DOE outlines possible enforcement options for Regional Standards

DOE outlines possible enforcement options
This morning the Department of Energy released a Framework document regarding enforcement of the newly installed regional standards. This document is intended to provide stakeholders with an idea of what the DOE may have in mind and allow for discussion, before an official enforcement proposal is released in January.

The DOE has stated that the effective dates (May 1, 2013 for furnaces and January 1, 2015 for air-conditioners) are installation bans, therefore eliminating "Grandfather" provisions that have marked previous standards increases and leaving distributors to liquidate inventory before the effective date or risk it being stranded.

Additionally, the DOE has laid out three different enforcement approaches that they are considering. All three approaches put unprecedented burdens on distributors and clearly represent why HARDI opposed this regulation in the first place.

• The "least invasive" proposal would mandate distributors to inform the purchaser of equipment of the regional standards and require a signature from the contractor which would indicate they understand the regional standards. This letter would then be kept under file by distributors.
• A second option would require the distributor to track serial numbers of equipment sold to contractors and maintain those records in the event of an audit by the federal government.
• The most aggressive proposal would require distributors to track serial number, installer, and installation location information for units sold and to submit the information on a regular basis or face penalty.

HARDI urges all members to read the DOE's Framework document and contact Jon Melchi with your thoughts and recommendations.

HARDI voices opposition to Regional Standards

HARDI files comments in opposition of Regional Standards/ Efficiency Standards Increase

On Monday HARDI filed comments in opposition to a Department of Energy (DOE) Direct Final Rule which would regionalize air conditioners and furnaces as well as increasing efficiency standards for those products in certain regions. The Direct Final Rule came as a result of a pact negotiated by equipment manufacturers and energy efficiency advocates and excluded the input of HVAC distributors and contractors. HARDI has asked the DOE to withdraw the direct final rule and precede with the traditional rulemaking (NOPR) process which would allow for more analysis and stakeholder input.

HARDI indicated in previous comments to DOE that we would only be able to offer support to the proposed rule if the planned increases in efficiency standards were economically justifiable. HARDI maintains that the nation’s economic climate, including an unprecedented drop in new home construction, coupled with the substantial decline in unitary sales of both air conditioners and furnaces since the last national standards and a reduction in consumer purchasing power do not make the proposed rule viable on an economic level.

Additionally, HARDI has great concerns about the unknown costs that will come with compliance and enforcement of the proposed rule. HARDI believes that it is impossible for the DOE to fully assess the economic impact of the rule without first finalizing an enforcement plan. HARDI fears that the cost and responsibility associated with compliance and enforcement will fall far from the manufacturers who negotiated the agreement, and will land squarely upon the many small businesses in both the HVAC distribution and contract installation industry. HARDI has asked the DOE withdraw the direct final rule and move the rule to a NOPR with a combined, or concurrent, enforcement rulemaking.

DOE issues Direct Final Rule on Regional Standards

The Department of Energy has released a Direct Final Rule regarding Regional Standards for Residential Furnaces, Residential Central Air Conditioners and Heat Pumps. If no adverse comments are received, this Direct Final Rule will become effective 110 days from the date of official publication and will be followed 90 days later by an enforcement rulemaking.

As currently written, the implementation date for non-weatherized gas furnaces, mobile home furnaces and non-weatherized oil furnaces is May 1, 2013. The implementation date for weatherized gas furnaces, all central air conditioners and all heat pumps is January 1, 2015.

The DOE has decided to leave a singular national standard in place for some products, while other products will now be forced to meet up to three different qualifying standards. Below is a list of both national product standards and a breakdown by individual state.

Product Class	National Standard
Non-weatherized oil-fired furnace	83% AFUE
Weatherized gas furnace	81% AFUE
Mobile home oil-fired furnace	75 % AFUE
Weatherized oil-fired furnace	78% AFUE
Electric furnace	78% AFUE
Split-system heat pumps	14 SEER / 8.2 HSPF
Single-package heat pumps	14 SEER/ 8.0 HSPF
Small-duct, high velocity systems	13 SEER/ 7.7 HSPF
Space-constrained products- air conditioner	12 SEER
Space-constrained products- heat pumps	12 SEER/ 7.4 HSPF

States	Non-weatherized gas furnace	Mobile home gas furnace	Split-system AC	Single-package AC
AK, CO, CT, ID, IL, IN, IA, KS, ME, MA, MI, MN, MO, MT, NE, NH, NJ, NY, ND, OH, OR, PA, RI, SD, UT, VT, WA, WV, WI, WI	90% AFUE	90% AFUE	13 SEER	14 SEER
AL, AR, DE, FL, GA, HI, KY, LA, MD, MS, NC, OK, SC, TN, TX, VA, DC	80% AFUE	80% AFUE	14 SEER	14 SEER
AZ, CA, NV, NM	80 % AFUE	80% AFUE	14 SEER EER=12.2 >45,000 BTU's EER=11.7 <45,000 BTU's	14 SEER EER=11.0