Years of Advocacy Pay Off: Supreme Court Reopens Furnace Fight
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Years of advocacy by ACCA’s army of advocates have helped deliver an important victory for fuel and technology choice, one of ACCA’s top policy priorities.
The U.S. Supreme Court has vacated the D.C. Circuit ruling that upheld the Biden-era furnace rule, and reopened the door to furnace efficiency standards that account for how gas furnace systems get installed in American homes.
At issue was the Department of Energy’s (DOE’s) 95% efficiency rule for residential gas furnaces, finalized in 2023, along with related standards for commercial water heaters. The rule requires all new residential furnaces manufactured after December 18, 2028, to hit at least 95% AFUE (Annual Fuel Utilization Efficiency) — effectively ending production of non-condensing models.
The decision demonstrates that advocacy matters and that contractor voices make a difference.
Contractors draw on decades of experience and industry standards to help consumers balance comfort, safety, efficiency, and affordability, and ACCA’s position has stayed consistent throughout: energy policy should accommodate regional differences, installation realities, and the full range of safe, efficient, and affordable solutions.
This victory represents an important step forward, but the fight is far from over. The case now returns to the D.C. Circuit, and broader efforts to restrict fuel and technology choice continue at the federal, state, and local levels.
The long road ACCA advocates faced to secure this win
This substantial win for the HVAC industry and its customers was a long time coming. The work started in 2019 when ACCA submitted public comments to the Department of Energy opposing mandates to replace non-condensing furnaces with condensing furnaces.
In 2022, DOE introduced new energy-efficiency standards that sought to reduce greenhouse gas emissions and save consumers on their energy bills. ACCA stood by contractors’ desires for energy choice as those standards progressed.
In 2024, ACCA was on the frontlines of S.J.Res.58, a Congressional Review Act Resolution that sought to overturn DOE’s impending ban on non-condensing furnaces. ACCA advocates alerted their representatives through ACCA ACTion Alerts to urge them to support the proposed resolutions.
ACCA and ACCA members kept the momentum going in 2025 when over 1,000 contractors voted to make protecting fuel and technology choice a priority at ACCA. In September 2025, ACCA advocates took this key contractor priority to Capitol Hill during 2025 ACCA Advocacy Day.
Most recently, ACCA staff and advocates submitted regulatory comments to DOE calling for a delay to this rule.
Bottom line: ACCA advocates have been fighting on the frontlines of this issue for 7 years to secure this win!
ACCA responds to the Supreme Court furnace rule decision
In the decision, the high court vacated the D.C. Circuit’s November 2025 decision affirming that rule and sent the case back to the lower court to reconsider.
ACCA Vice President of Government Relations Sean Robertson issued the following statement following the announcement:
“ACCA welcomes the Supreme Court decision vacating the D.C. Circuit ruling that had upheld the Biden-era furnace rule. That misguided regulation would have effectively eliminated residential non-condensing furnaces — roughly 55% of the gas furnace market — forcing millions of American homeowners into costly renovations or fuel switching that many simply cannot afford. Contractors selected overturning the furnace rule as a top policy priority for ACCA. ACCA has long argued that energy policy must accommodate real-world installation realities, regional differences, and consumer choice, and today’s ruling preserves the legal pathway to get that right. We urge the D.C. Circuit Court of Appeals and the current administration to use this opportunity to develop furnace standards that respect the law, protect affordability, and reflect the practical expertise of the contractors who serve American homes and businesses every day.”
Contractors helped make this a priority — keep the momentum going by signing ACCA’s ACTion Alert to fight for broader fuel and technology choice.
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The backstory: How the Supreme Court furnace rule case reached this decision
In May 2024, the Senate passed a Congressional Review Act resolution that would have blocked DOE’s mandate, but it stalled in the House. The D.C. Circuit then upheld the furnace rule on November 4, 2025, a setback for efforts to overturn it. The American Gas Association and its co-petitioners petitioned the Supreme Court on January 21, 2026, arguing that the Energy Policy and Conservation Act (EPCA) bars DOE from setting efficiency standards that eliminate an entire product type or class of performance characteristics.
The current administration also asked the high court to vacate the decision and has signaled it views the rules as legally flawed, indicating it is considering a new rulemaking to correct those errors. With the case now back at the D.C. Circuit, ACCA urges the court and the current administration to use the opening to develop furnace standards that respect the law and reflect contractor expertise.
What the non-condensing furnace ruling means for HVAC contractors and homeowners
The stakes have always been about affordability and choice for HVAC contractors and their customers. Retrofitting older homes and businesses to accommodate condensing furnaces often requires costly structural modifications and can create real safety concerns — inadequate ventilation, frozen attic condensate drains, and ice on public walkways. Limiting choice this way can also put necessary efficiency upgrades like dual-fuel heat pumps out of reach, pushing some families to postpone improvements and lean on inefficient alternatives like space heaters and window units.
Protecting fuel and technology choice: what comes next
This ruling is a significant win, but the broader fight over fuel and technology choice continues.
It’s important to note that the rule remains in effect for now — the Supreme Court’s order reopens the legal process rather than striking the rule outright, and the D.C. Circuit has no set timeline for its new decision. In the meantime, DOE is weighing whether to delay the rule’s implementation to January 1, 2030, while the litigation and broader policy reviews play out.
The fight isn’t only federal. Regulators in several states have also moved to restrict access to natural gas equipment or strip away incentives for it, while others have acted to protect that access.
ACCA continues to support the Energy Choice Act (H.R. 3699/S. 1945) and broader reform of EPCA so that all Americans keep access to a full range of efficient, safe, and affordable heating choices. HVAC contractors who want to get involved can take action by signing ACCA’s ACTion Alert and reaching out to their members of Congress.
ACCA will keep monitoring this developing situation and updating our contractor members as the case moves forward.
Posted In: Fuel and Technology Choice, Government
