1. Senate bill would codify DOE Process Rule and void 95% gas furnace rule
On August 6, Senator Mike Lee (R-UT), Chairman of the Senate Energy and Natural Resources Committee, introduced the Energy Efficiency Reform Act of 2026. The bill would require DOE to finalize its proposed Process Rule — released July 7, 2026 — within 270 days, and if the Secretary fails to act, regulations would revert to the 2020 Process Rule ([U.S. Senate ENR Committee](https://www.energy.senate.gov/2026/8/chairman-lee-introduces-energy-efficiency-reform-act-of-2026)).
The bill's key provisions:
- Void the 95% residential gas furnace rule— the standard set to effectively ban non-condensing furnaces beginning in late 2028, currently tied up in litigation
- Block states from banning products based on fuel source— including natural gas — strengthening federal preemption under EPCA
- Remove the 6-year review requirement— replacing mandatory periodic review with petition-driven standards, raising the evidentiary bar for petitions
- Codify the Process Rule— locking the procedures into law, changeable only by Congress
The bill has been referred to the Senate ENR Committee and faces subcommittee hearings and markup before any floor vote. HVAC industry groups including ACCA and PHCC support the proposal; 18 Senators have opposed it, arguing it adds "needless additional requirements" to finalize standards ([Homepros](https://homepros.news/new-bill-would-cement-doe-appliance-standard-overhaul/)). The public comment period for DOE's proposed Process Rule ends August 21.
2. Heat pump shipments outpace furnaces by 32% in Q1 2026
The Building Decarbonization Coalition's Momentum Q2 2026 report, citing AHRI data, found that heat pump shipments outpaced fossil fuel furnace shipments by 32% in the first quarter of 2026. Heat pumps narrowed the gap with air conditioners to just 2% — the smallest first-quarter gap on record. ACHR News puts the units at roughly 960,000 heat pumps against 980,000 air conditioners ([Building Decarbonization Coalition / Blue Ops Partners](https://blueopspartners.com/insights/heat-pump-momentum-is-the-story-distributors-cannot-sit-out-this-peak-season)).
This continues a recovery trend. After a nine-month shipment decline driven by R-410A pre-buying in 2024, AHRI data shows four consecutive months of year-over-year growth through May 2026, with combined AC and heat pump shipments up 6.7% in May ([AHRI / Homepros](https://homepros.news/hvac-shipments-rise-for-fourth-straight-month-in-may/)). Year-to-date combined shipments remain down 1.2% from 2025, but the correction from the 2024 pre-buy hangover appears to be over.
3. DOE rebate fuel-switching deadline: August 29
DOE's May 29, 2026 Program Notice 26-2 removed fuel-switching from the Home Electrification and Appliance Rebates (HEAR) program. States with already-launched programs were given three months to conform — that window closes August 29, 2026 ([The Rebate Map](https://therebatemap.com/heat-pump-rebate-state-deadlines-2026/)).
After the deadline, rebates are limited to electric-to-electric upgrades only. No new rebate reservations for gas-to-heat-pump conversions can be approved. Existing approved reservations survive. Georgia's HEAR program set a hard cutoff of August 10 for scope-of-work submissions, with full implementation by August 31. Wisconsin's Focus on Energy program ends fossil-fuel appliance retail applications August 31 at 5:30 PM CT. About a dozen states plus D.C. are running active programs that must rework eligibility midstream ([ServiceMag](https://www.servicemag.org/news/doe-hear-rebates-gas-to-electric-end)).
What this means for homeowners.If you're in a state with an active HEAR program and want to switch from gas to a heat pump using federal rebate funds, you need an approved reservation before the state deadline. After that, the rebate only covers upgrading existing electric equipment to more efficient electric equipment. The 25C federal tax credit for HVAC equipment expired December 31, 2025, so state and utility incentives are now the primary financial support for heat pump conversions.
4. EPA R-410A Reconsideration Rule effective July 27
EPA's final rule "Reconsideration of Certain Technology Transitions Regulatory Requirements," published May 26, 2026, became effective July 27, 2026. The rule revises certain provisions of the original Technology Transitions Rule but does not roll back the R-410A manufacturing deadline (January 1, 2025) or the installation deadline (January 1, 2026) — both remain in effect ([EPA](https://www.epa.gov/hfcs/notices-and-rulemakings)). R-410A remains legal for servicing existing systems. The Reconsideration Rule adjusts intermodal refrigerated transport provisions and temperature threshold exclusions.
5. Chicago wildfire smoke study: indoor AQI 340 at 600+ outdoor
Alertify, an AI-powered monitoring company, analyzed sensor data from 31 centrally air-conditioned apartments across five Chicago multi-family buildings during the July Canadian wildfire smoke event. When outdoor AQI hit 600-700, indoor AQI in the monitored apartments reached approximately 340 — what the company called "shockingly high" levels from an exogenous source ([The Independent](https://www.independent.co.uk/news/world/americas/canada-wildfire-smoke-us-ac-units-b3019098.html)).
The finding underscores what we covered in detail in last Friday's article on wildfire smoke and HVAC filtration: without MERV 13+ filtration, indoor PM2.5 typically reaches 55-60% of outdoor levels during smoke events. The study reinforces that standard AC filtration is insufficient — upgrading to MERV 13 mechanical media and running the system fan continuously are the minimum steps for smoke protection.
Also worth noting
- Denver launches $1,500 heat pump rebate— Power Ahead Colorado, backed by $200 million in federal funds, offers $1,500 for ENERGY STAR cold-climate heat pumps plus free energy advising across the nine-county Denver metro region. The $40 million, four-year initiative can stack with Xcel Energy rebates of $300-$700 per heating ton ([Colorado Sun](https://coloradosun.com/2026/07/16/colorado-heat-pump-rebate/)).
- BC Hydro offers $1,000 heat pump bonus— Through October 31, 2026, BC Hydro customers replacing electric resistance heating with a heat pump can get up to $1,000 in bonus rebates, on top of existing rebates up to $4,000 ([BC Hydro](https://www.bchydro.com/news/conservation/2026/heat-pump-bonus-contest.html)).
- California mini-split rebates reach $3,000-$14,000— Tech Clean California, launched March 2026 with $603 million in federal funds, offers the highest-ever rebate levels for ductless heat pump systems, stacking with federal IRA 25C tax credits through 2032 ([OpenPR](https://www.openpr.com/news/4575844/mini-split-heat-pump-rebates-california-2026-dulocore-launches)).
Not an endorsement.Naming specific legislation, rebate programs, or industry reports does not constitute a recommendation for any brand, policy position, or product. HVAC Zone Inc is brand-neutral. This roundup is informational only.
The week ahead
Watch for: AHRI's June shipment data release (expected second Friday of August); the DOE Process Rule public comment deadline (August 21); state HEAR program conformance filings ahead of the August 29 deadline; and any Senate ENR Committee scheduling for the Energy Efficiency Reform Act.
Questions about how any of these stories affect your system or your next HVAC decision? Request a consultation — we'll cut through the news cycle and tell you what matters for your specific situation.