[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5338 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5338
To amend the Energy Policy and Conservation Act to prohibit the
Secretary of Energy from prescribing any new or amended energy
conservation standards for a product that is not technologically
feasible and economically justified, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 6, 2026
Mr. Lee introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Energy Policy and Conservation Act to prohibit the
Secretary of Energy from prescribing any new or amended energy
conservation standards for a product that is not technologically
feasible and economically justified, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Efficiency Reform Act of
2026''.
SEC. 2. PROCEDURES, INTERPRETATIONS, AND POLICIES FOR CONSIDERATION OF
NEW OR REVISED CONSERVATION STANDARDS AND TEST
PROCEDURES.
(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)).
SEC. 3. SIGNIFICANT ENERGY SAVINGS DEFINITION.
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.''.
SEC. 4. REVOCATION OF STANDARDS AMENDMENTS REQUIREMENT.
(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)''.
SEC. 5. PETITION FOR AN AMENDED STANDARD; PETITION TIMELINES.
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.''.
SEC. 6. CRITERIA FOR PRESCRIBING NEW OR AMENDED STANDARDS.
(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)''.
SEC. 7. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.
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.''.
SEC. 8. PRODUCT CLASSES.
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.''.
SEC. 9. REQUIREMENTS OF MANUFACTURERS.
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.''.
SEC. 10. EFFECTS ON OTHER LAW.
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)).''.
SEC. 11. DISTRIBUTION TRANSFORMERS.
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.''.
<all>