An Energy Ruling That's Simply Hot Air

The Energy Department has decided to keep the home fires burning at about the same level as they are now, even in the face of lobbying by both energy conservation groups and some manufacturers.

A proposed "energy conservation standard" that the department unveiled Oct. 6 moved the energy-efficiency needle almost imperceptibly for home gas furnaces -- to 80 percent from 78 percent, the standard set in 1989. The agency rejected an option to raise the standard to 90 percent, which would have saved more energy and trimmed heating bills for consumers in colder climates.

The long-awaited announcement frustrated energy groups that lobbied for a significant increase in efficiency, as well as parts of the industry that wanted to see more robust standards for some heating units.

Department officials said a higher standard wouldn't have been cost-effective for those in states with mild winters to have only the option of buying a furnace that is 90 percent efficient, which means it turns 90 percent of the fuel into heat.

The department also turned down some innovative ideas from energy groups and manufacturers, saying it didn't have the authority to act. The agency rejected the idea of a regional standard, which would make the highest efficiency rating applicable only to the coldest states. Instead, it said states could apply for exemptions to the rule if they wanted a tougher standard.

The regulators also gave thumbs down to a plan advanced by the boiler industry and energy groups to increase efficiency in gas models. They proposed eliminating pilot lights and installing a reset mechanism that automatically adjusts to the outside air temperature.

Setting the standard at 80 percent represents virtually no change, since almost all new regular gas furnaces are at least that efficient.

Furnace makers such as Trane, a division of American Standard Cos. ; Carrier Corp., a division of United Technologies Corp. ; and Lennox International Inc. also sell products that are more than 90 percent efficient. Sales of those models have been brisk in Northeastern states. And three states -- Vermont, Massachusetts and Rhode Island -- have passed laws setting the requirement for gas furnaces at 90 percent, a standard that has to be approved by federal regulators.

Massachusetts residents would pay about $540 more for a furnace rated 90 percent than for a basic unit, yet they could save $125 a year on energy use, according to estimates by the Appliance Standards Awareness Project , a business and consumer-advocacy group in Boston.

The Energy Department "seems to be looking for the narrowest possible way to comply with the law, and cost-effective energy savings were clearly of secondary importance," said Steven Nadel , executive director of the American Council for an Energy-Efficient Economy , a nonprofit research group based in the District.

There is intense interest in the proposal because 3.5 million gas furnaces and 300,000 residential boilers were sold last year.

Department officials said that in rejecting a higher standard, they took into account manufacturers' concerns that there were potential condensation and venting problems when efficiency ratings are set between 80 and 90 percent.