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NY Times Op-Ed Touts Benefits of Appliance Standards
The former administrator of the Office of Information and Regulatory Affairs (OIRA), Cass Sunstein, gives a shout out to standards in
a November 11th New York Times op-ed entitled 'Climate Change: Lessons from Ronald Reagan'. Sunstein asks whether it might be possible for the United States to take significant steps to reduce the risks associated with climate change as Reagan did with respect to the ozone layer. He notes that: "The cost of that single hurricane [Sandy] may well be more than five times greater than that of a usual full year's worth of the most expensive regulations, which ordinarily cost well under $10 billion annually." As Reagan embraced cost-benefit analysis in a successful effort to phase out ozone-depleting chemicals, Sunstein believes that we can use this same approach today with respect to climate change.
Readers of this newsletter won't be surprised to learn that appliance standards pass this cost-benefit analysis with flying colors. After praising the recently adopted fuel economy standards, Sunstein points out the benefits from appliance standards:
"...recent rules from the Department of Energy are requiring greater energy efficiency from appliances like refrigerators, washing machines and small motors. For these rules as well, the
monetary benefits dwarf the costs, and they include large savings to consumers as well as pollution reductions. There is a lot more to achieve in the area of energy efficiency, especially as technologies advance and continue to transform the once-impossible into the eminently doable."
It's great to have a cost-benefit and regulatory expert of Cass Sunstein's stature tout standards and encourage further advances.
Sunstein led the OMB office responsible for scrutinizing all major regulations issued by the federal government until August. Though several important appliance standards were completed during his tenure, many were delayed for months. Many more still remain stuck in the OMB review process. As of this writing, three new standards (commercial refrigeration, metal halide lamp fixtures, and certain incandescent reflector lamps) have been held up at OMB for nine months and another (walk-in coolers) for more than a year (since September 2011). According to analysis by ACEEE and ASAP, the four delayed rules alone could save consumers and businesses more than $25 billion dollars through 2035.
It's time for the administration to take heed of Mr. Sunstein's arguments and remove the gates that have kept these appliance standards - and their enormous benefits - locked up. It's a good bet that Reagan would have favored the cost-benefit odds on these and other new standards..
As many of you are aware, standards are one of the cheapest, most cost-effective ways to save energy, save money and reduce global warming emissions. If you'd like to contact the administration to emphasize these benefits and to encourage them to take action on appliance standards rules, click here. | 
