The U.S. Department of Energy proposed an energy efficiency rule for furnaces that has been in the making since at least 2007 and drawn opposition from the natural gas industry, which worries it would make gas-powered furnaces uneconomic and push consumers to electric heating options.
The new rule would require nonweatherized gas furnaces and furnaces in mobile homes to achieve an annual fuel utilization efficiency, or AFUE, of 95%, the DOE said in a June 13 press release. The DOE established the current AFUE standard of 78% in 1992 and proposed a minimum AFUE of 92% in 2015.
Most furnaces capable of achieving a 90% or greater AFUE are condensing units, which capture and utilize heat that would otherwise be vented outside the building. Many furnaces installed in U.S. homes today are noncondensing units.
Switching to a condensing unit would save the typical American $60 per year in utility bills, or $1.9 billion annually for all consumers, according to the DOE. Over 30 years, the rule will reduce carbon and methane emissions by 373 million tonnes and 5.1 M/t, respectively, equal to the annual emissions from 61 million homes, the DOE said.
"These efficiency measures not only reduce carbon and methane emissions, but also provide huge material benefits to American households in the form of cleaner air, modernized technology, and cheaper energy," U.S. Energy Secretary Jennifer Granholm said.
Proposal aligns with other Biden policies
The rule would not go into effect until 2029 if it were adopted on the DOE's proposed schedule. The DOE proposed a similar rule for water heaters in May, part of the Biden administration's plan to announce 100 energy-efficiency actions this year to save the average family $100 annually.
The DOE telegraphed the moves in December 2021 when it restored the agency's long-standing interpretation of the Energy Policy and Conservation Act, which outlines the agency's program for developing energy conservation standards for consumer products. Under the Trump administration, the DOE reinterpreted the law in a way that provided a basis to revoke higher proposed furnace and water heater efficiency standards.
The Biden administration acknowledged in December that a 92% AFUE would effectively eliminate noncondensing units from the market. In its June 13 press release, the DOE said condensing units have been mandatory in Canada for more than a decade.
The rule would make it more likely that builders and consumers would instead opt for electric heat pumps, which use warmth in the air or from geothermal sources to heat and cool indoor spaces. The DOE promoted the administration's support for heat pump technology in the press release, including President Joe Biden's recent use of the Defense Production Act to accelerate domestic manufacturing of the equipment.
Proposal draws opposition, support
The American Gas Association, which represents investor-owned utilities, said the proposed rule would effectively ban the cost-effective gas furnaces that many U.S. homes use today. Many older homes and particularly those in low-income neighborhoods cannot accommodate the venting equipment that condensing furnaces require, AGA said.
"AGA will thoroughly examine every aspect of this proposed rule and if it is another attempt to put the natural gas industry out of business, we will vigorously object," AGA President and CEO Karen Harbert said in a June 13 press release. "At this moment when natural gas is imperative for our country's and the world's stability, placing enormous costs on everyday Americans is wrong-headed at best."
The American Council for an Energy-Efficient Economy, or ACEEE, said continued natural gas use for heating exposes Americans to inflation. Consumers face rising natural gas prices heading into the 2022-2023 winter due to energy market disruption caused by Russia's invasion of Ukraine, it said.
"At a time when global gas markets are in turmoil, this is a good step to help protect millions of families against price spikes that can send bills through the roof," ACEEE executive director Steven Nadel said in a June 13 press release. "We're one big step closer to finally moving past outdated furnace technology."
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