Regional Standards Enforcement Framework Document 

I. Background 

The Energy Independence and Security Act (EISA) of 2007 modified the Energy Policy 

and Conservation Act (EPCA) to authorize the Department of Energy (DOE or the Department) 

to consider regional standards for certain products if such standards can save significantly more 

energy and are economically justified. Specifically, in addition to a base national standard, DOE 

was authorized to establish up to two additional regional standards for central air conditioners 

and heat pumps (CACHP) and one additional regional standard for furnaces. 42 U.S.C. 

§ 6295(o)(6)(B)(ii). 

The Department recognizes that regional standards present new certification, compliance, 

and enforcement issues. Congress ostensibly anticipated these issues and explicitly required 

DOE to initiate rulemaking for enforcement of regional standards no later than 90 days after 

issuance of the final rule establishing regional standards. DOE is required to complete this 

enforcement rulemaking no later than 15 months from issuance of the final rule. (42 U.S.C. 

§ 6295(o)(6)(G)(ii)(I), (III)) 

Adoption of regional standards by DOE also triggers requirements for the Federal Trade 

Commission (FTC). EPCA directs the FTC to initiate rulemaking within 90 days after the 

publication of a final rule establishing regional standards in order to determine the “appropriate 1 

or more methods for disclosing information so that consumers, distributors, contractors, and 

installers can easily determine whether a specific piece of equipment that is installed in a specific 

building is in conformance with the regional standard that applies to the building.” The FTC is 

required to complete this rulemaking no later than 15 months of publication of the final rule 

establishing regional standards. (42 U.S.C. § 6295(o)(6)(H)(i), (iii)) 

On June 27, 2011, DOE promulgated a direct final rule establishing regional standards 

for residential furnaces and residential air conditioners and heat pumps. 76 Fed. Reg. 37408. In 

addition to a base national standard for each product, DOE established one regional standard for 

furnaces and two regional standards for central air conditioners and heat pumps. Compliance 

dates for these standards are May 1, 2013, for non-weatherized furnaces and January 1, 2015, for 

weatherized furnaces and central air conditioners and heat pumps. 

The tables below provide the amended regional energy conservation standards, as set 

forth in the June 2011 direct final rule. Table 1 displays the amended standards for furnaces; 

Table 2 displays the amended standards for central air conditioners and heat pumps. 

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Table 1 Amended Energy Conservation Standards for Furnaces 

Residential Furnaces 

Product Class National Standard 

Levels 

Northern Region** Standard 

Levels 

Non-weatherized gas AFUE* = 80% AFUE = 90% 

Mobile home gas AFUE = 80% AFUE = 90% 

Non-weatherized oil-fired AFUE = 83% AFUE = 83% 

Weatherized gas AFUE = 81% AFUE = 81% 

Mobile home oil-fired‡‡ AFUE = 75% AFUE = 75% 

Weatherized oil-fired‡‡ AFUE = 78% AFUE = 78% 

Electric‡‡ AFUE = 78% AFUE = 78% 

* AFUE is annual fuel utilization efficiency.
 

** The following States comprise the Northern region for furnaces: Alaska, Colorado, Connecticut, Idaho, Illinois,
 

Indiana, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New
 

Hampshire, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah,
 

Vermont, Washington, West Virginia, Wisconsin, and Wyoming.
 ‡‡ The direct final rule does not amend energy conservation standards for this product class. 

Table 2 Amended Energy Conservation Standards for Central Air Conditioners and Heat 

Pumps 

Central Air Conditioners and Heat Pumps 

Product Class National 

Standard 

Levels 

Southeastern 

Region††

Standard Levels 

Southwestern Region‡

Standard Levels 

Split-system air 

conditioners 

SEER† = 13 SEER = 14 SEER = 14 

EER† = 12.2 (for units 

with a rated cooling 

capacity less than 

45,000 Btu/h) 

EER = 11.7 (for units 

with a rated cooling 

capacity equal to or 

greater than 45,000 

Btu/h†) 

Split-system heat pumps SEER = 14 

HSPF† = 8.2 

SEER = 14 

HSPF = 8.2 

SEER = 14 

HSPF = 8.2 

Single-package air 

conditioners 

SEER = 14 SEER = 14 SEER = 14 

EER = 11.0 

Single-package heat pumps SEER = 14 

HSPF = 8.0 

SEER = 14 

HSPF = 8.0 

SEER = 14 

HSPF = 8.0 

Small-duct, high-velocity 

systems 

SEER = 13 

HSPF = 7.7 

SEER = 13 

HSPF = 7.7 

SEER = 13 

HSPF = 7.7 

Space-constrained products 

– air conditioners‡‡

SEER = 12 SEER = 12 SEER = 12 

Space-constrained products 

– heat pumps‡‡

SEER = 12 

HSPF = 7.4 

SEER = 12 

HSPF = 7.4 

SEER = 12 

HSPF = 7.4 

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† SEER is Seasonal Energy Efficiency Ratio; EER is Energy Efficiency Ratio; HSPF is Heating Seasonal 

Performance Factor; and Btu/h is British thermal units per hour. 

†† The following States comprise the Southeastern region for central air conditioners and heat pumps: Alabama, 

Arkansas, Delaware, Florida, Georgia, Hawaii, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, 

Oklahoma, South Carolina, Tennessee, Texas, and Virginia, and the District of Columbia. 

‡ The States of Arizona, California, Nevada, and New Mexico comprise the Southwestern region for central air 

conditioners and heat pumps. ‡‡ The direct final rule does not amend energy conservation standards for this product class. 

II. Base and Regional Standards 

In adopting amendments to EISA authorizing establishment of regional standards, 

Congress recognized that an entirely new enforcement framework would be needed. Under the 

amended energy conservation standards framework, the base national standard applies to the 

manufacturer (including importers). Compliance with the base national standard is entirely 

determined by whether the covered product complies with the standard for that covered product 

applicable at the time of manufacture (or importation). Under regional standards, the applicable 

standard is determined by the installation location of the covered product. 

Regional standards also differ from a base national standard with respect to the 

compliance date of the standard for a particular product. The current base national standard 

applies to products “manufactured or imported” on or after the effective date of the standard. (42 

U.S.C. § 6295(o)(6)(E)(i)(II)) Regional standards apply to products “installed” on or after the 

compliance date of the standard. (42 U.S.C. § 6295(o)(6)(E)(ii)) This requirement places a 

burden for compliance with a regional standard at the point of installation.1 

As part of its regional standards enforcement rulemaking, the Department is considering 

three potential approaches to enforcement of regional standards for base national and regional 

standards. In the three approaches, outlined below, DOE attempted to recognize and consider 

the fundamental differences inherent in moving from a base national standard system to a 

regional standards system. DOE attempted to incorporate these differences into each approach to 

begin the discussions of a potential regional standards enforcement scheme. 

III. Impacted Parties 

When promulgating rules regarding enforcement of a regional standard, DOE must clearly 

specify which entities are responsible for ensuring compliance with applicable energy 

conservation standards. (42 U.S.C. § 6295(o)(6)(G)(ii)(II)) All three potential approaches for 

enforcing regional standards for residential furnace and residential central air conditioner and 

heat pump products presented by DOE impose compliance burdens on the manufacturers that 

1 The Department notes that the current regulations, as amended by the direct final rule, 

inadvertently states that regional standards are applied to the products based on “manufactured” 

date rather than the “installed” date. 

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have been regulated by DOE historically. DOE is considering how a regional standards 

enforcement program should address different types of manufacturers, such as independent coil 

manufacturers.DOE is also considering the appropriate roles and responsibilities of other parties, 

such as distributors and contractors, that might be involved in compliance with regional 

standards. 

IV. Alternative Enforcement Approaches 

An effective regional standards enforcement program will include participation by 

manufacturers, distributors, and contractors. The program should not overburden any one 

participant, nor should it overtax DOE with an impractical enforcement mandate. 

DOE has developed three potential approaches to enforcement of regional energy 

conservation standards for central air conditioners, heat pumps, and furnaces to facilitate 

discussion regarding the elements of an effective enforcement program. The three potential 

approaches are intended to present a variety of enforcement mechanisms with different possible 

distributions of burdens. The Department seeks stakeholder comment on the various aspects of 

each approach, as well as whether, in the commenter’s view, aspects of the different approaches 

can be combined to form a more efficient and effective enforcement program. DOE welcomes 

other ideas and suggestions for elements of an enforcement program, and commenters should not 

limit their comments to discussion of these three approaches. 

Each of these three possible approaches builds upon the current compliance requirements, 

including the requirement for manufacturers to certify the efficiency of each basic model of a 

covered product to the Department. In the following discussion, the tracking and recordkeeping 

requirements would only apply to units that are required to meet the regional standard; no 

tracking or recordkeeping would be required of units that could be sold legally in any region of 

the United States. These approaches also assume various notification and information 

requirements would be imposed by the FTC as part of a coordinated enforcement program. 

Approach 1 would require only that manufacturers track the serial numbers of units 

shipped to each distributor location and that distributors maintain records demonstrating that 

purchasers acknowledged the regional limits applicable to each unit. 

Another possibility (Approach 2) would provide stronger enforcement capabilities to 

DOE and would divide the burden for tracking shipments. Under Approach 2, DOE would 

require manufacturers and distributors to maintain records of the distributor/contractor to whom 

each unit of a covered product was distributed. Contractors would be required to maintain a 

record for each unit installed, including the unit’s serial number and installation address. This 

approach would allow for a record keeping system that the Department could track by requesting 

the information from each party in the distribution chain. The only information reported to the 

Department would be the certification reports filed by the manufacturer; however, the 

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Department could request the records that were required to be maintained under this scheme if it 

became necessary to do so. No information would be reported to another party. 

A different approach (Approach 3) would be to develop a complete tracking system for 

each individual unit by serial number starting with the manufacturer all the way through the 

distribution chain until the actual installation. This approach would place a heavier burden on 

manufacturers, distributors, and contractors but would provide a very comprehensive and 

effective enforcement program. . This approach would require contractors to maintain records of 

each serial number and installation address for installed units and to provide that information to 

the distributor. The distributor would be required to compile the information from multiple 

contractors and submit basic model number, efficiency, serial number of the unit, and zip code of 

the installation to DOE for review. Distributors would be responsible for ensuring the 

distributors or contractors to whom it provides units are installing the units in appropriate regions 

and that all units are properly reported to the Department. 

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Summary of 3 Possible Approaches 

Approach 1 Approach 2 Approach 3 

Required to certify product efficiencies to 

DOE (including applicable region) 

Required to inform distributors about 

appropriate regions 

Required to track shipments to distributors 

by serial number and be able to lookup 

distributor by serial number of installed 

units 

Required to certify product efficiencies to 

DOE (including applicable region) 

Required to inform distributors about 

appropriate regions 

Required to track shipments to distributors 

by serial number and be able to lookup 

distributor by serial number of installed 

units 

Required to certify product 

efficiencies to DOE (including 

applicable region) 

Required to inform distributors about 

appropriate regions 

Required to track shipments to 

distributors by serial number and be 

able to lookup distributor by serial 

number of installed units 

Manufacturer 

Required to inform installers about 

appropriate regions 

Required to maintain record of purchasers’

signed acknowledgements of regional 

standard requirements 

Required to inform installers about 

appropriate regions 

Required to track unit sales to contractor 

Required to inform installers about 

appropriate regions 

Required to track unit sales to 

contractor 

Required to collect from installers 

and then submit compiled list of basic 

model number, efficiency, serial 

number of unit, and zip code of 

installation to DOE 

Distributor 

Required to install units in the appropriate 

region 

Required to install units in the appropriate 

region 

Required to maintain records and 

paperwork about installation location, 

including serial numbers and address of 

installation 

Required to install units in the 

appropriate region 

Required to maintain records and 

paperwork about installation location 

Required to provide distributor with 

serial numbers and installation 

address for installed units 

Contractor 

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1. Approach 1: 

Certify products to DOE 

Required to inform distributors about appropriate regions 

Required to track shipments to distributors by serial number and 

be able to lookup distributor by serial number of installed units 

Manufacturer 

Distributor 

Required to inform installers about appropriate regions and 

collect and maintain a record of signatures from customers 

acknowledging regional standard requirements. 

Contractor Required to install units in the appropriate region 

DOE envisions this approach focusing on ensuring all parties along the distribution chain 

are informed about regional standards requirements and relying on self-policing to ensure 

regional compliance. Approach 1 would impose a very low burden on all parties involved but 

may not provide for effective enforcement of a regional standards enforcement program. 

Under this approach, manufacturers would inform distributors about regional restrictions 

when selling and/or shipping units to the distributor. Manufacturers would track serial numbers 

of units shipped to distributors and maintain records of this information. 

Distributors would maintain a record of signatures acknowledging regional standard 

requirements from customers (i.e., distributors or contractors). Distributors would inform 

customers (contractors or other distributors) about regional restrictions when selling and/or 

delivering units to customers. 

Contractors would be required to ensure that products are installed in the appropriate 

region. 

2. Approach 2: 

Certify products to DOE 

Required to inform distributors about appropriate regions 

Required to track shipments to distributors by serial number and 

be able to lookup distributor by serial number of installed units 

Manufacturer 

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Required to inform installers about appropriate regions 

Required to track unit (serial number) sales by 

distributor/contractor. This information is not required to be 

submitted to the Department on a regular basis, but must be 

provided to DOE if requested. 

Distributor 

Required to install units in the appropriate region 

Required to maintain records and paperwork about installation Contractor 

Approach 2 presents a potential “middle ground,” balancing obligations amongst various 

parties. This approach would impose additional tracking mechanisms on distributors and 

contractors. Distributors would be required to track which models are sold to which distributor 

or contractor. Contractors would be required to track serial numbers and installation location 

information for every unit installed. DOE believes contractors may already retain this 

information for warranty and repair purposes. Though this information is not regularly 

submitted to DOE, it would enable DOE to audit distributors and contractors for compliance if 

DOE requests the records. This approach would not require a unit-specific certification 

requirement regarding the installation location, but it would allow DOE to obtain this 

information if needed. This approach attempts to provide DOE with a systematic way to enforce 

its regional standards, but limit the burden on affected parties. 

3. Approach 3: 

Certify products to DOE 

Required to inform distributors about appropriate regions 

Required to track shipments to distributors by serial number and 

be able to lookup distributor by serial number of installed units 

Manufacturer 

Required to inform installers about appropriate regions 

Required to track serial number, installer, and installation 

location information for units sold and to submit the information 

to DOE on a regular basis 

Distributor 

Required to install units in the appropriate region 

Required to maintain records and paperwork about installation 

Required to provide distributor with serial numbers and 

Contractor 

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installation location information (i.e., address) for installed units. 

Approach 3 represents a potential enforcement program with robust verification 

mechanisms. This approach would provide for a full tracking system of each individual unit by 

serial number from the point of manufacturer (or importation) to the point of installation. All of 

this information would be submitted to the Department on a regular basis. This approach would 

provide for a comprehensive enforcement scheme, but it would also be very burdensome for 

affected parties and the Department. 

Approach 3 would require distributors to track the serial number of distributed products, 

the customer (contractor or distributor) receiving the unit, and the installation location 

information for the unit (obtained from the contractor). DOE believes that approach 3 could 

represent a significant deviation from current practices for a subset of distributors. Currently, 

distributors typically do not receive information regarding where units it distributes will be 

installed. One issue with this approach might be that contractors may not have a specific client 

in mind when purchasing units—contractors may hold small inventories of their most popular 

units. This approach would require distributors either to limit sales to only installers that can 

provide information at the time of the sale regarding where the unit will be installed or to followup with contractors after the sale to obtain this information. 

Additionally, contractors would maintain their own records on serial numbers and 

installation location information. This information would allow a unit that is installed in a noncompliant region to be traced back through the distribution chain. Additionally, manufacturers 

would maintain their own records on the serial numbers, tracking the sales to the distributors. 

Under this approach, DOE would be able to obtain the identity of the distributor of a unit from a 

manufacturer based on the serial number of a non-compliant installation. Likewise, the 

distributor could verify the contractor that took ownership of the unit and presumably performed 

the improper installation. This would allow the Department to track and receive at any point in 

the distribution chain information on a specific serial number. 

V. Waivers 

The Department is aware of concerns by several interested parties regarding the 

implementation of regional standards for residential furnaces and the potential for select 

customers to have “stranded” appliances that share venting with a furnace and possibly higher 

installation costs. For example, there could be an instance where the furnace installation is 

concentrically vented in the middle of the residence and alteration of the flue to accommodate a 

condensing furnace could require significantly altering the location of the existing vent pipe and 

modifications to the residence. 

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The Department is sensitive to these types of situations and is open to considering 

alternatives to mitigate the unintended consequences of a condensing standard for residential 

furnaces in the Northern region for a select subset of installations that may be severely impacted. 

One possible approach to prevent any unintended result would be to allow a waiver process, in 

which a party would request a waiver of the regional standard. This approach could function as a 

new waiver process or could build upon DOE’s existing waiver process, which is administered 

through DOE’s Office of Hearing and Appeals. In this case, a party, such as a contractor, could 

apply for a waiver on an installation-specific basis, providing detailed information demonstrating 

the need for a furnace that does not meet the applicable regional standard. Information would 

likely include details about the existing appliances that may be affected by the new venting 

requirements, the existing venting location, the new venting requirements, the installation costs, 

the product(s) being purchased, and about the need for such a waiver for each installation that 

seeks to install a less-efficient furnace. DOE would review the information and either grant or 

deny the waiver application to the contractor for a given installation. If DOE approved the 

waiver, DOE would publish the specific installation information with a waiver number. DOE 

specifically requests comment on the need for a waiver process and, if necessary, the types of 

information it should consider collecting, what, if any, of this information should be withheld 

from public access and whether a waiver should be a “post installation approval” or available for 

all installation scenarios identical to one for which DOE had previously granted a waiver. 

VI. Request for Information 

The Department solicits public comment from industry, manufacturers, academia, consumer 

groups, efficiency advocates, government agencies, and other stakeholders generally on the 

regional standard enforcement approaches for residential furnaces and residential central air 

conditioners and heat pumps. In submitting information, DOE specifically welcomes comment 

on: 

1.	 the appropriateness of the three potential approaches, other approaches and on variations 

that would improve the effectiveness of enforcement of regional standards; 

2.	 the periodicity/timing of data submissions for regional standard enforcement including 

how the existing certification requirements on manufacturers may need to be altered to 

accommodate the regional standards approach; 

3.	 the information that would be necessary (either maintained or submitted) to help the 

Department determine a basic model is compliant with the Department’s standards and 

whether a given unit has been installed in a proper geographic location; 

4.	 the appropriate level of detail when tracking installation location both for internal records 

and for the Department to ensure DOE can systematically enforce its regional standards. 

5.	 the benefits and burdens of the three potential enforcement schemes the Department is 

considering; 

6.	 the existing record keeping schemes currently utilized by manufacturers, distributors, and 

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installers that the Department could leverage to reduce burden; 

7.	 the consideration of a waiver process to mitigate any unintended consequences of 

regional standards adopted in the June 2011 direct final rule; and
 

8.	 any changes that would need to be made to the existing certification requirements to 

accommodate regional standards. 

9.	 how the certification requirements may need to be modified to accommodate the new 

regional standards scheme, particularly with a view towards which parties should certify, 

and what, if any, additional information should be provided. 

Respondents are advised that DOE is under no obligation to acknowledge receipt of the 

information received or provide feedback to respondents with respect to any information 

submitted. 

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