The House Energy and Commerce Committee is weighing draft legislation to pare back a contentious energy-efficiency rule for home furnaces that would raise costs for consumers.
The Republicans’ review of the draft bill comes as President Obama signed an energy bill into law Thursday afternoon that would roll back another problematic efficiency standard for advanced water heaters that can be used to stabilize the grid.
Energy and Power subcommittee Chairman Rep. Ed Whitfield, R-Ky., who convened the hearing, said the GOP is concerned that the Energy Department is becoming much more of “an advocate” than a technical adviser.
“They are getting closer to dictating and saying what will and will not be done,” Whitfield said. The furnace rule is one example of that, but there are other rules where costs would double for consumers if implemented, he said.
The draft bill would require the agency to convene an advisory group to reassess the impact of the furnace rule and propose a new rule based on the economic cost and other factors affecting its implementation.
“We all know” that efficiency can help reduce costs, “but if you are also increasing the upfront costs [for new furnaces] … and installing it is even more,” then it becomes harmful and cost prohibitive, Whitfield said.
“We’re trying to provide a little balance here,” he added. As much as the Energy Department has expertise, “they don’t have all of the answers. So, that’s why we’re having these hearings.”
For manufacturers, the Energy Department is creating a situation in which they are seeking “congressional intervention.”
The furnace rule would mandate that manufacturers produce natural gas furnaces that meet a 92 percent or higher fuel efficiency standard, meaning the furnaces would have to use 92 percent less fuel to produce the same amount as heat as current models. Critics say the rule would make it cost prohibitive for anyone to replace their conventional heater with a more efficient one. The rule would drive consumers to buy products that are less efficient, but cheaper, to heat their homes. In the end, say industry groups, the rule would result in lower efficiency.
“At first glance, the rule appears to be a positive step forward for energy efficiency. In reality, [the Energy Department] proposal would create a number of counterproductive and unintended consequences that could increase energy use and impose an undue burden on consumers,” the American Gas Association said.
Obama on Thursday signed a bill rolling back another contentious efficiency standard, this one for grid-enabled water heaters. The standard banned the manufacturer and sale of the advanced water heaters, which can reduce their energy consumption at times when the electricity system is stressed.
Utilities argue that the devices help save their customers billions of dollars annually in energy bills, while maintaining a more stable and reliable grid.
