The U.S. government is rolling back several federal energy-efficiency programs amid rising fuel costs and increasing electricity demand, a move drawing criticism from energy experts. This shift comes as oil prices climb due to geopolitical tensions involving Iran, and as climate change drives record heat, heightening demand for air conditioning. Additionally, expanding data center infrastructure is placing further strain on the nation’s electricity supply.

Since the 1970s, successive administrations have implemented regulations aimed at improving the energy efficiency of vehicles, buildings, and appliances to address energy scarcity and reduce emissions. These standards have traditionally helped consumers save money over time by lowering energy use despite higher upfront product costs.

Christine Egan, CEO of CLASP, a nonprofit organization focused on energy efficiency policies, described the rollback as “oddly timed,” noting that higher energy prices and demand would typically incentivize greater efficiency. The relaxation of standards, she said, risks increased electricity consumption and higher gasoline use at a time when energy costs are rising faster than inflation. Currently, gasoline averages around $4 per gallon nationwide.

The Trump administration has characterized the nation as facing an “energy emergency,” citing concerns about meeting growing power needs, including those of data centers supporting artificial intelligence development. Officials have emphasized that their priority is to increase energy production through oil, natural gas, coal, and nuclear power, rather than limiting consumption through efficiency measures.

Ben Dietderich, a spokesperson for the Energy Department, affirmed that the administration is focused on expanding affordable, reliable, and secure energy supplies. President Donald Trump has long criticized energy conservation regulations, arguing they restrict consumer choice and negatively affect appliance performance.

Over the past year, the administration has moved to rescind requirements that appliances such as washing machines meet stricter standards for electricity and water use. Additionally, fuel-economy regulations for new vehicles have been loosened, reversing efforts to raise efficiency targets.

Critics warn that these rollbacks could lead to higher overall energy consumption and increased carbon emissions, conflicting with long-standing goals to reduce environmental impact while addressing energy challenges. Supporters contend that expanding domestic energy resources is necessary to maintain economic growth and energy security in the face of evolving technological and market demands.