The Biden administration announced stringent restrictions on gas-powered furnaces on Friday, the latest development in their energy rules on home appliances aimed at reducing carbon emissions. [Source]
Set to come into force in 2028, the proposed guidelines demand that furnaces attain a 95% Annual Fuel Utilization Efficiency (AFUE), a 15% uptick from the present-day market standard. [Source]
The Department of Energy (DOE) touts that these regulations will save Americans $570 billion and reduce greenhouse gas emissions by over 2.4 billion metric tons across the next 30 years.
Energy Secretary Jennifer Granholm stated, “At the direction of Congress, DOE is continuing to review and finalize energy standards for household appliances, such as residential furnaces, to lower costs for working families by reducing energy use and slashing harmful pollutants in homes across the nation.”
But how will this impact everyday consumers and the market?
Richard Meyer from the American Gas Association highlighted a crucial aspect: compliance with the new standard will, in numerous instances, necessitate installing new, high-efficiency condensing units.
“There are some really technical reasons why this is such a concerning rule. It has to do with the ability for consumers to be in compliance with this new efficiency standard,” said Meyer in an interview with Fox Digital.
Through 2022 alone, the Biden administration took 110 actions on energy efficiency rules as part of its broader climate agenda, announcing their plan to proceed with rules that will affect battery chargers, pool pumps, and dehumidifiers. [Source]
Ben Lieberman, a senior fellow at the Competitive Enterprise Institute, also spoke to Fox Digital about these rules. “Consumers aren’t going to like any of it. These rules are almost always bad for consumers for the simple reason that they restrict consumer choice.”