HARDI, PHCC Urge Supreme Court Review of DOE Efficiency Rule

Trade associations representing HVAC distributors and plumbing and hydronic contractors are asking the US Supreme Court to review a federal court decision that could significantly reshape the furnace replacement market.

Heating, Air-conditioning & Refrigeration Distributors International (HARDI), in partnership with Plumbing-Heating-Cooling Contractors - National Association (PHCC) and the Natural Gas Association of Georgia, has filed an amicus brief urging the Court to review the decision in American Gas Association v. U.S. Department of Energy (DOE). The lower court ruling would effectively eliminate non-condensing gas furnaces and certain commercial water heaters from the market.

Efficiency Standards Could Force Venting Changes in Replacement Jobs

At the center of the case are DOE efficiency standards that would require furnaces—and some commercial water heaters—to change venting configurations to accommodate condensation produced during fuel combustion.

For contractors, that shift goes beyond equipment ratings. It directly affects venting compatibility, installation labor, material costs, and the feasibility of straightforward “like-for-like” replacements in existing homes and buildings.

HARDI and its partners argue that the DOE’s action undermines long-standing statutory protections intended to preserve consumer choice and maintain access to affordable, reliable heating options—particularly in replacement situations where more complex venting requirements may not be practical.

Replacement Reality: Millions of Homes Built for Non-Condensing Systems

“Millions of homes in the U.S. were built to accommodate non-condensing furnaces,” said Alex Ayers, Vice President of Government Affairs at HARDI. “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.”

In many existing installations, switching to condensing equipment can require new venting pathways, condensate drainage provisions, and additional modifications that add time and cost to what would otherwise be a standard replacement.

EPCA Protections and Installation Compatibility at Issue

The associations argue that the DOE’s rule conflicts with the Energy Policy and Conservation Act (EPCA), which prohibits the agency from adopting standards that make certain product types or performance characteristics unavailable if they are generally available in the market.

According to the brief, installation-related attributes—including compatibility with existing venting systems—qualify as protected performance characteristics under the law.

“This case is about the realities of real-world installations,” said Chuck White, Vice President of Regulatory Affairs at PHCC. “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.”

Broader Implications for HVAC and Water Heating Markets

The brief emphasizes that the issue extends beyond residential furnaces. The legal interpretation upheld by the lower 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.

For distributors and contractors, the outcome could influence future rulemakings affecting gas-fired equipment and commercial water heating applications, particularly in retrofit-driven markets.

The Supreme Court is expected to decide in the coming months whether it will grant review of the case.