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The DOE/APGA Furnace Rule Settlement: Avoiding Unintended Consequences

By Bert Kalisch -- January 23, 2013

“In theory, higher furnace efficiency standards sound like a good thing …. However, the impact … would lead many consumers to switch from natural gas furnaces to heating alternatives that are less expensive on a first-cost basis, but are ultimately less energy efficient and result in higher consumer costs in the long term.”

Earlier this month, the American Public Gas Association (APGA) reached a mediated settlement agreement with the U.S. Department of Energy on APGA’s petition challenging regional furnace standards adopted by DOE in 2011 via a direct final rule (DFR). While some have called the settlement a “setback” and “cave-in,” the revised increased efficiency standard promises to avoid the unintended consequences that otherwise would dilute or even reverse the efficiency program’s goals.


The new standards mandate an increase in the minimum annual fuel utilization efficiency (AFUE) from 78% to 90% for natural gas furnaces installed in 30 northern states, and from 78% to 80% in the southern states (the “Furnace Rule”).