The legislation that was adopted on a roll-call vote of 52 to 47 replaced language in the bill which called for a 30 percent increase in efficiency. Grassley said this was the wrong standard and would have done more harm than good.
"It's obviously important that we increase the efficiency of appliances like air conditioners, but we need to make sure that the new standards make things better and not worse," he said. "The Energy Department is ready to use its authority to issue a new efficiency standard of 20 percent. This change would save the maximum energy possible without harming elderly and low-income consumers because it accurately reflects how air conditioners are used."
The Energy Department's proposed 20-percent efficiency increase would save consumers $2.6 billion over the life of a typical home air conditioner. In contrast, if the standard in the bill sponsored by Sens. Tom Daschle of South Dakota and Jeff Bingaman of New Mexico had been increased to 30 percent, experts say the change would have cost consumers $600 million.
Grassley said the 30-percent increase could also have resulted in lost jobs in appliance manufacturing in Iowa and other states. "If the cost of air conditioners was forced up too high, it's logical that consumers would repair older, less efficient appliances and hold back on new purchases. As a result, sales of new, energy-efficient air conditioners would decrease substantially and more than 1,000 jobs at Lennox's Marshalltown manufacturing facility would be jeopardized," Grassley said.
"While many of our customers can afford the higher SEER air conditioners, some cannot. This amendment is a win for all of us ? the manufacturer, the dealer, but most importantly, the consumer," said Bob Schjerven, CEO of Lennox International Inc.
Grassley sponsored the bipartisan air conditioner efficiency amendment with Sens. Tom Harkin of Iowa, Thad Cochran of Mississippi, and Blanche Lincoln of Arkansas.