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Federal Register / Vol. 86, No. 164 / Friday, August 27, 2021 / Proposed Rules
feasible and economically justified, and would save a significant amount of energy. 80 FR 13120 March 2015
Furnace NOPR. To provide further consideration of comments suggesting a separate product class for furnaces based on input capacity and in order to mitigate some of the negative impacts of the proposed standards, DOE published a notice of data availability NODA in the Federal Register on September 14, 2015. 80 FR 55038 September 2015
Furnaces NODA. DOE subsequently published a supplemental notice of proposed rulemaking SNOPR for this rulemaking in the Federal Register on September 23, 2016, in which DOE
proposed to establish capacity-based product classes. 81 FR 65720
September 2016 Furnaces SNOPR. On May 31, 2016, DOE published in the Federal Register a proposal to amend the energy conservation standards for commercial water heaters. 81 FR 34440
May 2016 Commercial Water Heaters NOPR.
In both the residential furnaces rulemaking and the commercial water heaters rulemaking, DOE proposed amended energy conservation standards that would effectively require products/
equipment in certain classes to use condensing technology to meet the amended standards. See 81 FR 65720, 65852 Sept. 23, 2016 and 81 FR 34440, 3450334504 May 31, 2016. For the product/equipment classes where such standards were proposed, if finalized, the amended standards would have effectively eliminated all noncondensing products/equipment that are currently on the market in those classes.
In the March 2015 Furnace NOPR, DOE tentatively concluded that the methods by which a furnace is vented which is a significant differentiator of condensing and non-condensing furnacesdo not provide any separate performance-related impacts. Therefore, DOE had no statutory basis for defining a separate class based on venting and drainage characteristics because venting methods do not provide unique utility to consumers beyond the basic function of providing heat, which all furnaces perform. 80 FR 13120, 13138 March 12, 2015. In the September 2016 Furnace SNOPR, DOE reiterated its tentative conclusion that methods of venting do not provide any performance-related utility separate from the basic function of a furnace. 81 FR 65720, 65753 Sept.
23, 2016. Similarly, in the May 2016
Commercial Water Heater NOPR, DOE
tentatively concluded that both noncondensing and condensing gas-fired commercial water heating equipment provide the same hot water for use by commercial consumers, and, therefore,
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separate equipment classes could not be justified. 81 FR 34440, 34463 May 31, 2016.
On October 18, 2018, DOE received a petition for rulemaking submitted by the American Public Gas Association, Spire, Inc., the Natural Gas Supply Association, the American Gas Association, and the National Propane Gas Association, collectively referred to as the Gas Industry Petitioners, asking DOE to: 1 Issue an interpretive rule stating that DOEs proposed energy conservation standards for residential furnaces and commercial water heaters would result in the unavailability of performance characteristics within the meaning of EPCA, specifically by eliminating from the market units utilizing non-condensing technology, and 2 withdraw the proposed energy conservation standards for residential furnaces and commercial water heaters based upon such findings. DOE
published the notice of petition in the Federal Register on November 1, 2018
and requested public comment.4 83 FR
54883.
Following consideration of the comments on the petition, DOE
published a notice of proposed interpretive rule on July 11, 2019, presenting DOEs tentative interpretation that, in the context of residential furnaces, commercial water heaters, and similarly-situated products/
equipment, use of non-condensing technology and associated venting would constitute a performance-related feature under EPCA that cannot be eliminated through adoption of an energy conservation standard. 84 FR
33011 July 2019 Proposed Interpretive Rule.5 DOE also provided that, if such interpretation were to be finalized, it anticipated developing supplemental notices of proposed rulemaking that would implement the new legal interpretation for the subject residential furnaces and commercial water heaters.
84 FR 33011, 33021 July 11, 2019.
DOE published a supplemental notice of proposed interpretation in the Federal Register on September 24, 2020, which proposed alternative approaches to product/equipment class setting in this context. 85 FR 60090. The supplemental proposed interpretive rule was in response to comments expressing 4 In response to requests submitted by two stakeholders, DOE extended the initial 90-day comment period for an additional 30 days. 84 FR
449 Jan. 29, 2019.
5 The July 2019 Proposed Interpretive Rule granted the request for an interpretive rule but initially denied the Gas Industry Petitioners request to withdraw DOEs earlier proposed rules for residential furnaces and commercial water heaters. 84 FR 33011, 33021 July 11, 2019.

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concern with the proposed focus on non-condensing technology as the performance-related feature. 85 FR
60090, 6009460095 Sept. 24, 2020.
Alternatively, the supplemental notice of proposed interpretation considered venting compatibility as a possible feature. 85 FR 60095 Sept. 24, 2020.
DOE requested comment on this alternative approach. Id.
On January 15, 2021, DOE published in the Federal Register a final interpretive rule determining that, in the context of residential furnaces, commercial water heaters, and similarly-situated products/equipment, use of non-condensing technology and associated venting constitutes a performance-related feature under EPCA that cannot be eliminated through adoption of an energy conservation standard. 86 FR 4776 January 2021
Final Interpretation. Following consideration of comments and data submitted by stakeholders in response to the proposed interpretation and supplemental proposal, DOE found that when used by the appliances in question, non-condensing technology and associated venting constitutes a performance-related feature that provides consumer utility distinct from that provided by such appliances that employ condensing technology. More specifically, in contrast to condensing units, non-condensing units: 1 Avoid complex installations in certain locations constrained by space, existing venting, and available drainage; 2
avoid the encroachment on usable space that would occur in certain installations, and 3 do not enhance the level of fuel switching that might accompany standard setting absent a separate product/equipment class for non-condensing appliance. 86 FR 4776, 4816 Jan. 15, 2021. DOE stated that such an interpretation would extend to all relevant/applicable cases involving consumer products, non-ASHRAE
commercial equipment, and ASHRAE
equipment where DOE adopts a level more stringent than the ASHRAE level.
86 FR 4776, 48164817 Jan. 15, 2021.
In light of this final interpretation, DOE withdrew its March 12, 2015
proposed rule and September 23, 2016
supplemental proposed rule for energy conservation standards for nonweatherized gas furnace and mobile home gas furnaces, as well as its May 31, 2016 proposed rule for energy conservation standards for commercial water heating equipment. 86 FR 3873
Jan. 15, 2021. However, DOE has not implemented the January 15, 2021 final interpretation in the context of any individual energy conservation
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