DOE’s high-efficiency furnace mandate gets criticism

The Department of Energy issued a new rule that some industry insiders think is a terrible idea. The rule requires that by late-2028, all new, non-weatherized gas furnaces must meet a 95% annual fuel utilization efficiency (AFUE). 

Background: The DOE issued the rule as part of its quest to cut carbon emissions — and expects it to save consumers $25 billion on energy bills over 30 years.

Two critics, ACCA’s Barton James and HARDI’s Alex Ayers, say the government didn’t properly evaluate the rule’s true cost to consumers.

Their arguments: “It doesn’t account for the realities of differences in home construction, household budgets, and the weather in various parts of the country”, says James. 

• In addition to the higher cost of high-efficiency furnaces, their need for sidewall venting often requires home modifications, which can be difficult or impossible due to how some homes are constructed.

• Francis Dietz of AHRI — which didn’t take a stance on the rule — said, “It’s possible that the rule will prompt some consumers to keep older, less efficient furnaces longer than they would have otherwise, thus reducing the predicted overall energy savings that will be achieved through the rule.”

Looking ahead: James argues that the rule limits consumer choice; however, he’s confident that a rule reversal is possible, stating, “Nothing’s certain in D.C.”

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