First Regional Energy-Saving Standards for Furnaces is Boon for Northeast Economy & Communities

Consensus Standards Developed by Advocates and Industry Will Save Consumers Billions

A diverse coalition of consumer, manufacturing, and environmental groups, including Northeast Energy Efficiency Partnerships (NEEP), praised new energy efficiency standards released last week by the U.S. Department of Energy (DOE) establishing the first-ever regional standards for oil and gas furnaces and air conditioners, as well as strengthening national standards for heat pumps. The new rules are based on a joint recommendation filed with DOE by the groups in 2009.

"The new gas furnace standard in the northern region will significantly improve the energy efficiency of all gas furnaces by recapturing heat that now literally goes up in smoke, up the chimney," says Dave Lis, Appliance Efficiency Standards Program Manager for NEEP. "This development means significant energy savings and dollar savings to consumers."

Once the latest updated standards take effect, a typical new gas furnace in the Northeast will use about 20% less than before national standards were established in the late 1980s. The new furnace standards will save 31 billion therms of natural gas, or about enough natural gas over 32 years to heat all the homes in New York State for more than 11 years and save consumers $14.5 billion. DOE posted the rule at http://www1.eere.energy.gov/buildings/appliance_standards/residential/residential_furnaces_cac_hp_direct_final_rule.html.

These standards will also protect low-income households, most of whom are renters dependent on their landlords to provide the heating system. "These new regional furnace standards will ensure that landlords install efficient systems, which will make tenants' heating bills much more affordable," said Charlie Harak, Managing Attorney of the National Consumer Law Center (NCLC).

"The successful passing of this ruling is a result of the collaborative nature of organizations from different industries across the country all working toward the one goal of accelerating energy efficiency in HVAC appliances," said Sue Coakley, Executive Director of NEEP. "This ruling demonstrates the growing demand for federal energy efficiency standards and their direct link in supporting a vibrant economy and a healthy environment."

The signatories to the joint agreement on which today's standards are based are: American Council for an Energy-Efficient Economy (ACEEE), Alliance to Save Energy, the Appliance Standards Awareness Project (ASAP), Air-Conditioning, Heating, and Refrigeration Institute (AHRI), California Energy Commission (CEC), Natural Resources Defense Council (NRDC), Northeast Energy Efficiency Partnerships (NEEP), Northwest Power and Conservation Council (NW Council), and more than a dozen individual furnace and air conditioner manufacturers. Others on record in support of the new standards include consumer groups such as the National Consumer Law Center (NCLC) and Consumer Federation of America (CFA), gas and electric utilities such as National Grid and Avista Corporation and the Northwest Energy Efficiency Alliance.

The new furnace standards will apply beginning in May 2013 and the new air conditioner and heat pumps standards in January 2015. The original national furnace standards took effect in 1992 and today's rule is the first update. Initial national standards for air conditioners and heat pumps took effect in 1992, and a previous DOE update became effective in 2006.

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About NEEP

NEEP is a non-profit organization that transforms the way we use and think about energy. Through advocacy, collaboration and education we focus on three areas where we believe energy efficiency can have the greatest impact: buildings, high efficiency products & best practices. Our unique approach helps bring together all stakeholders to accelerate energy efficiency and highlight its impacts on the region, the economy, and the planet. For more information, visit www.neep.org.

About National Consumer Law Center The National Consumer Law Center is a nonprofit advocacy organization that seeks to build economic security and family wealth for low-income and other economically disadvantaged Americans. We promote access to quality financial services and protect family assets from unfair and exploitive transactions that wipe out resources and undermine self-sufficiency. For over 40 years, NCLC has used its expertise to write the rules of a fair marketplace. See nclc.org.

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