Court Upholds Efficiency Standards, Reducing Energy Bills for Millions

Court Upholds Efficiency Standards, Reducing Energy Bills for Millions

Victory

Ruling will likely bring significant energy savings and reduce energy costs for consumers

Contacts

Tylar Greene, [email protected]

In a win for consumers and the environment, the U.S. Court of Appeals for the D.C. Circuit upheld federal energy efficiency standards for gas-powered residential furnaces and commercial water heaters on Tuesday. The standards were finalized in 2023 and Earthjustice stepped in to successfully defend them after they were challenged by gas industry groups that same year. Earthjustice represented Sierra Club, Consumer Federation of America, and Massachusetts Union of Public Housing Tenants. Natural Resources Defense Council, a coalition of 12 states, New York City and the District of Columbia also joined in to defend the standards.

The standards are set to go into effect in 2026 for water heaters and in 2028 for furnaces, helping millions of consumers reduce their energy bills. Savings from the furnace standards are estimated to fall between $5 billion and $16 billion nationwide, according to the Department of Energy.

The standards are also projected to significantly reduce greenhouse gases and other harmful pollution. The furnace standards are expected save greenhouse gas emissions equivalent to the energy use of 42 million homes in one year - roughly three times the number of homes in the state of California.

"The court's decision upholds long-overdue standards that will save consumers money and reduce harmful pollution," said Kevin Breiner, associate attorney at Earthjustice. "We will continue fighting on behalf of our clients and partners to make sure these commonsense reforms go into effect as scheduled."

"We are pleased that the court upheld these important standards that will reduce air pollution and people's utility bills," said Srinidhi Sampath Kumar, director of Sierra Club's Building Electrification campaign. "Gas companies, not regular Americans, would benefit from the continued sale of inefficient, energy-wasting appliances that burn more fossil gas and increase utility bills. This is a win for clean air and affordability in American households."

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