3-i

CHAPTER 3. MARKET AND TECHNOLOGY ASSESSMENT

TABLE OF CONTENTS

3.1 INTRODUCTION ............................................................................................................ 3-1

3.1.1 Product Definitions and Scope of Coverage ......................................................... 3-1

3.1.2 Product Classes...................................................................................................... 3-4

3.1.3 Test Procedures ..................................................................................................... 3-6

3.2 MARKET ASSESSMENT............................................................................................. 3-10

3.2.1 Trade Associations.............................................................................................. 3-10

3.2.2 Manufacturers and Market Share ........................................................................ 3-11

3.2.3 Distribution Channels.......................................................................................... 3-18

3.2.4 Regulatory Programs........................................................................................... 3-19

3.2.5 Non-Regulatory Programs................................................................................... 3-20

3.2.6 Industry Cost Structure........................................................................................ 3-23

3.2.7 Product Lifetime.................................................................................................. 3-24

3.2.8 Historical Shipments and Efficiencies ................................................................ 3-25

3.2.9 Market Performance Data ................................................................................... 3-28

3.3 TECHNOLOGY ASSESSMENT................................................................................... 3-35

3.3.1 Furnace Fan Operation ........................................................................................ 3-35

3.3.2 Technology Options............................................................................................ 3-36

LIST OF TABLES

Table 3.1.1: Product Classes........................................................................................................ 3-5

Table 3.1.2: FER Inputs (Test Data from Above and Annual Operating Hour 

Assumptions)............................................................................................................ 3-8

Table 3.1.3: IFER Inputs.............................................................................................................. 3-9

Table 3.2.1: Manufacturers Whose Products are Included in DOE's Residential Furnaces 

and CAC/Heat Pumps Databases* ......................................................................... 3-12

Table 3.2.2: ENERGY STAR Specifications for Central Air Conditioner Products (2009)..... 3-21

Table 3.2.3: State Tax Credits for Residential Gas Furnaces.................................................... 3-22

Table 3.2.4: Employment and Earnings for the Air-Conditioning and Warm Air Heating 

Equipment and Commercial and Industrial Refrigeration Equipment 

Manufacturing ........................................................................................................ 3-23

Table 3.2.5: Air-Conditioning and Warm Air Heating Equipment and Commercial and 

Industrial Refrigeration Equipment Manufacturing Industry Material and 

Payroll Costs........................................................................................................... 3-24

Table 3.2.6: Average Lifetime for Furnace Fans....................................................................... 3-24

Table 3.2.7: Value of Residential Furnace Fan Shipments by Year.......................................... 3-28

Table 3.2.8: Common Furnace Input Capacity and Airflow Combinations.............................. 3-30

Table 3.2.9: Expected Distribution of Airflow for Furnace Fans............................................. 3-30

Table 3.3.1: Average Turndown Ratio by Motor Type ............................................................ 3-39

Table 3.3.2: Rulemaking Activities Addressing Furnace Fan Standby Mode and Off 

Mode Energy Consumption.................................................................................... 3-41
3-ii

LIST OF FIGURES

Figure 3.1.1: Residential HVAC System Component Combinations......................................... 3-2

Figure 3.1.2: Market Share of Products Containing Furnace Fans (AHRI) ............................... 3-3

Figure 3.1.3: Example of Test Data Required to Derive FER for a 70KBtu/h, 3-ton, 

NWG-NC Furnace Fan with PSC Fan Motor ....................................................... 3-7

Figure 3.1.4: FER/IFER Comparison between Various 70KBtu/h, 3-ton HVAC Products........ 3-9

Figure 3.2.1: 2008 Market Shares for U.S. Manufacturers of Residential Gas Furnaces.......... 3-15

Figure 3.2.2: 2008 Market Shares for Unitary Air Conditioners.............................................. 3-16

Figure 3.2.3: Distribution Channels for Residential Furnaces................................................... 3-18

Figure 3.2.4: Residential Furnace Fan Industry Shipments (Domestic and Imported) ............. 3-26

Figure 3.2.5: Residential Furnace Fan Industry Share 2011 (Domestic and Imported) ............ 3-27

Figure 3.2.6: Distribution of Furnace Models by Input Capacity.............................................. 3-29

Figure 3.2.7: Distribution of 70-80 kBtu/hr Input Capacity Furnace Models by Eae ............... 3-31

Figure 3.2.8: Motor Distribution for Non-Weatherized Gas Furnaces...................................... 3-32

Figure 3.2.9: Motor Distribution for Weatherized Gas Furnaces.............................................. 3-32

Figure 3.2.10: Motor Distribution for Oil Furnaces .................................................................. 3-33

Figure 3.2.11: Motor Distribution for All Furnace Types......................................................... 3-33

Figure 3.2.12: Motor Distribution by Eae for Non-weatherized, Non-condensing Gas 

Furnaces............................................................................................................... 3-34

Figure 3.2.13: Motor Distribution by Eae for Non-weatherized, Condensing Gas Furnaces.... 3-35

Figure 3.3.1: Performance Curves for Both Forward- and Backward-Inclined Impellers ........ 3-40
3-1

CHAPTER 3. MARKET AND TECHNOLOGY ASSESSMENT

3.1 INTRODUCTION

This chapter details the market and technology assessment that the U.S. Department of 

Energy (DOE) has carried out in support of the preliminary analysis for energy conservation 

standards for residential furnace fans. It consists of two sections: the market assessment and the 

technology assessment. The goal of the market assessment is to develop a qualitative and 

quantitative characterization of the residential furnace fan industry and market structures, based 

on publicly available information and data and information submitted by manufacturers and 

other interested parties. The key result of the technology assessment is a preliminary list of 

technologies that can improve the efficiency of residential furnace fans. 

Because furnace fans are a component used in central residential heating, ventilation and 

air-conditioning (HVAC) products, DOE gathered relevant market information for residential 

furnaces, modular blowers, and hydronic air handlers. The majority of furnace fans covered in 

this rulemaking are components of residential furnaces. In addition, data are more extensive and 

readily available for residential furnaces compared to the other HVAC products that use furnace 

fans covered in this rulemaking. As a result, DOE relied heavily on residential furnace

information to assess the furnace fan market. Little market data is available for electric 

furnaces/modular blowers. AHRI does not include information regarding electric 

furnaces/modular blowers in either its furnaces or central air conditioner (CAC) products 

databases. DOE expects that shipments of hydronic air handlers are significantly fewer than for 

furnaces. In addition, there are no DOE energy conservation standards for hydronic air handlers. 

Consequently, little market data is available for these products as well.

3.1.1 Product Definitions and Scope of Coverage

EPCA gives DOE authority to consider and prescribe new energy conservation standards 

or energy use standards for electricity used for purposes of circulating air through duct work. (42 

U.S.C. 6295(f)(4)(D)) Consequently, DOE tentatively defines “furnace fan” to mean any

electrically-powered device used in residential central HVAC systems for the purposes of 

circulating air through ductwork. DOE considers a typical furnace fan as consisting of a fan 

motor and its controls, an impeller, and a housing, all of which are components of an HVAC 

product that includes additional components, such as the cabinet. 
3-2

DOE recognizes that a significant number of products may fit its broad interpretation of 

the statutory language. Figure 3.1.1 shows the various combinations of HVAC products that are 

used to construct typical residential HVAC systems. The boxes outlined in red represent HVAC 

products that include a furnace fan according to DOE’s interpretation of the statutory language.

Figure 3.1.1: Residential HVAC System Component Combinations

DOE’s preliminary approach is to address products for which DOE has sufficient data 

and information in this rulemaking, and DOE may consider other such products in a future 

rulemaking, as data become available. . For this rulemaking, DOE considered furnace fans used 

in products: (1) for which circulation fan energy consumption is not already covered in 

associated rulemakings; (2) for which sufficient data were available for its analyses; and (3) that 

could be tested using a similar test method (i.e., setup and equipment, instruments and methods 

of measure, and range of operating conditions). . The following list describes the furnace fans 

which DOE plans to address in this rulemaking.

• Products addressed in this rulemaking: the furnace fans used in weatherized and 

non-weatherized gas furnaces, oil furnaces, electric furnaces, modular blowers, 

and hydronic air handlers 

• Products not addressed in this rulemaking: other products that incorporate 

furnace fans, such as CAC blower-coil units, through-the-wall air handlers, 

SDHV air handlers, ERV, HRV, draft inducer fans, or exhaust fans

The products for which DOE is not considering standards in this rulemaking did not 

compare favorably to the included products based on the aforementioned criteria. DOE is not 

considering in this rulemaking fans used in any non-ducted products, such as whole-house 

ventilation systems without ductwork, CAC condensing unit fans, room fans, and furnace draft 

inducer fans because these products do not circulate air through ductwork. DOE did not 

prioritize furnace fans used in CAC blower-coil units, SDHV air handlers, and through-the-wall 

air handlers because the electrical energy consumption of these furnace fans is included in the 

Indoor Unit

Outdoor Unit

HVAC System Residential HVAC 

System

Condensing 

Unit

Coil-Only 

Unit

Electric Furnace / 

Modular Blower

NWG or 

Oil 

Furnace 

Hydronic 

Air 

Handler

BlowerCoil Unit

Hydronic Air 

Handler with 

Coil

Weatherized/

Packaged Unit
3-3

SEER and HSPF metrics that DOE uses to regulate residential CAC and heat pump products. 

Chapter 2 of this TSD includes a detailed discussion of how the SEER metric accounts for 

furnace fan electrical energy consumption as it relates to the scope of coverage of this 

rulemaking. 

The HVAC products considered in this rulemaking can be broadly classified as either a 

furnace or central air conditioner (note that DOE’s definition of furnace extends to hydronic air 

handlers). 77 FR 28677 Therefore, using the identified scope of coverage, the energy 

conservation standard will be broadly applicable to HVAC products with heating input capacities 

less than 225,000 Btu per hour and cooling capacities less than 65,000 Btu/h. These 

specifications are consistent with the DOE definitions for residential “furnace” and “central air 

conditioner” (10 CFR 430.2). 

Figure 3.1.2 depicts the market share by shipments of HVAC products that include 

furnace fans. The slices outlined in black represent products that are not addressed in this 

rulemaking. The provisional scope of coverage of this preliminary analysis includes 63% of 

HVAC products that include furnace fans.

Figure 3.1.2: Market Share of Products Containing Furnace Fans (AHRI) 1

According to Residential Energy Consumption Survey 2009 (RECS 2009) data, 61.6%

(70 million) of U.S. homes have central warm-air furnaces.

2 Similar statistics are not available 
3-4

for modular blowers or hydronic air handlers.a Electrical consumption attributable to residential 

furnace fans accounts for 0.40 quads/year in source energy, which is approximately 2 percent of 

total residential energy use.3

3.1.2 Product Classes

DOE categorized furnace fans into product classes and intends to formulate a separate

energy conservation standard for each in this rulemaking. EPCA specifies the criteria for product 

class separation, which include: (1) the type of energy consumed; (2) capacity; or (3) other 

performance-related features, such as those that provide utility to the consumer or other features 

deemed appropriate by the Secretary that would justify the establishment of a separate energy 

conservation standard. (42 U.S.C. 6295(q)) DOE identified nine key product classes and 12 

additional product classes differentiated by application and internal structure. Key product 

classes are those representing most of the energy use associated with furnace fans. DOE directly 

analyzed the nine key product classes. The 12 additional product classes represent significantly 

fewer shipments and significantly less energy use. For the preliminary analysis, DOE grouped 

each non-key product class with a key product class to which it is closely related in application 

and internal structure (i.e. the primary criteria used to differentiate between product classes). 

DOE assigned the engineering results of each key product class to the non-key product classes 

with which it is grouped. Table 3.1.1 presents the 21 product classes and maps the additional 

product classes to the nine key product classes. 

 a RECS 2009 provides data on the heating source but not the distribution system. For hydronic air handlers, the heat 

is provided either by a boiler or a water heater and distributed with the air handler. Modular blowers generally are 

paired with a separate heating product such as an electric duct heater, or they may be installed in systems that do not 

provide heat.
3-5

Table 3.1.1: Product Classes

Key Product Class Additional Product Classes

Non-Weatherized, Non-Condensing Gas 

Furnace Fan (NWG-NC)

Non-weatherized, Condensing Gas Furnace 

Fan (NWG-C)

Weatherized Gas Furnace Fan (WG-NC)

Weatherized, Non-Condensing Oil Furnace 

Fan (WO-NC)

Weatherized Electric Furnace/Modular Blower 

Fan (WEF/WMB)

Manufactured Home Weatherized Gas Furnace 

Fan (MH-WG)

Manufactured Home Weatherized Oil Furnace 

Fan (MH-WO)

Manufactured Home Weatherized Electric 

Furnace/Modular Blower Fan (MHWEF/WMB)

Non-weatherized Oil, Non-Condensing 

Furnace Fan (NWO-NC)

Non-Weatherized, Condensing Oil Furnace 

Fan (NWO-C)

Manufactured Home Non-Weatherized Oil 

Furnace Fan (MH-NWO)

Non-weatherized Electric Furnace / Modular 

Blower Fan (NWEF/NWMB)

Heat/Cool Hydronic Air Handler Fan (HAHHC)

Heat-Only Hydronic Air Handler Fan (HAHH)

Hydronic Air Handler Fan with Coil (HAH-C)

Manufactured Home Heat/Cool Hydronic Air 

Handler Fan (MH-HAH-HC)

Manufactured Home Heat-Only Hydronic Air 

Handler Fan (MH-HAH-H)

Manufactured Home Hydronic Air Handler 

Fan with Coil (MH-HAH-C)

Manufactured Home Non-Weatherized Gas, 

Non-Condensing Furnace Fan (MH-NWG-NC)

Manufactured Home Non-Weatherized Gas, 

Condensing Furnace Fan (MH-NWG-C)

Manufactured Home Electric Furnace/ 

Modular Blower Fan (MH-EF/MB)

Each product class title includes descriptors that indicate the application and internal 

structure of its included products. Weatherized and non-weatherized are descriptors that indicate 

whether the HVAC product is installed outdoors or indoors, respectively. Weatherized products 

also include an internal evaporator coil, while non-weatherized products are not shipped with an 

evaporator coil but may be designed to be paired with one. 
3-6

Condensing refers to the presence of a secondary, condensing heat exchanger in addition 

to the primary combustion heat exchanger in certain furnaces. The presence of a secondary heat 

exchanger increases internal static pressure. As a result, DOE expects that furnace fans used in 

condensing units will consume more electrical energy than similar, non-condensing units. 

Manufactured home products meet certain design requirements that allow them to be 

installed in manufactured homes. They require direct venting and are usually subject to more 

stringent space constraints. As a result, DOE expects that furnace fans used in manufactured 

home products will consume a different amount of electric energy than furnace fans installed in 

similar HVAC products that are designed for site-built applications. 

Descriptors like gas, oil, electric or hydronic indicate the type of fuel or working fluid 

that the HVAC product uses to produce heat, which determines the type and geometry of the 

primary heat exchanger used in the HVAC product. Hydronic products include parenthetical 

descriptors to indicate whether the product is designed to be used for both heating and cooling,

or heat only, as well as whether the product includes an internal evaporator coil.

3.1.3 Test Procedures

Pursuant to EPCA, DOE must establish test procedures in order to allow for the 

development of energy conservation standards that will address the electrical consumption of 

furnace fan products. (42 U.S.C. 6295(o)(3)(A)) In the framework document, DOE sought 

comment on a number of furnace fan test procedure related issues primarily regarding selection 

of an appropriate reference standard and rating metric. DOE considered the feedback it received 

on the test procedure related issues in the development of the test procedure. A detailed 

discussion of these comments and DOE’s responses is included in the furnace fan test procedure 

notice of proposed rulemaking (NOPR) that DOE published on May 15, 2012. 77 FR 28674 A 

summary of the proposed test procedure is provided in the paragraphs that follow. DOE based its 

preliminary analyses for furnace fans on this proposed test procedure.

In the test procedure NOPR, DOE proposed to incorporate by reference provisions from

American National Standards Institute (ANSI)/Air Movement and Control Association 

International, Inc. (AMCA) 210-07 | ANSI/American Society of Heating, Refrigerating and Air 

Conditioning Engineers (ASHRAE) 51-07, Laboratory Methods of Testing Fans for Certified 

Aerodynamic Performance Rating, hereinafter referred to as “ANSI/AMCA 210-07.” The specific 

provisions DOE proposed to include from ANSI/AMCA 210-07 are definitions, test setup and 

equipment, test conditions, and procedures for measuring airflow and external static pressure. In 

addition to these provisions, DOE proposed provisions for measuring electrical energy 

consumption using an electrical power meter. DOE also proposed to specify methods for 

measuring standby mode and off mode energy consumption for hydronic air handlers that are 

identical to those of the DOE residential furnaces test procedure for these modes. (10 CFR part 

430, subpart B, appendix N, section 8.0) In addition, DOE proposed calculations to derive the 

rating metric based on the measured values.

DOE proposed to establish a new metric, the fan efficiency rating (FER), as the furnace 

fan efficiency rating metric. FER is the estimated annual electrical consumption normalized by 

total annual operating hours and the airflow measured in the maximum airflow-control setting at 
3-7

a specified external static pressure (ESP). The estimate of annual electrical consumption is a

weighted average of Watts measured separately for multiple airflow-control settings at different 

ESPs. These ESPs are determined by a reference system curve, which is developed using a 

specified airflow-control setting and ESP. This reference system curve is intended to represent 

typical ductwork systems used for circulation of air. DOE also proposed an integrated fan 

efficiency rating (IFER) for hydronic air handler units that integrates standby and off mode 

electrical consumption with active mode electrical consumption. DOE determined the reference 

system criteria specified in the test procedure NOPR through analysis of ductwork field data. 77 

FR 28683 Figure 3.1.3 provides an example of the measured data that is collected to calculate 

FER and how the reference system curve is used to identify the operating points. 

Figure 3.1.3: Example of Test Data Required to Derive FER for a 70KBtu/h, 3-ton, NWGNC Furnace Fan with PSC Fan Motor

Table 3.1.2 presents the inputs that DOE proposes to use to calculate FER. These inputs 

include the power measured at the operating points identified in the example above and the 

proposed estimates for annual operating hours for each function, each of which is associated with 

an airflow-control setting (i.e. a furnace fan performs the cooling function in the maximum 

airflow-control setting. The example power measurements are multiplied by the estimated annual 

operating hours to calculate the estimated annual electrical energy consumption for each 

respective function. The sum of estimated annual consumption for each function represents the 

total estimated electrical energy consumption of the furnace fan.
3-8

Table 3.1.2: FER Inputs (Test Data from Above and Annual Operating Hour Assumptions)

Function Power (W)

Annual Operating 

Hours

Annual Energy

Consumption (Wh)

Cooling 450 640 288,000

Heating 375 830 311,250

Constant-Circulation 350 400 140,000

Standby NA NA NA

Total 1,870 739,250

The equations that follow illustrate how DOE proposes that the inputs above be used to calculate 

the FER for the example furnace fan. As described previously, the estimated annual energy 

consumption is normalized by the total operating hours and airflow at the operating point in the 

maximum airflow-control setting.

FER = Annual Energy Consumption

Airflow at Max Operating Point × Total Annual Operating Hours

× 1000

FER = 739,250 Wh

1,050 cfm × 1,870 hours

× 1000 = 376 Watts per 1000 cfm

Figure 3.1.4 provides a comparison between example FER and IFER values. The example FER 

values represent a baseline unit and high-efficiency unit, respectively. The example IFER value 

represents a high-efficiency hydronic air handler (heat/cool) furnace fan. The contribution to the 

total rating value of electrical energy use for each function is shown.
3-9

Figure 3.1.4: FER/IFER Comparison between Various 70KBtu/h, 3-ton HVAC Products

For comparison, Table 3.1.3 and the equations that follow provide details on how the 

example IFER value above is calculated.

Table 3.1.3: IFER Inputs

Function Power (W)

Annual Operating 

Hours

Annual Energy

Consumption (Wh)

Cooling 400 640 256,000

Heating 150 830 124,500

Constant-Circulation 80 400 32,000

Standby 11 6,890 75,790

Total 8,760 488,290

IFER = Annual Energy Consumption

Airflow at Max Operating Point × Total Annual Operating Hours

× 1000

IFER = 488, 290 Wh

1,240 cfm × 8,760 hours

× 1000 = 45 Watts per 1000 cfm

As mentioned above, DOE used the proposed test procedure and rating metric variations 

(FER and IFER) to conduct the preliminary analysis.
3-10

3.2 MARKET ASSESSMENT

The following market assessment identifies manufacturer trade associations, domestic

and international manufacturers of residential furnace fans and their corresponding market 

shares, and regulatory and non-regulatory programs to incentivize or mandate improved 

efficiency. The market assessment also describes the cost structure for the residential furnace fan

industry and summarizes relevant market performance data.

3.2.1 Trade Associations

DOE identified the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), Air 

Movement and Control Association, Inc. (AMCA), Heating, Air-conditioning & Refrigeration 

Distributors International (HARDI), and Air Conditioning Contractors of America (ACCA) as 

the key trade groups that support, or have an interest in, the residential furnace fan industry.

AHRI is a national trade association of manufacturers of residential, commercial, and 

industrial appliances and equipment, components, and related products. AHRI was established in 

January of 2008 when the Air-Conditioning and Refrigeration Institute (ARI) merged with the 

Gas Appliance Manufacturers Association (GAMA). AHRI’s member companies are responsible 

for over 90 percent of the residential and commercial air conditioning and space heating 

equipment sold in North America.4 AHRI develops and publishes technical standards for 

residential and commercial equipment using rating criteria and procedures for measuring and 

certifying equipment performance. AHRI also participates in developing U.S. and international 

standards. AHRI administers the GAMA Certification program that tests and certifies the 

performance of gas- and oil-fired central furnaces that use single-phase electric current or DC 

and that have a heat input rate of less than 225,000 Btu/h. AHRI maintains the AHRI Directory 

of Certified Product Performance that lists all products that have been certified by the AHRI.

AHRI also administers the ARI Performance Certified program that tests and certifies the 

performance of central air conditioners and heat pumps, as well as many other products 

manufactured by AHRI members. AHRI maintains the AHRI Directory of Certified Product 

Performance that lists all products that have been certified by the AHRI.b

AMCA is a not-for-profit international association of the world's manufacturers of related 

air system equipment - primarily, but not limited to: fans, louvers, dampers, air curtains, airflow 

measurement stations, acoustic attenuators, and other air system components for the industrial, 

commercial and residential markets. AMCA publications and standards are developed when 

sufficient interest has been expressed by AMCA members. The proposed DOE test procedure 

uses AMCA 210-2007 as a reference standard.

AHRI maintains 

certified performance directories for both air conditioners and heat pumps rated below 65,000 

Btu/h. The AHRI directories subdivide these products based upon certain defining 

characteristics, such as single package or split system and coil only or coil and blower 

combinations. 

5

 b http://www.ahridirectory.org/ahridirectory/pages/home.aspx
3-11

HARDI is an international trade organization that represents over 450 wholesale 

companies in the HVAC industry, including 17 international companies, plus over 300 

manufacturing associates and nearly 140 manufacturer representatives. HARDI estimates that its 

members represent 80 percent of the dollar value of the HVACR products sold through 

distribution. In 2003, the organization was formed from the consolidation of the North American 

Heating, Refrigeration & Air Conditioning Wholesalers (NHRAW) and Air-conditioning & 

Refrigeration Wholesalers International (ARWI).6

ACCA is a nationwide trade organization that represents over 4,000 air conditioning 

contractors. ACCA supports the HVACR industry by bringing contractors together and 

providing technical, legal, and marketing resources. ACCA is “the only nationwide organization 

of, by and for the small businesses that design, install and maintain indoor environmental 

systems.”7

3.2.2 Manufacturers and Market Share

DOE considers the manufacturer of the HVAC product in which the furnace fan is used 

to be the furnace fan manufacturer. DOE is aware that HVAC product manufacturers purchase 

many of the components in the furnace fan assembly, such as the motor and impeller, from 

separate component manufacturers. However, the HVAC product manufacturer determines the 

design requirements, selects the purchased components based on these requirements, and 

performs the final assembly and integration of the fan assembly into the HVAC product. For 

these reasons, DOE considers the HVAC product manufacturer to be the furnace fan 

manufacturer. DOE examined its database of residential furnaces, the AHRI directories for 

residential CAC and heat pumps, HVAC product manufacturers’ websites, and product catalogs 

to identify HVAC product manufacturers. All manufacturers listed in DOE’s database for 

residential furnaces and CAC and heat pumps are shown in Table 3.2.1. DOE is aware that some 

manufacturers included in this table also manufacture hydronic air handlers. However, DOE was 

unable to find a central source of information to identify and create an exhaustive list of hydronic 

air handler manufacturers. HVAC product manufacturers may offer multiple brand names. DOE 

identified more than 50 brands under which HVAC products are manufactured and marketed. 
3-12

Table 3.2.1: Manufacturers Whose Products are Included in DOE's Residential Furnaces 

and CAC/Heat Pumps Databases*

Manufacturer Parent Company 

(if applicable) NWG** WG** Oil MHNWG**

CAC & 

Heat 

Pumps

Hydronic

Aaon, Inc. N/A X X

Adams Manufacturing 

Company*** N/A X

Aerosys*** N/A X

Aire-Flo N/A X

Airquest N/A X

Airwell-Fedders North 

America, Inc. Elco Holdings Ltd. X X

Bard Manufacturing 

Company*** N/A X X X

Beutler Corporation N/A X

Boyertown Furnace 

Company*** N/A X

Broan N/A X

Carrier Corporation United Technologies 

Corporation X X X X X

Cold Point Corp. N/A X

Crown Boiler Company Burnham Holdings, 

Inc. X X

Dayton Electric 

Manufacturing Company WW Grainger, Inc. X

Eair LLC*** N/A X

Ecotemp N/A X

ECR International *** N/A X X

EFM Sales Company*** General Machine 

Corporation X

Espitech, LLC*** N/A X

First Co. N/A X

Friedrich Air 

Conditioning Co. 

US Natural 

Resources, Inc. X

Fujitsu General America, 

Inc. 

Fujitsu General 

Group X

GD Midea Commercial 

Air-Conditioning 

Equipment Co,, Ltd. 

N/A X

Goodman Manufacturing 

Company

Goodman Global 

Group, Inc. X X X X
3-13

Manufacturer Parent Company 

(if applicable) NWG** WG** Oil MHNWG**

CAC & 

Heat 

Pumps

Hydronic

Grandaire N/A X

H.E.P. Materials Corp. *** AllStyle Coil 

Company, L.P. X

Haier America Haier Group 

Company X X

Heat Controller, Inc. *** N/A X X X

Intertherm N/A X

Kerr Energy Systems Granby Industries 

Limited Partnership X

Lennox Industries, Inc. Lennox 

International, Inc. X X X X X

LG Electronics, Inc. N/A X

Mammoth, Inc. Thomas H. Lee 

Partners, LP X

McQuay International Daikin Industries, 

Ltd. X

Mitsubishi Electric and 

Electronics USA, Inc. N/A X

National Coil Company N/A X

National Comfort 

Products N/A X X

Newmac Manufacturing, 

Inc.

William Newport 

Holdings Limited X

Nordyne, Inc. Nortek, Inc. X X X X X

Quietside N/A X

Rheem Manufacturing 

Company Paloma Group X X X X

Style Crest Products N/A X

Summit Manufacturing, 

Inc. N/A X

Texas Furnace, LLC*** AllStyle Coil 

Company, L.P. X X X

Thermo Products, LLC Burnham Holdings, 

Inc. X X X X

Trane Inc. Ingersoll Rand X X X X X

United Refrigeration 

Distributers, Inc. N/A X

V-Aire N/A X

York International 

Corporation

Johnson Controls, 

Inc. X X X X X

Weil-McLain SPX Corporation X X
3-14

Manufacturer Parent Company 

(if applicable) NWG** WG** Oil MHNWG**

CAC & 

Heat 

Pumps

Hydronic

Whirlpool Home Cooling 

and Heating

Whirlpool 

Corporation X X X

Wolf Steel Ltd. N/A X

Xenon N/A X

* Airwell-Fedders North America, Inc., owned by Israeli parent company Elco Holdings Ltd., 

refers to Fedders, Eubank, and Airtemp products. Airxcel Holdings, Inc. is owned by private 

equity firm Bruckmann, Rosser, Sherrill & Co. L.L.C. and refers to subsidiaries Marvair and 

Suburban Manufacturing Company. Carrier Corporation is owned by United Technologies 

Corporation and refers to its subsidiaries: Carrier North America Home Comfort, Bryant 

Heating and Cooling Systems, International Comfort Products (ICP), Payne Heating and 

Cooling Systems, and Day & Night Heating and Cooling Products. Brands under ICP include: 

Heil, Tempstar, Arcoaire, Comfortmaker, Airquest, KeepRite, and Lincoln. ECR International 

includes Climate Energy, LLC and Oneida Royal. Goodman Manufacturing Company is a 

division of Goodman Global, Inc. and primarily markets its products under the Goodman and 

Amana brand names. Haier America is a subsidiary of the Haier Group Company. Heat 

Controller, Inc. manufactures and distributes the Comfort-Aire and Century brands. Lennox 

Industries, Inc., a subsidiary of Lennox International Inc., includes Lennox, Armstrong Air, 

AirEase, Concord, Ducane Air Conditioning and Heating, Allied Commercial, and Magic-Pak. 

Newmac Manufacturing, Inc. is a subsidiary of William Newport Holdings Limited. Nordyne, 

Inc. is a subsidiary of Nortek Incorporated and manufactures furnaces under the following 

brands: Broan, Elect-Aire, Frigidaire, Garrison, Gibson, Grandaire, Intertherm, Kelvinator, 

Maytag, Miller, Nutone, Philco, Tappan, Thermal Zone, and Westinghouse. Rheem 

Manufacturing Company refers to Rheem Manufacturing Company, Rheem Air Conditioning 

Division, Rheem Sales Company, Inc., and Ruud Air Conditioning Division. All Rheem and 

Ruud companies are subsidiaries of the Paloma Group. Sears, Roebuck and Company is a 

subsidiary of the Sears Holdings Corporation. Texas Furnace, LLC is a subsidiary of AllStyle 

Coil Company, L.P. Crown Boiler Company and Thermo-Products, LLC are owned by 

Burnham Holdings, Inc. Trane Inc. manufactures products under the American Standard and 

Trane brand names. Ingersoll Rand owns Trane. York International Corporation refers to the 

following brands: Coleman, Evcon, Fraser-Johnston, Guardian, Luxaire, and York. York 

International Corp. is owned by Johnson Controls. Weil-McLain, which includes WilliamsonThermoflo, is a division of SPX Corporation. Whirlpool Home Cooling and Heating is a 

division of the Whirlpool Corporation. Wolf Steel Ltd. also does business as Napoleon 

Fireplaces.

** NWG is non-weatherized gas furnaces; WG is weatherized gas furnaces; and MH-NWG is

mobile home, non-weatherized gas furnaces *** Small businesses, according to http://www.sba.gov/ 

The domestic gas furnace market is almost entirely held by seven U.S. manufacturers: 

Carrier, Goodman, Lennox, Trane,

c Rheem, York, and Nordyne.8 Figure 3.2.1 shows the 2008 

market shares for residential furnace manufacturers as depicted in the September 2009 issue of 

Appliance Magazine.

 c Prior to 2007, Trane was a subsidiary of American Standard Companies. On November 28, 2007 Trane separated 

from the two other branches of American Standard Companies. On June 5, 2008, Ingersoll Rand acquired Trane. For 

more information, visit www.trane.com/Corporate/About/history.asp.
3-15

Figure 3.2.1: 2008 Market Shares for U.S. Manufacturers of Residential Gas Furnaces9

In contrast to the gas furnace market, the U.S. residential oil-fired furnace market is 

composed almost entirely of minor manufacturers. Minor manufacturers include Adams, Bard, 

Boyertown, Crown Boiler, ECR International, EFM, Kerr, and Newmac; major manufacturers 

include Thermo Pride and Lennox. Some of the major gas furnace manufacturers (including 

Carrier, Nordyne, Rheem, Trane, and York) also market oil-fired furnaces, although these 

furnaces are commonly rebranded units from another original equipment manufacturer (OEM). 

DOE estimated the market shares of oil-fired furnace manufacturers based on publicly available 

information and manufacturer feedback. Oil furnace manufacturers are shown in Table 3.2.1.

DOE examined AHRI’s Directory of Certified Product Performance for residential 

central air conditioners to identify residential central air conditioner manufacturers that would 

use furnace fans in their products. Many of the previously identified furnace manufacturers 

fabricate central air conditioners as well. DOE identified 45 separate companies that manufacture 

and market air conditioner and coils. The manufacturers found in the AHRI Directories of 

Certified Product Performance for residential central air conditioners and heat pumps are listed 

in Table 3.2.1, along with their parent company in parentheses, if applicable.

Figure 3.2.2 displays the 2008 market shares for the residential central air conditioner 

market. 

Carrier

32%

Goodman

Lennox 15%

13%

Trane

13%

Rheem

12%

York

9%

Nordyne

5%

Others

1%

 
3-16

Figure 3.2.2: 2008 Market Shares for Unitary Air Conditioners10

Comparing Figure 3.2.1 to Figure 3.2.2, DOE recognizes that the seven largest residential 

gas furnace manufacturers control 97 percent of the central air conditioner market share (as of 

2008). These seven manufacturers include Carrier, Goodman, Traned, Lennox, Rheem, York, 

and Nordyne.

Little market information is available for hydronic air handlers because they are an 

emerging product. DOE finds that the hydronic air handler market is segmented from the gas 

furnace and residential CAC markets, similar to oil furnaces. While some of the major 

manufacturers identified above offer hydronic air handler models, DOE expects that the majority 

of the market is composed almost entirely of minor manufacturers. Minor hydronic 

manufacturers include: First Company; H.E.P. Materials Corporation; Heat Controller 

Incorporated; Texas Furnace, LLC; and Weil-McLain. Of the seven major manufacturers of 

residential furnace and CAC and heat pump products, DOE is aware that Rheem, Goodman, and 

Lennox manufacture hydronic air handlers.

 d Trane Inc. was acquired by American Standard Companies in 1984. On November 28, 2007 Trane separated from 

the two other branches of American Standard Companies. On June 5, 2008, Ingersoll Rand acquired Trane. For 

more information, visit www.trane.com/Corporate/About/history.asp.

UTC/Carrier

27%

Goodman 

(Amana)

14%

American 

Standard 

(Trane)

14%

Lennox

12%

Rheem

12%

York 

9%

Nordyne 

9%

Others

3%
3-17

3.2.2.1 Mergers and Acquisitions

A trend in the HVAC industry over the past decades has been the consolidation of major 

manufacturers. In the last ten years or so, the seven major manufacturers (i.e., Goodman, 

Lennox, Carrier, York, Rheem, Nordyne, and Trane) have gone through various mergers and

acquisitions, and have materialized as differentiated leaders in the HVAC industry. A brief 

summary of the recent history of each of the seven largest manufacturers is as follows:

• Goodman Global, Inc. was founded and purchased Janitrol in 1982. In 1997, 

Goodman acquired Amana, which was then sold to Maytag in 2001, and later 

acquired by Whirlpool when Whirlpool purchased Maytag in 2006.

• Lennox Industries is a subsidiary of Lennox International, Inc., a holding company 

that was created in 1984. Lennox International acquired Armstrong Air Conditioning 

Inc. in 1988. In 1999, Lennox International completed an Initial Public Offering and 

became a public company.

11

• Carrier has been a wholly-owned subsidiary of United Technologies Corporation 

since 1979. In 1999, Carrier Corporation acquired International Comfort Products 

(ICP).

Around this time, Lennox also acquired Service Experts 

and other equipment service companies.

12

• York Unitary Products Group and York International are subsidiaries of Johnson 

Controls, Inc, which purchased York in 2005. 13

• Rheem is a privately held firm that was acquired by Paloma Industries of Japan in 

1987. Paloma Industries also acquired Rheem Australia (Solahart) in 2002. 14

• Nordyne is a subsidiary of the privately held Nortek, Inc. 15

3.2.2.2 Small Businesses

DOE realizes that small businesses may be disproportionately affected by the 

promulgation of new energy conservation standards for residential furnace fans. The Small 

Business Administration (SBA) lists small business size standards for industries as they are 

described in the North American Industry Classification System (NAICS). The size standard for 

an industry establishes the largest size that a for-profit entity can be while still qualifying as a 

small business for Federal Government programs. These size standards are generally expressed 

in terms of the average annual receipts or the average employment of a firm. Residential furnace 

fan manufacturing is classified as a subset under NAICS 333415, “Air-Conditioning and Warm 

Air Heating Equipment and Commercial and Industrial Refrigeration Equipment 

Manufacturing.” The size standard is 750 employees or fewer for this NAICS code.

DOE has identified small business residential furnace fan manufacturers, including small 

business parent companies, if applicable in Table 3.2.1. DOE is aware of 11 small business 

manufacturers associated with the products anticipated to be affected by this rulemaking. These 

manufacturers are primarily associated with oil furnaces and hydronic air handlers.
3-18

3.2.3 Distribution Channels

Two types of distribution channels describe how most furnace fan products pass from the 

manufacturer to the consumer. The first distribution channel applies to furnace fan products 

installed in replacement markets. In the replacement distribution channel, the manufacturer 

generally sells the equipment to a wholesaler, who in turn sells it to a mechanical contractor, who 

in turn sells it and installs it for the consumer.e

 Figure 3.2.3 illustrates the two main distribution channels for most residential furnaces. 

The second distribution channel applies to 

furnaces that are installed in new construction and, thus, includes an additional link in the 

chain—the general contractor. In the new construction distribution channel, the manufacturer 

sells the equipment to a wholesaler, who in turn sells it to a mechanical contractor, who in turn 

sells it to a general contractor.

 Replacement:

 

 New Construction:

Figure 3.2.3: Distribution Channels for Residential Furnaces 

The new construction market tends to be a low-cost, low-efficiency market, as the 

decision-makers are not the beneficiary of the system installed. 

After installation, mechanical contractors typically perform additional lifecycle service 

on the system, including inspection, maintenance, and repair. 

Manufactured home gas furnaces are sold as part of manufactured homes, so these 

furnaces have a specific distribution chain when purchased for the new construction market. The 

furnace manufacturer sells to the maker of the manufactured home, who installs the equipment in 

 e One major manufacturer uses one-step distribution (manufacturer to contractor) and is the only known exception. 

Several large retailers are trying to replace the wholesalers in the distribution chain, but most experts do not expect 

the trend to change the distribution chain significantly in the near term.

Wholesaler Mechanical

Contractor Manufacturer Consumer

Consumer

General 

Contractor Mechanical 

Contractor

Manufacturer Wholesaler
3-19

the home. The manufactured home manufacturer sells the home to a contractor, who in turns 

sells it to a homebuyer and provides installation services. The equipment manufacturer markup 

for manufactured home gas furnaces is identical to the manufacturer markup for other furnaces. 

For manufactured home furnaces purchased for the replacement market, the distribution channel 

should be the same as the replacement distribution channel for non-weatherized gas furnaces.

3.2.4 Regulatory Programs

The following section details current regulatory programs mandating energy conservation 

standards for residential furnace fans. Section 3.2.4.1 discusses other current Federal energy 

conservation standards that affect furnace fan products. Section 3.2.4.2 reviews standards in 

Canada that may impact the companies servicing the North American market.

3.2.4.1 Other Federal Energy Conservation Standards Affecting Furnace Fan 

Products

There are currently no Federal energy conservation standards for residential furnace fans, i.e. 

standards that specifically regulate energy use for circulating air through ductwork. However, 

there are Federal energy conservation standards for other functions of the HVAC products that 

use furnace fans. Part A of Title III of EPCA addresses the energy conservation standards for 

consumer products other than automobiles, which include residential furnaces and residential

central air conditioners and heat pumps. (42 U.S.C. 6291-6309) Federal energy conservation 

standards for residential furnaces are based on the annual fuel utilization efficiency (AFUE) 

metric, which measures the efficiency of the delivery of heat, but does not account for the 

electrical energy consumption of the furnace fans used in furnaces. Consequently, the electrical 

energy consumption of furnace fans used in furnaces is not subject to the current DOE standard 

for furnaces. (10 CFR part 430, subpart B, Appendix N) Federal energy conservation standards 

for CAC and heat pump products are based on the seasonal energy efficiency ratio (SEER) and 

heating seasonal performance factor (HSPF). Both of these metrics account for the electrical 

consumption of the furnace fan used in CAC products, some of which are included in the 

provisional scope of coverage of this rulemaking (modular blowers and weatherized furnaces).

(10 CFR part 430, subpart B, Appendix M) Chapter 2 of this TSD includes a detailed discussion 

of how the SEER metric accounts for furnace fan electrical energy consumption as it relates to 

the scope of coverage of this rulemaking.

3.2.4.2 Canadian Energy Conservation Standards

In June 2010, the Office of Energy Efficiency (OEE) of Natural Resources Canada 

(NRCan) published a bulletin to announce that it would be proposing new electricity reporting 

requirements for air handlers used in central heating and cooling systems that are imported or 

shipped across provincial boundaries for sale or lease in Canada. NRCan proposed to base the 

new requirements on the test procedure and rating metric specified in Canadian Standard 

Association (CSA) C823-11 - Performance of air handlers in residential space conditioning 

systems. At the time of the June 2010 bulletin CSA C823 was still in development, but has since 

been finalized (2011). In the bulletin, NRCan identified HVAC products that would be subject to 
3-20

the proposed regulation: gas and oil furnaces, air handlers used in geothermal heat pumps and 

air-source heat pumps, and combination space and water heating (combo) air handlers.f NRCan 

announced in a more recent November 2011 bulletin that it intends initially to extend the 

proposed new electricity reporting requirements to air handlers used in residential gas furnaces 

only. NRCan added that it intends to expand the requirements to air handlers used in other 

heating and cooling systems in the future.g

3.2.5 Non-Regulatory Programs

DOE identified non-regulatory programs aimed at improving the energy efficiency of 

residential furnace fans. One such program is based on voluntary efficiency targets: the 

ENERGY STAR program. In addition, DOE identified rebate programs and Federal and State 

tax credits for residential purchasers of higher-efficiency central air conditioners and heat pumps, 

and reviewed Federal procurement specifications for these products as well. 

3.2.5.1 ENERGY STAR

ENERGY STAR is a voluntary labeling program conducted by the U.S. Environmental 

Protection Agency (EPA) and DOE that identifies and promotes energy-efficient products. To 

qualify, a product must usually exceed federal minimum standards by a specified amount, or if 

no federal standard exists, it must meet minimum efficiency levels set by the program and/or 

exhibit selected energy saving features. ENERGY STAR creates minimum energy efficiency 

specifications for various products, including residential furnace fans used in residential furnaces 

and split system and single package air conditioners and heat pumps. 

ENERGY STAR originally set specifications for residential gas and oil furnaces in 1995. 

ENERGY STAR specifications for furnaces did not include provisions for the electrical 

consumption of the furnace fan until the most recent revisions, Versions 3.0 and 4.0. In versions 

3.0 and 4.0, the furnace fan electrical consumption must account for less than 2% of the total 

energy consumption (electrical and fuel) of the furnace. Version 3.0 took effect on February 1,

2012 and Version 4.0 will take effect on February 1, 2013.h

 f The June 2010 NRCan bulletin regarding proposed new electricity reporting requirements for air handlers used in 

central heating and cooling systems is accessible at the following website: 

Furnace fan energy consumption for 

ENERGY STAR compliance is based on ENERGY STAR’s “Interim Approach for Determining 

Furnace Fan Energy Use.” This approach includes calculations based on measurements taken in 

accordance with ANSI/ASHRAE Standard 103–1993, which is incorporated by reference in the 

DOE furnace and boiler test procedure. (10 CFR part 430, subpart B, appendix N) 

ANSI/ASHRAE Standard 103–1993 specifies a steady state measurement of fan electrical 

consumption at an airflow at which a specified temperature rise and minimum ESP are achieved. 

The ESP specified by ENERGY STAR (from 0.18 in.w.c. to 0.33 in.w.c. in heating mode 

depending on input capacity) differs from the ESP proposed in the DOE furnace fan test 

procedure NOPR (0.3 in.w.c. to 0.65 in.w.c. in cooling mode depending on product application 

http://oee.nrcan.gc.ca/regulations/bulletins/14551

g The November 2011 NRCan bulletin regarding proposed new electricity reporting requirements for air handlers 

used in central heating and cooling systems is accessible at the following website: 

http://oee.nrcan.gc.ca/regulations/bulletins/17839#Air_Handlers
3-21

and internal structure). Another important distinction between ENERGY STAR furnace fan 

specifications and the proposed DOE test procedure is that the “e” metric used to determine 

ENERGY STAR compliance is a function of Eae, which includes the electrical consumption of 

other furnace components besides the circulation fan (e.g. the inducer fan and gas valve). 

ENERGY STAR originally set specifications for central air conditioners and heat pumps 

in 1995, followed by revisions in 2002, 2006, and 2009. The current (2009) ENERGY STAR 

levels for CAC and heat pump products are shown in Table 3.2.2.

Table 3.2.2: ENERGY STAR Specifications for Central Air Conditioner Products (2009)

Product ENERGY STAR Specification

Central Air Conditioners

>=14.5 SEER/ >=12 EER* for split systems

>=14 SEER/ >=11 EER* for single package 

equipment including gas/electric package units

* Energy efficiency ratio (EER) means the ratio of the average rate of space cooling delivered to the average rate of 

electrical energy consumed by the air conditioner or heat pump. These rate quantities must be determined from a 

single test or, if derived via interpolation, must be tied to a single set of operating conditions. EER is expressed in 

units of Btu/h/W. (10 CFR part 430, subpart B, appendix M)

3.2.5.2 Consumer Rebate Programs

In addition to the Federal and State tax credits available for purchasers of residential 

furnaces, central air conditioners, and heat pumps many States and local utility companies offer 

rebates for higher efficiency products, typically for existing home retrofits only. DOE maintains 

a database of such rebates, called the Database of State Incentives for Renewables & Efficiency 

(DSIRE), in addition to information on other state, local, utility, and federal incentives and 

policies that promote renewable energy and energy efficiency. For more information on 

individual rebate programs, please visit the DSIRE website at www.dsireusa.org.

3.2.5.3 Federal Tax Credits

Until December 31, 2011, a Federal tax credit provided consumers a credit toward their 

Federal income tax if they purchased a furnace that uses a qualifying main circulating fan. This

tax credit applied only to products being installed in existing homes, not new housing 

construction. Consumers that purchased a furnace with an “advanced main air circulating fan”, 

which consumes less than 2% of the furnace’s total energy consumption (electrical and fuel, 

based on the same measurement for the ENERGY STAR specification), were eligible to receive 

a $50 tax credit.i

Manufacturers stated that residential tax credits, weatherization programs, utility rebates, 

and manufacturer consumer rebates all drive the consumer towards purchasing high efficiency 

 This tax credit is not available for 2012.

 h ENERGY STAR specifications for residential furnaces are accessible at the following link: 

http://www.energystar.gov/index.cfm?c=revisions.furnace_spec

i

Details regarding the 2011 Federal tax credit for furnace fans is available at the following link: 

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
3-22

equipment. Manufacturers stated that they are selling more high efficiency products such as air 

handlers and ECM motors to meet these tax credits and rebate programs.

3.2.5.4 State Tax Credits

DOE also identified two states that have tax credits for furnace fans used in residential 

furnaces: Oregon and Kentucky. 

Table 3.2.3: State Tax Credits for Residential Gas Furnaces16

State Furnace Fan Requirement*

Available Tax 

Credit

Oregon < 2% total furnace energy consumption $350

Kentucky < 2% total furnace energy consumption $250

*Fraction of total furnace energy consumption calculated according to the DOE test procedure for furnaces codified 

in 10 CFR part 430, subpart B, Appendix N.

Oregon’s Residential Energy Tax Credit (RETC) was created in 1977 to encourage the 

use of renewable resources in households. The Oregon legislature expanded the program to 

include high-efficiency heat pump systems, air conditioners, and water heaters (2001); furnaces 

and boilers (2002); and other equipment and measures.17

Kentucky offers a 30 percent state income tax credit beginning in 2009 for taxpayers who 

install certain energy efficiency measures on their principal residence or residential rental 

property. These energy efficiency measures include “Qualified Energy Property Installation,” 

which includes advanced main air circulating fans. Equipment must meet the efficiency 

guidelines specified in the Federal tax credit for residential energy property (see section 

Oregon’s RETC now includes credits 

for advanced main air circulating fans.

3.2.5.3).

The total annual tax credit for this equipment may not exceed $250. These credits apply to 

equipment purchased in taxable years 2009 to 2015 and may be carried forward for one year.18

3.2.5.5 FEMP Procurement Guidelines

DOE reviewed the Federal Energy Management Program (FEMP) procurement 

guidelines for Federal government equipment purchasing. The mission of DOE’s FEMP j

is “to 

reduce the cost and environmental impact of the Federal government by advancing energy 

efficiency and water conservation, promoting the use of distributed and renewable energy, and 

improving utility management decisions at Federal sites.”19

FEMP designates standards for residential gas furnaces purchased by the Federal 

government. The designated FEMP gas furnace standard level is the ENERGY STAR level, 

which includes requirements for the main circulating air fan (i.e., furnace fan).

FEMP helps Federal buyers identify 

and purchase energy-efficient equipment.

20

 j

For more information, please visit www.eere.energy.gov/femp.
3-23

3.2.6 Industry Cost Structure

DOE is unaware of any publicly available industry-wide cost data specific to only 

manufacturers of residential furnace fans. DOE examined the North American Industry 

Classification System (NAICS) codes for small business sizes and determined that furnace fan

manufacturing is classified as a subset under NAICS code 333415, Air-Conditioning and Warm 

Air Heating Equipment and Commercial and Industrial Refrigeration Equipment 

Manufacturing.21 Therefore, DOE presents the data below as a broader industry proxy for the 

furnace fan industry, which, in combination with information gained in interviews, inform 

DOE’s analysis of the industry cost structure.

DOE obtained the below data from the U.S. Census Bureau’s Annual Survey of 

Manufacturers, Statistics for Industry Groups and Industries from 2002 to 2010.

22

Table 3.2.4 presents the industry employment levels and earnings from 2002 to 2010. The 

statistics illustrate approximately a 23.3% decrease in production workers and a 23.0% percent 

decrease in overall number of employees from 2002 to 2010. This may be due to the decrease in 

shipments from 2005 to 2010, as seen in Figure 3.2.4. 

Table 3.2.4: Employment and Earnings for the Air-Conditioning and Warm Air Heating 

Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing

Industry Year Production Workers All Employees Annual Payroll 

$1000s 

2002 80,400 108,252 3,815,129 

2003 77,471 104,646 3,775,799 

2004 73,559 99,669 3,707,969 

2005 76,011 102,354 3,942,808 

2006 74,909 98,097 4,019,813 

2007 74,728 101,485 4,034,043 

2008 70,787 96,610 4,020,656

2009 60,259 85,475 3,768,643

2010 61,668 83,361 3,778,633

Source: U.S. Census Bureau. Annual Survey of Manufacturers, 2002-2010.

Table 3.2.5 presents the costs of materials and industry payroll as a percentage of 

shipment value of the entire HVAC product from 2002 to 2010.

k

Table 3.2.7

Note that the shipment values 

presented later in are only attributable to the furnace fan components of the HVAC 

products (i.e., 10% of the total). From 2002 to 2010, the cost of materials as a percentage of 

shipment value has increased 6.5%, the cost of payroll for production workers as a percentage of 

shipment value has decreased 20.8%, and the cost of total payroll as a percentage of shipment 

value has decreased 15.2%.

 k Includes just manufacturing cost, and not distribution. 
3-24

Table 3.2.5: Air-Conditioning and Warm Air Heating Equipment and Commercial and 

Industrial Refrigeration Equipment Manufacturing Industry Material and Payroll Costs

Year Cost of Materials 

% of shipment value 

Cost of Payroll for 

Production Workers 

% of shipment value 

Cost of Total Payroll 

% of shipment value 

2002 49.36 9.83 15.85 

2003 50.59 9.53 15.39 

2004 51.81 8.99 14.57 

2005 53.78 8.52 13.78 

2006 53.17 8.87 13.80 

2007 55.59 8.17 13.43 

2008 54.83 8.13 13.50 

2009 54.14 7.89 14.05

2010 52.59 7.79 13.44

Source: U.S. Census Bureau. Annual Survey of Manufacturers, 2002-2010.

3.2.7 Product Lifetime

The lifetime of residential furnace fans can vary greatly depending on how often the 

system is used, which is dependent upon the climate of the region, where the product is installed,

and the personal preferences of the consumer. The lifetime is also dependent on how regularly 

the HVAC product is maintained and serviced. DOE expects that the lifetime of the furnace fan 

is equivalent to the lifetime of the HVAC product in which it is incorporated. DOE modeled 

furnace fan lifetime based on the distribution of furnace lifetimes developed for the recent 

HVAC rulemaking. DOE assumed that the lifetime is the same for fans at different efficiency 

levels. Generally, most sources estimate the lifetime of furnaces to be between 10 and 30 years. 

Appliance Magazine publishes an Annual Portrait of the U.S. Appliance Industry, 23

Table 3.2.6

in which it 

estimates low, high, and average lifetimes for a range of home appliances, including gas and oil 

furnaces, based on input from appliance experts and many additional sources. shows 

the average lifetime for each product class. Additional information about furnace lifetimes is 

contained in the Life-Cycle Cost and Payback Period Analysis chapter (Chapter 8) of this TSD.

Table 3.2.6: Average Lifetime for Furnace Fans

Product Class Average

years

Non-Weatherized Gas Furnace Fans 

(Condensing and Non-Condensing) 23.6

Manufactured Home Gas Furnace Fans 

(Condensing and Non-Condensing) 18.7

Oil-Fired Furnace Fans 26.5

Weatherized Gas Furnace Fans; Electric

Furnace/Modular Blower Fans; Manufactured 

Home Electric Furnace/Modular Blower Fans; 

Hydronic Air Handlers

18.0
3-25

3.2.8 Historical Shipments and Efficiencies

3.2.8.1 Historical Shipments 

Information about annual furnace fan shipment trends allows DOE to estimate the 

impacts of energy conservation standards on the residential furnace fan industry. DOE has 

examined unit shipments and value of shipments using publicly available data from the U.S. 

Census Bureau’s Annual Survey of Manufacturers (ASM) and Current Industrial Reports (CIR) 

and estimates from AHRI and Appliance Magazine.

AHRI provides estimates of annual unit shipments for various appliances. The data, 

however, do not distinguish between shipments for new construction and replacement. Figure 

3.2.4 presents annual shipments of furnaces from 1990 to 2011 reported by AHRI.

24

From the data, it is apparent that gas furnaces comprise the vast majority of the 

residential furnace fan product industry. Shipments of gas furnaces grew steadily until 2005, then 

plunged in the subsequent four years to 30 percent below the unit shipments at the beginning of 

the decade. This trend mirrors that of new housing starts over the same time period, indicating

that gas furnace shipments may be driven, in part, by the new construction market. Shipments of 

oil-fired furnaces remained relatively steady over the first part of the decade, before dropping by 

more than half between 2005 and 2009. 
3-26

Figure 3.2.4: Residential Furnace Fan Industry Shipments (Domestic and Imported)

0.0

1.0

2.0

3.0

4.0

5.0

1990 1995 2000 2005 2010

Historical Shipments (millions)

HAH-HC

MH-EF/MB

MH-NWG-C

MH-NWG-NC

EF/MB

O-NC

WG

NWG-C

NWG-NC
3-27

Figure 3.2.5: Residential Furnace Fan Industry Share 2011 (Domestic and Imported)

NWG-NC

37%

NWG-C

35%

WG

7%

O-NC

2%

EF/MB

13%

MH-NWG-NC

2%

MH-NWG-C

0.3%

MH-EF/MB

3%

HAH-HC

1%

NWG-NC

NWG-C

WG

O-NC

EF/MB

MH-NWG-NC

MH-NWG-C

MH-EF/MB

HAH-HC
3-28

3.2.8.2 Value of Shipments

Table 3.2.7 provides the value of shipments attributable to the furnace fan components of 

HVAC products for the residential furnace fan industry from 2006 to 2010 using the U.S. Census 

Bureau CIR.25

Table 3.2.7: Value of Residential Furnace Fan Shipments by Year

The product description in the CIR is “warm air furnaces, including duct furnaces 

and humidifiers, and electric comfort heating.” The values of shipments reported in the CIR 

represent the total value of the HVAC products in which the furnace fans are incorporated. Based 

on its manufacturing cost modeling, DOE estimated that furnace fans account for 5-15% of the 

total furnace cost, depending on the type of motor (PSC or ECM) and the type of furnace. 

Accordingly, DOE estimates that furnace fan shipment values represent 10% of the total furnace

shipment values reported in the CIR. The CIR expresses all dollar values in current dollars (e.g., 

2006 data are expressed in 2006$). Using the gross domestic product (GDP) deflator, DOE 

converted each year’s shipment values to 2011$; 2010 was the last year included in the CIR data 

set.

26

Year Value of Shipments

$, millions

Value of Shipments in 2011$

$, millions

2010 200 205

2009 183 186

2008 183 189

2007 209 221

2006 221 251

3.2.8.3 Saturation in U.S. Households

Stock saturation refers to the percentage of the housing stock equipped with a given 

product or exhibiting a certain feature. According to RECS 2009 data, 61.6% (70 million) of 

U.S. homes have central warm-air furnaces.27

3.2.9 Market Performance Data

Of these furnaces, 44.3 million are gas furnaces, 

19.1 are electric furnaces, 2.7 million are oil-fired furnaces, and 3.9 million are liquid petroleum 

gas (LPG) furnaces. Similar statistics for modular blowers and hydronic air handlers is not 

available. 

DOE examined the AHRI,28 the CEC,29 and ENERGY STAR30 directories and other 

publicly available data from furnace, CAC, and hydronic air handler manufacturers’ catalogs and 

websites to develop an understanding of the industry and its market. These databases contain 

information such as manufacturer name, model number, input rating, and efficiency. DOE’s goal 

in researching HVAC products was to better understand the furnace fan market and product 

distribution. DOE excluded from its analysis any products that were manufactured for Canada or 

export only and any products in the AHRI Directory of Certified Product Performance that were 

not labeled as “active”.
3-29

3.2.9.1 Capacity Data

In characterizing the residential furnace fan market, DOE first examined the distribution 

of furnace models by their input capacity ratings. DOE divided the products into bins based on 

their input capacities. The capacities were separated into bins of 10 kBtu/hr. The bin labels 

represent the bin ranges’ upper bounds (i.e., the 40 Btu/hr bin includes products with input 

capacity from 31 Btu/hr through 40 Btu/hr). Figure 3.2.6 shows these distributions for most key 

product class covered in this rulemaking.

Figure 3.2.6: Distribution of Furnace Models by Input Capacity

Figure 3.2.6 shows a spike in the number of basic models for the 80 kBtu/hr bin. 

Accordingly, DOE chose to focus on models in 70-80 kBtu/hr range for further analysis.

3.2.9.2 Airflow Data

DOE recognizes that HVAC products with a given heat input capacity can have varying 

cooling capacities. DOE also recognizes that cooling capacity determines the nominal maximum 

airflow capacity of the HVAC product. Typically, HVAC products are designed to provide 

between 350 and 450 cfm/ton. An HVAC product with a cooling capacity of 3 tons will have a 

nominal maximum airflow capacity of approximately 1200 cfm, for example. The marked cells 

in Table 3.2.8 reflect the input capacity and nominal maximum airflow for the most common 

input and nominal maximum airflow capacities of furnace models in the June 2010 AHRI 

Directory.

25

0

100

200

300

400

500

600

700

800

Number of Basic Models

Input Capacity (kBtu/hr)

Non-weatherized, Non-condensing 

Gas Furnace Fan

Non-weatherized, Condensing Gas 

Furnace Fan

Weatherized Gas Furnace Fan

Non-condensing Oil Furnace Fan

Manufactured Home Nonweatherized, Non-condensing Gas 

Furnace Fan

Manufactured Home Nonweatherized, Condensing Gas 

Furnace Fan
3-30

Table 3.2.8: Common Furnace Input Capacity and Airflow Combinations

Airflow Sizing in cfm 

tons

Input Capacity 

kBtu/h

45 50 60 70 75 80 90 100 115 120 125 140

800 cfm (2 tons) x x x

1,200 cfm (3 tons) x x x x x x x x

1,600 cfm (4 tons) x x x x x x x x

2,000 cfm (5 tons) x x x x x x

Based on historical shipment information of residential central air conditioners by 

capacity, DOE constructed the airflow capacity percentiles table for air conditioners. (See Table 

3.2.9). The Department restricted the airflow sizes to two, three, four, or five tons—the 

equivalent of 800, 1,200, 1,600, or 2,000 cfm at 0.5 in. w.g. static pressure. Since there are no 

available shipment data on the airflow capacity of furnaces, the Department used the airflow 

capacity of residential central air conditioners as a proxy.

Table 3.2.9: Expected Distribution of Airflow for Furnace Fans

Airflow Rating 

cfm

2010 AHRI 

Shipments

%

Cumulative Fraction

%

800 37.3 37.3

1200 35.0 72.3

1600 16.8 89.0

2000 11.0 100.0

A mentioned in section 3.2.9.1, DOE chose to focus on models in 70-80 kBtu/hr range 

for further analysis based on input capacity distribution data. Table 3.2.8 shows that furnaces in

this input capacity range typically have nominal maximum airflow capacities of 1200 or 1600 

cfm. Table 3.2.9 shows that between these two nominal maximum airflow capacities, DOE 

expects the majority of models to have a nominal maximum airflow capacity of 1200 cfm. 

Accordingly, DOE chose to focus on models with a nominal airflow capacity of 1200 cfm. Note 

that DOE developed the information provided in Table 3.2.8 and Table 3.2.9 for chapter 7 of the 

HVAC products direct final rule TSD. 

3.2.9.3 Energy Metric

DOE does not have an existing standard for residential furnace fans. Consequently, 

values of the proposed rating metric, FER, are unavailable for evaluating market-wide trends in 

energy performance. A related energy metric, the average annual auxiliary electrical energy 

consumption (Eae), is widely available for residential furnace models, however. Eae includes the 

electrical energy consumption of the circulation fan, but also includes the electrical consumption 
3-31

of other components of the furnace, such as the induced draft blower. (10 CFR part 430, subpart 

B, Appendix N) DOE used Eae as a proxy for FER to evaluate market-wide energy performance 

of furnace fans. DOE characterized the distribution of Eae for commercially-available furnaces

by dividing the products listed in the AHRI database into bins based on their Eae. DOE 

determined bin sizes based on the range of Eae within each key product class. The bin labels 

represent the bin ranges’ upper bounds (i.e., the 500 kWh Eae bin includes products with Eae 

values from 401 kWh to 500 kWh). As mentioned in 3.2.9.1, a large number of furnace fan basic 

models fall in the 70-80 kBtu/hr input capacity range. Thus, DOE analyzed the Eae of models in 

this range. Figure 3.2.7 shows a histogram of the energy data for products having 70-80 kBtu/hr 

input capacity a subset of key product class.

Figure 3.2.7: Distribution of 70-80 kBtu/hr Input Capacity Furnace Models by Eael

As Figure 3.2.7 shows, energy performance differs across the major product classes at 

similar capacities. DOE did not include modular blowers and hydronic air handlers in these 

assessments because Eae values are not generated for these products. DOE expects that the 

energy consumption of these products will also be different at a given capacity due to differences 

in application and internal structure.

3.2.9.4 Motor Data

DOE also examined the distribution of motor types in residential furnaces. The two motor 

types are PSC and ECM.m

Figure 

 DOE further divided ECM motors into constant-torque ECMs, 

referred to as X13, and constant-circulation ECMs, referred to simply as ECMs. DOE used the 

AHRI database to develop motor distributions, when motor information was available. 

 l

Source: AHRI database

m See Section 3.3.2.4 for motor type descriptions

0

50

100

150

200

250

Number of Basic Models

Eae (kWh)

Non-weatherized, Noncondensing Gas Furnace Fan

Non-weatherized, Condensing 

Gas Furnace Fan

Weatherized Gas Furnace Fan

Non-condensing Oil Furnace 

Fan
3-32

3.2.8 through Figure 3.2.11 show these distributions for a subset of key product classes covered 

in this rulemaking.

Figure 3.2.8: Motor Distribution for Non-Weatherized Gas Furnaces

Figure 3.2.9: Motor Distribution for Weatherized Gas Furnaces

32%

12%

56%

ECM

X13

PSC

31%

9%

60%

ECM

X13

PSC
3-33

Figure 3.2.10: Motor Distribution for Oil Furnaces

Figure 3.2.11: Motor Distribution for All Furnace Types

As shown above, the PSC motor dominates the furnace fan market at 56 percent market 

share, followed by ECM at 34 percent market share, and X13 with 10 percent.

Figure 3.2.12 and Figure 3.2.13 show the distribution of motor type by Eae for all input 

capacities for the two major product classes (non-weatherized, non-condensing gas furnaces and 

non-weatherized, condensing gas furnaces). As shown below, ECM motors have a lower Eae 

than PSC motors for both types of non-weatherized gas furnaces.

42%

58%

ECM

PSC

34%

10%

56%

ECM

X13

PSC
3-34

Figure 3.2.12: Motor Distribution by Eae for Non-weatherized, Non-condensing Gas 

Furnaces

0

5

10

15

20

25

30

35

40

45

Number of Basic Models

Eae

PSC

X13

ECM
3-35

Figure 3.2.13: Motor Distribution by Eae for Non-weatherized, Condensing Gas Furnaces

3.3 TECHNOLOGY ASSESSMENT

This section provides a technology assessment for residential clothes dryers and room air 

conditioners. Contained in this technology assessment are details about product characteristics 

and operation (section 3.15.1), an examination of possible technological improvements for each 

product (section 3.15.2) and a characterization of the product efficiency levels currently 

commercially available (section 3.15.3).

3.3.1 Furnace Fan Operation

In preparation for the screening and engineering analyses, DOE prepared a brief description 

of the characteristics and operation of the furnace fans covered by this rulemaking. These 

descriptions provide a basis for understanding the technologies used to improve product efficiency.

DOE considered a typical furnace fan as consisting of a fan motor and its controls, an 

impeller, and a housing, all of which are components of an HVAC product that includes 

additional components, including the cabinet. To circulate air through ductwork, the furnace fan 

motor rotates the impeller, which increases the velocity of an airstream. As a result, the airstream 

gains kinetic energy. This kinetic energy is converted to a static pressure increase when the air 

slows downstream of the impeller blades. This static pressure created by the fan must be enough 

to overcome the pressure losses the airstream will experience throughout the ductwork, and to a 

smaller degree, within the HVAC product itself, to provide sufficient delivery of conditioned air 

to the residence. Pressure losses are the result of directional changes in the ductwork, friction 

0

5

10

15

20

25

30

35

40

45

Number of Basic Models

Eae

PSC

X13

ECM
3-36

between the moving air and surfaces of the ductwork, and possible appurtenances in the airflow 

path. (In layman’s terms, the conditioned air slows and eventually would stop the further it 

travels from the fan. However, in effective systems, continued action of the furnace fan 

overcomes such resistance and provides conditioned air to the intended space.) Therefore, the 

geometry of any HVAC component that obstructs the airflow path, the length of the ductwork 

path, and number and nature of direction changes in the ductwork of a given system contribute to 

the pressure losses of the system. In most duct systems, the static pressure required to move the 

air is approximately equal to the square of the airflow rate.

Installed furnace fans can have as many as five or more airflow-control settings. In a 

given HVAC system, energy consumption of the furnace fan increases as airflow increases. 

Therefore, power input is higher for higher airflow-control settings. As mentioned, DOE finds 

that each airflow-control setting is often designated for a specific function, such as cooling, 

heating, or constant circulation. DOE understands that higher airflow-control settings are almost 

always factory set for cooling operation. Therefore, DOE expects that the electrical energy 

consumption of a furnace fan is higher while performing the cooling function. Median airflowcontrol settings are designated for heating operation. DOE further recognizes that the potential 

for significant power reduction occurs when the fan is operating in its lowest airflow-control 

setting, which DOE finds is typically factory set for constant-circulation. Constant circulation is 

the mode in which the furnace fan circulates air continuously but the HVAC product does not 

condition (heat or cool) the air. The significant power reduction in constant circulation mode is 

consistent with the theory that fan input power is proportional to the cube of the airflow. 

The relative efficiency of certain furnace fan technologies is dependent on operating 

conditions (i.e. airflow-control setting and ESP). For instance, DOE is aware that some furnace 

fan technologies, such as improved impeller designs, may improve efficiency in some, but not 

all, of the expected range of operation. Therefore, DOE anticipates that evaluating energy 

performance of furnace fans across the entire range of expected field operation is necessary to 

meaningfully compare technology options.

3.3.2 Technology Options

The purpose of the technology assessment is to develop a list of technology options that 

manufacturers can use to improve product efficiency. The following assessment provides 

descriptions of technology options for furnace fans. DOE examined efficiency-improving 

technologies used today. 

3.3.2.1 Housing Design Modifications

The housing of a furnace fan is typically made of sheet metal. The design of the housing 

may impact fan efficiency. According to one manufacturer, the following housing design 

improvements can improve fan efficiency: 1) optimizing the shape of the inlet cone; 2) 

minimizing the gaps between the impeller and the inlet cone; and 3) optimizing cut off location 
3-37

and the manufacturing tolerances. n

3.3.2.2 Airflow Path Design

However, many manufacturers estimate these impacts to be 

minimal, and DOE has little quantitative data correlating specific housing design modifications 

with efficiency improvements.

The internal structure (i.e., geometry and configuration of components in the airflow 

path) determines the internal static pressure. For example, the geometry of a hydronic heat 

exchanger is different than the geometry of a clamshell heat exchanger, a furnace heat exchanger 

design typically found in non-weatherized gas furnaces. This difference results in different 

internal static pressure levels. Manufacturers could modify the design and configuration of 

elements in the airflow path, such as the heat exchanger, to reduce internal static pressure. 

Reduced internal static pressure levels result in lower expected energy consumption levels. 

Airflow path design improvements may also involve an increase in package size. 

3.3.2.3 ECM Control Relay

During testing of standby and off mode components for the furnace rulemaking, DOE 

found that ECM motors and their associated controls consumed 3 watts in off mode, while PSC 

motors did not have any off mode power draw. Therefore, the ECM motor could be disconnected 

to further reduce a system’s off mode power consumption. To accomplish this task, a control 

relay would need to be added to the circuit. A typical control relay activates a switch when 

current runs through it and when there is no current a spring holds the switch in the open 

position. 

Manufacturer feedback provided during the interview process (see chapter 12 of this 

TSD) indicated that ECMs are subject to an inrush of current upon startup. The power supply on 

the ECM’s control board, which is typically a switching mode power supply, cannot withstand 

the repeated surge of current that occurs at ECM startup and, therefore, completely depowering 

and reactivating the motor by use of a control relay would shorten the motor’s lifetime

significantly. DOE considers a premature failure of the blower to be a reliability issue that has an 

adverse impact on product utility to the consumer. 

3.3.2.4 High-Efficiency Fan Motors

Furnace fan manufacturers typically use either a permanent split capacitor (PSC) motor 

or a more-efficient, electronically-commutated motor (ECM). (DOE is aware that “ECM” is a 

trade name specific to a certain motor manufacturer. DOE is using “ECM” to refer to any threephase permanent magnet furnace fan motor.) DOE divided both PSC motors and ECMs into two 

further categories each. In all, DOE considered four motor types: baseline PSC motors; improved 

PSC motors; constant-torque ECMs, referred to as X13; and constant-airflow ECMs. The 

specific design and energy performance differences between these motor types are described in 

the following paragraphs. Each of these motor types operates based on the interaction of the 

magnetic fields produced by the stator (the stationary portion of the motor) and the rotor (the 

 n The cut-off partially blocks the fan discharge opening at the side of the opening closest to the impellor axis.
3-38

rotating portion of the motor). These magnetic fields can be produced by electromagnets or 

permanent magnets.

PSC motors are a type of induction motor. In induction motors, the stator is an 

electromagnet that consists of electrical wire windings. Current is driven through the windings to 

produce a magnetic field. Through electromagnetic induction, this magnetic field induces current 

in the conductor bars of the rotor. The conductor bars of the rotor, often made of copper or 

aluminum, are arranged in such a manner that they produce another magnetic field once current 

is induced. The interaction of the two magnetic fields results in rotation of the rotor. In a PSC 

motor, a smaller, start-up winding is present in addition to the main winding in the stator. The 

start-up winding is electrically connected in parallel with the main winding and in series with a 

capacitor. At startup, the interactions between the magnetic fields generated by the start-up 

winding and the main winding initiate rotation in the correct direction. Because of the capacitor, 

however, the current to the start-up winding is cut off as the motor reaches steady state.

DOE considered PSC motors with 3 or less airflow-control settings to be baseline PSC 

motors, and PSC motors with more than 3 airflow-control settings to be improved PSC motors. 

PSC motors with more airflow-control settings provide more flexibility for designating which 

setting will be used for which HVAC product function (i.e. cooling, heating, or constant 

circulation). In addition, DOE expects that improved PSC motors have a higher turndown ratio, 

allowing them to increase fan efficiency by taking advantage of the cube law relationship 

between fan shaft power and airflow for operation with a given ductwork system.

Manufacturers integrate an autotransformer in PSC motors to create distinct, selectable 

airflow-control settings (speed taps). The autotransformer is a single-winding electrical 

transformer that is wound to the stator assembly and connected to the main and auxiliary motor 

windings. The autotransformer is tapped at various points along the winding. The location of 

each tap determines the number of winding turns that are powered and in turn, the voltage 

applied to the stator windings when the tap is selected. Taps are powered through a selector 

switch, which allows only one lead to be connected at a time. Each tap corresponds to an 

airflow-control setting.

ECM motors are three-phase permanent magnet motors. Like a PSC motor, the stator of 

an ECM motor is an electromagnet used to produce a magnetic field. Unlike the PSC motor, the 

rotor of an ECM motor consists of a permanent magnet. The interaction of the magnetic field of 

the electromagnet and the magnetic field of the permanent magnet rotor result in rotation of the 

rotor. ECM type motors can be divided into two categories: constant-torque ECMs and constantairflow ECMs. Constant-torque ECMs, often called X13 motors (which is the name of a 

particular motor manufacturer’s line of constant-torque ECMs), maintain a predetermined torque 

in each airflow-control setting as operating conditions change. Constant-airflow ECMs, often 

referred to simply as ECMs, maintain a constant airflow in each airflow-control setting as 

operating conditions change. Another difference between X13 motors and ECMs is that 

manufacturers design X13 motor controls to mimic the speed tap interface of PSCs to facilitate 

integration. ECMs on the other hand, have variable speed controls. Theoretically variable speed 

controls allow a furnace fan to operate at any airflow rate between its minimum and maximum. 

Both X13 motors and ECMs operate more efficiently than PSC motors by:
3-39

• operating more efficiently at a given operating condition;

• maintaining efficiency throughout the expected operating range; and

• achieving a higher turndown ratio (i.e., ratio of airflow in lowest setting to airflow in 

highest setting).

X13 motors are less efficient than ECMs because they are designed to have a narrower speed 

range and lower turndown ratio, as a result. DOE used airflow data from publicly-available 

product literature to calculate average turndown ratios for typical motor type/speed control 

combinations. Table 3.3.1 presents DOE’s turndown ratio investigation results.

Table 3.3.1: Average Turndown Ratio by Motor Type

Motor Type Speeds/Controls Average Turndown Ratio

PSC 2-Speed 82%

3-Speed 78%

4-Speed 64%

5-Speed 55%

Inverter 48%

X13 5-Speed 68%

ECM Variable 53%

3.3.2.5 Inverter Controls for PSC Motors

DOE is aware of an inverter-driven PSC furnace fan motor that was once commercially 

available in a furnace product that is no longer for sale. Inverter technology can improve PSCdriven furnace fan efficiency through more efficient control of the motor. Using an inverter, the 

incoming AC current is converted to DC current by a rectifier and then back to AC current at a 

specific frequency. The output AC current is used to drive the motor, the operating speed of 

which depends on the frequency of the AC current. Though there are other ways to change motor 

speed, inverter technology allows for more intermediate speeds within the same range of speeds

from the voltage steps associated with the autotransformer approach used for conventional PSC 

motors. This allows PSC motors with inverter controls to better match demand. DOE finds that 

an inverter-driven PSC motor is more efficient than the other PSC motor types, but less efficient 

than both X13 motors and ECMs.

3.3.2.6 Backward-Inclined Impellers

Furnace fans use an impeller to move air across the heat exchanger and through 

ductwork. Impellers are composed of a number of fan blades, or ribs, mounted around a hub. The 

air enters from the side of the impeller parallel to the axis of rotation, turns 90 degrees and 

accelerates due to centrifugal force as it flows over the fan blades and exits the fan housing. 

(AMCA News Spring 2010). DOE finds that centrifugal, forward-curved impellers are 

ubiquitous in commercially-available furnace fans. The forward-curved blades are made of thin, 

stamped sheet metal. These impellers are compact, inexpensive, easy to manufacture, and 

provide acceptable performance over a wide range of field operating conditions.
3-40

Energy savings may be possible by using backward-inclined impellers. These impellers 

incorporate backward facing inclined blades that are generally wider in the air flow direction 

across the blade as compared with forward-curved impellers. Unlike forward-curved designs, 

backward-inclined impellers are more efficient because the airflow direction change is less as the 

air flows over the blade, thus reducing losses associated with turbulence and separation. 

However, because the blades are inclined backwards as compared with the direction of the 

impeller rotation, backward-inclined impellers must have significantly higher tip speed to 

accelerate air to the same rotational velocity as the air leaves the blades. The higher tip speed 

requires either larger impeller diameter or higher rotational speed. 

DOE was unable to find a commercially available residential HVAC product that 

incorporates a backward-inclined impeller. However, DOE is aware of research performed by 

General Electric and testing performed at national laboratories that include evaluation of a series 

of prototype residential furnaces that include backward-inclined impellers.

31 Figure 3.3.1 shows

the results of these tests. 

Figure 3.3.1: Performance Curves for Both Forward- and Backward-Inclined Impellers

The results of these tests show that backward-inclined impellers can improve furnace fan 

efficiency considerably, depending on the operating conditions. Notably, the efficiency of the 

backward-inclined design appears to be more sensitive to operating conditions than that of 

forward-curved designs. A backward-inclined impeller design may not perform more efficiently 

across the entire range of expected operation, as a result. For the preliminary analysis, DOE used 

a fixed 10% reduction in FER to represent the improvement in efficiency associated with using a 

backward-inclined impeller design. However, a proper evaluation of the technology will require 
3-41

a more careful review of available data over the range of furnace fan operating requirements. 

Thus DOE intends to review and adjust the analysis based on a more thorough assessment in the 

NOPR phase. 

3.3.2.7 Standby Mode and Off Mode Technology Options for Hydronic Air 

Handlers

Pursuant to 42 U.S.C. 6295(o), DOE must address the standby mode and off mode energy 

use of residential furnace fans in this rulemaking. However, DOE has already incorporated 

standby mode and off mode energy use in energy conservation standards (or proposed energy 

conservation standards) for several of the products in the preliminary analysis scope of coverage. 

DOE accounts for standby mode and off mode energy use for non-weatherized gas furnaces, 

weatherized gas furnaces, oil-fired furnaces, electric furnaces, and modular blowers in separate 

rulemaking activities. However, there are no current energy conservation standards for electrical 

energy use in hydronic air handlers, nor is there an ongoing rulemaking for which such test 

procedures have been proposed. Hence, the standby mode and off mode energy use for furnace 

fans that are incorporated into these products must be considered in this rulemaking pursuant to 

EPCA. Table 3.3.1summarizes DOE’s consideration of standby mode and off mode electrical 

energy consumption of the furnace fans in the scope of coverage of this preliminary analysis.

Table 3.3.2: Rulemaking Activities Addressing Furnace Fan Standby Mode and Off Mode 

Energy Consumption

HVAC Products Status DOE Rulemaking Activity

• Gas Furnaces

• Oil-fired Furnaces

• Electric Furnaces

Addressed in separate 

rulemaking

• Codified Furnaces Test 

Procedure October 20, 

2010 final rule (75 FR 

64621) (10 CFR part 430, 

subpart B, appendix N, 

section 8.0)

• September 13, 2011

NOPR (76 FR 56339).

• Modular Blowers

• Weatherized Gas Furnace

Addressed in separate 

rulemaking

• Codified CAC Test 

Procedure October 22, 

2007 final rule (72 FR 

59906). (10 CFR part 430, 

subpart B, appendix M)

• June 2, 2010 NOPR (75 

FR 31224).

• April 1, 2011 SNOPR (76 

FR 18105).

• October 24, 2011 SNOPR 

(76 FR 65616).

• Hydronic Air Handlers Addressed in current 

rulemaking • N/A
3-42

DOE plans to establish a standard for the standby mode and off mode electrical energy 

consumption of hydronic air handlers using an integrated metric that combines the standby mode 

and off mode electrical energy consumption measurements for hydronic air handlers with the 

active mode energy use for these furnace fans, as required by EPCA. 77 FR 28688

DOE proposed the following definitions for standby mode and off mode for furnace fans 

used in hydronic air handlers. 77 FR 28677

• Standby mode means the mode during which the HVAC product is connected to 

the power source and the furnace fan is not activated.

• Off mode means the mode during which the HVAC product is not powered.

DOE identified the following design options as having the potential to reduce the 

electrical power consumption of a hydronic air handler operating in standby and off modes. 

These technology options are similar to those DOE considered in the residential furnaces 

rulemaking.

1. Toroidal Transformer

2. ECM Control Relay

3. Switching Mode Power Supply

3.3.2.8 Toroidal Transformer

A toroidal transformer is smaller in size and weight and operates more quietly and 

efficiently than a typical laminated core power transformer. It also has lower noise-inducing 

stray magnetic fields. A toroidal transformer has an annular core made of very tightly-wound, 

grain-oriented, silicon steel ribbons. The steel ribbons are arranged such that all their molecules 

are aligned with the direction of flux. This allows better performance than a traditional laminated 

transformer, in which unaligned molecules increase the core’s reluctance, or capacity for 

opposing magnetic induction.32

Toroidal transformers also have virtually no air gap because they are made of 

continuously wound ribbon. Eliminating the air gap minimizes flux leakage, which is the 

principle source of power loss in a laminate transformer, such that nearly all flux is utilized. 

Additionally, toroidal transformers have a copper coating that reduces heat (i.e., power) loss. 

These improvements in efficiency allow an up to 50 percent reduction in size and weight, such 

that they can be used in new, innovative applications. Overall efficiency of toroidal transformers 

is 90 to 95 percent. 

Because transformers continue to supply power to the control board in all modes of 

operation, including standby mode, increasing their operating efficiency will reduce standby 

electrical power consumption. However, although toroidal transformers have significant 

advantages over laminated transformers in efficiency, size, and weight, they are also more 

expensive to manufacture. Their tight, ring-shaped windings may make large scale 

manufacturing difficult, especially in contrast with the simple windings of a rectangular, 

laminated transformer design.
3-43

3.3.2.9 ECM Control Relay

During testing of standby and off mode components, DOE found that ECM motors and 

their associated controls consumed 3 watts in off mode, while PSC motors did not have any off 

mode power draw. Therefore, the ECM motor could be disconnected to further reduce a system’s 

off mode power consumption. To accomplish this task, a control relay would need to be added to 

the circuit. A typical control relay activates a switch when current runs through it and when there 

is no current a spring holds the switch in the open position. However, DOE has not found any 

products which completely disconnect the ECM fan motor. Additionally, manufacturer feedback 

indicated that ECM motors are subjected to large currents upon start up and using a control relay 

to completely depower them could reduce the lifetime of the motors, leading to a reduction in 

utility of the product.

3.3.2.10 Switching Mode Power Supply

DOE identified switch mode power supplies as having the potential to reduce the 

electrical power consumption of a hydronic air handler operating in standby mode. While linear 

power supplies regulate voltage supply to the dc circuit with a series element, switching mode 

power supplies (SMPS) do so in an alternative, more effective way. In a switching mode power 

supply, power handling electronics switch on and off (where ‘on’ means switch is closed and 

voltage drop is negligible and ‘off’ means the switch is open and current is negligible) with high 

frequency, effectively connecting and disconnecting the output (load) to the input source. 

Continuous power flow to the load can be maintained/controlled by varying the duty cycle or 

frequency of the SMPS.

Linear power supplies experience significant heat losses because they use resistance 

elements, which convert electrical energy to heat energy, to regulate power supply. By using a 

switch to control energy flow instead, switching mode power supplies avoid such heat losses and 

have higher efficiency. SMPS do introduce transient losses that increase with frequency, but 

these losses are negligible in comparison to the energy saved.

Switching mode power supplies also allow the use of a smaller transformer than a linear 

power supply. This is because the size of the transformer (i.e., the number of turns) is inversely 

related to power frequency. In one respect, switching mode power supplies are at a relative 

disadvantage in comparison to linear power supplies, which regulate voltage with greater 

precision and have simpler controls.
3-44

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9 Ibid.

10

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