— Trade associations representing the natural gas and propane industries have petitioned the U.S. Supreme Court to review a federal appeals court decision that upheld Department of Energy (DOE) efficiency standards restricting the sale of non-condensing natural gas furnaces and certain commercial water heaters.

According to the American Gas Association, the American Public Gas Association, and the National Propane Gas Association, the D.C. Circuit Court’s 2–1 ruling supports a Biden-era furnace rule that would remove non-condensing furnaces from the market. These products account for approximately 55% of natural gas furnaces sold in the United States.

The associations argue that many existing homes — including rowhomes, townhouses, mobile homes, and older housing stock — are designed for non-condensing furnaces that vent through chimneys or rooftops. Under the Department of Energy rule, homeowners would be unable to replace failed units with comparable equipment, potentially requiring expensive structural retrofits or a forced switch to electric heating.

In the petition, the groups contend that the rule violates the Energy Policy and Conservation Act, which prohibits the Department of Energy from adopting efficiency standards that result in the unavailability of products with unique performance characteristics currently offered to consumers. The petition states that the appeals court decision could open the door to broader appliance bans through efficiency rulemakings.

The filing also challenges the D.C. Circuit’s reliance on Chevron deference, arguing it conflicts with the Supreme Court’s 2024 decision in

, which limited judicial deference to federal agencies. According to the petition, leaving the ruling in place could allow agencies to regain Chevron-style authority despite that precedent.

Association leaders emphasized cost impacts on households and businesses.

“Under this furnace rule, families will be told they must spend extra money to retrofit their home or switch to electricity and pay higher monthly energy bills,” said AGA President and CEO Karen Harbert. “This scenario is why the law does not allow the government to use efficiency rulemakings to eliminate products that consumers need to be able to access. Under the Biden Administration’s unlawful furnace rule, consumers will face higher costs and tough financial choices. The Supreme Court must take up this case and protect the American people from this unlawful regulation that would increase costs for American families and businesses and ban an entire product class of appliances.”

The petition cites DOE data showing the furnace rule would negatively affect 30% of senior-only households, 26% of low-income households, and 27% of small business consumers. For households using mobile home gas furnaces, 39% would be negatively impacted.

The Supreme Court has not yet decided whether it will take up the case. If accepted, the outcome could influence how future efficiency standards are applied to core HVAC equipment categories and how contractors plan for compliance, product availability, and replacement strategies.