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Calif, NY, Conn Sue Bush Admin Over Air-Conditioner Shift

WASHINGTON (Dow Jones)--California, New York and Connecticut are suing President George W.  Bush's administration for rolling back U.S. energy efficiency standards on central air conditioners.

Attorneys general for the three states filed suit Tuesday in the U.S.  District Court in Manhattan, arguing the Bush administration may have broken the  law when it repealed a central air conditioning energy efficiency rule issued by former President Bill Clinton's administration.

"This is a time when the federal government should be doing everything possible to encourage the efficient use of energy," said New York Attorney General Eliot Spitzer. "Instead, the Bush administration has dramatically  weakened one of the most effective ways to conserve energy."

The previous standard, which had been due to take effect in February 2001, would have required central air conditioning units to be 30% more  efficient.

The plaintiffs say the 1987 National Appliance Energy Conservation Act signed by then-President Ronald Reagan includes a "no rollback" clause that  prevents any weakening of the energy efficiency standard. That clause calls into  question the current administration's repeal of a Clinton administration rule already published in the Federal Register, they say.

Under a White House directive to reconsider rules issued in the waning days of the Clinton presidency, the Department of Energy reviewed the 30% energy efficiency improvement target and indicated in April it would be seeking a  less-stringent target for a 20% improvement.

California Attorney General Bill Lockyer said the Bush administration is making it harder for Californians trying to conserve energy during the state's power crisis.

Connecticut Attorney General Richard Blumenthal said Bush's Department of Energy is "abandoning energy efficiency and consumer interests in favor of special interests in the air conditioning and energy industries."

The plaintiffs cite federal government estimates that the higher standard for central air conditioning would save consumers $1 billion over 25 years, avoid construction of 39 power plants and cut greenhouse gas emissions.

The lower standard proposed by the current administration would reduce these savings by a third, they say.

The Natural Resources Defense Council, the Consumer Federation of  America, the Association for Energy Affordability and the Public Utility Law  Project filed a similar suit Tuesday in Manhattan's U.S. District Court.

Central air conditioning, which comes with 80% of new homes, currently costs up to $5,000, the plaintiffs said. The higher-efficiency standard Bush  repealed would increase the cost by up to $340, an amount that would be totally offset in the first five to seven years of the systems' 20-year lives, they  said.

The plaintiffs claimed support from Goodman Global Holding (X.GMM),  maker of Amana-brand products and the second-largest residential air  conditioning manufacturer. "The technology to improve energy efficiency of air  conditioners has been around for over 15 years," said company president John  Goodman.

Goodman has broken ranks with the industry's trade association to ask  for the 30% improvement standard.

Air conditioning is the largest single source of U.S. electricity demand on hot summer days.