DOE Maintains Existing Standards for Oil, Electric, and Weatherized Gas Furnaces

On October 18, 2024, the Department of Energy (DOE) issued a final determination that no amendments are necessary for the energy conservation standards applicable to oil-fired, electric, and weatherized gas consumer furnaces. This decision comes after a review of the current market and technological feasibility, aligning with the DOE’s mandate under the Energy Policy and Conservation Act (EPCA) to evaluate whether more stringent standards would be economically justified and deliver significant energy savings.

Last December, DOE published a separate efficiency increase for non-weatherized and mobile home gas-fired furnaces.

This determination affects several specific classes of furnaces that are essential for heating many U.S. homes. The products in question include:

• Non-weatherized oil-fired furnaces (NWOFs)

• Mobile home oil-fired furnaces (MHOFs)

• Weatherized gas furnaces (WGFs)

• Weatherized oil-fired furnaces (WOFs)

• Electric furnaces (EFs)

These furnaces are subject to federal energy conservation standards, which specify minimum Annual Fuel Utilization Efficiency (AFUE) levels and, for some, standby and off-mode electrical consumption requirements.

The DOE reviewed whether increased standards for these furnace types would be technologically feasible, provide meaningful energy savings, and be economically viable for both manufacturers and consumers. After conducting market analyses, life-cycle cost assessments, and considering technological options, DOE determined that:

• Higher Efficiency for Electric Furnaces is Not Technologically Feasible: Current electric furnace designs do not have clear pathways to significant improvements in energy efficiency without substantial redesign, which could impose high costs on manufacturers and consumers.

• Marginal Energy Savings for Oil and Weatherized Gas Furnaces: The potential energy savings from more stringent standards for oil-fired and weatherized gas furnaces were deemed too small to justify the economic impact.

• Consumer Impact and Market Concerns: Tightening standards for these furnaces could limit product availability, increase upfront costs, and reduce consumer options, particularly those relying on oil-fired furnaces in rural areas. DOE also considered potential supply chain disruptions and inflationary pressures as part of its decision.

While this determination concludes that no immediate changes are needed, the DOE will revisit these standards within the next three years. Under EPCA, the DOE is required to re-evaluate any decision not to increase efficiency standards to ensure they continue to align with technological and market developments.