Coalition Pushes DOE to Reverse Furnace and Water Heater Rules
Key Highlights
- A 34-group coalition says new DOE rules could raise furnace and water heater replacement costs
- Contractors warn condensing-only standards may force expensive venting and drainage retrofits
- Industry groups say preserving non-condensing options protects affordability and consumer choice
WASHINGTON, DC — A coalition of 34 industry and consumer organizations is urging the US Department of Energy (DOE) to extend compliance deadlines and reverse Biden-era efficiency rules that would phase out widely used non-condensing natural gas furnaces and commercial water heaters.
The coalition sent a formal letter backing efforts led by the American Gas Association (AGA), American Public Gas Association (APGA) and National Propane Gas Association (NPGA), arguing the regulations could increase equipment and installation costs while limiting fuel options for contractors and homeowners.
New Efficiency Rules Could Reshape Furnace And Water Heater Replacements
The coalition says the rules, once implemented, would create major challenges for plumbing and HVAC contractors by reducing equipment options and forcing more complex retrofits in homes and commercial buildings.
“These rules, once in effect, will raise costs, eliminate consumer choice and place undue burden on vulnerable communities that want affordable heat and hot water,” states the letter. “The rules are neither pro-consumer nor pro-affordability, as they will negatively affect families with higher installation costs or eliminate natural gas and propane as a fuel option altogether. DOE should make changes to these rules to prevent hardship, inequity or unfair distribution of burdens on all customers, but especially on senior-only, low-income, and mobile home households and on small businesses.”
For contractors, the concern is practical: replacing existing non-condensing gas furnaces or water heaters with higher-efficiency condensing units often requires venting modifications, drainage upgrades and structural changes that can significantly increase project costs.
Non-Condensing Equipment Remains A Major Part Of The Market
According to industry data, non-condensing furnaces still account for approximately 55% of the US natural gas furnace market and remain a common replacement option in existing housing stock.
Many of these systems are installed in locations where switching to condensing technology would require substantial reworking of venting systems, condensate drains and combustion air pathways—adding labor and material costs for contractors and homeowners.
That same concern extends to commercial water heating applications, where mechanical room configurations and venting layouts often make simple equipment swaps difficult.
Legal And Regulatory Pressure Continues To Build
The coalition’s letter comes as the US Supreme Court considers a petition challenging the Biden-era furnace rule, with support from the Trump administration, 21 states and multiple industry organizations.
“Protecting natural gas appliances means protecting affordability and the ability for Americans to choose the energy that works best for their homes and families,” said Karen Harbert, President and CEO of the American Gas Association. “We appreciate that DOE has acknowledged the legal flaws in the prior administration’s rule, joined our call for the Supreme Court to intervene and opened this docket to extend the compliance deadline for the rules. Americans should not be forced into costly home retrofits or denied access to the appliances they rely on every day because of unlawful federal overreach.”
Plumbing And Heating Contractors Could Face Greater Installation Complexity
The coalition says federal data shows the new standards would disproportionately impact senior households, low-income families, mobile home residents and small businesses—all groups that frequently depend on lower-cost replacement options.
For plumbing and heating contractors, the issue centers on maintaining flexibility when specifying and replacing equipment, particularly in retrofit situations where venting, drainage and fuel access are already established.
Supporters of the rollback argue preserving access to non-condensing gas equipment helps protect affordability, simplifies replacement work and gives contractors and consumers more options when balancing budget, infrastructure and performance.
To read the coalition letter in full visit www.regulations.gov/comment/EERE-2026-BT-STD-0001-0102.