In a highly unusual step, the Department of Energy has quietly rescinded a final rule on minimum energy efficiency standards for residential central air conditioners and heat pumps that was published in the final days of the Clinton Administration, replacing it with one calling for a slightly lower seasonal energy efficiency ratio (SEER).

Under Clinton, the Energy Department had mandated an SEER of 13. But now the department says an SEER of 12, which is 20 percent more efficient than the old SEER 10 standard, is plenty. And so does the National Association of Home Builders.

The new minimum requirements will still help consumers save energy without impacting housing affordability, NAHB President Gary Garczynski said in praising the decision.

For most of the country, the savings in operating costs over the life of the appliance would not offset the incremental first cost of an SEER 13-rated product, according to Garczyniski, a builder/developer from Woodbridge, Va., said. NAHB believes SEER 13 units would be cost-effective in only the most southern U.S. climate zones.

DoE said it decided to withdraw the old "midnight" regulation, which never actually became effective, largely because it was not economically justified. The move was announced in the Federal Register, as are all changes in federal regulations. But the department did not otherwise publicize the switch.

The new SEER 12 requirement takes effect in 2006. At that time, the government estimates that cost of the most common type of air conditioning, a split system combining a heat pump and air conditioning, would be $213 more than it is now. But the result would be an annual energy savings of $31.

Thus, home owners would begin saving money after an average about seven years. Heat pump air conditioners last about a dozen years on average, depending on how much they are used and how well they are maintained. So consumers could reasonably expect to save $150 or so over the life of their units.

After investigating the effects of varying energy prices throughout the country and different air conditioning usage patters, the department concluded that three out of four home owners would either save money or be negligibly impacted by the greater cost resulting from the higher standard.

It also said that over 25 years, the new standard would save about three "quads" of energy, an amount that's equivalent to all the energy consumed by nearly 17 million households in a single year.

In retracting the SEER 13 requirement, DoE said further that it would have contributed to an unacceptable cumulative regulatory burden on manufacturers. Indeed, it said that the SEER 12 standard can be met for the most with models that already are on the market.

The department estimated that an SEER 13 mandate would result in $303 million in manufacturer costs, an amount that would be passed on to consumers, whereas the 12 SEER requirement would result in $159 million more in added expenses.

Published: June 5, 2002

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.