95% Furnace Efficiency Rule to Get New Hearing
DOE rules apply to gas-fired home furnaces, commercial water heaters
CASE REMANDED: The Supreme Court on June 8 ordered a federal appeals court to reconsider its decision to uphold U.S. Department of Energy efficiency mandates for gas-fired consumer furnaces and commercial water heaters.
A new U.S. Supreme Court decision forces the reconsideration of Department of Energy (DOE) energy-efficiency mandates that apply to gas-fired consumer furnaces and commercial water heaters.
In a brief statement issued Monday, the high court returned American Gas Association et al. v. Department of Energy et al., a legal challenge to the mandates, to the Court of Appeals for the District of Columbia Circuit and vacated that court’s earlier decision upholding the regulations.
The decision is a win for HVACR industry groups, which contend the mandates would essentially eliminate gas-fired non-condensing consumer furnaces and commercial water heaters, forcing building owners to replace older units with condensing units that would require costly and sometimes unfeasible building modifications because of their venting needs.
“The Supreme Court’s decision is the first step toward a responsible revision of the DOE’s regulation, which will allow our contractor members to help their clients make the best choice for their space-heating or hot water needs,” said Chuck White, vice president of regulatory affairs at the Plumbing-Heating-Cooling Contractors—National Association (PHCC).
“We are pleased to see the court and the federal government recognize that the original decision was flawed,” said Alex Ayers, vice president of government affairs at Heating Air Conditioning & Refrigeration Distributors International (HARDI). “Sending the case back to the lower court is a strong step toward ensuring this rule receives the scrutiny it warrants.”
The DOE mandates ban the manufacture and importing of non-weatherized gas home furnaces, and certain gas commercial water heaters, that have an annual fuel utilization efficiency (AFUE) of less than 95% (96% for tankless water heaters). For furnaces, the compliance date is December 18, 2028, while for commercial water heaters, the compliance date is Tuesday, October 6, of this year.
In petitioning the Supreme Court to return the case to the appeals court, the American Gas Association (AGA) argued the DOE mandates would mean the altering of “performance characteristics” of furnaces and water heaters, which is prohibited by the Energy Policy and Conservation Act.
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DOE has proposed delaying implementation of the mandates while litigation continues.
HARDI and PHCC had filed an amicus brief with the Supreme Court in support of the AGA, and the trade groups got an assist from U.S. Solicitor General D. John Sauer, who petitioned the court in April to grant an order, called a writ of certiorari, returning the case to the appeals court.
White said he’s optimistic that the compliance dates will be extended, but added that overturning the mandates would be a “high bar.”
The best outcome would be for the mandates to be returned to DOE, which would then “engage stakeholders in a negotiated rulemaking,” White said.
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