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The Biden administration’s latest environmental initiative targets natural gas water heaters, announcing a ban that will eliminate non-condensing models from the market by 2029. This regulation, aimed at reducing carbon dioxide emissions, has sparked debate over its impact on American households.
Under the new Department of Energy guidelines, tankless gas water heaters must achieve approximately 13% greater energy efficiency compared to current baseline models. The regulations specifically target both condensing and non-condensing gas water heaters, though the stringent efficiency requirements effectively eliminate non-condensing models from future sales.
New Biden water heater ban will drive up energy prices for poor, seniors: expert https://t.co/Krw9LFDD0l pic.twitter.com/KykgDm3zlB
— New York Post (@nypost) January 5, 2025
The timing of this regulatory change has raised eyebrows, as the DOE quietly published these rules on December 26th, without a formal announcement. The impact on consumers could be significant, as they will need to choose between more expensive condensing models or less efficient storage tank alternatives.
This shift particularly affects residents of apartments and smaller homes, where space constraints often necessitate tankless solutions. The price difference is substantial – currently, a non-condensing natural gas water heater from Rinnai America, the sole U.S. manufacturer of these units, costs approximately $1,000, while a condensing 75-gallon tank runs about $1,800.
“The final rule is a violation of the Energy Policy and Conservation Act (EPCA), which prohibits DOE from promulgating a standard that renders a product with a distinct performance characteristic unavailable,” stated Matthew Agen, the American Gas Association’s chief counsel for energy. He further criticized the minimal cost benefits, noting that the DOE’s analysis shows only $112 in life-cycle savings over two decades.
🇺🇸 BIDEN IS COMING FOR YOUR WATER HEATERS – BANS THEM!
Biden's DOE new rules ban 40% of natural gas water heaters by 2029, hitting over half of U.S. households.
Critics warn this “green” move will jack up replacement costs by $450 on average, punishing low-income and senior… pic.twitter.com/LBWQBXrmds
— Mario Nawfal (@MarioNawfal) January 5, 2025
The regulation’s impact extends beyond consumers to manufacturers. Rinnai America’s recent $70 million investment in a Georgia manufacturing facility now faces uncertainty. Frank Windsor, president of Rinnai America, expressed his concerns to The Washington Free Beacon, stating, “When the rule goes into effect, all that manufacturing will basically be irrelevant. A lot of the major equipment that we’ve invested in will basically have to be scrapped.”
However, environmental advocates support the measure. “This is a commonsense step that will lower total household costs while reducing planet-warming emissions,” said Andrew deLaski, executive director of the Appliance Standards Awareness Project. The organization estimates the regulation will prevent 32 million metric tons of carbon dioxide emissions from water heaters over three decades.
“These long-awaited standards will ensure more families save with proven energy-efficient technology already used in a majority of tankless units,” deLaski added.
