The opposition did not back down. The National Resources Defense Council (NRDC), along with 10 states and consumer groups, countered with a lawsuit against the DOE ruling, claiming the department had not followed proper procedures in the adoption of its 12 SEER rule.

In its Jan. 13 decision, the New York appeals court said, "the May 23, 2002 replacement standards [12 SEER rule] were promulgated in violation of that section [42 U.S.C. 629(o)(1)] because DOE failed to effect a valid amendment of the original standard's [13 SEER] effective date, and as a consequence was thereafter prohibited from amending those standards downward."

"The judge threw out the 12 SEER ruling because he said the 13 SEER rule was already published and it couldn't change," said Ben Lieberman, senior policy analyst for the Washington-based Competitive Enterprise Institute (CEI). "But the court did say that the separate challenge brought by ARI on the merits of 13 SEER could go forward."

Not all agreed with ARI's position in backing the 12 SEER standard. For instance, the American Council for an Energy-Efficient Economy (ACEEE) was one vocal association that welcomed the court's decision.

Challenge Withdrawn

In the end, after weighing the pros and cons, ARI opted to withdraw its challenge to the 13 SEER standard on March 17.

"Due to the likelihood of a long and uncertain legal process, ARI will no longer pursue litigation in the U.S. Court of Appeals for the Fourth Circuit in Richmond, Va., so that manufacturers can prepare for a new, 13 SEER national minimum efficiency standard for residential air conditioners and heat pumps that will go into effect on Jan. 23, 2006," wrote Sutton. He noted that time was not on the association's side.

"Manufacturers face significant challenges in meeting the deadline for the 13 SEER standard, which is less than two years away," he said. "The industry needs to know with certainty what the standard will be in order to meet the needs of the marketplace.

"Because of the approaching effective date and the uncertainty of the court action, ARI has withdrawn its request for review of the 13 SEER rule by the U.S. Court of Appeals for the Fourth Circuit in Richmond, Va."

The current 10 SEER standard, which went into effect in 1992, remains the national minimum efficiency standard until Jan. 23, 2006. Equipment manufactured after that date must meet the 13 SEER standard.

Most unitary manufacturers sought 12 over 13, but now all are now focused on 13, as are contractors. "The manufacturing community is unified today on the 13 SEER standard and ... we have the wherewithal to meet it in a cost-effective manner," said Tom Huntington, president, York International Corp., Unitary Products Group, Norman, Okla.

In light of the court's decision, manufacturers have stepped up efforts to educate contractors and consumers on total home comfort systems that include not just higher-efficiency condensers and coils, but other components such as better filtration, humidity control, zoning, and control systems designed to deliver better indoor air quality.

Many contractors said they do not foresee any disruption in business as the deadline approaches and less-efficient equipment becomes unavailable. This is not to say that contractors in general do not have concerns about the marketplace once the new minimum standard is in place.

For instance, the price of some high-efficiency units may drive some of those rental property owners "to shop us out at that point," noted Jerry Johnson, sales manager for retrofit residential at Wycoff Industries, Des Moines, Iowa. On the other hand, individual homeowners who plan to stay in their homes can be upsold to the 13- or 14-SEER range, he said.

Publication date: 12/27/2004