Rising Price of Furnace Installs in Minnesota is Back

Back in November I posted about the Department of Energy DOE pushing forward requiring all furnace replacements in Minnesota must be 90% or greater efficiency.  Currently the minimum standard is 78% efficient.  There has been a lot of controversy over this new code.  Many homes have fully finished basements and installation of a 90% or greater efficient furnace could be very difficult causing a much higher installation cost.  Townhomes are even a bigger concern because these high efficient furnaces do not use your existing chimney going up through the roof.  These furnaces are more commonly vented out the side of the home so townhomes with joining neighbors can make this very difficult.  The law suit to overturn this new rule was based on how the DOE didn’t follow through with the public opinion portion that is required for major government changes like this. 

Over the last few months it was expected the new high efficient code would be overturned.  Now this week the U.S. Court of Appeals filed a motion about the May 1^st deadline.  There have been multiple agencies trying to work this out.  But now with this week’s update it looks like May 1^st, 2013 will be the date all Minnesota residents will have to go with.  After this date 80% Efficient furnaces can no longer be installed.  This could raise a major issue for manufactures and heating companies who still have these furnaces in stock. 

Regional Standards Update

This week a motion was filed with U.S. Court of Appeals to request a stay or delay from the May 1 effective date for the Regional Efficiency Standards in the Northern Region. The motion, which was filed by the Air-Conditioning, Heating & Refrigeration Institute (AHRI) echoes comments presented to the court by HARDI regarding the uncertainty that this looming deadline has brought upon the entire HVACR industry. HARDI will be filing a response in support of the motion to stay or delay the deadline.

This motion is necessary, because as of the publication of this email, the court has not yet agreed to accept the proposed settlement agreement between the American Public Gas Association (APGA) and the Department of Energy (DOE). Until the court officially accepts this settlement, the May 1 compliance date still stands and it will be illegal to install a non-compliant residential gas furnace in the Northern Region. To date, the DOE has yet to respond to two requests for a delay in the effective date, thus forcing stakeholders to ask the court to intervene.

To reiterate, a settlement has been proposed regarding regional efficiency standards for residential gas furnaces in the Northern Region, but as of today the court has yet to accept this settlement. There is no timetable for when the court may rule on both the APGA/DOE settlement or HARDI's motion to continue on with the lawsuit to address other items, including regional efficiency standards for A/C in the South and Southwest. Because of uncertainty regarding the proximity of the May 1 compliance date, AHRI has filed a motion to stay or delay the effective date and HARDI will be filing a supportive response. Until the motion to stay is granted or the court accepts the proposed settlement, the May 1 effective date is still the law of the land. HARDI will continue to keep members updated as developments occur.