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HVAC ContractingNewsBusiness ManagementRegulatory Update

Cruz Leads Senate Effort to Shut Down Furnace Rule

By Kyle Gargaro
Ted Cruz.jpg

Sen. Ted Cruz (R-Texas) on Feb. 1 introduced a disapproval resolution under the Congressional Review Act (CRA) in an effort to push back against the DOE’s final rule on gas furnace efficiency standards.

Photo courtesy of the office of Sen. Ted Cruz

February 5, 2024

U.S. Sen. Ted Cruz, a Republican from Texas, is looking to help HVAC contractors and push back against the U.S. Department of Energy’s (DOE) final rule on gas furnace efficiency standards.

Under a rule recently issued by the DOE, newly manufactured indoor residential gas furnaces will have to be at least 95% efficient starting in late 2028.

The rule will effectively ban the sale of non-condensing gas furnaces and, according to the American Gas Association (AGA), will affect 55% of U.S. households. DOE’s own data shows that 30% of senior-only households, 26% of low-income households, and 27% of the owners of small businesses will face higher costs as a result of the new regulation, AGA said. Among households with mobile home gas furnaces, 39% will be negatively affected by the standard, according to the DOE analysis.

Cruz on Feb. 1 introduced a disapproval resolution under the Congressional Review Act (CRA) in an effort to push back against the DOE’s final rule on gas furnace efficiency standards. In a press release, the senator said he was concerned this rule was “coercing a majority of American households to adopt electric heat pumps or pay thousands of dollars to renovate their homes to meet the requirements of new residential gas furnaces.”

ACCA CEO Bart James said he appreciated the support.

“On behalf of the Air Conditioning Contractors of America and our membership, we sincerely thank Senator Cruz and his colleagues for spearheading the effort to overturn this misguided rule that would negatively impact our industry and drastically reduce consumer choice in the residential heating market,” James said. “This resolution aligns with our strong belief that consumers and America’s HVAC contractors should have access to whatever products and fuel sources best fit their specific needs.”

Upon introducing the resolution, Cruz said, “This administration doesn’t care that their radical climate agenda will have a catastrophic impact on American families and small businesses. Eliminating all non-condensing natural gas furnaces will only serve to further hurt families who are already struggling to get by. I’m committed to doing everything in my power to push back against this rule that puts the radical left’s fringe climate agenda before the needs of the American people.”

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Sen. Cruz was joined by Sens. James Risch (R-Idaho), Cynthia Lummis (R-Wyo.), Dan Sullivan (R-Alaska), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Pete Ricketts (R-Neb.), Mike Crapo (R-Idaho), Rick Scott (R-Fla.), Shelly Moore Capito (R-W.Va.), Roger Wicker (R-Miss.), Marsha Blackburn (R-Tenn.), Ron Johnson (R-Wis.), James Lankford (R-Okla.), Mike Lee (R-Utah), Steve Daines (R-Mont.), Chuck Grassley (R-Iowa), Cindy Hyde-Smith (R-Miss.), John Hoeven (R-N.D.), Mike Braun (R-Ind.), Markwayne Mullin (R-Okla.), Katie Britt (R-Ala.), J.D. Vance (R-Ohio), Eric Schmitt (Mo.), Kevin Cramer (R-N.D.), Deb Fischer (R-Neb.), Tommy Tuberville (R-Ala.), Mike Rounds (R-S.D.), Roger Marshall (R-Kan.), and Lindsey Graham (R-S.C.) in introducing the resolution. Rep. Michelle Fischbach (R-Minn.) introduced a companion resolution in the House of Representatives alongside Rep. Pat Fallon (R-Texas).

On Dec. 18, the AGA joined other trade associations in filing a court challenge to the DOE furnace rule.

“AGA has attempted to work with the Department of Energy to address the rule’s profound impacts on consumers and homeowners with a solutions-oriented approach to energy conservation that protects consumers and ensures continued availability of low-cost, low-emission natural gas furnaces. Unfortunately, our 114 pages of comments have been summarily ignored,” said AGA president and CEO Karen Harbert. “This ruling from DOE will push American families with natural gas heat into a corner — when their furnace goes out, they’ll be forced to choose between retrofitting for electric with the increased month-to-month utility bills that entails, or engaging in a costly and time-consuming renovation to retrofit their home for a completely different type of natural gas furnace. Either way, American families and businesses will be saddled with increased costs with little environmental gain.”

The Heating, Air-Conditioning &Refrigeration Distributors International (HARDI) also appreciates what Cruz is attempting.

“HARDI and our member distributors support customer choice in how they heat their homes. The Department of Energy’s recent ruling to mandate condensing furnaces in all applications, including increasing the costs of retrofitting existing homes, hurts consumer choice. HARDI supports Senator Cruz’s efforts to protect consumers by using the Congressional Review Act in the way it was intended by stopping regulatory overreach by executive agencies,” said Alex Ayers, vice president of government affairs for HARDI.

KEYWORDS: condensing furnaces Department of Energy (DOE) energy efficiency furnace efficiency furnace standards high-efficiency furnace regulations for HVACR

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Headshot gargaro kyle
Kyle Gargaro is Editorial Director & Associate Publisher of The ACHR NEWS. He can be reached at 248-244-1720 or kylegargaro@achrnews.com. Gargaro has been with The ACHR NEWS since 2004, first as Legislation Editor, then Managing Editor, and now as Editorial Director & Associate Publisher. He holds a bachelor’s degree in Journalism.

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