The 95% furnace rule is back at the D.C. Circuit, and the Bay Area's zero-NOx furnace date is still Jan. 1, 2029
DOE asked the appeals court in July to pause the case. Gas groups want the federal compliance date pushed to 2030 or later.
By The Gradient Report Staff
Key points
The federal rule requiring 95% AFUE for new non-weatherized and mobile home gas furnaces has a compliance date of Dec. 18, 2028.
The Supreme Court sent the challenge back to the D.C. Circuit on June 8. DOE asked that court on July 10 to hold the case in abeyance.
DOE told its docket on June 30 that it is reconsidering the furnace standard and expected a proposed rule "this fall." None had appeared in the Federal Register as of Nov. 3.
The Bay Area's zero-NOx standard for residential and commercial furnaces applies to units manufactured after Jan. 1, 2029.
The federal rule requiring new non-weatherized gas furnaces and mobile home gas furnaces to reach 95% annual fuel utilization efficiency is back before the U.S. Court of Appeals for the D.C. Circuit, five months after the Supreme Court vacated that court's decision upholding it. DOE published the rule on Dec. 18, 2023, and its compliance date for consumer furnaces is Dec. 18, 2028.
On June 8, the Supreme Court granted the petition in American Gas Association v. Department of Energy, vacated the judgment and sent the case back "for further consideration in light of the position asserted by the Solicitor General in his brief for the United States filed on April 28, 2026." Solicitor General D. John Sauer supported the gas trade groups' challenge, ACHR News reported.
The appeals court docket
Since the remand, the D.C. Circuit docket for No. 22-1030 shows these filings, according to the Clearinghouse case page, updated Nov. 3:
July 10: DOE and Energy Secretary Chris Wright moved to hold the case in abeyance.
July 20: Sierra Club, Consumer Federation of America, the Massachusetts Union of Public Housing Tenants and other intervenors opposed the motion.
July 24: DOE filed its reply.
Sept. 17: the merits panel filed a per curiam order.
The docket listing does not say what the Sept. 17 order did, and no later entries appear. The rule remains in place while the D.C. Circuit reconsiders the case, the distributor group HARDI said after the Supreme Court order.
Petition to delay
In a notice published April 27, DOE asked for comment on a petition from the American Gas Association, the American Public Gas Association and the National Propane Gas Association. The groups asked DOE to extend the compliance dates for consumer furnaces, currently Dec. 18, 2028, and commercial water heaters, then set for Oct. 6, 2026, "until January 1, 2030, at a minimum." Comments were due May 27.
For commercial water heaters, DOE issued an enforcement policy on May 5 saying it "will not seek civil penalties" for gas-fired units that miss the amended standards if they are manufactured on or after Oct. 6, 2026, but before Oct. 6, 2027. DOE said the policy "may be rescinded or modified in the Department's complete discretion." It does not mention furnaces. In their comments, the gas groups asked DOE to issue "a similar statement" for residential furnaces.
In a June 30 notice to the petition docket, DOE said it is reconsidering the standards for both commercial water heaters and residential furnaces, and is drafting a rulemaking on how to read "performance characteristic" and the unavailability provision of federal appliance law, 42 U.S.C. 6295(o)(4). DOE said it expects to publish a proposed rule "this fall." No such proposal had appeared in the Federal Register as of Nov. 3.
The furnace standard is codified at 10 CFR 430.32(e). The current Code of Federal Regulations still lists the 95.0% minimum for non-weatherized gas furnaces and mobile home gas furnaces made on and after Dec. 18, 2028. Gas wall furnaces are not part of that standard. They fall under the separate federal standards for direct heating equipment in 10 CFR 430.32(i).
Gas wall furnaces fall under the federal standards for direct heating equipment, not the 95% furnace rule.AI-generated illustration
"The Supreme Court's decision is the first step toward a responsible revision of the DOE's regulation," said Chuck White, vice president of regulatory affairs at the Plumbing-Heating-Cooling Contractors Association, according to ACHR News. ACHR also quoted Alex Ayers, vice president of government affairs at HARDI: "Sending the case back to the lower court is a strong step toward ensuring this rule receives the scrutiny it warrants."
Bay Area dates
The Bay Area Air Quality Management District's zero-NOx dates, set in amendments to Rules 9-4 and 9-6 that its board adopted in March 2023, apply to appliances manufactured after each date, according to the district's implementation page:
Jan. 1, 2027: water heaters under 75,000 BTU/hr.
Jan. 1, 2029: residential and commercial furnaces.
Jan. 1, 2031: water heaters from 75,000 to 2 million BTU/hr, including tankless units.
The district describes the rules as "point of sale emission standards" for newly installed furnaces and water heaters. It posted a fact sheet and FAQ on July 29, 2026.
The contractor group said "Clean Heating Coalitions" are preparing refrigerant bills in at least a dozen states. The Washington and New York rules it cited come from a building code proposal and a state HFC rule already on the books.
The board's 16-1 vote moves the date for larger units from 2031 to 2033. Lower-income and cost-burdened owners, and homes where a heat pump won't fit, can still install gas.
