DOE Finalizes Energy Conservation Standards for Consumer Furnaces

On December 18, 2023, the Department of Energy (DOE) issued a final rule increasing energy conservation standards for non-weatherized gas furnaces and mobile home gas furnaces. This rulemaking falls under the Energy Policy and Conservation Act (EPCA), which prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment. EPCA requires DOE to periodically determine whether more stringent standards would be technologically feasible and economically justified, and would result in significant energy savings. This rulemaking finalizes the rule first proposed by DOE on July 7, 2022.

As part of this proposed rulemaking, DOE analyzed the benefits and burdens of 9 trial standard levels (TSLs) of efficiency. In the context of this rulemaking governing gas furnaces, efficiency standards are expressed in terms of minimum annual fuel utilization efficiency (AFUE). The scenarios explored by DOE range from TSL 9, the maximum technologically feasible energy efficiency, to TSL 1, the least rigorous standard, which would require 80-percent AFUE for certain small gas furnaces and 92-percent AFUE for larger gas furnaces.

DOE ultimately adopted TSL 8, the second-highest level, which consists of a national standard at an efficiency level of 95-percent AFUE for all regulated gas furnaces. This standard is expected to result in cumulative emission reductions (between 2029 and 2058) of 363 million metric tons of carbon dioxide, 0.8 million tons of nitrogen oxides, and 5.1 million tons of methane. The standards are expected to result in cumulative emission increases of 52 thousand tons of sulfur dioxide, 0.3 thousand tons of nitrous oxide, and 0.3 tons of mercury due to an anticipated increase in electricity consumption.

The final rule will go into effect on February 16, 2024.