Lighting Industry Trends
Released: 2014-08-21T00:00:00

Summary:
More than 4 billion incandescent light bulbs (sometimes referred to as "lamps") are in use in the United States. The basic technology in these bulbs has not changed substantially in the past 125 years, despite the fact that they convert less than 10% of their energy input into light. Improving light bulb performance can reduce overall U.S. energy use. About 20% of electricity consumed in the United States is used for lighting homes, offices, stores, factories, and outdoor spaces. Lighting represents about 14% of residential electricity use.
The Energy Independence and Security Act of 2007 (EISA, P.L. 110-140) imposed higher efficiency standards for manufacturers and importers of general use, screw-base light bulbs commonly used in residential fixtures, that began January 1, 2012. EISA did not ban incandescent light bulbs. Instead, the law mandated that bulbs manufactured or imported after phase-in dates specified in the bill meet higher efficiency standards—about 25%-30% more efficient on average. The law allows industry to determine which products best meet those requirements. On December 23, 2011, President Barack H. Obama signed the Consolidated Appropriations Act, 2012 (P.L. 112-74). Title III of the law provided FY2012 appropriations for the Department of Energy (DOE), including language barring use of any DOE funds to enforce the lighting standards. That prohibition remains in effect.
Lawmakers have cited several reasons for efforts to delay or repeal the law, including consumer concerns about lack of access to affordable incandescent light bulbs, and reports that companies have shut down incandescent bulb factories because they could not afford to retool to make more efficient products. While DOE predicts that energy-efficient alternatives such as compact fluorescent bulbs (CFLs) and light-emitting diodes (LEDs) will gain a larger U.S. market share after EISA is implemented, it also forecasts that incandescent bulbs will be widely available, and widely used, for years to come. U.S. and foreign manufacturers have developed higher-efficiency halogen incandescent bulbs, available at retailers, that meet the law's minimum standards for 25%-30% electricity savings (compared to 75%-80% savings from CFLs and LEDs) and are competitive in price.
The Obama Administration and major lighting companies oppose efforts to repeal the 2007 law, noting that the industry has invested billions of dollars to prepare for the new standards and develop next-generation lighting. The new light bulb standards are taking effect at a time when the lighting industry, due to advances in LED products that often exceed EISA standards, is undergoing the most sweeping technological changes in decades. The LED industry is producing not just more efficient bulbs, but integrated fixtures that can be specially programmed to emit differing colors and types of light and have other potential applications.
DOE has been funding solid state lighting research projects to bolster the LED industry, which is already the fastest-growing part of the global lighting market. Some analysts project that LEDs will make up at least half the global lighting market by 2020, driven by technical breakthroughs and enhanced demand from energy-efficiency laws in the United States and other nations. Some lighting executives argue that repealing EISA could undercut LED manufacturing efforts, where U.S. companies have a technological edge. The vast majority of the incandescent and CFL light bulbs Americans now use are imported from China and Mexico. China and other countries are investing heavily in LED production.

subsections: section_title: Introduction
paragraphs: More than 4 billion incandescent light bulbs (technically referred to as "lamps") are in use in the United States. The basic technology in these bulbs has not changed substantially in the past 125 years, despite the fact that they convert less than 10% of the energy they use into light. Improving light bulb performance can reduce overall U.S. energy use. As much as 20% of the electricity consumed in the United States is used for lighting homes, offices, stores, factories, and outdoor spaces. Lighting represents about 14% of all U.S. residential electricity use. 
In the Energy Independence and Security Act of 2007 (EISA, P.L. 110-140 ), Congress imposed higher efficiency standards for manufacturers and importers of general use, screw-base light bulbs commonly used in residential fixtures, beginning on January 1, 2012. The Department of Energy (DOE) estimates that the federal lighting standards should reduce energy use for lighting per household in 2020 by 33% below the 2009 level. DOE has also estimated that the more energy-efficient bulbs, some of which are estimated to last 10 to 20 times longer than conventional bulbs, could save consumers nearly $6 billion in 2015 alone, when the law is fully phased in—taking into account the initial price of the bulbs, their expected life, and electricity costs.
EISA did not ban incandescent light bulbs. Instead, the law mandated that bulbs manufactured or imported after phase-in dates specified in the bill meet higher efficiency standards—about 25%-30% more efficient on average. The law left it up to the lighting industry to determine what type of product best met those requirements. Energy-efficient alternatives such as compact fluorescent bulbs (CFLs) and light emitting diodes (LEDs) are expected to gain a larger U.S. market share after EISA is implemented, but government estimates project that incandescent bulbs will be widely available, and widely used, for years to come (see Figure 1 ). U.S. and foreign manufacturers have developed higher-efficiency halogen incandescent bulbs, available at many U.S. retailers, which meet the law's minimum standards for electricity savings. The total number of light bulbs purchased annually is forecast to decline in future years as technological advances increase the life of the products. 
The lighting provisions of EISA have created controversy, however. Opponents say the federal government should not mandate the type of light bulbs consumers should buy, or the market should produce. Previous lighting conservation efforts carried out by states and utilities have had limited success, in part, because people have not been satisfied with the quality of light produced by replacement products, mainly compact fluorescent bulbs (CFLs), and have been concerned about the fact that small amounts of mercury are contained in the bulbs. Consumers also have expressed concerns about possible lack of access to affordable light bulbs. The initial cost of CFL or LED bulbs can be substantially higher than conventional incandescent bulbs, even though they are cheaper in the long run due to long life and lower energy consumption. Some companies shut down domestic incandescent bulb factories rather than retool machinery to make more efficient products.
On the state level, Texas Governor Rick Perry in July 2011 signed HB 2510, to allow continued sale, within the state, of incandescent light bulbs produced in Texas even if they did not meet federal standards. South Carolina has been debating similar legislation: a bill was introduced in 2011 but died in the state Senate. Arizona passed a similar bill in 2010, which was vetoed by Governor Jan Brewer. By comparison in California, which began implementing the EISA standards a year early in January 2011, the California Energy Commission has reported no significant consumer complaints about cost or performance of replacement products. That may be in part because many stores in California still have stocks of traditional incandescent bulbs, purchased before the new standards went into effect. 
The House, by voice vote on July 15, 2011, passed an amendment offered by Representative Burgess to the FY2012 Energy and Water Development Appropriations Bill ( H.R. 2354 , Amendment 29) to prohibit DOE from using funding to implement and enforce the incandescent light bulb standards. On December 23, 2011, President Barack H. Obama signed the Consolidated Appropriations Act, 2012 ( P.L. 112-74 ). Title III provided FY2012 appropriations for DOE, including identical language to the Burgess amendment that bars the use of any FY2012 DOE funds to enforce the standards. Continuing resolutions for FY2013 and FY2014 kept the prohibition intact. For FY2015, the same prohibition was adopted into the House-passed Energy and Water Development Appropriations bill ( H.R. 4923 ). 
The DOE enforcement amendment may have only limited impact. The EISA provisions remain in effect. Executives of major lighting companies have said they will comply with the 2007 statute. Further, the funding limitation does not appear to curtail the ability of the FTC or state attorneys general, for example, to enforce provisions of the law.
Major lighting industry executives argue that outright repeal of the lighting provisions of EISA could undercut energy conservation efforts as well as efforts to manufacture next-generation products such as LEDs, where U.S. companies have a technological edge. Indeed, the standards are taking effect at a time when the lighting industry is undergoing another, revolutionary change. Venture capital is flowing into companies in the United States, and abroad, that are developing LED products. LEDs are not only more energy-efficient—most exceeding standards in EISA—but they allow the industry to devise integrated fixtures that can be specially programmed to emit differing colors and types of light for various needs. The technology also has potential for communications and other applications. The LED industry already is the fastest-growing part of the global lighting market, propelled by technological breakthroughs and higher demand spurred in part by energy-efficiency laws in the United States and other nations. Some analysts project that LEDs could make up about half the global lighting market by 2020. 
The Obama Administration opposed efforts to repeal EISA, noting that the industry has invested to prepare for the new standards and to develop next-generation lighting. Through various research and development, loan, and grant programs, DOE has invested millions of dollars into building the domestic LED manufacturing industry, noting that the U.S. lighting industry has lost "most, if not all, of its incandescent and CFL manufacturing to Asian countries in the last two decades," because it could not match production costs and other incentives offered by foreign governments. With the industry looking past existing technologies such as CFLs and halogen bulbs, LEDs present new U.S. manufacturing possibilities. LED technology already has reached a point where large and small manufacturers have access to investment capital and competition is fierce, but public policy could play an important role by stimulating demand, and providing research and development and startup assistance.
subsections: section_title: The Energy Independence and Security Act of 2007 (EISA)
paragraphs: EISA imposes higher efficiency standards for manufacturers and importers of screw-base light bulbs. On January 1, 2012, higher standards took effect for 100-watt bulbs. Tighter standards for 75-watt bulbs followed on January 1, 2013, and for 60- and 40-watt bulbs on January 1, 2014 (see Table 1 ).
While the law requires firms to cease producing or importing bulbs that do not meet the higher standards on the effective dates, it does not preclude manufacturers or retailers from selling existing inventory.
EISA also set standards for bulbs used in candelabra and so-called intermediate base bulbs (such as refrigerator and oven bulbs). At the request of industry, DOE announced a delay enforcing higher standards for those products by one year, to January 1, 2013. Another 22 types of bulbs are exempt from higher standards, including three-way light bulbs and black lights. Consumers could use some of these exempt bulbs as replacements for traditional incandescent bulbs (see Appendix ). In addition, DOE in 2009 issued higher efficiency standards for fluorescent tube lighting, commonly used in retail and industrial establishments, and incandescent reflector bulbs, which took effect in July 2012.
EISA directed DOE to initiate a rulemaking by January 1, 2014, to review and determine whether more stringent standards should be set for general service, screw-in light bulbs, which would take effect in 2020. The law requires DOE to consider using a minimum efficiency level of 45 lumens per watt, which could require general service bulbs to be at least 70% more efficient than existing incandescent bulbs. Most CFLs and LEDs already meet that standard.
The lighting industry has geared up to meet the first-tier standards, which began nationally in January 2012. Many of the higher efficiency screw-in bulbs available to consumers generally carry higher retail prices than conventional incandescent bulbs, though there is considerable variability among products. Consumers could save significant money over the life of many higher efficiency bulbs, however, because they use less electricity than incandescent bulbs and could last far longer than the bulbs they will replace. Nevertheless, high initial cost remains a concern for many consumers.
Several existing technologies would meet the EISA standards:
Halogen incandescent bulbs. A more efficient version of the standard bulb, this bulb contains a tungsten filament like a standard incandescent, but also a halogen gas capsule that allows it to emit more light with less energy. Halogen incandescent bulbs are about 25% more energy-efficient than traditional incandescent bulbs, according to DOE. The bulbs retail on average for about $1.50 each, compared to about 50 cents for an existing incandescent bulb. While the bulbs are more efficient, and some can last three times as long as traditional incandescents, others last only about as long as standard incandescent bulbs. According to one analysis, the total cost of halogen incandescent bulbs may be equivalent to that of regular incandescent bulbs over the total life of the product. Other analyses predict a small savings if retail prices for the bulbs decline. Compact fluorescent bulbs work by exciting electrons that strike phosphorus coatings. CFLs are about 75% more energy-efficient than traditional incandescent bulbs and burn an estimated 10 times as long. The CFLs have been around for decades, but have had difficulty gaining consumer acceptance because of complaints they emitted a harsh light, did not last as long as advertised, and were bulkier than incandescent bulbs. The bulbs contain traces of mercury, making disposal more difficult, though a number of retailers such as Home Depot recycle the product. The industry has improved CFLs, giving them a more traditional shape and warmer color of light, and has made some that are compatible with dimmable fixtures. CFLs can cost from $0.50 each in a multipack in a big box store to $9.99 in a single pack in an office supply store. Given their lower cost of operation and longer life, consumers could see a payback on the multipack CFL purchase price in less than a year and save $50 over a 10,000-hour life of a bulb. Light-emitting diodes, or solid-state lights, produce light when a current is passed through a semiconductor material. Viewed as a major breakthrough in lighting technology, LEDs are estimated to produce 75%-80% energy savings compared to traditional incandescent bulbs. LEDs can have an estimated lifetime of 50,000 hours or more, though durability varies depending on room placement, ambient temperature and other factors. Some LED products such as under-cabinet and Christmas tree lights are readily available in lighting and hardware stores. But LEDs have not yet made major inroads as replacements for incandescent screw-in bulbs due to their higher cost and a dearth of higher-wattage products. LEDs designed to replace conventional light bulbs can cost up to $20 per bulb, though prices are falling rapidly. In the summer of 2014, Home Depot carried a $20 screw-in LED that is the equivalent of a 100-watt bulb. Similarly, 60-watt equivalent bulbs were selling for $16 and 40-watt equivalent bulbs were selling for $14. In terms of reduced cost of operation, LEDs would have to fall to near $5 per bulb for consumers to see a payback in less than a year. 
Retailers and DOE are providing consumer information about the replacement bulbs, as are the media. EISA directed the Federal Trade Commission to examine the effectiveness of light bulb labeling. In response, the FTC crafted a new packaging label for light bulbs. The label, which resembles the nutrition label on food, includes information on brightness, the estimated yearly cost of using the bulbs, the expected life of the product, the color of light produced and the mercury content, if any. The labels, as well as second-tier standards to be issued in 2020, focus on lumens—a measure of brightness—rather than wattage, which is a measure of energy use (see Figure 2 ). 
Some analysts note that the FTC label does not readily help consumers compare wattage on new products to former products, which would allow them to more easily buy an efficient bulb that is equivalent to an incandescent 60-watt bulb. Current bulbs can also emit a dimmer light than the bulbs they are replacing because of the lumens range allowed in the regulations. Some analysts worry that consumers will trade up to a higher wattage-equivalent bulb to increase brightness, undercutting potential energy savings of the law.
section_title: U.S. Lighting Industry
paragraphs: The Energy Information Administration estimates that, in 2010, residential and commercial consumers used about 507 billion kilowatt-hours (kWh) of electricity for lighting—about 13.5% of total U.S. electricity consumption. Residential lighting consumed about 207 billion kWh, or about 14% of all residential electricity use. Commercial users, which include commercial and institutional buildings and public street and highway lighting, accounted for nearly 300 billion kWh, or about 22% of commercial electricity consumption. In addition, EIA's most recent data indicate that manufacturing lighting was about 2% of total U.S. electricity use in 2006. 
Incandescent bulbs have traditionally been used for about 85% of household lighting. In the office, commercial, and industrial sector, however, the majority of light is provided by fluorescents—mainly the long tubes found in ceiling fixtures. Overall, in 2009 conventional incandescent bulbs provided about 12% of the total light delivered in the United States. 
The $11 billion U.S. lighting industry includes companies that produce light bulbs, component parts, and light fixtures for residential, commercial, and industrial use. Major international companies manufacturing lighting or lighting components in the United States include Philips Lighting, GE, and Osram Sylvania. (For information on LED manufacturing see " Next-Generation LEDs .") Prominent lighting fixture and equipment manufacturing companies include Hubbell Lighting, Cooper Lighting, Juno Lighting Group, and Acuity Brands. 
The National Electrical Manufacturers Association (NEMA) in 2010 estimated there were 12,000-14,000 U.S. jobs in light bulb manufacturing, marketing, and research and development. The U.S. lighting industry—including light bulb, component, and fixture production—has shrunk, both in output and employment, during the past several decades due to heightened competition from abroad, including lower-cost production in China and Mexico (see Table 2 ). 
Some companies, such as GE, have closed U.S. factories that made incandescent bulbs due to global competition, changing federal and state energy standards, and other factors that rendered the plants obsolete. The consolidation has been occurring for some time. GE announced in 2007 that it would close a number of plants in the United States and Brazil. The company noted in its announcement that demand for traditional incandescent bulbs had been falling for years: "The market for traditional household incandescent light bulbs has declined by half over the past five or so years, according to data from the National Electrical Manufacturers Association. This has created considerable overcapacity, rising costs and inefficiencies across our manufacturing system."
At the same time large lighting manufacturers are closing facilities, some are opening or refitting others to manufacture more competitive products. Osram Sylvania, which has U.S. facilities in New Hampshire, Illinois, Pennsylvania, and Kentucky, has refitted a factory in St. Marys, PA, to make halogen incandescent bulbs. GE closed plants in North Carolina and Virginia, but has invested $60 million to expand a facility in Ohio, including increasing fluorescent lighting production. GE and Philips are making some components for halogen incandescent bulbs in the United States. It is not possible from publicly available data to determine all the factors contributing to manufacturers' decisions to close certain production facilities, but lighting standards appear to be only one issue.
Most of the incandescent and CFL bulbs used in the United States are imported. Light bulb imports, as a share of U.S. consumption, more than doubled from 1989 to the mid-2000s, according to one analysis. The United States in 2010 imported $6 billion more in lighting products than it exported, with China accounting for 65% of imports, while Mexico was second with 13%.
Between 1996 and 2007, Chinese production of CFLs rose 30-fold, making it the world leader in production and exports. China's rapid expansion has led to questions about quality, with U.S. Agency for International Development working with China on product and safety quality controls such as more stringent oversight, heightened control of hazardous substances such as mercury, and better supervision of product distribution.
Separately, there is a significant public-private partnership underway to encourage U.S. LED manufacturing (see " Next-Generation LEDs ").
EISA was intended to both improve energy efficiency and rationalize manufacturing by setting uniform, national light bulb standards. The NEMA, which represents 95% of U.S. lighting manufacturers, in 2007 testimony to the Senate Energy and Natural Resources Committee, endorsed the light bulb proposals, saying that federal standards were needed to keep the industry competitive and to limit uncertainty as states and foreign governments moved to impose higher efficiency standards. The group pointed out that Connecticut, Rhode Island, California, and Nevada were among states that at that time were considering laws or regulations to impose more stringent, and possibly conflicting, lighting energy-efficiency standards. California in 2007 passed AB 1109, which requires a 50% increase in efficiency for residential general service lighting by 2018. In addition to state activity, Australia, the European Union, and Canada are among countries and regions that have upgraded lighting standards, another factor shifting world production toward more efficient products. NEMA reaffirmed its support for the federal law in March 2011 testimony to the Senate Natural Resources and Energy Committee. While some other industry officials voiced support for the light bulb standards at that hearing, a longtime lighting designer opposed the standards, saying the energy savings would not be as high as forecast, consumer costs could rise, and the law took away consumers' freedom of choice.
section_title: Energy Savings and Consumer Acceptance
paragraphs: DOE predicts that the lighting provisions of EISA will reduce energy use and provide cost savings to consumers. U.S. primary energy consumption could fall by 21 quadrillion British Thermal Units (BTU) and greenhouse gas emissions could decline by 330 million metric tons over the next 30 years. 
Those forecasts depend on factors including consumer choice of bulb, which in turn depends on variables like purchase price and product satisfaction. Other considerations in terms of total energy savings include whether more efficient bulbs are placed in high usage areas of a home, and whether the bulb actually meets forecasts for efficiency and longevity. 
Experience shows that it can be difficult to get consumers to embrace new lighting products. Significant energy savings can be realized only when there is widespread acceptance of energy-saving technology. That has been the case with CFLs, which have been on the U.S. market since the 1970s. States and utilities have promoted CFLs as part of programs to reduce energy use. Some utilities gave CFLs to customers at no cost, while others provided millions of dollars in subsidies for purchase of the products. American consumers increased purchases of CFLs, as shown by import and usage data ( Figure 1 and Figure 2 ), but still used incandescent bulbs for most of their lighting, citing factors including the higher price for the CFLs and concerns about light quality and mercury contained in the products. 
CFL sales declined in 2009 to 272 million units, from 397 million units in 2007. The recent decline may be due to a number of factors. Sales figures may have been affected by the recession, which made consumers less likely to switch to bulbs with a higher up-front cost. Shipments may also be affected by the fact that CFLs last longer, meaning consumers do not buy as many bulbs. Also, some subsidy and promotion programs ended. 
The lighting industry appears to have responded to consumer concerns by producing a range of replacement options for traditional incandescent bulbs. U.S. and foreign manufacturers have developed higher-efficiency halogen incandescent bulbs, available at many retailers, that meet the requirements for 25%-30% energy savings and may overcome some consumer reluctance to embrace energy-saving lighting technologies such as CFLs. Indeed, energy savings under EISA could be near the low end of DOE projections if halogen incandescent bulbs, which sell for a price near that of conventional incandescent bulbs, turn out to be consumers' main replacement choice. In addition, EISA exempts a number of commonly used incandescent bulbs from efficiency standards. Some of the exempted bulbs can also be used as replacements for standard incandescent products, which would negate some potential energy savings from more efficient technologies (see Appendix ). 
section_title: Next-Generation LEDs
paragraphs: The lighting sector is going through another potentially historic transformation with advances in LED technology. LED efficiency depends both on the light source and the fixture in which it is placed. Depending on the package, some LEDs can be about 10 times as efficient as incandescent bulbs and as much as twice as efficient as CFLs. Solid-state lighting, a semiconductor-based technology that coverts electrical energy into light, is already the fastest-growing part of the global lighting industry and is expected by some analysts to make up one-third of the U.S. lighting market, on a unit basis, and three-fourths of the market, on a revenue basis, by 2015. Solid-state lighting has been adopted by industry, commercial businesses, and municipalities, with the main applications currently in electronics such as TVs, computers and smart phones, traffic lights and auto tail lights. LEDs are starting to move into the residential market. While 40-watt and 60-watt equivalent replacement bulbs appeared in the marketplace during 2013, products at higher 75-watt and 100-watt equivalent levels just began to appear during the spring and summer of 2014. 
Retail prices of LEDs are still much higher than for traditional incandescent bulbs, but are falling. Since the late 1960s, LED light output has increased by a factor of 20 each decade, while the cost per lumen has fallen by a factor of 10. The industry projects similar or faster cost reductions going forward. With technology advancing, some analysts project that general use LED bulbs could fall to a price of $5 within 10 years. However, because LED prices are still significantly more than for other replacements for incandescent lamps, consumer adoption initially could be limited.
The development of LED technology and markets is a global pursuit. Major companies investing in the LED arena include Philips Lighting, GE, and Osram Sylvania. Among U.S. companies are Cree of North Carolina; the Lighting Science Group in Florida; Feit Electric of California; Switch of California; Vu 1 lighting in New York; and Bridgelux in California. The firms are competing with start-up companies and established manufacturers like Toshiba and other foreign firms. U.S.-based manufacturers Cree and Philips Lumileds together have about 11.5% of worldwide LED production.
The North American LED bulb market is expected to grow from $3.6 billion in 2010 to more than $11 billion in 2015, partly due to stricter lighting efficiency standards that are being introduced in the United States, Canada, and Mexico, according to analysts. In 2010, global LED production had a projected value of $9.9 billion. Global value could reach $18 billion by 2015. Major LED manufacturing nations are shown in Figure 4 .
LEDs magazine, which produces an annual guide to solid state lighting industry suppliers, lists hundreds of affiliated makers and suppliers in the United States. The companies run the gamut from semiconductor producers to specialty firms that make hospital and other lighting. Another lighting technology under development is organic light-emitting diodes, or OLEDs, where light is produced by a chemical reaction. The OLED technology is used in commercial electrical appliances such as color display screens. 
While the lighting market has been divided between companies producing light bulbs and companies producing fixtures, the two sectors will become more integrated if LED usage expands as forecast. According to DOE: 
The ultimate value of SSL [solid state lighting], including its energy efficiency potential, is not in the production of replacements for incandescents or CFLS, but in the development of integrated luminaires that serve a particular function. Fixtures and even replacement lamps must be specifically designed to accommodate light-emitting diode (LED) light sources properly; failure to do so will result in poorly performing, unreliable products.
subsections: section_title: Barriers and Concerns
paragraphs: As with the introduction of CFLs, there are potential barriers to consumer acceptance of LEDs. Testing by DOE and others has found variations in product performance. For example, a recent article notes that China's manufacturing capacity—which now accounts for more than 30% of world LED production capacity—puts out products that often have problems with light quality and short lifetimes.
The outlook for U.S. manufacturing is unclear. China and other countries are offering tax breaks and other incentives to lure existing companies. China is also expanding production of its domestic industry. The rapidly changing nature of products and technology is another factor affecting profitability. LED firm Cree in its 2011 Annual Report noted that the industry is "in the early stages of adoption and is characterized by constant and rapid technological change, rapid product obsolescence and price erosion, evolving standards, short product life-cycles and fluctuations in product supply and demand."
China has not only invested heavily in LED production, but is a chief supplier of rare earth minerals needed to produce LEDs. The cost and availability of materials used for fluorescent and LED bulbs, including phosphorus and gallium, is a potential issue going forward.
section_title: Federal R&D Efforts for LEDs
paragraphs: DOE has been working with private industry to foster U.S. LED manufacturing. The Energy Policy Act of 2005 ( P.L. 109-58 ) created the Next Generation Lighting Initiative to support research, development, and commercial application of LED technology. DOE has used its authority under the 2005 law to develop a commercialization plan and is funding eight LED manufacturing projects designed to reduce costs and improve products.
EISA directed DOE to have the National Academy of Sciences prepare a report on the status of advanced solid state lighting (SSL) technology. Published in 2013, the report made a wide range of technological and policy findings. The technology findings include: LED and organic LED (OLED) efficiency and performance are limited by materials issues; the development of robust OLEDs requires R&D on degradation resistance and materials to extend the operational lifetimes; and technological and manufacturing breakthroughs are needed to make LED-based luminaires and lamps with high efficacies with prices lower than those for fluorescent fixtures. The policy findings include: DOE's SSL program should be increased (if possible); DOE should seek 50% cost sharing for manufacturing projects; and DOE should lead a study that evaluates the effectiveness of lighting efficiency incentives.
DOE also used funds from the American Recovery and Reinvestment Act of 2009 for LED manufacturing research and development, with the goals of improving domestic efficiency and avoiding "the loss of technological expertise, intellectual property and manufacturing jobs to other countries." Other efforts include improving the consistency and quality of LEDs through DOE's Commercially Available LED Product Evaluation and Reporting program, known as CALiPER. 
Another federal law that helped spur energy-efficient lighting was the Commercial Building Tax Deduction Program. It provided incentives through 2013 for energy-efficiency measures including lighting equipment. The program covered new construction and upgrades to existing buildings. So-called green building is the fastest-growing part of the construction industry, including Leadership in Energy and Environmental Design (LEED) building criteria that focus on site, water, energy, materials, and indoor environment.
section_title: Looking Forward
paragraphs: The lighting industry has spent billions of dollars to meet the requirements of EISA and to advance LED research and development. The rapid technological pace of change in an industry that largely relied on incandescent technology for more than 100 years has created some unease among businesses, lawmakers, and consumers about product availability and cost; possible job loss; and more broadly about the role of government in mandating consumer product choices.
Congress has a long-established record in the energy-efficiency area. The recent lighting standards are one in a series of home appliance and commercial equipment standards mandated by Congress to reduce overall energy use. The EISA lighting provisions, in concert with tighter standards in other countries, are helping to spark increased demand for new, more efficient products worldwide. Industry analysts add, however, that many changes now underway in the U.S. lighting industry would have occurred without EISA because of existing requirements in other countries and the pace of LED technology developments. 
Early indications are that the lighting industry has developed a range of products, including halogen incandescent bulbs, that meet the EISA efficiency standards and are widely available at a price point close to that of conventional incandescent bulbs. Consumers will have more and possibly confusing choices about purchasing replacement light bulbs, some of which are likely to perform better than others. 
Going forward, one major question is how much LED manufacturing will stay in the United States. U.S. manufacturers have been moving operations overseas for decades to capture lower production costs and secure necessary materials. Long-term manufacturing trends are unclear given major efforts in China and other Asian countries to increase production (see Figure 4 ). Industry officials have called for an expanded federal-business effort to build LED fabrication facilities and increase domestic capacity and have warned that delaying the EISA implementation could reduce energy savings and delay the transition to next-generation lighting products.
subsections: section_title: Appendix. Lamp Types Exempted from EISA
paragraphs: EISA exempts 22 types of traditional incandescent bulbs, or lamps, from the energy-efficiency standards. DOE will monitor sales of these exempted products as the legislation is implemented. If any one of the exempted lamp types doubles in sales, EISA requires DOE to establish an energy conservation standard for the particular bulb type. The provision is designed to ensure that none of the exempted products take market share from bulbs affected by the new efficiency standards.
Appliance lamp Black light lamp Bug lamp Colored lamp Infrared lamp Left-hand thread lamp Marine lamp Marine's signal service lamp Mine service lamp Plant light lamp Reflector lamp Rough service lamp Shatter-resistant lamp (including shatter-proof & shatter-protected) Sign service lamp Silver bowl lamp Showcase lamp 3-way incandescent lamp Traffic signal lamp Vibration service lamp G shape lamp (as defined in ANSI C78.20-2003 and C79.1-2002) with a diameter of 5" or more T shape lamp (as defined in ANSI C78.20-2003 and C79.1-2002) and that uses no more than 40W or has a length of more than 10"
B, BA, CA, F, G16-1/2, G-25, G-30, S, or M-14 lamp (as defined in ANSI C78.20-2003 and C79.1-2002) of 40W or less.