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On January 15, the Department of Energy (DOE) published its final interpretive rule pertaining to the 2018 Gas Industry Petition in the Federal Register. Through this rulemaking, DOE grants the Petition’s requests, which will lead to the establishment of separate product classes for certain gas-fired condensing and non-condensing appliances.

In its rule, DOE finds “that non-condensing technology (and associated venting) constitutes a performance-related ‘feature’ for such appliances covered under [the relevant statute].” In other words, the agency is acknowledging that the adoption of energy conservation standards (ECSs) that would limit the market to fuel-fired furnaces, water heaters, or other similarly situated covered products/equipment that use only condensing technology is impermissible. Instead, the agency will need to establish separate product classes for relevant appliances to ensure that non-condensing technology continues to be available to consumers.

The interpretation “would extend to all relevant/applicable cases involving consumer products, non-ASHRAE commercial equipment, and ASHRAE equipment where DOE adopts a level more stringent than the ASHRAE level” but would not apply to rulemakings “where ASHRAE sets standard levels that trigger DOE to consider and adopt those level[s].”
Additionally, the final interpretive rule withdraws the existing proposed rules for residential furnaces and water heaters, noting that they “are inconsistent with this final interpretation” and “that their withdrawal may have some additional benefit in terms of promoting clarity and eliminating any potential for confusion.” The withdrawal of these rules was also requested in the Petition.

APGA and its members have repeatedly expressed concern that previously proposed rules by DOE suggesting the replacement of non-condensing appliances with condensing appliances would ultimately undermine efficiency goals while significantly increasing consumer costs. Consumers throughout the United States can now breathe a collective sigh of relief that DOE’s position has evolved to a point that is closer to a commonsense balance of what is technologically achievable, provides the potential for real energy efficiency benefits, reduces the cost burdens imposed on consumers, and continues to accommodate consumer choice. APGA will continue to be strong supporters of energy efficiency, especially as the direct use of natural gas is one of the most efficient uses of energy at over 90 percent and provides consumers with comfort and control at an affordable price.

The final interpretive rule can be found here. For questions on this article or APGA’s engagement with DOE, please contact Renée Lani of APGA staff by phone at 202-464-0836 or by email at rlani@apga.org.