ACCA filed comments yesterday on the Department of Energy’s rulemaking on energy conservation standards for residential furnaces. The DOE is taking comments from stakeholders and will publish a final rule by May 1, 2011.
Under a court order, the DOE is reconsidering a final rule published in November 2007 that set a new AFUE rating standard for gas furnaces at 80% effective in 2015. Several states and environmental organizations challenged the final rule, arguing that DOE did not raise the standard enough over the current AFUE rating of 78% to achieve maximum improvement in energy efficiency that is technologically feasible and economically justified. Last year, the DOE and the plaintiffs voluntarily agreed to reopen the rulemaking process and set aside the lawsuit.
Since the original final rule in November 2007, the DOE has been authorized by Congress through the Energy Independence and Security Act of 2007 (EISA) to consider regional standards for furnaces, central air conditioners, and heat pumps. EISA also directed DOE to incorporate standby mode and off mode energy use as part of its energy use calculations.
Most of the issues in the rulemaking effect the manufactures of furnaces. However, several key issues raised in the Rulemaking Analysis Plan directly impact contractors. In all, DOE requested comments on 28 different issues.
ACCA’s comments focused on the issue of regional standards and enforcement and the economic impacts of requiring condensing furnaces in states more than 5000 Heating Degree Days. The DOE will not set up an enforcement mechanism until after this rule is published.
The comments are reprinted below.
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Comments of the Air Conditioning Contractors of America
NOPM for Energy Conservation Standards for Residential Furnaces
EE-2009-BT-STD-0022
RIN 1904-AC06
For more than forty years, the Air Conditioning Contractors of America (ACCA) has served the educational, policy, and technical interests of the nation’s small businesses who design, install, and maintain indoor environmental systems. ACCA has a longstanding history of supporting efforts to encourage energy efficiency in residential and commercial buildings. Every day, thousands of ACCA members help homeowners and building managers realize the comfort, convenience, and cost benefits of energy efficient heating, ventilation, air conditioning, and refrigeration (HVACR) equipment.
As the leading national trade association representing HVACR contractors, ACCA is pleased to submit the following comments in response to the Department of Energy’s Notice of Proposed Rulemaking on energy conservation standards for residential furnaces.
ACCA’s comments are organized in response to the twenty-eight issues on which DOE sought comments in the Rulemaking Analysis Plan (RAP) published on March 11, 2010.
Issue 1 – The Consensus Agreement
ACCA was not involved in the development on nor was a signatory to the joint comment (Consensus Agreement) submitted to DOE by the Air-Conditioning, Heating and Refrigeration Institute (AHRI), American Council for an Energy Efficient Economy (ACEEE), Alliance to Save Energy (ASE), Appliance Standards Awareness Project (ASAP), Natural Resources Defense Council (NRDC), and Northeast Energy Efficiency Partnership (NEEP).
Regarding the Consensus Agreement as a whole only for the purposed of this section, ACCA provides the following comments.
a. Minimum Standards and Condensing Furnace Concerns
The consensus agreement proposes minimum annualized fuel utilization efficiency (AFUE) rating of 90% in the North region and a minimum AFUE of 80% in the South.
ACCA has concerns about a blanket requirement for condensing furnaces in the North region, as prescribed in the Consensus Agreement. In a recent ACCA member survey on requiring condensing furnaces in the North region, a majority of all respondents said that 15-30% of furnace retrofits would only accommodate non-condensing furnaces due to vent path issues or concerns about freezing condensate. Many of the survey respondents voiced apprehension about venting in town homes or condominiums or in situations where the condensate can accumulate in an attic and freeze. In some cases, the cost of replacing a non-condensing furnace with a condensing furnace would prove to be prohibitive due to retrofit measures. While in other cases, the required venting practices contemplated would not be allowed under local covenants.
b. Consensus Agreement Map
The Consensus Agreement and the RAP propose identical regional standard maps consisting of two regions approximately based on a threshold of 5000 heating degree-days (HDD). States with more than 5000 HDD would encompass the North region and require a higher minimum energy conservation standard from the rest of the states. In some parts of the country, the densely populated counties and metropolitan areas that sit close to the region borders may provide opportunities for non-compliance. One example is the area where the New Jersey, Delaware, Pennsylvania, and Maryland state borders come together near the Philadelphia–Camden–Wilmington Metropolitan Statistical Area, home to nearly six million residents. Another is the Cincinnati-Middletown Metropolitan Statistical Area along the border of Southeastern Ohio and Southwestern Indiana and Northern Kentucky. Finally, much of West Virginia, a state located in the North region with a minimum 90% AFUE standard, lies adjacent to or to the south of states identified in the South region.
Issue 2 – Combined Rulemaking
ACCA sees no added benefit in combining the rulemakings for the residential furnaces, residential central air conditioners and heat pumps, and furnaces fans under review.
Issue 3 – DOE Proposed Regions
Like the Consensus Agreement, DOE is proposing to create one base region and one more stringent region. As noted in the comments for Issue 1, ACCA concerns are related to enforcement along the borders of the proposed regions.
Issue 4 – Regional Standards Enforcement
a. This rulemaking is especially significant to the contractors of the HVACR industry who install, maintain, and service residential furnaces because now the Department of Energy has the authority to set regional energy efficiency standards for these appliances. The adoption of regional standards will change how energy efficiency standards are enforced. Under the single, national minimum energy efficiency standard currently in place, compliance is tested and enforced at the point of manufacture or import. Under regional standards, DOE will have to apply a second test on equipment at the point of installation and enforce non-compliance.
Since installers are typically the last entity “holding the box” in the supply chain, ACCA members are very concerned about how regional standards will be created and enforced. This goes beyond the potential responsibilities, liabilities, and burdens of enforcement. ACCA is also concerned that a failed enforcement policy will give an unfair advantage to contractors who knowingly sells and installs equipment that is illegal.
ACCA’s comments on proposed regional standards enforcement methods outlined in the RAP are summarized in the Joint Public Statement of HARDI-AHRI-ACCA presented at the public hearing on March 31, 2010. ACCA will continue to work to recommend a reasonable solution to the issue of enforcement.
Issue 16 – Impact of Regional Standards
DOE’s assumption that new compliance costs related to regional standards will increase the contractor markups to the homeowner are valid. These costs will vary depending on the necessary measures to retrofit an installation for a condensing furnace. ACCA urges the DOE to seriously consider the full impact on the installation costs when contractors must replace a non-condensing furnace with a condensing furnace. As noted, a recent ACCA member survey on requiring condensing furnaces in the North region found a majority of all respondents said that 15-30% of furnace retrofits would only accommodate non-condensing furnaces due to vent path issues or concerns about freezing condensate.
DOE seeks further comment on how the impacts of regional standards on furnace and contractors are different than those in the central air conditioner and heat pump market. The necessary time to perform a retrofit for a condensing furnace will reflect higher costs and more labor than for central air conditioner and heat pump retrofits.
Issue 20 – Installation Costs and Maintenance and Repair CostsOnce again, ACCA urges the DOE to seriously consider the full impact on the installation costs when contractors must replace a non-condensing furnace with a condensing furnace.