American Gas Association v. U.S. Department of Energy

In February 2022, a petition for review was filed in the D.C. Circuit Court of Appeals challenging a U.S. Department of Energy final interpretive rule regarding what constitutes a “feature” for purposes of establishing energy conservation standards under the Energy Policy and Conservation Act. The final rule reinstated, for residential furnaces, commercial water heaters, and similar products, a long-standing interpretation under which heat exchanger technology used to supply heated air or hot water is not a performance-related “feature” that provides a distinct consumer utility. The petitioners were trade associations representing energy companies that deliver natural gas and publicly owned natural gas distribution systems, natural gas utilities, and a manufacturer of heating and cooling equipment. Twelve states, the District of Columbia, and New York City moved to intervene in support of the respondents, as did Natural Resources Defense Council, Sierra Club, and Consumer Federation of America. On April 8, the D.C. Circuit granted the petitioners’ unopposed motion to hold the case in abeyance pending issuance of final efficiency regulations issued in reliance on the interpretive rule.

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