States take on the EPA in controversial wood stove proposal

Mary Uhl of WESTAR testifying at a
2018 air quality meeting.

Industry touts economic strain on stove retailers, but outdoor wood boiler and furnace manufacturers are also behind campaign for more time

Updated on June 17 - A virtual EPA hearing on June 8 pitted states against the EPA over emission limits from wood stoves, boilers and furnaces.  The EPA is proposing to ease the emissions compliance timeline for wood stoves and boilers but over a dozen states urged the EPA to withdraw its proposal.  Minnesota formally told the EPA and the wood heating industry that stoves and boilers must comply with the existing timeline that was set in 2015 for sales and shipments in their state.  California’s Air Resources Board took a more combative tone and said they are considering a lawsuit for the illegal sale of non-compliant stoves after May 15.

“Minnesota incorporated the 2015 NSPS and its 2020 timetable into state laws … which means that the May 15, 2020 compliance deadline is enforceable in Minnesota. EPA’s proposed revision will not change this deadline,” said Anne Jackson, an engineer with the Minnesota Pollution Control Agency in her written testimony.

Peter Solac, a long-time Minnesota
based stove retailer who may not be
able to take advantage of a federal
time extension 

Peter Solac, of Woodland Stoves and Fireplaces, is a stove retailer based in Minnesota who testified that he needed the additional time for 15 Step 1 stoves that he was not able to sell due to Covid-19.  He did not address the predicament that his state will not allow it.   Central Boiler may face an even greater problem, as its manufacturing facility is in Minnesota, and they apparently still had some Step 1 boilers they want to sell.  On June 17, Rodney Tollefson of Central Boiler said in an email that "we have almost zero inventory of 2015 level certified units.  We are not asking for a sell through for us.   Our testimony was requesting sell through for our dealers that have inventory."

US Stove has also indicated their interest to ship units from their manufacturing facility during the proposed sell-through.  On May 29, Brandon Barry of US Stove wrote that “our inventory levels are confidential. I will say that sell through would be beneficial for us at both the manufacturing and retail level.  Some product came back to our location and could be sold if sell through comes to fruition.” On June 10, Mr. Barry said that AGH had misunderstood his previous email that that “We have been buying product back from retail. All that does is hurt our cash flow, which ultimately impacts our ability to manufacture new 2020 products. We understand that this is a “retail” sell through under consideration and not a manufacturers sell through.”

List of registered speakers at the
June 8 EPA hearing

However, England Stove Works, another major value stove manufacturer that also had buy back agreements clearly said that they do not have inventory they need to sell during a sell-through but like many other stove manufacturers, they support the ability of their retailers to use a sell-through.  Other manufacturers who indicate that they do not have Step 1 inventory themselves include Blaze King, Empire, Hearthstone and SBI, but all support the sell-through for their retailers.  David Kuhfal, CEO of Hearthstone said, “Hearthstone proactively sold down all step 1 products however; we absolutely support the opportunity for our dealers to have some time to liquidate their Step 1 inventory.”  Hearth & Home Technology, the largest manufacturer of more expensive stoves, say that they have no Step 1 inventory and their retailers should have been able to clear out their Step 1 inventory on time as well.

AGH asked HPBA if they were also seeking a sell-through for manufacturers and received this reply from Emily McGee, their Communications Director: "the reason we didn't reply to your question was that we don't have a position on that specific issue (manufacturers selling Step 1 products during a potential sell-through). Our focus has been on the retailers and remains so."  Many retailers have gone further, saying that the sell-through should not be open to manufactuers.

Of the 17 people who testified, about half were in favor of the sell-through and half were against it.  As with previous hearings and written testimony on the EPA wood heater regulations, all states and regional air agencies representing states were against extending deadlines.  Several retailers, a distributor, two manufacturers and HPBA representatives testified in favor of it.  Three non-profits were represented with the American Lung Association and EarthJustice speaking against, and the Alliance for Green Heat who favored a limited sell-through.  AGH is urging the EPA to only allow the sell-through for retailers, not manufacturers and also to limit it to stoves, not to central heaters.  Manufacturers of central heaters have been at the forefront of the fight for extended deadlines and sell-through and pose the largest threat to increased air pollution.

John Crouch, in upper left, in Crested
Butte, CO in 1989 with Bob Ferguson.

The arguments made by both sides were relatively predictable, with very little common ground.  However, Roger Ayers of Dreamstyle Remodeling focused on the need to regulate fireplaces that he estimates emit 44 grams of particulates per hour. Why focus on the difference of a gram or two between Step 1 and Step 2 when any home can still install unregulated fireplaces.  John Crouch of HPBA reminded everyone that many Step 1 stoves were already under 3.5 grams an hour and “the EPA has done no in-home testing of Step 1 or Step 2 stoves and has no way of knowing if these Step 2 stoves are an improvement or not.” 

Industry has asserted that there should have been a sell-through period built into the timeline from the start, like there was in 1988.  Mary Uhl of WESTAR countered that contention in her testimony, saying “In contrast to the original 1988 NSPS, in which manufacturers and retailers were allowed only two years to transition to more stringent standards, they received five years in the 2015 NSPS update.” 

Most of the states and air agencies argued that the EPA lacked a legal basis for the proposal,  did not do any regulatory impact analysis and is proposing to substitute two of the worst sales months for two of the best.  Maria Smilde of EarthJustice closed her testimony saying “Considering that respiratory difficulties have been a common COVID-19 symptom, the EPA should not use one public health crisis to rationalize extending another, nor does the Clean Air Act permit it to do so.”  Anne Jackson made a similar point, arguing that, “Given the health burden of fine particulate matter, there is no good reason to provide additional time to sell noncompliant devices, especially hydronic heaters, in the face of fighting a deadly, respiratory virus pandemic.”

Possibly the most surprising arguments against the sell-through came from the Minnesota Pollution Control Agency. “Minnesota was expecting full support from EPA to notify manufacturers and retailers about the approaching May 2020 deadline, and to undertake enforcement as necessary, especially with internet sales, as that is the most difficult for Minnesota to monitor. With EPA’s announcement of a proposed sell-through period along with lax enforcement, Minnesota must now undertake a nation-wide communication effort to notify manufacturers and retailers that Minnesota law does not allow sales in Minnesota of non-Step 2 wood-burning appliances.“

California is an anomaly as stationary sources of pollution are controlled by local air districts, not by the state.  Their Air Resources Board commented “Many states, and over half of California’s 35 local air districts, including the largest air districts, have delegated EPA authority to enforce the NSPS.  Under Clean Air Act section 304, states, other jurisdictions, and private citizens can also file citizen suits for sale of Step 1 stoves before any sell-through is finalized.  EPA may have chosen not to enforce the Step 1 sales ban in the period before any sell-through is finalized, but others can.”

The EPA will be transcribing all the testimony from the hearing and entering it into the official record, as they consider whether to approve a sell-through. 

Related stories

EPA and states vigorously defend wood stove audit testing (Sept. 2020)

AGH testimony on EPA's proposed sell-through for wood boilers and furnaces

On November 21, 2018, EPA proposed amendments to the New Source Performance Standards (NSPS) for Residential Wood Heaters issued in 2015. The proposed amendments would allow retailers an additional 2 years to sell the existing inventory of hydronic heaters and forced-air furnaces. EPA is also taking comment on a similar sell-through provision for wood stoves and on whether the pellet fuel requirements should be revised.  This is the statement delivered by John Ackerly, the President of the Alliance for Green Heat at the EPA hearing held on December 17, 2018.

Via Public Hearing

U.S. Environmental Protection Agency  

EPA WJC East Building

Room 1117A&B

1201 Pennsylvania Avenue NW

Washington, DC 20460

Attn:              Docket ID No. EPA-HQ-OAR-2018-0195

Re:                  Statement of the Alliance for Green Heat in response to EPA’s Proposed Standards of Performance for New Residential Wood Heaters, New Residential Hydronic Heaters and Forced-Air Furnaces, 83. Fed. Reg. 61,574 (Nov. 30, 2018).

Thank you for the opportunity to testify here today.  My name is John Ackerly and I am the President of the Alliance for Green Heat. We promote modern wood and pellet heating systems as a low-carbon, renewable and affordable energy solution. We just hosted the 4^thWood Stove Design Challenge, highlighting R& D and innovation in the sector.  This industry has a lot to be proud of and some of people in the room today make some of the cleanest wood and pellet stoves in the country, enabling consumers to substantially reduce fossil fuel usage.  This is a critical juncture for the EPA with regard to residential wood heaters and there is a lot at stake with regard to air quality, energy and human health.

The Alliance for Green Heat strongly opposes the proposed amendmentsthat would allow manufacturers to sell Step 1 hydronic heaters and forced-air furnaces right up to May 2020 and retailers an additional 2 years to sell them.

I want to start by saying that this sell-through is a waste of EPA’s resources.  The agency has far more important things to consider, such as addressing how we transition to testing with cordwood.  The EPA does not have endless time and resources to regulate wood and pellet heating. Please spend EPA’s valuable resources on issues that will advance our industry and improve efficiencies, not prolong the old technology that threatens the health of rural communities.

Second, it is very surprising that the EPA would consider relief for outdoor wood boilers, hydronic heaters and furnaces.  Most of these heaters are the biggest source of the air quality problems from this industry.  Given the high levels of emissions from these units, they give a bad name to all the cleaner types of wood and pellet heating appliances currently available to consumers.  EPA should not reward a small part of the industry that has not invested in technology to improve performance and emissions of its heaters.  Tens of thousands of low-income and rural communities could be stuck with these higher polluting units for decades to come if EPA finalizes a sell-through.  

Third, EPA’s preamble says that the agency is proposing a sell-through because “it is reasonable to assume that retailers may become increasingly reluctant to purchase non-Step 2-compliant wood heating devices.”  But isn’t that the desired outcome? Improving air quality and human health by increasing the efficiency of the residential wood heater sector is a principal goal of the original regulation.  It is the intended result of the regulation to move retailers to focus inventory on Step 2-compliant devices.  There is evidence that some retailers would likely switch to manufacturers that are producing 2020 compliant models.

Lamppa Manufacturing is one such manufacturer.  Lamppa is a smaller manufacturer, and they are looking to connect with retailers.  Their unit is very affordable at a retail price of $5,295 and is compliant with the 2020 Phase 2 standard. Tarm Biomass, who makes 2020 compliant wood and pellet boilers is getting calls from dealers looking for 2020 product.  So are others who have 2020 compliant units. . Competition in the marketplace is fundamental to consumers having access to more efficient and cleaner burning appliances. This proposal works against these market forces, and in effect subsidizes the worst performing technologies.

Step 2 compliant Lamppa furnaces
being built

We all know that this isn’t just to help retailers sell stranded inventory.  After all, who are the retailers?  Some of them are Home Depot, Tractor Supply, Northern Tool and other chains that need no help. Increasingly, retailers are on E-bay and it’s hard to even tell who they are, much less monitor compliance. And a big problem is that many manufacturers want to keep selling these Step 1 units  and never intend to do the R&D to become Step 2 compliant.  Giving them 2 more years just undercuts those who have the ability to meet Step 2. 

It is important for the agency and all stakeholders to reflect on the impact of Step 1 units on air quality and energy use.  One such unit made by US Stove Company is rated as only 33% efficient, yet the EPA says that their “proposed actions are anticipated to have negligible impacts on energy costs or usage.” In fact, there is clear evidence that cleaner, more advanced units will lower energy costs by decreasing overall energy use and improve air quality.

Units made by US Stove are often improperly or illegally advertised by their dealers, like this one that says it can be used with wood or coal. (Dec. 13, 2018 screen shot)

Fourth, EPA should work to improve compliance of a sector that, at times, has been reluctant to change and at times, simply ignores regulations.  Currently, there are thousands of illegal, newly manufactured uncertified new outdoor wood boiler and furnaces being openly sold around the country.  A recent conversation with a manufacturer in the Midwest claiming it offers “the highest quality outdoor furnace available on the market” even though the manufacturer has no certified units and openly sells non-Step 1 units.  The manufacturer said that EPA’s laws and regulations may not apply in Missouri, and that the regulations may have already been overturned.  This manufacturer has 81 dealers in 21 states and no indication anywhere on their website that wood furnaces and boilers need certification. Even more concerning is that EPA’s compliance office indicated that the agency has no record of the manufacturer’s existence or continued operation.  Many smaller companies also continue to sell and advertise uncertified outdoor wood boilers. 

An uncertified Acme wood furnace currently on the market. (Dec. 13, 2018 screen shot)

The Alliance is concerned that establishing a 2-year sell-through would add another layer of work and complexity to a regulation that has already shown serious enforcement challenges.

Finally, by providing a last-minute sell through, EPA is moving the “goal posts” in the middle of the game.  Manufacturers and retailers require regulatory certainty to make business decisions that make the sector more efficient, cleaner, and safer. Putting those companies that took the EPA deadlines seriously and invested in cleaner technology at a competitive disadvantage is simply bad policy.    

Companies have shown that best available technology is available and affordable.  We need an EPA to craft a regulatory framework that supports efforts to modernize the sector and then stick to it.  Do not approve this proposal.