The Biden administration has finalized new regulations that will ban most natural gas-powered instantaneous water heaters by 2029. These rules were published by the Department of Energy (DOE) without a press release, marking a shift from previous practices. The regulations aim to reduce carbon dioxide emissions to help the climate. As a result, about 40% of the new tankless water heaters currently available in the U. S. will be removed from the market. This change is expected to increase consumer costs, with estimates suggesting an average additional expense of $450 when purchasing new heaters. Low-income and senior households, which often rely on these appliances, may be particularly affected.
The regulations are seen as part of a broader effort by the Biden administration to transition to electric products and reduce reliance on fossil fuels. Critics argue that the rules will limit consumer choices and increase costs, emphasizing that the new rules largely target popular gas-powered appliances like stoves, refrigerators, and dishwashers. Ben Lieberman from the Competitive Enterprise Institute stated that these regulations demonstrate a negative view towards natural gas, which is classified as a fossil fuel.
The new rules create stricter efficiency requirements that only the condensing models of instantaneous water heaters can meet. As non-condensing models are effectively banned, consumers will have to purchase more expensive condensing models or resort to less efficient storage tank heaters. Frank Windsor, president of Rinnai America, a major manufacturer of tankless water heaters, argued that it does not make sense to eliminate a more efficient product category and criticized the rushed implementation of the rules. Windsor's company invested significantly in a new manufacturing facility, which may become irrelevant due to these regulations.
The American Gas Association has raised concerns about the legality of the regulations, claiming they violate the Energy Policy and Conservation Act, which prohibits banning products with distinct performance characteristics. Ongoing legal disputes related to the DOE's regulations on gas-powered residential furnaces could also affect the future of the water heater regulations.
Overall, the regulations represent a significant policy direction aimed at reducing carbon emissions, but they have sparked controversy over their potential impact on consumer costs and the availability of efficient heating options.
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