No Star for LG Appliances

Department of Energy Evaluates Energy Star Label


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By Brigid Darragh
Friday, January 1st, 2010

For more than fifteen years, Energy Star has been the emblem of energy efficiency and electronic superiority when it comes to saving electricity. In fact, Energy Star has worked extensively with the U.S. Environmental Protection Agency for years to improve the efficiency in appliances, heating and cooling, lighting, office equipment, and commercial and green building design, to name a few.

Energy Star is an international standard for energy efficient consumer products, first created in 1992 right here in the good ole' US of A by the Clinton Administration, currently operated jointly by the EPA and the Department of Energy.

From allowing consumers to have computer monitors and kitchen appliances that use 20%-30% less energy than required by federal standards; to helping small businesses, government, and higher education institutions create and execute "energy strategies for the future;" you'd be hard-pressed to find someone who doesn't at least recognize the company's easy-to-spot logo.

Recently, the Department of Energy announced that as of Jan 20, LG Electronics will no longer be legally allowed to use the Energy Star label on 20 of its refrigerator-freezer models.

In the past, the DOE has been criticized for not ensuring the integrity of products donned with the Energy Star label; the failure of certain models of refrigerators bearing the Energy Star emblem repeatedly missed the mark for energy efficiency standards in laboratories during product testing. The refrigerators "did not deliver required energy and cost savings, and [the DOE] was taking steps to protect the American public."

LG is unhappy with this decision by the DOE and claims the efficiency testing included standards that LG was not made aware of previously. LG and the Department of Energy will meet in federal court to battle for the Energy Star label and to clarify what energy efficiency testing standards mean, as to award a company's product the label.

LG has filed a lawsuit in federal court, claiming the decision by the DOE to remove the Energy Star certification would cause the company to suffer "irreparable harm" in product sales. The DOE, however, said it did not believe the company's sales would suffer the losses LG projects — but they did recognize the toll this would take on LG's ability to take part in appliance rebate programs.

This leads us to wonder: What is the significance of the Energy Star label on products for consumers — and for the companies selling them?

An interesting article from Associated Content visited this topic last summer, and explained the vast difference energy efficient appliances, heating and cooling systems, and water heaters in the home can make, especially as energy costs soar and millions of Americans scrape to pay rising electric bills. AC went on to discuss the tax credits available for those who purchase energy-efficient appliances and whose homes meet Energy Star efficiency standards.

In terms of sales, the most popular home appliances (dishwashers, refrigerators, and clothes washers), have a staggering percentage Energy Star-certified models making up their annual sales.

Take a look:

sales of energy star appliances

As we head into a New Year and a new decade that is sure to be marked by things efficient: hybrid cars, GE smart appliances, smart meters — whether this be the trend, or the result of people finally wising up about how they spend their money and what a carbon footprint really means — this decision by the DOE does have certain implications for manufacturers and consumers alike.

"Over the coming months, the Department of Energy will continue to move aggressively to meet our energy efficiency goals and ensure that the American people are benefiting from the energy and cost savings promised by manufacturers across the country," said a spokesperson from the DOE this week.

Brigid


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