On November 1, 2018, the U.S. Department of Energy (DOE) published in the Federal Register a notification of petition for rulemaking from the American Public Gas Association (APGA), Spire, Inc., the Natural Gas Supply Association (NGSA), the American Gas Association (AGA), and the National Propane Gas Association (NPGA) asking DOE to: (1) issue an interpretive rule stating that DOE’s proposed energy conservation standards for residential furnaces and commercial water heaters would result in the unavailability of performance characteristics within the meaning of the Energy Policy and Conservation Act (EPCA), as amended (i.e., by setting standards which can only be met by condensing combustion technology products/equipment and thereby precluding the distribution in commerce of non-condensing combustion technology products/equipment); and (2) withdraw the proposed energy conservation standards for residential furnaces and commercial water heaters based upon such findings. 83 FR 54883. On July 11, 2019, DOE published a notice of proposed interpretive rule in the Federal Register in response to the above-described petition, in which the Department considered changing its historic interpretation in this context. 84 FR 33011. (DOE also published a supplemental proposed interpretive rule in the Federal Register on September 24, 2020 to examine a related venting issue. 85 FR 60090.)

On January 15, 2021, DOE published a notice of final interpretive rule in the Federal Register, in which DOE determined that, in the context of residential furnaces, commercial water heaters, and similarly-situated products/equipment, use of non-condensing technology (and associated venting) constitute a performance-related "feature" under EPCA that cannot be eliminated through adoption of an energy conservation standard. 86 FR 4776. In light of this final interpretation, DOE also withdrew its March 12, 2015 proposed rule and the September 23, 2016, supplemental proposed rule for energy conservation standards for non-weatherized 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).

DOE reexamined the determination made in its January 15, 2021, final interpretive rulemaking as required by Executive Order 13990, "Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis," 86 FR 7037 (Jan. 25, 2021). On August 27, 2021, DOE published a proposed interpretive rule in the Federal Register, in which DOE reconsidered its prior conclusions from the January 2021 final interpretative rule, and as a result, the Department proposed to revise its interpretation of EPCA’s "features" provision in the context of condensing and non-condensing technology used in residential furnaces, commercial water heating equipment, and similarly-situated appliances. 86 FR 48049. More specifically, DOE tentatively concluded that in the context of residential furnaces, commercial water heaters, and similarly-situated products or equipment, use of non-condensing technology (and associated venting) is not a performance-related "feature" for the purpose of the EPCA prohibitions at 42 U.S.C. 6295(o)(4) and 42 U.S.C. 6313(a)(6)(B)(iii)(II)(aa). Following the reasoning set forth in the August 2021 proposed interpretative rule, DOE published in the Federal Register a final interpretive rule on December 29, 2021, which returned to DOE’s historic position and provided the basis and rationale supporting its revised interpretation. 86 FR 73947.

DOE is once again reexamining its interpretation made on December 29, 2021, in accordance with Executive Order 14154, Unleashing American Energy,” 90 FR 8353 (Jan. 29, 2025) and the Presidential Memorandum titled Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis” (issued Jan. 20, 2025).  DOE plans to examine whether a return to its January 15, 2021 interpretation better comports with both EPCA and Administration priorities.