The ongoing lawsuit over regional HVAC standards may be nearing an end.

A proposed agreement was submitted Tuesday to the U.S. Court of Appeals for the D.C. Circuit.

It calls for the regional standards for air conditioners and heat pumps to go into effect Jan. 1, 2015. HVAC manufacturers, distributors and contractors will be given 18 months to comply. The regional HVAC market standards for indoor furnaces, which have been on hold since 2012, will be dropped and the U.S. Department of Energy will propose new regulations.

According to the Air-Conditioning, Heating and Refrigeration Institute, which represents equipment makers, the Energy Department has agreed to review and clarify the rulemaking process and work with the industry on enforcement.

AHRI President and CEO Stephen Yurek thanked wholesaler group HARDI for pressing the government through its lawsuit. When HARDI pressed to continue fighting the regulations, the AHRI opposed the motion.

“This is a significant accomplishment for the industry, and it wouldn’t have been possible without Heating, Air-conditioning & Refrigeration Distributors International, Air Conditioning Contractors of America, and AHRI all coming together,” Yurek said. “The leverage HARDI created with its motion to get DOE to agree to the terms they agreed to will really help not only for today as we look at the regional standards going into effect for cooling equipment, but also for the future, for having a clearer picture of the DOE’s rulemaking process.”