Court Upholds DOE Rule on Condensing Gas Furnaces, Leaving Homeowners with Fewer Options
In a significant ruling, the US Court of Appeals for the District of Columbia Circuit has backed a Department of Energy (DOE) rule favoring condensing gas furnaces, leaving homeowners in need of a new furnace with limited options. The decision, handed down on November 4, has sparked debate and potential legislative action.
The DOE maintains that the type of gas furnace is not a protected feature, a stance challenged by the Competitive Enterprise Institute (CEI) and Judge Neomi Rao, who argued it is a protected performance characteristic under the Energy Policy and Conservation Act of 1975 (EPCA). The Trump administration's DOE initially proposed the regulation, which is set to take effect in 2028.
Congress is now considering legislation, HR 4626, to revoke the rule. The transition to condensing furnaces, which are more efficient but also more expensive, will disproportionately affect low-income and senior homeowners, with 30% of senior and 26% of low-income households facing net costs. Manufacturers also seek clarity on legal furnace models ahead of the 2028 deadline.
The 2023 DOE rule effectively outlaws non-condensing gas furnaces, which are cheaper and easier to install in older homes. Some homeowners may consider switching to electric heat, but this is prohibited under EPCA's fuel-switching ban.
The court's decision and DOE's rule have significant implications for homeowners and manufacturers. As the case is likely to be appealed and Congress considers HR 4626, clarity on the future of gas furnace regulations is eagerly awaited. The rule's impact on low-income and senior homeowners, who may struggle to afford the transition, remains a pressing concern.
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