DOE Moves to Prevent Future Efficiency Improvements in Furnaces and Water Heaters

On September 24, 2020, the Department of Energy (DOE) proposed a rule that could block future administrations from making gas-fired water heaters, furnaces, and boilers more efficient. Many gas-fired water heaters, furnaces, and boilers currently allow a significant amount of heat to be wasted, but some models use condensing technology to capture heat and prevent waste. In 2018 a number of industry groups petitioned DOE to define condensing and non-condensing equipment as separate categories with separate efficiency standards. If DOE creates two separate standards -- one for models with condensing capabilities and one for models without such capabilities -- DOE will not be able to require condensing equipment for all gas-fired water heaters, furnaces and boilers. Last year DOE proposed a rule that would grant the industry petitioners' request. Today's action is a supplemental proposal which, if adopted, would also prohibit a future administration from requiring intermediate efficiency steps short of condensing equipment.

Comments are due on October 26, 2020.