The AGA, APGA, NPGA, and Spire Inc., Request DOE Extend the Public Comment Period by 30-days on the NOPR for Consumer Water Heaters.

Today, AGA, APGA, NPGA, and Spire Inc., filed a joint request of the DOE to extend the public comment period 30 days (attached) on the DOE notice of proposed rulemaking (NOPR) pertaining to energy conservation standards for consumer (residential gas, electric and oil) water heaters. Back on July 28th, we reported that the DOE had published a Federal Register NOPR that set a September 26, 2023 deadline  for comments, data, and information regarding this NOPR.  The joint request for the 30-day extension outlined the rationale for the needed time noting that the published 60-day comment period “deviates” from the regulation Process Rule that requires a 75-day comments period. In addition, the request pointed out that DOE “appears to have deviated from past practice by not releasing the prepublication version on its website and sending a notice out to stakeholders the same day. DOE appears to have released the prepublication notice to certain select groups on or before July 21, but delayed sending the email notice out to stakeholders that signed up for email notice until July 24, 2023. This was only four days before it was published in the Federal Register.”  Thus, this action reduced the normal time period ( prepublication and normal 75-day comment period) and the request believes that the DOE needs to extend the official period to provide all stakeholders with adequate time to respond to the NOPR. 

As a reminder about this NOPR announcement, 

• DOE will hold a webinar on Wednesday, September 13, 2023 from 1:00 p.m.  to 4:00 p.m.

• Click here to register for the webinar.
• Additional webinar registration information, participant instructions, and information about the capabilities available to webinar participants will be published on DOE’s website: https://energy.gov/eere/buildings/public-meetings-and-comment-deadlines
• Find product information for Consumer Water Heaters including current standards and test procedures, statutory authority, waivers, exceptions and contact information.

We will provide DOE’s response to the request for the extension when available. BECS Committee members are encouraged to sign up and participate in the September 13th webinar and to provide feedback on the proposed minimum efficiency levels on gas storage and instantaneous consumer water.  As previously reported, AGA staff did very preliminary review and it appears that for residential gas storage heaters, the minimum efficiency level for the most popular sizes from 20 gallon to 55 gallon would not require condensing technology. However, there is a concern that the proposed level would reduce the vent temperatures that could result in excessive condensation developing in the vent that could result in venting problems. In addition, we note that to meet the energy efficiency requirement, DOE is suggesting that the levels can be met with increasing insulation by one inch on the sides and one inch on the top and the addition of a thermal air intake damper or with the electronic ignition (no standing pilot light) and an electronic air intake damper. This last combination would require electric supply to the gas, storage water heater.  We are continuing a review of the levels being proposed to obtain technical data to help ensure that the levels proposed by DOE do not result with problems in gas storage water heater vents in field installations and that they will still be available without the need of an external, electric supply (off the electric grid). This is particularly important for low-income consumers who would be faced with the additional cost of providing an electric outlet for the gas storage water heater in a replacement situation since the vast majority of gas storage water heaters installed today do not require external electric supply to operate.  For the most popular sizes for gas instantaneous water heaters, less than 2 gallon and greater than 50,000 Btu/hour, DOE is proposing an efficiency level that requires condensing technology. This level would eliminate the manufacturing of any instantaneous gas water heaters that are non-condensing and that can be common vented with other non-condensing gas appliances such as gas furnaces. BECS Committee members are reminded to review the proposal and provide us with feedback on the levels included in the NOPR as soon as possible.  

DOE Issues a NOPR and Public Meeting Pertaining to Standards for Consumer (Residential) Boilers – Proposes 95 % AFUE for Gas -fired Boilers.

On Monday,  DOE issued the official  Federal Register notice of proposed rulemaking (NOPR) pertaining to energy conservation standards for consumer boilers. (The pre-publication NOPR was provided in the July 28, 2023 BECS Update.) In this NOPR, DOE proposes amended standards for consumer boilers, and also announces a public meeting to receive comment on these proposed standards and associated analyses and results. For consumer gas-fired boilers, DOE is proposing a 95% AFUE minimum efficiency requirement and for gas-fired steam boilers, an 82% AFUE minimum efficiency requirement. DOE is proposing a slight increase for consumer oil boilers and no increase for consumer electric boilers. DOE will accept comments, data, and information regarding this NOPR until October 13, 2023 . Comments can be submitted to  docket number EERE–2019–BT– STD-0036, by email ([email protected]), Federal eRulemaking portal (http://www.regulations.gov). DOE will hold a webinar on Tuesday, September 12, 2023 from 1:00 p.m. to 4:00 p.m. Click here to register for the webinar.  Additional webinar registration information, participant instructions, and information about the capabilities available to webinar participants will be published on DOE’s website: https://energy.gov/eere/buildings/public-meetings-and-comment-deadlines .You can find product information for Consumer Boilers including current standards and test procedures, statutory authority, waivers, exceptions and contact information. BECS Committee members are requested to review the proposal and provide feedback to us on the proposal and are encouraged to sign up and participate in the September 12, 2023 webinar.  

Summary & Action Items: DOE Guidance on IRA Home Rebate Programs.

Below is information developed by AGA staff on the recently issued DOE guidance on last year’s Inflation Reduction Act (IRA) Home Rebate program that should be of interest to BECS Committee members.

On July 27, 2023, DOE opened applications for States and Territories to implement $8.5 billion for home energy rebates as part of the Investing in America Agenda authorized via the Inflation Reduction Act of 2022 (IRA).  On the same day, DOE released the Administrative and Legal Requirements Document and Program Requirements & Application Instructions for the Inflation Reduction Act of 2022 Home Energy Rebates: Home Efficiency Rebates (HOMES) and Home Electrification and Appliance Rebates (HEEHRA). 

AGA has identified concerns with requirements included in DOE’s guidance documents. Specifically, there is a new requirement that certain products must be ENERGY STAR certified to receive a HOMES rebate. AGA has long supported the ENERGY STAR program. However, AGA believes this provision goes above and beyond what was outlined in the statute and could lead to the exclusion of natural gas products from the rebate program if EPA adopts its proposal to remove gas appliances from the ENERGY STAR program.

As previously reported, EPA has proposed to sunset gas furnaces, boilers, clothes dryers, and water heaters from the ENERGY STAR program. If the DOE HOMES program’s condition for rebates requires ENERGY STAR product criteria, then efficient natural gas households will not have an opportunity to qualify for certain federal and state incentives.

This announcement and subsequent release of the application guidance begins the process of States and Territories applying to DOE to establish their own HOMES and HEEHRA programs. DOE will review submitted applications from States and Territories on a rolling basis. Once a State or Territory’s application is approved, States may launch their program for consumers in eligible households to begin funding improvements.

Attached we have provided you two documents:

1. IRA Home Rebate Programs: Summary of DOE Application Guidance for States
2. AGA Issue Brief & Situation Analysis on the HOMES Program and ENERGY Star issue including background, talking points, and AGA action items.

Action: In addition to the action items outlined in the issue brief, AGA staff is forming an IRA HOMES Task Group to effectively strategize on the best ways to engage utilities and states as they begin the application process for both programs. If you or someone from your company is interested in participating, please let me know at your earliest convenience. Our first call will be held in mid-September.

If you have any questions on this issue , please contact Ashley Duckman, AGA’s Managing Director, Policy, and Strategy at [email protected] who provided this information.