The U.S. Department of Energy will become the lead agency for the federal government's Energy Star program by August 2026, according to a transition plan finalized August 28 by DOE and the Environmental Protection Agency. The plan shifts control of the widely recognized energy efficiency labeling program from EPA, which has run it since the early 1990s, to DOE through a structured handoff organized into three workstreams covering knowledge transfer, legal transfer, and data and systems transfer. Industry groups say the document contains encouraging signs about the program's future funding and staffing, two concerns that emerged after the Trump administration proposed eliminating Energy Star in its fiscal 2026 budget request.
The agencies will hold bi-weekly meetings for the next three months and monthly check-ins as needed until the transition concludes 12 months after the plan's finalization, the document says. EPA will calculate how much of the fiscal 2026 funding — which Congress set at $33 million after the administration sought to zero-fund the program — remains unspent and will transfer those dollars to DOE through a reimbursable authority process or interagency agreement. If Congress appropriates fiscal 2027 funding to EPA rather than DOE, the agencies will use the same mechanism to move the money. DOE has demonstrated its ability to run effective public-private partnerships through its Better Buildings Initiative, launched in 2011, which has cut energy consumption by almost 4 quadrillion British thermal units, reduced water use by 25 billion gallons, and saved building owners more than $24 billion over its lifetime.
The plan emphasizes that "both EPA and DOE are committed to a successful transition and efficient continuity of operations for the program" and acknowledges that "the long-term success of the program depends on adequate funding." The document also addresses staffing concerns by incorporating recruitment into the first workstream, stating that "DOE will begin recruitment actions to staff the essential functions." Todd Sims, senior director of regulatory and industry affairs for the built environment at the National Electrical Manufacturers Association, told Facilities Dive the plan "included recognition that there's going to be the appropriate level of staffing," which he called "necessary for the long-term success of the program."
The transition comes after the Trump administration floated elimination of Energy Star by zero-funding EPA's Atmospheric Protection office, which houses the program, but Congress intervened by funding it at $33 million and requiring the administration to spend the money. The administration announced the move to DOE two months later. NEMA members, including commercial HVAC manufacturers like Trane and energy management companies like Schneider Electric, plan to raise the appropriations process in meetings with Congress later this month to ensure there won't be "any hiccups in this interim period," according to Sims. His organization's members are "very much on the record supporting the program as an overall benefit to the American taxpayer" and will emphasize the need for Congress to continue funding at authorized levels once the program lands squarely at DOE.
One open question is whether DOE can match EPA's outreach capabilities, which made the Energy Star label widely recognized among building owners, manufacturers, and municipalities. Sims credited EPA's success partly to its regional office system, which gives the agency the "ability to get into communities and push the program and build relationships." Still, DOE's track record with the Better Buildings program offers what Sims called "very good synergy" that's "built great relationships within the industry" and appears "very complementary to the Energy Star mission." The Green Building Initiative, a nonprofit that certifies building performance, echoed industry hopes that "the Department and Congress will be able to work together to smoothly transition ENERGY STAR appropriations to DOE to avoid program disruptions."