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On November 1, 2018, the U.S. Department of Energy (DOE) published in the Federal Register a notification of petition 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. 

On January 15, 2021, DOE published a notice of final interpretive rule in the Federal Register in response to the above-described petition. In the final interpretive rule, 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. 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 (January 15, 2021).

Next, DOE will reexamine the determination made in its January 15th final interpretive rulemaking as required by E.O. 13990, "Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis," 86 FR 7037 (January 25, 2021).