HARDI, PHCC Seek SCOTUS Review of Efficiency Standard
COURT FIGHT: Three trade associations have filed a brief asking the U.S. Supreme Court to review a federal appeals court decision that upheld the U.S. Department of Energy efficiency standard that would begin phasing out non-condensing residential furnaces.
WASHINGTON — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) teamed up Monday with another industry group and the Natural Gas Association of Georgia to urge the U.S. Supreme Court to review a court decision that would effectively ban non-condensing gas furnaces and some commercial water heaters.
At issue are U.S. Department of Energy (DOE) efficiency standards, taking effect later this year and in 2028, that would require furnaces and some commercial water heaters to change venting features to properly vent condensation caused by fuel combustion. A court challenge to the standards, led by the American Gas Association, was rejected in November by the U.S. Court of Appeals for the Washington, D.C., Circuit.
HARDI, the Georgia natural gas association, and the Plumbing-Heating-Cooling Contractors–National Association (PHCC) argue that the DOE’s standards would undermine statutory protections of consumer choice and access to affordable, reliable heating options, and filed an amicus brief asking the Supreme Court to review the appeals court’s decision.
“Millions of homes in the U.S. were built to accommodate non-condensing furnaces,” said Alex Ayers, vice president of government affairs at HARDI, in a press release. “When those systems fail, homeowners need practical, cost-effective replacement options. Eliminating non-condensing furnaces removes an affordable solution and forces costly renovations that many families aren’t prepared for, and in some instances, the building cannot be retrofitted to accommodate.”
The Energy Policy and Conservation Act (EPCA) prohibits the DOE from adopting standards that make product types or performance characteristics unavailable if they are generally available in the market. The associations contend that installation-related attributes, such as compatibility with existing venting systems, qualify as protected performance characteristics under the law, the groups argue.
“This case is about the realities of real-world installations,” said Chuck White, the PHCC’s vice president of regulatory affairs. “Contractors are the ones who have to explain to homeowners why a simple furnace replacement has suddenly turned into a major renovation project. EPCA was designed to balance efficiency goals with practicality and consumer choice. We are asking the Supreme Court to restore it.”
The DOE furnace efficiency standard, set to take effect in December 2028, will prohibit the manufacture and importing of non-weatherized residential furnaces with an annual fuel utilization efficiency (AFUE) of less than 95%, and furnaces of that efficiency are condensing models. A 95% thermal efficiency (TE) standard for commercial gas storage water heaters, excluding some replacement units, is set to take effect this October, and a 96% TE standard for commercial instantaneous water heaters will also take effect that month.
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The amicus brief says the interpretation upheld by the appeals court could expand DOE’s authority to eliminate other product categories based on efficiency thresholds, even when doing so disrupts installation compatibility and long-standing market availability.
The Supreme Court is expected to decide in the coming months whether it will review the case.
Editor's Note: Updated 2/25/2026 to include: HARDI, joined by the Plumbing-Heating-Cooling Contractors–National Association (PHCC) and the Natural Gas Association of Georgia, has since formally filed an amicus brief in the case, American Gas Association v. U.S. Department of Energy, asking the Supreme Court to grant review.
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