American Gas Association urges higher threshold on residential furnace rule

The American Gas Association (AGA) recently proposed an alternative to the Department of Energy’s (DOE) Supplemental Notice of Proposed Rulemaking on Energy Conservation Standards for Residential Furnaces, pushing the department to adopt a higher threshold for non-condensing furnaces.

“The fundamental structure of the rule and its size-differentiated approach is a significant step forward toward a better outcome for all consumers,” AGA Vice President of Policy Kathryn Clay said. “But we remain deeply concerned that the rule will impose significant economic burdens to far too many American consumers.”

Condensing furnaces, while providing more energy efficiency, cost approximately $350 more than non-condensing furnaces, creating an initial financial barrier that some Americans will not be able to overcome. The department’s proposed rule would set a threshold of 55 kbtu for non-condensing furnaces, while the AGA proposes a threshold of 70 kbtu. The DOE’s analysis of its rule found that it would result in economic harm for one out of every six low income households in the South.

“We believe the actual number of households likely to be harmed is far greater," Clay said. "Many homeowners living in apartments, town homes, and row-houses will face structural barriers to installing condensing furnaces that will force them into options that will be economically burdensome, and less energy efficient overall, in the longer term. ... Adopting a threshold of 70 kbtu would set the market on a clear pathway – without the undue harm that will result from the more abrupt shift a 55 kbtu threshold would entail.”