Next Phase of ENERGY STAR Begins
On August 28, the U.S. Environmental Protection Agency & U.S. Department of Energy finalized the mutually agreed upon 2026 ENERGY STAR Program Transition Plan.
In accordance with a Memorandum of Agreement (MOA) signed on March 3, the Transition Plan aims to facilitate the transfer of primary leadership of the ENERGY STAR program from EPA to DOE.
While EPA sunset the ENERGY STAR label for light bulbs as of December 2024, the fate of ENERGY STAR remains relevant to the lighting industry since high-performing recessed lighting fixtures can still be ENERGY STAR-qualified. In addition, the ceiling fan category is still an active segment in the ENERGY STAR program.
The transitioning of the ENERGY STAR program is a complex endeavor and will involve several phases. Both agencies will work together to fully complete this transition no more than 12 months after the finalization of the plan.
The first phase – or “workstream” as it is called – is more of a knowledge transfer and consolidation of programmatic leadership at DOE. As such:
• Knowledge transfer: EPA has already begun sending ENERGY STAR documentation to DOE regarding resources and standard operating procedures covering trademark and ownership, partnership agreements, the IT portfolio and data, agreements and other arrangements with foreign governments, certification, reporting, recognition, and outreach.
The transfer of documents will be identified in the Trademark and Agreement.
Transfer Plan. EPA will also provide DOE, at the time of the data transfer, with an inventory or log of all documents and data sets transmitted including any required handling instructions or markings (e.g., CUI or other protection requirements) sufficient for DOE to ensure appropriate management of program information.
• Training and staffing: EPA staff will provide training and assistance to DOE over the duration of this transition plan to facilitate a smooth transition and transfer continuity of current operations for the program. DOE will begin recruitment actions to staff the essential functions of the ENERGY STAR program.
• Consolidation of programmatic functions and leadership at DOE: This transition plan includes the major milestones to consolidate the leadership and execution of major ENERGY STAR programmatic functions at DOE within one month of the finalization of this plan, and/or by the trademark transfer date.
The second and third phase (referred to as “Workstreams 2 and 3”) involve the legal transfer of the ENERGY STAR trademark, EPA-only partnership agreements, and ENERGY STAR agreements with foreign governments; and the transfer of the hosting of ENERGY STAR IT systems and data, respectively. Details of what is involved in Workstreams 2 and 3 can be found here.
DOE will lead future ENERGY STAR program updates and will continue to consult with stakeholders as needed.
For clarification, ENERGY STAR certification is the process by which specific products, homes, buildings, and plants demonstrate that they meet ENERGY STAR specifications, provide appropriate documentation, and obtain the ability to use the ENERGY STAR mark. [Specification refers not only to Product and Homes specifications, but also to the ENERGY STAR score for commercial buildings and the Energy Performance Indicators (EPIs) for industrial plants.]
The agencies noted that EPA has not been engaged in updating specifications since early 2025. Therefore, the transition will also include documentation of known outstanding issues to be addressed as specifications are reviewed by DOE.
Regarding funding – a critical issue for the smooth continuation program – EPA’s Fiscal Year 2026 appropriations, Pub. L. No. 119-74, directed funding for the ENERGY STAR program. The most recent documentation reported that EPA’s Fiscal Year 2026 appropriations are being used for ENERGY STAR operations and will fund transition activities. EPA will estimate unspent FY26 ENERGY STAR appropriations and send those funds to DOE via reimbursable authority or interagency agreement.
With existing Fiscal Year 2026 appropriations, DOE will take financial responsibility for the ongoing operation and oversight of the ENERGY STAR Program going forward. Future agreements will be established if Congress appropriates additional funds to EPA for ENERGY STAR.
In a letter written to the chairs, ranking members, and committees for Energy and Natural Resources in the U.S. Senate and the committee on Energy and Commerce in the U.S. House of Representatives, various associations emphasized the importance of continuing the ENERGY STAR program. Among the associations that backed the letter’s position were: Illuminating Engineering Society (IES); National Association of Electrical Distributors (NAED); National Association of Home Builders (NAHB); National Association of Manufacturers; National Electrical Manufacturers Association (NEMA); Nareit; National Multifamily Housing Council; National Apartment Association; National Multifamily Housing Council; and the National Retail Federation, among many others.
That June 2025 letter noted:
“ENERGY STAR is an excellent example of a non-regulatory partnership between the government and private sector. 90% of households recognize the blue ENERGY STAR label, a remarkable level of brand awareness. It is a symbol of consumer trust built over 30+ years that should remain a federal government asset.
“ENERGY STAR has saved families and businesses hundreds of billions of dollars on energy costs since its inception — equating to $40 billion in annual savings per year to U.S. households, a significant return on investment for U.S. taxpayers. It has achieved massive costs savings and avoided energy waste by delivering highly efficient products for America’s consumers, homes for America’s families, and commercial buildings for America’s businesses.”
News that the ENERGY STAR program would remain intact and be transferred from the EPA to the DOE was met with relief from the organizations that signaled their support of the letter to the U.S. Senate and the U.S. House of Representatives.
Now that the DOE and EPA have finalized the Trademark and Agreement Transfer Plan by September 1, 2026, as was expected, the affected organizations and associations feel confident that the program will continue more or less like it has.
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