DC Circuit backs DOE efficiency rules for furnaces, water heaters

By Niina H. Farah | 11/05/2025 07:07 AM EST

A divided panel of judges rejected industry groups’ arguments that the Biden-era standards violated federal law.

Department of Energy headquarters in Washington

Department of Energy headquarters in Washington. Francis Chung/E&E News

A federal appeals court has upheld Biden-era rules setting tighter standards for gas-powered commercial water heaters and consumer furnaces.

The 2-1 decision Tuesday by the U.S. Court of Appeals for the District of Columbia Circuit is a loss for gas trade associations, who argued the Department of Energy rules for the appliances could effectively push certain types of gas appliances off the market and said the agency should have shielded them from the updated efficiency standards.

Writing the majority opinion, Judge Robert Wilkins said the court had “no reason to second-guess DOE’s view” that appliances that use different types of venting were essentially the same, especially since the decision relies on the agency’s area of expertise.

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The American Gas Association, American Public Gas Association and National Propane Gas Association claimed that the standards violated the Energy Policy and Conservation Act (EPCA). The law requires DOE to periodically tighten efficiency standards, if they are economically justified and do not compromise “performance characteristics” or product “features.”

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