The Trump administration for the second year in a row is calling for elimination of the Office of Atmospheric Protection inside the U.S. Environmental Protection Agency, but the Energy Star program, which has been part of the office for 30 years, is positioned to escape the cut; since November, the program has been operating out of EPA’s Office of Radiation and Indoor Air and, starting in June, will be moved out of EPA entirely. Under an agreement EPA signed with the U.S. Department of Energy last month, DOE will take over administration of the program.
The administration says the office isn’t needed and shutting it down will save the government $100 million.
“This program exists to impose unnecessary and extreme climate change regulations on businesses,” the administration says in its fiscal year 2027 budget request, released last week. “By prioritizing the cult of ‘climate change’ over job creation and energy independence, the program has burdened American industries with costly mandates.”
The office was created in 1992 as part of the Clean Air Act. It oversees EPA’s programs on acid rain, greenhouse gas emissions and other climate-change gases in addition to managing Energy Star.
Congress in January funded Energy Star at $33 million in fiscal year 2026 appropriations, a $1 million increase over the previous year. In an unusual move, lawmakers stipulated that the administration spend the money at its fully authorized level — the first time Congress had included a mandatory annual spending level for the program.
The administration’s effort last year to close down the Office of Atmospheric Protection set off alarm bells among industry groups. More than 1,200 groups, including those representing appliance manufacturers, energy management companies and mechanical systems installers, signed letters to members of Congress crediting the program for saving building owners billions of dollars annually in reduced energy costs.
The groups said the program has become central to the way states and localities regulate building efficiency and emissions and that a component of the program, called Energy Star Portfolio Manager, is needed for facilities managers and local governments to track how much energy and resources their buildings use.
Groups have been supportive of DOE taking over the program since the inter-agency agreement was released.
“DOE has the data, talent, lab research, and other resources to run all facets of ENERGY STAR efficiently and effectively,” Jeffrey DeBoer, president and CEO of the Real Estate Roundtable, said in an email.
“The responsible teams at the Department of Energy … possess the technical expertise to ensure that the program continues delivering energy savings for American households and businesses,” Todd Sims, senior director of regulatory and industry affairs at the National Electrical Manufacturers Association, said in an email.
The Alliance to Save Energy, a coalition of groups advocating for energy efficiency policies, said the administration’s decision to move the program to DOE creates an opportunity to stabilize the program but that its long-term prospects will depend on how the transition unfolds.
“The resulting plan [must address] long‑term staffing, adequate resourcing, and fulfillment of statutory obligations, particularly given recent staff reductions at both agencies,” ASE said on its website.
