NAR Secures Legal Advocacy Victory as Supreme Court Grants Petition Challenging Energy‑Efficiency Rules Affecting Property Owners

The National Association of REALTORS® (NAR), alongside the National Association of Home Builders (NAHB), has secured an important win in its support of a legal challenge to U.S. Department of Energy (DOE) rules setting energy-efficiency standards for gas appliances. 

As previously reported, NAR and NAHB filed an amicus brief supporting a petition to the U.S. Supreme Court to address the legality of the DOE rules. The rules require efficiency levels that can only be met using newer condensing technology, which would effectively phase out widely used non-condensing gas furnaces and commercial water heaters. Because many existing homes and buildings are not designed for condensing systems, these requirements could force costly retrofits or limit replacement options, raising affordability concerns for consumers and increasing disclosure and liability risks for real estate professionals. 

The U.S. Supreme Court has granted the petition, vacated the lower court’s ruling, and remanded the case for further consideration, setting aside the prior decision and removing its legal effect. The Court took this step after the federal government argued that the ruling in favor of the DOES rules at issue was legally flawed. 

The case will now return to the U.S. Court of Appeals, which must reconsider the issues in light of the government’s position. At the same time, DOE is reviewing the rules and may pursue new rulemaking that better reflects consumer choice and practical realities for property owners.  

NAR will continue to monitor the case and any related rulemaking activity and will keep members informed of further developments.