 2026.”.