WASHINGTON, D.C. — Under questioning Thursday by Sen. Susan Collins, Secretary of Housing and Urban Development Shawn Donovan agreed to update federal guidelines to classify wood pellet boilers as an “acceptable” primary heating source for the purpose of Federal Housing Authority financing.

Until now, HUD has not considered a wood pellet boiler system as a conventional primary heating source, which Collins says has made it hard for homeowners to obtain FHA financing and has discouraged homeowners from considering alternatives to heating systems that rely on fossil fuels.

“Maine is the most heavily dependent of any state in the nation on home heating oil,” Collins told Donovan. “When you see the spikes in oil prices we have seen this year — and the cutbacks in the LIHEAP — it is causing tremendous hardship for so many families.

“Many families are looking for reliable affordable alternatives. The wood pellet boiler industry is growing quickly and it has the potential to create thousands of new jobs in Maine,” Collins said.

Collins said wood pellet manufacturing, boiler technology and pellet delivery systems have progressed dramatically since the days of scooping pellets from a plastic bag into a small stove every couple of hours. Industry leaders indicate that newly developed pellet boiler systems can reliably maintain a constant level of heat in a home without direct human intervention.

To that end, she said, “It is appropriate for HUD to update its regulations and consider wood pellet boiler systems as an acceptable conventional heating source.”

Donovan said Collins was “absolutely right” and said HUD will update its rules based on the improved technology.

“There are moments when the federal government, and government in general, can be a little bit behind the cutting edge in terms of new technology,” he said. “I’m happy to report that wood pellet stoves are an acceptable heating system for homes under our insurance program as long as they meet the qualifications that any heating systems has to meet.”

The updated regulations can be seen at HUD’s website at http://portal.hud.gov/hudportal/documents/huddoc?id=aprval.pdf.

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11 Comments

  1. Thank You! This is the Maine SOLUTION !

    Oil should ABSOLUTELY be better used as fuel for trucks, trains and planes. Oil is
    much too valuable to be burned in a stationary building. Oil should be reserved as a
    Mobile fuel only. If you have Natural Gas available, Hook Up as soon as you can.
    If you can’t, consider Heat Pump (3 to 1 heat/energy multiplier) or Wood Pellet systems.
    Automatic large bin feed Pellet Boilers are available.
    Energy Security Products, Main Rd. in Carmel has a nice system. Check ’em out.
    How about setting up to heat with Maine made Wood Pellets?
    HALF the price of oil, BTU for BTU. Think about it, check it out, then Try it.
    You’ll see that Pellets are the way to go over oil.

    Fuel Cost Comparison
    http://pelletheat.org/pellets/compare-fuel-costs/
    Fill in your own local fuel pricing to get actual Savings.
    Be sure to include all delivery and transmission charges.

    1. Coal for me, I tried it I liked it, the most btu for you money, no turning back for me.  I only have to tend my coal furnace about every 4 days, fill the hopper and dump the ashes.  It holds 200lbs automatic feed, automatic day-night setting for heat and I don’t have to worry about pellets getting wet.  Sen. Collins should do the same for coal boilers. 

    1. Hogwash. At every turn, Silly Susan was right there to aid and abet the big ugly hand of government steal our money, strangle our liberties, and shake its finger in our nose telling us how to live.  Now she arranges a manicure for the big ugly hand of regulation and we’re hailing her as a hero?  She’s no better than the fireman who sets someone’s house on fire and then plays the hero for calling 911.

  2. This is great news for Maine. I hope they move on this quickly and don’t drag their feet to change the guidelines.

  3. Another beginning to higher prices for wood pellets.  First you secure the laws to allow penetration into the market, then you move to regulation and price adjustments of the fuel source. Same ol GOP game plan. The Senator did not think of this herself…she was lobbied by the A-Pellet industry.  It will be a known fact in just a few years…Pellets will be as expensive per BTU as Fuel Oil.  More Washington Business as usual.  I have tried to season my Chicken soup with Maine made pellets with no success. I would be better off on maine care, food stamps and welfare.

    Stubborn Ol Buck

  4. Pellets are good to save money on fuel, I myself burn them. Just 2 months ago I paid $215 ton  yesterday I paid $ 225 a ton even pellets are going up as well as other fuel. What I have seen out there in the real world some people think  just putting pellets in the stove is all there is, there is much work in maintaining pellets ,one has to empty the ash bin empty of ash built up, and filling the hopper with pellets daily, I myself have a pellet stove that holds 3 bags of pellets which burns for 48 hours or more. Over all I heated my home for about about $ 120-$130 a month , far better than burning oil.
    The set-up is costly at first but in the long run pays for it self
    I quess what I’m trying to say burning pellets aren’t as easy as burning oil, there is work to it as wood is .
    What would be good if there would be an insentive to buy a pellet stove from the Government allowing first time buyers a refund like a $1000 or more.

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