The U.S. Supreme Court has vacated the D.C. Circuit ruling that upheld the Biden-era furnace rule, delivering a major victory on one of ACCA’s top policy priorities on protecting fuel and technology choice and reopening the door to furnace efficiency standards that account for how gas furnace systems get installed in American homes. For contractors, the rule would have meant steering customers toward costly retrofits — structural modifications, ventilation changes, and pricier equipment — narrowing the options contractors can offer.
At issue was the Department of Energy’s (DOE’s) 95% efficiency rule for residential gas furnaces, along with related standards for commercial water heaters. The rule would have required 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 furnace models.
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.
ACCA responds to the Supreme Court furnace rule decision
In American Gas Association v. Department of Energy, 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:
“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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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
For HVAC contractors and their customers, the stakes have always been about affordability and choice. 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. Regulators in several states have 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.
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