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AGENCY:
Office of Energy Efficiency and Renewable Energy, Department of Energy.
ACTION:
Final determination.
SUMMARY:
The Energy Policy and Conservation Act, as amended (“EPCA”), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including non-weatherized oil-fired furnaces (“NWOFs”), mobile home oil-fired furnaces (“MHOFs”), weatherized gas furnaces (“WGFs”), weatherized oil-fired furnaces (“WOFs”), and electric furnaces (“EFs”). EPCA also requires the U.S. Department of Energy (“DOE”) to periodically review its existing standards to determine whether more-stringent, amended standards would be technologically feasible and economically justified, and would result in significant energy savings. In this final determination, DOE has determined that the energy conservation standards for EFs, NWOFs, MHOFs, WOFs, and WGFs do not need to be amended.
DATES:
The effective date of this final determination is November 18, 2024.
ADDRESSES:
The docket for this activity, which includes Federal Register notices, public meeting attendee lists and transcripts, comments, and other supporting documents/materials, is available for review at www.regulations.gov. All documents in the docket are listed in the www.regulations.gov index. However, not all documents listed in the index may be publicly available, such as information that is exempt from public disclosure.
The docket web page can be found at www.regulations.gov/docket/EERE-2021-BT-STD-0031. The docket web page contains instructions on how to access all documents, including public comments, in the docket.
FOR FURTHER INFORMATION CONTACT:
Ms. Julia Hegarty, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (240) 597-6737. Email: ApplianceStandards Questions@ee.doe.gov.
Mr. Eric Stas, U.S. Department of Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 586-4798. Email: Eric.Stas@hq.doe.gov.
For further information on how to review the docket, contact the Appliance and Equipment Standards Program staff at (202) 287-1445 or by email: ApplianceStandardsQuestions@ee.doe.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Synopsis of the Final Determination
II. Introduction
A. Authority
B. Background
1. Current Standards
2. Current Rulemaking History
III. General Discussion and Rationale
A. General Comments
1. Comments Supporting Proposed Determination
2. Comments Opposing Proposed Determination
3. Other Topics
B. Scope of Coverage and Product Classes
C. Test Procedure
D. Standby Mode and Off Mode
E. Technological Feasibility
1. General Considerations
2. Maximum Technologically Feasible Levels
F. Energy Savings
1. Determination of Savings
2. Significance of Savings
G. Cost-Effectiveness
H. Further Considerations
1. Economic Impact on Manufacturers and Consumers
2. Savings in Operating Costs Compared To Increase in Price
3. Energy Savings
4. Lessening of Utility or Performance of Products
5. Impact of Any Lessening of Competition
6. Need for National Energy Conservation
7. Other Factors
IV. Methodology and Discussion of Related Comments
A. Market and Technology Assessment
1. Scope of Coverage
a. Electric Furnaces
b. Weatherized Oil-Fired Furnaces
2. Product Classes
3. Technology Options
4. Screening Analysis
a. Screened-Out Technologies
b. Remaining Technologies
5. Impact From Other Rulemakings
B. Engineering and Cost Analysis
1. Efficiency Analysis
a. Baseline Efficiency
b. Intermediate Efficiency Levels
c. Maximum Technology (“Max-Tech”) Efficiency Levels
d. Summary of Efficiency Levels Analyzed
2. Cost Analysis
a. Teardown Analysis
b. Cost Estimation Method
3. Cost-Efficiency Results
C. Markups Analysis
D. Energy Use Analysis
E. Life-Cycle Cost and Payback Period Analysis
1. Product Cost
2. Installation Cost
3. Annual Energy Consumption
4. Energy Prices
5. Maintenance and Repair Costs
6. Product Lifetime
7. Discount Rates
8. Energy Efficiency Distribution in the No-New-Standards Case
9. Payback Period Analysis
F. Shipments Analysis
G. National Impact Analysis
1. Product Efficiency Trends
2. National Energy Savings
3. Net Present Value Analysis
V. Analytical Results and Conclusions
A. Economic Impacts on Individual Consumers
B. National Impact Analysis
1. National Energy Savings
2. Net Present Value of Consumer Costs and Benefits
C. Final Determination
1. Technological Feasibility
2. Cost-Effectiveness
3. Significant Conservation of Energy
4. Further Considerations
a. Oil Furnaces
b. Weatherized Gas Furnaces
5. Summary
VI. Procedural Issues and Regulatory Review
A. Review Under Executive Orders 12866, 13563, and 14094
B. Review Under the Regulatory Flexibility Act
C. Review Under the Paperwork Reduction Act of 1995
D. Review Under the National Environmental Policy Act of 1969
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Review Under the Treasury and General Government Appropriations Act, 1999
I. Review Under Executive Order 12630
J. Review Under the Treasury and General Government Appropriations Act, 2001
K. Review Under Executive Order 13211
L. Review Under the Information Quality Bulletin for Peer Review
M. Congressional Notification
VII. Approval of the Office of the Secretary
I. Synopsis of the Final Determination
The Energy Policy and Conservation Act, Public Law 94-163, as amended (“EPCA”), authorizes DOE to regulate the energy efficiency of a number of consumer products and certain industrial equipment. (42 U.S.C. 6291-6317, as codified) Title III, Part B of EPCA established the Energy Conservation Program for Consumer Products Other Than Automobiles. (42 U.S.C. 6291-6309) These products include oil, electric, and weatherized gas consumer furnaces, the subject of this final determination. (42 U.S.C. 6292(a)(5))
All references to EPCA in this document refer to the statute as amended through the Energy Act of 2020, Public Law 116-260 (Dec. 27, 2020), which reflects the last statutory amendments that impact Parts A and A-1 of EPCA.
For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A.
Pursuant to EPCA, DOE is required to review its existing energy conservation standards for covered consumer products no later than six years after issuance of any final rule establishing or amending a standard. (42 U.S.C. 6295(m)(1)) Pursuant to that statutory provision, DOE must publish either a notification of determination that standards for the product do not need to be amended, or a notice of proposed rulemaking (“NOPR”) including new proposed energy conservation standards (proceeding to a final rule, as appropriate). ( Id.) DOE has conducted this review of the energy conservation standards for oil, electric, and weatherized gas consumer furnaces under EPCA's six-year-lookback authority described herein.
For this final determination, DOE analyzed oil, electric, and weatherized gas consumer furnaces subject to energy conservation standards specified in the Code of Federal Regulations (“CFR”) at 10 CFR 430.32(e)(1). DOE first analyzed the technological feasibility of more energy-efficient oil, electric, and weatherized gas furnaces and determined that amended standards for electric furnaces are not technologically feasible. For those oil and weatherized gas furnaces for which DOE determined higher standards to be technologically feasible, DOE evaluated whether higher standards would be cost-effective by conducting life-cycle cost (“LCC”) and payback period (“PBP”) analyses. In addition, DOE estimated energy savings that would result from potential energy conservation standards by conducting a national impacts analysis (“NIA”), in which it estimated the net present value (“NPV”) of the total costs and benefits experienced by consumers.
Based on the results of the analyses, summarized in section V of this document, DOE has determined that the current standards for oil, electric, and weatherized gas furnaces do not need to be amended and is issuing this final determination accordingly.
II. Introduction
The following sections briefly discuss the statutory authority underlying this final determination, as well as some of the historical background relevant to the establishment of energy conservation standards for oil, electric, and weatherized gas furnaces.
A. Authority
Among other things, EPCA authorizes DOE to regulate the energy efficiency of a number of consumer products and certain industrial equipment. (42 U.S.C. 6291-6317, as codified) Title III, Part B of EPCA established the Energy Conservation Program for Consumer Products Other Than Automobiles. These products include consumer furnaces, the subject of this document. (42 U.S.C. 6292(a)(5))
As noted previously, for editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A.
The energy conservation program under EPCA consists essentially of four parts: (1) testing, (2) labeling, (3) the establishment of Federal energy conservation standards, and (4) certification and enforcement procedures. Relevant provisions of EPCA specifically include definitions (42 U.S.C. 6291), test procedures (42 U.S.C. 6293), labeling provisions (42 U.S.C. 6294), energy conservation standards (42 U.S.C. 6295), and the authority to require information and reports from manufacturers (42 U.S.C. 6296).
Federal energy efficiency requirements for covered products established under EPCA generally supersede State laws and regulations concerning energy conservation testing, labeling, and standards. (42 U.S.C. 6297(a)-(c)) DOE may, however, grant waivers of Federal preemption in limited circumstances for particular State laws or regulations, in accordance with the procedures and other provisions set forth under EPCA. (42 U.S.C. 6297(d))
Subject to certain criteria and conditions, DOE is required to develop test procedures to measure the energy efficiency, energy use, or estimated annual operating cost of each covered product. (42 U.S.C. 6295(o)(3)(A) and 42 U.S.C. 6295(r)) Manufacturers of covered products must use the prescribed DOE test procedure as the basis for certifying to DOE that their product complies with the applicable energy conservation standards and as the basis for any representations regarding the energy use or energy efficiency of the product. (42 U.S.C. 6293(c) and 42 U.S.C. 6295(s)) Similarly, DOE must use these test procedures to evaluate whether a basic model complies with the applicable energy conservation standard(s). (42 U.S.C. 6295(s)) The DOE test procedures for consumer furnaces appear at title 10 of the Code of Federal Regulations (“CFR”) part 430, subpart B, appendix N.
EPCA prescribed energy conservation standards for consumer furnaces (42 U.S.C. 6295(f)(1)-(2)) and directed DOE to conduct future rulemakings to determine whether to amend these standards. (42 U.S.C. 6295(f)(4) and 42 U.S.C. 6295(m)(1)) As explained in section II.B of this document, DOE has completed its rulemaking obligations pursuant to EPCA under 42 U.S.C. 6295(f)(4) for the subject consumer furnaces. However, DOE has ongoing rulemaking obligations under 42 U.S.C. 6295(m)(1) ( i.e., the six-year-lookback review requirement). More specifically, and as noted previously, not later than six years after the issuance of any final rule establishing or amending a standard, DOE must publish either a notice of proposed determination (“NOPD”) that standards for the product do not need to be amended, or a NOPR including new proposed energy conservation standards (proceeding to a final rule, as appropriate). (42 U.S.C. 6295(m)(1) and (3)) DOE must make the analysis on which a NOPD or NOPR is based publicly available and provide an opportunity for written comment. (42 U.S.C. 6295(m)(2))
A determination that amended standards are not needed must be based on consideration of whether amended standards will result in significant conservation of energy, are technologically feasible, and are cost-effective. (42 U.S.C. 6295(m)(1)(A) and 42 U.S.C. 6295(n)(2)) Additionally, any new or amended energy conservation standard prescribed by the Secretary for any type (or class) of covered product shall be designed to achieve the maximum improvement in energy efficiency which the Secretary determines is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) Among the factors DOE considers in evaluating whether a proposed standard level is economically justified includes whether the proposed standard at that level is cost-effective, as defined under 42 U.S.C. 6295(o)(2)(B)(i)(II). Under 42 U.S.C. 6295(o)(2)(B)(i)(II), an evaluation of cost-effectiveness requires DOE to consider savings in operating costs throughout the estimated average life of the covered products in the type (or class) compared to any increase in the price, initial charges, or maintenance expenses for the covered products that are likely to result from the standard. (42 U.S.C. 6295(n)(2) and 42 U.S.C. 6295(o)(2)(B)(i)(II))
Finally, pursuant to the amendments to EPCA contained in the Energy Independence and Security Act of 2007 (“EISA 2007”), Public Law 110-140, any final rule for new or amended energy conservation standards promulgated after July 1, 2010, is required to address standby mode and off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE adopts a standard for a covered product after that date, it must, if justified by the criteria for adoption of standards under EPCA (42 U.S.C. 6295(o)), incorporate standby mode and off mode energy use into a single standard, or, if that is not feasible, adopt a separate standard for such energy use for that product. (42 U.S.C. 6295(gg)(3)(A)-(B)) DOE's current test procedures and standards for oil, electric, and weatherized gas furnaces address standby mode and off mode energy use. DOE's energy conservation standards address standby mode and off mode energy use only for non-weatherized oil-fired furnaces (“NWOFs”) (including mobile home furnaces) and electric furnaces (“EFs”). 10 CFR 430.32(e)(1)(iv). In this analysis, DOE considers such energy use in its determination of whether energy conservation standards need to be amended.
DOE is publishing this final determination pursuant to the six-year-lookback review requirement in EPCA.
B. Background
1. Current Standards
DOE most recently completed a review of the subject consumer furnace standards in a direct final rule (“DFR”) published in the Federal Register on June 27, 2011 (“June 2011 DFR”), through which DOE prescribed amended energy conservation standards for non-weatherized gas furnaces (“NWGFs”), mobile home gas furnaces (“MHGFs”), weatherized gas furnaces (“WGFs”), non-weatherized oil-fired furnaces (“NWOFs”), mobile home oil furnaces (“MHOFs”), and weatherized oil furnaces (“WOFs”). 76 FR 37408. The June 2011 DFR amended the existing energy conservation standards for NWGFs, MHGFs, and NWOFs (which are specified in terms of annual fuel utilization efficiency (“AFUE”)) and amended the compliance date (but left the existing standards in place) for WGFs. The June 2011 DFR also established electrical standby mode and off mode standards for NWGFs, MHGFs, NWOFs, MHOFs, and electric furnaces. As a result of a settlement agreement approved by the Court of Appeals for the District of Columbia (“D.C.”) Circuit, the standards established by the June 2011 DFR for NWGFs and MHGFs did not go into effect. However, the court order left in place the standards for WGFs, NWOFs, MHOFs, WOFs, and EFs, which are the subject of this final determination. These standards are set forth in DOE's regulations at 10 CFR 430.32(e)(1)(ii) and (e)(1)(iv) and are shown in Table II.1 and Table II.2.
This rulemaking was undertaken pursuant to the voluntary remand in State of New York, et al. v. Department of Energy, et al., 08-311-ag(L); 08-312-ag(con) (2d Cir. filed Jan. 17, 2008).
DOE confirmed the standards and compliance dates promulgated in the June 2011 DFR in a notice of effective date and compliance dates published in the Federal Register on October 31, 2011 (“October 2011 notice”). 76 FR 67037. After publication of the October 2011 notice, the American Public Gas Association (“APGA”) sued DOE to invalidate the rule as it pertained to NWGFs and MHGFs. Petition for Review, American Public Gas Association, et al. v. Department of Energy, et al., No. 11-1485 (D.C. Cir. filed Dec. 23, 2011). On April 24, 2014, the Court granted a motion that approved a settlement agreement that was reached between DOE, APGA, and the various intervenors in the case, in which DOE agreed to a remand of the NWGF and MHGF portions of the June 2011 DFR in order to conduct further notice-and-comment rulemaking. Accordingly, the Court's order vacated the June 2011 DFR in part ( i.e., those portions relating to NWGFs and MHGFs) and remanded to the agency for further rulemaking. DOE addressed NWGFs and MHGFs in a separate rulemaking proceeding ( see Docket No. EERE-2014-BT-STD-0031). DOE published a final rule in the Federal Register on December 18, 2023 amending the energy conservation standards for NWGFs and MHGFs. 88 FR 87502.
Table II.1—Federal AFUE Energy Conservation Standards for Oil, Electric, and Weatherized Gas Furnaces
| Product class | AFUE (percent) | Compliance date |
|---|---|---|
| Non-weatherized oil-fired furnaces (not including mobile home furnaces) | 83 | May 1, 2013. |
| Mobile home oil-fired furnaces | 75 | September 1, 1990. |
| Weatherized gas furnaces | 81 | January 1, 2015. |
| Weatherized oil-fired furnaces | 78 | January 1, 1992. |
| Electric furnaces | 78 | January 1, 1992. |
Table II.2—Federal Standby Mode and Off Mode Energy Conservation Standards for Oil and Electric Furnaces
| Product class | Maximum standby mode electrical power consumption, P W, SB (watts) | Maximum off mode electrical power consumption, P W, OFF (watts) | Compliance date |
|---|---|---|---|
| Non-weatherized oil-fired furnaces (including mobile home furnaces) | 11 | 11 | May 1, 2013. |
| Electric furnaces | 10 | 10 | May 1, 2013. |
Table II.3—List of Commenters With Written Submissions in Response to the November 2023 NOPD
| Commenter(s) | Abbreviation | Comment No. in the docket | Commenter type |
|---|---|---|---|
| Air-Conditioning, Heating, and Refrigeration Institute | AHRI | 36 | Trade Association. |
| American Gas Association, American Public Gas Association, National Propane Gas Association | Joint Commenters | 33 | Trade Association. |
| Andrew Chiafullo | Chiafullo | 31 | Individual. |
| Appliance Standards Awareness Project, American Council for an Energy-Efficient Economy, Natural Resources Defense Council, New York State Energy Research and Development Authority, Northwest Energy Efficiency Alliance | Joint Advocates | 34 | Efficiency Organization. |
| Daikin Comfort Technologies North America, Inc. | Daikin | 35 | Manufacturer. |
| Lennox International | Lennox | 32 | Manufacturer. |
| Michael Ravnitzky | Ravnitzky | 30 | Individual. |
Table IV.1—List of Technology Options Considered for This Final Determination
| Technology option | Description |
|---|---|
| Condensing Secondary Heat Exchanger | The secondary heat exchanger allows more heat to be extracted from the flue gases before the products of combustion exit through the flue to the vent system by condensing any water vapor and releasing the resulting latent heat. |
| Heat Exchanger Improvements | Improvements to the heat exchanger can be achieved by modifying baseline designs of standard furnaces to incorporate any combination of: (1) increased heat exchanger surface area, (2) heat exchanger surface features, and/or (3) heat exchanger baffles and turbulators. Improving the heat exchanger for fossil fuel-fired furnaces can increase the rate of heat transfer from the hot combustion gases to the circulation air that is distributed to the heated space. This improved heat transfer increases thermal efficiency and AFUE. |
| Two-Stage and Modulating Combustion | Two-stage and modulating combustion allow furnaces to meet heating load requirements more precisely. When low heating load conditions exist, a two-stage or modulating furnace can operate at a reduced input rate for an extended period of burner on-time to meet the reduced heating load. This improves comfort by reducing large fluctuations in room temperature. Because burner on-time increases, however, fuel use does not drastically decrease, so efficiency gains are typically small. |
| Pulse Combustion | Pulse combustion burners operate on self-sustaining resonating pressure waves that alternately rarefy the combustion chamber (drawing a fresh fuel-air mixture into the chamber) and pressurize it (causing ignition by compression heating of the mixture to its flash point). Pulse combustion systems feature high heat transfer rates, can self-vent, and can operate as isolated combustion systems. Because the pulse combustion process is highly efficient, the burners are generally used with condensing appliances. |
| Premix Burners | Premix burners completely premix the primary air and fuel prior to combustion, thereby eliminating the need for secondary air. These burners allow for more precise control over the air-fuel ratio, so that the level of excess air can be set for optimal performance. Premix burners are often utilized to control production of emissions, in particular NO X . The premix burners used in consumer furnaces on the market today are capable of achieving “ultra-low NO X ” levels. |
| Burner Derating | Burner derating ( i.e., reducing burner firing rate while keeping heat exchanger geometry and surface area the same) will increase the ratio of heat transfer surface area to energy input, thereby increasing the AFUE. |
| Insulation Improvements | If the jacket loss test is performed, insulation improvements would reduce jacket losses and increase AFUE. Insulation can be improved by modifying the baseline furnace design through the use of increased jacket insulation or advanced forms of insulation. |
| Off-Cycle Dampers | Off-cycle (which refers to the burner off-cycle) dampers restrict the intake and exhaust airflow through the venting system during standby mode by closing when the burner is not operating, thereby trapping residual heat in the heat exchanger. During the burner off-cycle, a furnace can lose heat by natural convection and conduction through the combustion air inlet and flue. Installing a damper at these points can prevent heat from escaping and minimize off-cycle heat losses. Dampers have no effect on the steady-state performance of the furnace; however, they can reduce standby losses. The AFUE metric captures both steady-state and standby performance of the furnace, and thus any heated air that is retained in the system during the standby mode improves the furnace's AFUE. |
| Off-cycle dampers include: (1) electro-mechanical flue dampers, which are installed downstream of the heat exchanger, are activated by an external source of electricity, and open and close immediately when combustion starts and stops, (2) electro-mechanical burner inlet dampers, which are installed at the combustion-air inlet to the burner box and are designed to automatically close off the air passage and restrict the airflow through the heat exchanger when the burner is off. | |
| Direct Venting | A direct venting system consists of a pipe that provides the burner with a direct connection to a combustion air source on the exterior of the building. This external connection allows the furnace to utilize outdoor air for combustion, which could result in an improvement in AFUE. |
| Concentric Venting | Concentric venting is accomplished by running the inlet and exhaust vents concentrically. The flue gases are exhausted through a central vent pipe, and the intake combustion air passes through a concentric duct surrounding it. This arrangement creates a counter-flow heat exchanger that recovers some heat from the flue gases to preheat the combustion air. It provides an efficiency advantage compared to non-concentric venting systems, as the concentric vent essentially serves as a shell-in-tube heat exchanger to recover heat. |
| Low-Pressure, Air-Atomized Oil Burner | To overcome the low input limitations of conventional oil burners, Brookhaven National Laboratory developed a low-pressure, air-atomized oil burner that can operate at firing rates as low as 0.25 gallons of oil per hour (10 kW). In addition, it can operate with low levels of excess combustion air (less than 10 percent) for lean-burning, ultra-clean combustion. A lower level of excess air generally improves AFUE rating. This single-stage burner design is also capable of firing fuel at high and low input rates, which are manually actuated by a switch, allowing it to closely match the smaller heating loads of well-insulated modern homes. The ability to derate the flame also greatly enhances the effectiveness of the heat exchanger, which improves steady-state efficiency. |
| High-Static Oil Burner | A modification of the conventional flame retention head burner is the high-static pressure flame retention head oil burner. These burners employ an air guide to direct air onto the optimal point on the blower wheel and a scroll insert to create high static pressure in the combustion chamber while maintaining consistent airflow. This higher pressure enables the furnace to overcome restrictive flow passages in compact, more efficient heat exchangers. These types of burners are also able to operate at lower levels of excess air, giving them a nearly five-percent AFUE advantage over flame retention head burners. |
| Delayed-Action Oil Pump Solenoid Valve | A delayed-action oil pump solenoid valve is installed between the oil pump and the burner nozzle to supplement the fuel pump regulator by delaying the fuel release by 3 to 6 seconds after the igniter and burner blower start until the oil pressure reaches the level required to fully discharge the oil into the combustion chamber without dripping. This ensures that the oil burns more completely. Testing at Brookhaven National Laboratory indicates that the typical efficiency benefit of delayed-action solenoid valves is expected to be less than one-percent AFUE. |
Table IV.2—Technology Options Screened Out
| Excluded technology option | Applicable product class(es) | Screening criteria (X = basis for screening out) | ||||
|---|---|---|---|---|---|---|
| Technological feasibility | Practicability to install, manufacture, and service | Impacts on product utility or product availability | Adverse impacts on health or safety | Unique- pathway proprietary technologies | ||
| Pulse combustion | WGF | X | ||||
| Burner derating | WGF, NWOF, MHOF | X | ||||
| Low-pressure, air-atomized oil burner | NWOF, MHOF | X |
Table IV.3—Baseline Efficiency Levels
| Product class | Baseline AFUE level (%) | Typical characteristics |
|---|---|---|
| NWOF | 83 | —Single-stage burner. |
| —Electronic ignition. | ||
| —Aluminized-steel heat exchanger. | ||
| —Indoor blower fan including PSC motor * and forward-curved blower impeller blade. | ||
| MHOF | 80 | —Single-stage burner. |
| —Electronic ignition. | ||
| —Aluminized-steel heat exchanger. | ||
| —Indoor blower fan including PSC motor * and forward-curved blower impeller blade. | ||
| —Direct venting system. | ||
| —Built-in evaporator coil cabinet. | ||
| WGF | 81 | —Draft inducer. |
| —Single-stage burner. | ||
| —Electronic ignition. | ||
| —Aluminized-steel tubular heat exchanger. | ||
| —Indoor blower fan including BPM * motor and forward-curved blower impeller blade. | ||
| * Consumer furnace fans incorporated into NWOFs, MHOFs, and WGFs manufactured on and after July 3, 2019 must meet fan energy rating (“FER”) standards specified in 10 CFR 430.32(y). The blower fan motor (among other factors) can affect FER. Brushless permanent magnet (“BPM”) motors have become the predominant motor type at the baseline AFUE levels for WGFs, and permanent split capacitor (“PSC”) motors, which are less efficient than BPM motors, are common for NWOFs and MHOFs. |
Table IV.4—AFUE Efficiency Levels and Technologies Used at Each Efficiency Level Above Baseline for NWOFs
| Efficiency level | AFUE (%) | Description of technologies typically incorporated |
|---|---|---|
| 0—Baseline | 83 | See Table IV.3 for baseline features. |
| 1 | 85 | Baseline EL + Increased heat exchanger area. |
| 2 | 87 | EL 1 + Increased heat exchanger area. |
| 3—Max-tech | 96 | EL 2 + Addition of condensing secondary heat exchanger (and associated components, sensors, etc.) + CA-BPM motor. |
Table IV.5—AFUE Efficiency Levels and Technologies Used at Each Efficiency Level Above Baseline for MHOFs
| Efficiency level | AFUE (%) | Description of technologies typically incorporated |
|---|---|---|
| 0—Baseline | 80 | See Table IV.3 for baseline features. |
| 1 | 83 | Baseline EL + Increased heat exchanger area. |
| 2 | 85 | EL 1 + Increased heat exchanger area. |
| 3—Max-tech | 87 | EL 2 + Increased heat exchanger area. |
Table IV.6—AFUE Efficiency Levels and Technologies Used at Each Efficiency Level Above Baseline for WGFs
| Efficiency level | AFUE (%) | Description of technologies typically incorporated |
|---|---|---|
| 0—Baseline | 81 | See Table IV.3 for baseline features. |
| 1—Max-tech | 95 | Baseline EL + Addition of condensing secondary heat exchanger (and associated components, sensors, etc.). |
Table IV.7—Purchased Furnace Components
| Assembly | Purchased subassemblies |
|---|---|
| Burner/Exhaust | Gas valve. |
| Spark igniter. | |
| Draft inducer assembly. | |
| Blower | Indoor blower fan blade. |
| Indoor blower fan motor. | |
| Controls | Control boards. |
| Capacitors, transformers, contactors, switches, etc. |
Table IV.8—Factory Parameter Assumptions
| Parameter | Oil furnace estimate | WGF estimate |
|---|---|---|
| Actual Annual Production Volume (units/year) | 5,000 units/year | 500,000 units/year. |
| Purchased Parts Volume | 5,000 units/year | 100,000 units/year. |
| Workdays Per Year (days) | 250 | 250. |
| Assembly Shifts Per Day (shifts) | 1 | 2. |
| Fabrication Shifts Per Day (shifts) | 2 | 2. |
| Fabrication Labor Wages ($/h) | 16 | 16. |
| Assembly Labor Wages ($/h) | 16 | 16. |
| Length of Shift (h) | 8 | 8. |
| Average Equipment Installation Cost (% of purchase price) | 10% | 10%. |
| Fringe Benefits Ratio | 50% | 50%. |
| Indirect to Direct Labor Ratio | 33% | 33%. |
| Average Scrap Recovery Value | 30% | 30%. |
| Worker Downtime | 10% | 10%. |
| Burdened Assembly Labor Wage ($/h) | 24 | 24. |
| Burdened Fabrication Labor Wage ($/h) | 24 | 24. |
| Supervisor Span (workers/supervisor) | 25/1 | 25/1. |
| Supervisor Wage Premium (over fabrication and assembly wage) | 30% | 30%. |
Table IV.9—Cost Increases for BPM Blower Motors as Compared to PSC Motors
| Product class | Input capacity (kBtu/h) | Incremental cost increase for CT-BPM (2022$) | Incremental cost increase for CA-BPM (2022$) |
|---|---|---|---|
| NWOF, MHOF | 105 | $30.65 | $80.48 |
| WGF | 80 | 37.94 | 59.92 |
Table IV.10—Multi-Stage Burner Incremental Cost Increase as Compared to Single-Stage Burner
| Adder | Incremental cost increase for multi-stage burners (2022$) |
|---|---|
| Two-Stage | $21.07 |
| Modulating | 75.36 |
Table IV.11—Increase in MPCs for Low-NO X and Ultralow-NO X WGFs
| Adder | Value (2022$) |
|---|---|
| Low-NO X | $3.10 |
| Ultralow-NO X | 113.68 |
Table IV.12—Shipping Costs Per Unit
| Product class | Representative capacity (kBtu/h) | Per-unit shipping cost (2022$) |
|---|---|---|
| WGF | 80 | $55.69 |
| NWOF | 105 | 19.92 |
| MHOF | 105 | 19.92 |
Table IV.13—Cost-Efficiency Data for WGFs With a Constant-Torque BPM Indoor Blower Motor and a Single-Stage Burner
| AFUE | MPC (2022$) | MSP (2022$) |
|---|---|---|
| 81 | $1,412.32 | $1,793.65 |
| 95 | 1,505.40 | 1,911.85 |
Table IV.14—Cost-Efficiency Data for NWOFs With a PSC Indoor Blower Motor and a Single-Stage Burner
| AFUE | MPC (2022$) | MSP (2022$) |
|---|---|---|
| 83 | $700.73 | $945.98 |
| 85 | 730.94 | 986.77 |
| 87 | 761.16 | 1,027.57 |
| 96 | 1,334.85 | 1,802.05 |
Table IV.15—Cost-Efficiency Data for MHOFs With a PSC Indoor Blower Motor and a Single-Stage Burner
| AFUE | MPC (2022$) | MSP (2022$) |
|---|---|---|
| 80 | $664.47 | $857.16 |
| 83 | 709.79 | 915.63 |
| 85 | 740.01 | 954.61 |
| 87 | 770.23 | 993.59 |
Table IV.16—Summary of Inputs and Methods for the LCC and PBP Analyses *
| Inputs | Source/method |
|---|---|
| Product Cost | Derived by multiplying MPCs by manufacturer and distribution chain markups and sales tax, as appropriate. Used historical data to derive a price-scaling index to project product costs. |
| Installation Costs | Baseline installation cost determined with data from RS Means 2023, manufacturer literature, and expert consultant. DOE assumed increased installation costs for condensing furnaces. |
| Annual Energy Use | The annual energy consumption per unit at each efficiency level ( see section IV.D of this document). |
| Variability: Based on RECS 2015 and CBECS 2012. | |
| Energy Prices | Natural Gas: Based on EIA's Natural Gas Navigator data for 2022 and RECS 2015 and CBECS 2012 billing data. |
| Propane and Fuel Oil: Based on EIA's State Energy Data System (“SEDS”) for 2021. | |
| Electricity: Based on EIA's Form 861 data for 2022 and RECS 2015 and CBECS 2012 billing data. | |
| Variability: State energy prices determined for residential and commercial applications. | |
| Marginal prices used for natural gas, propane, and electricity prices. | |
| Energy Price Trends | Residential and commercial prices were escalated by using EIA's 2023 Annual Energy Outlook ( AEO 2023) forecasts to estimate future energy prices. Escalation was performed at the Census Division level. |
| Repair and Maintenance Costs | Baseline installation cost determined with data from RSMeans 2023, manufacturer literature, and expert consultant. DOE assumed increased repair and maintenance costs for condensing furnaces. |
| Product Lifetime | Based on shipments data, multi-year RECS, American Housing Survey, American Home Comfort Survey data. Average: 20.2-22.5 years. |
| Discount Rates | For residential end users, approach involves identifying all possible debt or asset classes that might be used to purchase the considered appliances or might be affected indirectly. Primary data source was the Federal Reserve Board's Survey of Consumer Finances. For commercial end users, DOE calculates commercial discount rates as the weighted-average cost of capital using various financial data. |
| Compliance Date | 2030. |
| * References for the data sources mentioned in this table are provided in the sections following the table or in chapter 8 of the November 2022 Preliminary Analysis TSD. Energy price trends, product lifetimes, and discount rates are not used for the PBP calculation. |
Table IV.17—Summary of Energy Price Comparison of 2023 EIA Data Relative to November 2023 NOPD
| Energy type | Percent change in 2030 energy price |
|---|---|
| Electricity | −20 |
| Natural Gas | +1 |
| LPG | +1 |
| Fuel Oil | −16 |
Table IV.18—No-New-Standards Case Efficiency Distributions in 2030 for Oil and Weatherized Gas Furnaces
| Product class | Efficiency level | Distribution (%) |
|---|---|---|
| NWOF | Baseline | 37.2 |
| 1 | 60.0 | |
| 2 | 1.5 | |
| 3 | 1.3 | |
| MHOF | Baseline | 95 |
| 1 | 2 | |
| 2 | 3 | |
| 3 | 0 | |
| WGF | Baseline | 96 |
| 1 | 4 |
Table IV.19—Summary of Inputs and Methods for the National Impact Analysis
| Inputs | Method |
|---|---|
| Shipments | Annual shipments from shipments model. |
| Compliance Date of Standard | 2030. |
| Efficiency Trends | No-new-standards case: Based on historical data. Standards cases: Roll-up in the compliance year and then DOE-estimated growth in shipment-weighted efficiency in all the standards cases, except max-tech. |
| Annual Energy Consumption per Unit | Annual weighted-average values are a function of energy use at each EL. Incorporates projection of future energy use based on AEO 2023 projections for heating degree days (“HDD”), cooling degree days (“CDD”), and building shell efficiency index. |
| Total Installed Cost per Unit | Annual weighted-average values are a function of cost at each EL. Incorporates projection of future product prices based on historical data. |
| Annual Energy Cost per Unit | Annual weighted-average values as a function of the annual energy consumption per unit and energy prices. |
| Repair and Maintenance Cost per Unit | Annual weighted-average values increase for condensing levels. |
| Energy Price Trends | AEO 2023 projections (to 2050) and extrapolation after 2050. |
| Energy Site-to-Primary and FFC Conversion | A time-series conversion factor based on AEO 2023. |
| Discount Rate | 3% and 7%. |
| Present Year | 2023. |
Table V.1—Average LCC and PBP Results for NWOFs
| Efficiency level | Average costs ( 2022$) | Simple payback ( years) | Average lifetime ( years) | |||
|---|---|---|---|---|---|---|
| Installed cost | First year's operating cost | Lifetime operating cost | LCC | |||
| Baseline | 4,333 | 2,132 | 32,211 | 36,544 | 22.2 | |
| 1 | 4,392 | 2,086 | 31,528 | 35,920 | 1.3 | 22.2 |
| 2 | 4,451 | 2,043 | 30,876 | 35,327 | 1.3 | 22.2 |
| 3 | 5,898 | 1,920 | 29,212 | 35,110 | 7.4 | 22.2 |
| Note: The results for each EL are calculated assuming that all consumers use products at that efficiency level. The PBP is measured relative to the baseline product. |
Table V.2—Average LCC Savings Relative to the No-New-Standards Case for NWOFs
| Efficiency level | Life-cycle cost savings | |
|---|---|---|
| Average LCC savings * ( 2022$) | Percentage of consumers that experience net cost (%) | |
| 1 | 608 | 0.5 |
| 2 | 820 | 1.4 |
| 3 | 1015 | 37.0 |
| Note: The savings represent the average LCC for affected consumers. |
Table V.3—Average LCC and PBP Results for MHOFs
| Efficiency level | Average costs ( 2022$) | Simple payback ( years) | Average lifetime ( years) | |||
|---|---|---|---|---|---|---|
| Installed cost | First year's operating cost | Lifetime operating cost | LCC | |||
| Baseline | 3,377 | 1,142 | 17,913 | 21,290 | 22.6 | |
| 1 | 3,465 | 1,107 | 17,371 | 20,836 | 2.5 | 22.6 |
| 2 | 3,523 | 1,085 | 17,030 | 20,553 | 2.5 | 22.6 |
| 3 | 3,581 | 1,063 | 16,705 | 20,286 | 2.6 | 22.6 |
| Note: The results for each EL are calculated assuming that all consumers use products at that efficiency level. The PBP is measured relative to the baseline product. |
Table V.4—Average LCC Savings Relative to the No-New-Standards Case for MHOFs
| Efficiency level | Life-cycle cost savings | |
|---|---|---|
| Average LCC savings * ( 2022$) | Percentage of consumers that experience net cost (%) | |
| 1 | 452 | 0.8 |
| 2 | 724 | 0.9 |
| 3 | 971 | 1.0 |
| Note: The savings represent the average LCC for affected consumers. |
Table V.5—Average LCC and PBP Results for WGFs
| Efficiency level | Average costs ( 2022$) | Simple payback ( years) | Average lifetime ( years) | |||
|---|---|---|---|---|---|---|
| Installed cost | First year's operating cost | Lifetime operating cost | LCC | |||
| Baseline | 5,533 | 471 | 7,215 | 12,748 | 20.6 | |
| 1 | 5,822 | 433 | 6,698 | 12,519 | 7.5 | 20.6 |
| Note: The results for each EL are calculated assuming that all consumers use products at that efficiency level. The PBP is measured relative to the baseline product. |
Table V.6—Average LCC Savings Relative to the No-New-Standards Case for WGFs
| Efficiency level | Life-cycle cost savings | |
|---|---|---|
| Average LCC Savings * ( 2022$) | Percentage of consumers that experience net cost (%) | |
| 1 | 223 | 40.4 |
| Note: The savings represent the average LCC for affected consumers. |
Table V.7—Cumulative National Energy Savings for Oil and Weatherized Gas Furnaces; 30 Years of Shipments (2030-2059)
| Product class | Efficiency level | ||
|---|---|---|---|
| 1 | 2 | 3 | |
| FFC Energy Savings (quads) | |||
| Non-Weatherized Oil Furnace | 0.004 | 0.01 | 0.05 |
| Mobile Home Non-Weatherized Oil Furnace | 0.0004 | 0.001 | 0.001 |
| Weatherized Gas Furnace | 0.66 |
Table V.8—Cumulative National Energy Savings for Oil and Weatherized Gas Furnaces; 9 Years of Shipments (2030-2038)
| Product class | Efficiency level | ||
|---|---|---|---|
| 1 | 2 | 3 | |
| FFC Energy Savings (quads) | |||
| Non-Weatherized Oil Furnace | 0.002 | 0.01 | 0.02 |
| Mobile Home Non-Weatherized Oil Furnace | 0.0002 | 0.0004 | 0.001 |
| Weatherized Gas Furnace | 0.20 |
Table V.9—Cumulative Net Present Value of Consumer Benefits for Oil and Weatherized Gas Furnaces; 30 Years of Shipments (2030-2059)
| Discount rate | Product class | Efficiency level (EL) | ||
|---|---|---|---|---|
| 1 | 2 | 3 | ||
| billion 2022$ | ||||
| 3% | Non-Weatherized Oil Furnace | 0.06 | 0.20 | 0.20 |
| Mobile Home Non-Weatherized Oil Furnace | 0.01 | 0.01 | 0.01 | |
| Weatherized Gas Furnace | 1.88 | |||
| 7% | Non-Weatherized Oil Furnace | 0.02 | 0.08 | 0.03 |
| Mobile Home Non-Weatherized Oil Furnace | 0.002 | 0.003 | 0.005 | |
| Weatherized Gas Furnace | 0.45 |
Table V.10—Cumulative Net Present Value of Consumer Benefits for Oil and Weatherized Gas Furnaces; 9 Years of Shipments (2030-2038)
| Discount rate | Product class | Efficiency level (EL) | ||
|---|---|---|---|---|
| 1 | 2 | 3 | ||
| billion 2022$ | ||||
| 3% | Non-Weatherized Oil Furnace | 0.03 | 0.11 | 0.12 |
| Mobile Home Non-Weatherized Oil Furnace | 0.003 | 0.01 | 0.01 | |
| Weatherized Gas Furnace | 0.67 | |||
| 7% | Non-Weatherized Oil Furnace | 0.02 | 0.05 | 0.02 |
| Mobile Home Non-Weatherized Oil Furnace | 0.002 | 0.003 | 0.004 | |
| Weatherized Gas Furnace | 0.22 |