Last June 23rd, we reported on the EPA announcement that “Consistent with the Environmental Protection Agency’s (EPA) focus on the potential for electric heat pumps to deliver energy-efficiency gains, pollution reduction and cost-savings to consumers, the ENERGY STAR program is proposing to sunset the certification pathway to the ENERGY STAR label for residential furnaces and central air conditioners (CACs).” AGA joined other supporting associations in filing comments on June 22, 2023 (attached) objecting to the EPA proposed elimination of the ENERGY STAR program for residential fuel fired furnaces. On Tuesday, the EPA issued an updated Product Specification for Furnaces. Specifically, EPA has proposed an alternative to the full product specification sunset that includes increasing the residential gas furnace requirement to 97 AFUE from the current requirement of 95 AFUE in the northern states and 92 AFUE in the southern states beginning in 2026 thus eliminating the regional distinction for ENERGY STAR furnaces. EPA received extensive engagement on the proposal, and in response to what the EPA has characterized as “compelling support for continuing the labeling of furnaces,” yesterday, the agency proposed an update, rather than a sunset, to the ENERGY STAR furnace specification. In a shift from its previous characterization of the program, in its announcement, EPA says: The ENERGY STAR program serves an important role in helping consumers realize the benefits of energy efficiency from both a cost and environmental perspective. ENERGY STAR specifications are periodically reviewed and updated through a transparent process to ensure that they provide meaningful differentiation for highly energy-efficient products as markets evolve. The announcement goes on to state: With the Department of Energy’s recent finalization of the gas furnace federal minimum efficiency standards at the current ENERGY STAR efficiency level of 95 AFUE and an ENERGY STAR market share of about 40%, the Agency sees an opportunity for further differentiation as the market advances to meet the new minimum requirements effective in December 2028. In addition, increasing the gas furnace efficiency requirement will align the ENERGY STAR specification with eligibility requirements for Section 25C tax credits established under the Inflation Reduction Act. The EPA also proposes to increase efficiency levels for oil furnaces, of which close to 90% of models meet current ENERGY STAR requirements. ENERGY STAR-certified oil furnaces would remain eligible for tax credits. According to the notice “With this change, the number of certified models would shift from 47% to 4.5% of units (455/10,065) currently on the market, with offerings from all major manufacturers.” EPA goes on to state that the proposal to eliminate the regional distinction for ENERGY STAR furnaces is to align with current minimum efficiency standards and simplify program administration and participation.
For future consideration, the notice reports that the “EPA remains interested in the potential for dual-fuel HVAC systems to serve as a lower cost option in cold climates. The Agency is considering a new specification recognizing furnaces in the context of new dual fuel heating systems (i.e., furnace plus heat pump), relying on system metrics developed in collaboration with industry. The EPA plans to work with stakeholders in 2024 to finalize a test procedure, evaluate performance data and develop a proposed specification. Because the furnaces in these systems will run on a limited basis, it may make sense to specify lower furnace efficiency in the interest of overall cost.” Further, the EPA recognizes “ that the requirement for heat pumps to be rated with specific furnaces is a barrier to ENERGY STAR certification for heat pumps installed in households with an existing furnace. The Agency is investigating how best to address this situation and seeks stakeholder feedback.”
Comments on the revised proposal are due by May 16, 2024 and may be submitted to [email protected]. EPA will host a webinar on Wednesday, May 1, 2024 from 3-5 pm ET to discuss the revision and address initial stakeholder questions. You can register for the webinar here.
AGA staff is reviewing the proposal, will participate in the 5/1 webinar, and will prepare draft comments in response to the updated proposal. BECS Committee members are encouraged to participate in the webinar. Please review and provide us with feedback by May 7th on the proposal, specifically on how the updated proposal may or will impact your company’s efficiency programs and customers.
AGA, APGA and NPGA File Comments on the Federal Trade Commission (FTC) NOPR Proposed Amendments to Improve the Energy Labeling Rule for Appliances including Gas Clothes Dryers, Cooking Products and Miscellaneous Gas Products.
Attached is yesterday’s AGA, the American Public Gas Association (APGA) and the National Propane Gas Association (NPGA) joint comments in response to the FTC February 2, 2024 Federal Register Notice rulemaking that “proposes amendments to improve the Energy Labeling Rule including energy labels for several new consumer product categories and changes to label display requirements. Specifically, the Notice requested comments on labels for air cleaners, clothes dryers, miscellaneous refrigeration products, and portable electric spas; modifications to existing labels for clothes washers, televisions, and several heating products; revisions to the current requirements for affixing labels on showroom models; and several minor amendments to improve the Rule.” For Gas Products, the FTC NOPR does not propose adding labels for miscellaneous gas products such as gas fireplaces, decorative appliances, etc. or gas cooking products. The NOPR also responded to July 11, 2022 comments submitted by AGA, APGA and NPGA to a 2022 FTC Advanced Notice of Proposed Rule Making (ANOPR) appliance rulemaking rejecting the recommended inclusion of full fuel cycle (FFC) metrics on furnace and boiler labels as follows: “In addition, the Commission does not propose amending existing labels to add FFC or GHG emissions information about individual products. It is not clear, for instance, whether such additional technical information is helpful or whether the information already on the label (e.g., the annual fuel costs), provides an adequate proxy for relative comparisons of the FFC impacts of competing products.” Additionally, as the electricity grid evolves toward renewables and away from sources such as coal, the difference in emissions between fuels may narrow; thus, diluting the relevance of such fuel comparisons. Further, additional FFC or GHG emissions information would clutter the label, potentially confusing consumers, and otherwise detract from the central disclosures related to the energy cost or energy efficiency of the labeled product.” The FTC ignored the argument that the furnace/boiler label has an efficiency rating AFUE on it, not cost and electric furnaces show a 100% AFUE on site rating that essentially provides biased efficiency information since the source energy usage for an electric furnace is 2 ½ to 3 times more than a comparable gas furnace. In addition, the FTC don’t appear to challenge the assertion that they can use FFC or GHG metrics on the label’s but don’t embrace it either. The FTC does not propose to amend the existing label, questions the relevance of the data, questions whether or not the technical information would be helpful, and is concerned that the QR code would clutter the label. The FTC did offer to explore, with DOE, creating online consumer resources to provide FFC and/or GHG information for individual covered products, and invites comments on such an approach. The joint comments urge the FTC to both create and promote online consumer resources to better inform consumers about the FFC impact and GHG impact of individual products.
Reminder: The BECS Meeting Scheduled for May 8-9, 2024, at The Wigwam, Litchfield, AZ.
The next BECS Committee meeting will be held on May 8-9, 2024 at the Wigwam in Litchfield, AZ. (outside of Phoenix). Attached is the Notice of the Meeting that includes registration and hotel room reservation information. A tentative agenda for the meeting is attached and includes sessions on the varies model codes, indoor air quality, educational items, NGV issues, research items, etc. and presentations on federal legislative and regulatory items impacting the end use of natural gas, manufacturers presentations, etc. Note that there is no registration fee for attending meeting, but registration is required.
For meeting registration click here: BECS Committee Meeting.
State Codes Activity Update.
Attached is a weekly feature of the “Friday Update” covering state code calendar activities as presented by the online utility “Fiscal Note,” which is sponsored by APGA and AGA Code and Standards. Please review the update and determine if there are state code activities that impact your service territory or organization.
Please don’t hesitate to contact us if you have any questions on these issues.
Best Regards,
Jim
Jim Ranfone | Managing Director, Codes and Standards
400 N. Capitol St., NW | Washington, DC | 20001
P: 202-824-7310 | [email protected]
The American Gas Association represents more than 200 local energy companies committed to the safe and reliable delivery of clean natural gas to more than 73 million customers throughout the nation.
2024 BECS Committee Meeting Schedule
May 8-9, 2024, Location Phoenix, AZ Hotel The Wigwam
To: The AGA Building Energy Codes and Standards (BECS) Committee:
You are invited to attend the upcoming Building Energy Codes and Standards Committee (BECS) Meeting on Wednesday and Thursday, May 8-9, 2024, at The Wigwam, in Litchfield Park, AZ.
There is no registration fee for this meeting, however registration is required. Additional, detailed information including the comprehensive agenda will be sent out as we approach the meeting dates. Note that the preliminary agenda (attached) may be modified based on recommendations by the BECS Executive Committee but the timeframe for the meeting will remain the same. We wanted to provide you with plenty of lead time to make your travel arrangements. Also, please provide us with your top 3 codes and standards issues that you want to be included during discussions at the meeting. We will make sure those items are included during the meeting. Additional Registration Guidelines and Special Discounts are also attached.
See attached meeting announcement letter to make hotel reservations.
For meeting registration click here: BECS Committee Meeting.