Energy Efficiency Reform Act of 2026

The Energy Efficiency Reform Act of 2026 mandates that the Department of Energy finalize specific procedural rules for setting appliance efficiency standards, including requirements for comparative economic analysis and longer lead times before new standards can be proposed. The bill significantly restricts the agency’s ability to issue new or stricter regulations by requiring clear evidence that changes are necessary to ensure product availability and prevent market disruptions, while also prohibiting standards that would eliminate consumer-valued features such as specific fuel types or installation methods. Additionally, it extends compliance timelines for manufacturers to at least five years after a rule is published and requires separate efficiency standards for different venting categories of heating equipment. The legislation also strengthens federal preemption over state and local laws regarding the sale and use of energy-efficient products, explicitly preventing jurisdictions from banning appliances based on their fuel source or emissions, and permanently halts new efficiency standard-setting for distribution transformers.