Coalition Challenges Department of Energy's New Gas Appliance Regulation

Reichman Jorgensen Lehman & Feldberg LLP (RJLF) has taken a significant step by leading a coalition to contest the Department of Energy's (DOE) recent final rule regarding gas tankless water heaters. This rule, published in the Federal Register on December 26, 2024, is being challenged due to its implications for consumers, manufacturers, and businesses across various sectors.

The DOE's decision to phase out non-condensing gas tankless water heaters, praised for their efficiency and affordability, has sparked strong opposition from a coalition that includes state attorneys general, an array of manufacturers, and industry associations representing diverse interests. These non-condensing water heaters have played a crucial role in reducing emissions and conserving energy for the past two decades. Their removal from the market threatens consumer choice, could increase costs significantly, and disrupt businesses that have relied on these efficient appliances.

The coalition argues that eliminating non-condensing water heaters contradicts the Energy Policy and Conservation Act (EPCA), as it renders highly valued performance characteristics inaccessible to consumers. According to the coalition, the DOE's regulation not only limits consumer options but also provides minimal environmental benefits. The diversity of participants in this legal challenge underscores the wide-ranging impact of the DOE's rule, which affects thousands of consumers and businesses nationwide.

States participating in the legal action include Georgia, Kansas, Tennessee, Alabama, Arkansas, Idaho, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, Utah, Virginia, and West Virginia. In addition to state representatives, numerous organizations such as Rinnai America Corporation, National Propane Gas Association, and the American Public Gas Association are joining forces under the RJLF banner to fight this regulation.

Sarah Jorgensen, the leading counsel for the plaintiffs at RJLF, expressed the coalition's concern over the DOE's overreach. "This case is vital for protecting consumer and business interests against potentially harmful federal regulations. The decision to phase out a highly efficient appliance overlooks key market trends and fails to consider the economic impacts on consumers and businesses alike. Non-condensing gas tankless water heaters offer unique benefits in terms of performance and energy savings that should not be disregarded," Jorgensen stated.

This legal case, titled State of Georgia, et al. v. United States Department of Energy, has been filed in the United States Circuit Court of Appeals for the Eleventh Circuit. As the coalition moves forward, they aim to challenge and potentially overturn this DOE rule, which they believe undermines decades of progress made in energy efficiency and consumer choice.

About Reichman Jorgensen Lehman & Feldberg LLP

Reichman Jorgensen Lehman & Feldberg LLP is a national trial firm specializing in high-stakes disputes in energy, commercial, and intellectual property sectors. With a commitment to creating innovative fee arrangements that align with client interests, RJLF stands out as a majority women-owned firm. Their diverse team is dedicated to trial advocacy, serving clients from offices across major U.S. cities. For more information, visit www.reichmanjorgensen.com.