34 Organizations ask the Department of Energy to reverse Biden Administration furnace and commercial water heater ban

A coalition of 34 organizations is calling on the U.S. Department of Energy (DOE) to extend the compliance deadline and reverse a Biden-administration rule banning popular types of natural gas furnaces and commercial water heaters. The group sent a letter to DOE in support of the efforts of the American Gas Association, American Public Gas Association and National Propane Gas Association to reverse the restrictive Biden-era efficiency rules and prevent the potential cost implications from harming American families.

“These rules, once in effect, will raise costs, eliminate consumer choice and place undue burden on vulnerable communities that want affordable heat and hot water,” states the letter. “The rules are neither pro-consumer nor pro-affordability, as they will negatively affect families with higher installation costs or eliminate natural gas and propane as a fuel option altogether. DOE should make changes to these rules to prevent hardship, inequity or unfair distribution of burdens on all customers, but especially on senior-only, low-income, and mobile home households and on small businesses.”

The coalition letter comes as the U.S. Supreme Court considers a petition to take up a case against the Biden furnace rule. That petition is also broadly supported by the Trump Administration and by 21 states and a large coalition of organizations.

“Protecting natural gas appliances means protecting affordability and the ability for Americans to choose the energy that works best for their homes and families,” said Karen Harbert, president and CEO of the American Gas Association. “We appreciate that DOE has acknowledged the legal flaws in the prior administration’s rule, joined our call for the Supreme Court to intervene and opened this docket to extend the compliance deadline for the rules. Americans should not be forced into costly home retrofits or denied access to the appliances they rely on every day because of unlawful federal overreach.”

Non-condensing furnaces, which would be illegal to manufacture in 2028 under the Biden-era rule, account for approximately 55% of the market for natural gas furnaces in the United States. In many homes, these furnaces cannot be replaced with condensing models without significant structural modifications, requiring costly renovations or eliminating natural gas as a heating option.

Data from the Biden Administration DOE shows that the furnace rule would increase costs for 30% of senior-only households, 26% of low-income households and 27% of small business consumers. For households with mobile home gas furnaces, 39% of consumers would be negatively affected by the proposed standard, showing a disproportionate impact on America’s low-income households. These numbers are potentially significantly underreported.

Natural gas is the most affordable home heating option for Americans and is 3.5 times less costly than electricity for the same amount of energy delivered. Natural gas is projected to remain one-third to one-half the price of other fuels through 2050, according to U.S. government projections.

View the full coalition letter here and read more detailed comments from AGA here.