In a move that has sparked controversy, the Biden administration has announced a ban on certain natural gas water heaters, a decision that is part of its broader climate change strategy.
Critics argue that this move will significantly increase energy costs for low-income families and senior citizens.
As reported by Fox Business, the administration's decision, made in its final days, will see non-condensing, natural gas-fired water heaters phased out by 2029. This is part of an effort to reduce carbon dioxide emissions, which climate change advocates and President Biden argue contribute to global warming. The new regulations will mandate that new tankless gas water heaters use approximately 13% less energy than the least efficient tankless models currently available.
The regulations apply to both non-condensing and condensing gas water heaters. However, the efficiency requirements have been raised to a level that only condensing models can meet, effectively outlawing the less expensive but less efficient non-condensing models, according to The Washington Free Beacon. Condensing technology is less wasteful of heat.
Consumers will be left with no choice but to purchase more expensive models or opt for cheaper non-instantaneous storage tank water heaters, which are less efficient than the models being banned by the Department of Energy (DOE).
Diana Furchtgott-Ruth, director of the Center for Energy, Climate and Environment, wrote in The Daily Signal that tankless technology is often used when space is limited, such as in apartment buildings and smaller homes.
Rinnai America, the only company that manufactures tankless water heaters in the United States, sells its tankless, non-condensing natural gas water heater for approximately $1,000 at Home Depot, compared to $1,800 for a condensing 75-gallon tank.
The DOE published the new rules the day after Christmas without making a public announcement. Matthew Agen, the American Gas Associations chief counsel for energy, criticized the move, calling it "deeply concerning and irresponsible."
"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," Agen stated before the rules were officially published.
Agen further criticized the DOE's own analysis, which suggests that the average life-cycle cost savings would amount to a mere $112 over the entire 20-year average product life. He argued that the rule is unjustifiable on both legal and practical grounds.
"Forcing low-income and senior customers to pay far more upfront is particularly concerning. DOEs decision to go ahead with a flawed final rule is deeply disappointing," Agen said.
Rinnai recently built a $70 million, 360,000-square-foot factory in Georgia to manufacture non-condensing gas water heaters for the American market, according to The Washington Free Beacon.
Frank Windsor, president of Rinnai America, called the move a "bad deal." He noted that the company began the construction in 2020 following President Trumps efforts to boost American manufacturing, and it employs hundreds.
"When the rule goes into effect, all that manufacturing will basically be irrelevant," Windsor told the outlet. "A lot of the major equipment that we've invested in will basically have to be scrapped."
Despite the criticism, the nonprofit Appliance Standards Awareness Project (ASAP) welcomed the move, stating that it will eliminate 32 million metric tons of carbon dioxide emissions from water heaters sold over 30 years.
Andrew deLaski, executive director of the ASAP, said, "This is a commonsense step that will lower total household costs while reducing planet-warming emissions. These long-awaited standards will ensure more families save with proven energy-efficient technology already used in a majority of tankless units."
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