Supreme Court asked to take on gas furnace rule

Gas industry trade groups are asking the U.S. Supreme Court to overturn an existing rule that they say will outlaw certain residential gas furnaces. 

Catch up quick: Following a years-long back-and-forth among the Obama, Trump, and Biden administrations over furnace efficiency standards, the Department of Energy in 2023 finalized a rule requiring all residential gas furnaces manufactured after December 18, 2028, to have an AFUE rating of at least 95 percent. 

• Gas industry groups sued the agency in response, arguing that the rule would effectively force non-condensing furnaces out of the market, but a federal appeals court in November 2025 upheld it. 

What’s happening: The American Gas Association, American Public Gas Association, and National Propane Gas Association on Tuesday filed a petition asking the Supreme Court to take up the case and reverse that decision.  

Between the lines: Proponents of the rule have said it will prompt U.S. households to switch to more efficient condensing furnaces, save an average of $350 over the life of a furnace, and cut emissions. 

• Yes, but: Gas associations on Tuesday noted that non-condensing furnaces make up roughly 55 percent of the market for natural gas furnaces nationwide. 
• “Their removal from the market would saddle families with costly renovations or eliminate gas as a home heating option altogether,” they wrote.

The big picture: The Energy Policy and Conservation Act (EPCA) — the federal law governing appliance efficiency standards — bars the DOE from imposing efficiency standards that would result in the loss of a product type or a class of performance characteristics.

• Failing to reverse the decision could have “broad applications on the interpretation of [EPCA] and lead to further sweeping bans on natural gas appliances,” the groups said. 

Of note: ACCA has also supported overturning the existing standard. “The rule threatens affordability for homeowners and businesses,” the association wrote in November. “Retrofitting older homes and businesses to accommodate condensing furnaces often requires costly structural modifications and can create safety concerns.”

• What’s next: The Supreme Court will decide whether to hear the case.