Last-Minute Joe Biden Regulations on Water Heaters to Cost Consumers More: Report [WATCH]

The Biden-Harris administration has finalized climate regulations set to ban most natural gas-powered tankless water heaters, a move that critics argue will lead to higher costs for consumers.

The Department of Energy (DOE) formally published the rules on December 26, though no press release accompanied the announcement, diverging from previous practices for new appliance regulations.

The rules aim to reduce carbon dioxide emissions and address climate change.

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However, they are expected to remove approximately 40% of tankless water heaters currently available in the U.S. market by 2029.

Karine Jean-Pierre confirms the Biden administration is seeking to restrict Americans’ water heaters and other appliances by 2029 pic.twitter.com/n1dnLXFj5a

— RNC Research (@RNCResearch) July 24, 2023

Industry experts warn that the regulations will compel consumers to purchase either more expensive or less efficient water heater models.

One analysis estimates that consumers will pay an average of $450 more for water heaters, disproportionately affecting low-income and senior households, which often rely on the now-targeted models.

The new regulations have sparked criticism from industry officials and policy experts.

Frank Windsor, president of Rinnai America, the nation’s leading manufacturer of tankless water heaters, questioned the logic of eliminating a high-efficiency product category.

“Our point has always been—why would you eliminate a higher-efficiency product category? It makes no sense. If you really want to impact the water heating ruling, you need to deal with tank models,” Windsor told the Washington Free Beacon.

Windsor also noted that the new rules jeopardize Rinnai’s $70 million manufacturing facility in Georgia, which employs hundreds of workers and produces non-condensing gas water heaters. “When the rule goes into effect, all that manufacturing will basically be irrelevant,” he said.

Ben Lieberman, a senior fellow at the Competitive Enterprise Institute, echoed similar concerns. “It’s one more example of an appliance regulation that raises costs and reduces choices,” Lieberman said.

“It bans an entire category of tankless water heaters and the ones that are most affordable. This is all part of the climate change agenda.”

The DOE’s regulations focus on instantaneous water heaters, which are divided into two types: non-condensing and condensing models.

The updated efficiency standards set by the DOE are achievable only by condensing models, effectively banning the less expensive non-condensing versions.

By 2029, consumers will be limited to higher-priced condensing models or less efficient tank water heaters.

The American Gas Association (AGA) has expressed concerns about the legality of the regulations, citing the Energy Policy and Conservation Act, which prohibits the federal government from banning products with distinct performance characteristics.

AGA chief counsel Matthew Agen called the DOE’s decision to ban a segment of instantaneous water heaters “deeply concerning and irresponsible.”

Ongoing litigation over DOE regulations targeting gas-powered residential furnaces may influence the future of the water heater rules.

This regulatory move is part of the Biden-Harris administration’s broader climate agenda, which has included targeting various home appliances such as gas stoves, refrigerators, furnaces, dishwashers, and clothes washers.

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Critics argue that these efforts are intended to drive a transition to electric products, often at the expense of consumer choice and affordability.

The incoming administration of President-elect Donald Trump has pledged to roll back many of the Biden-Harris administration’s climate regulations, including those affecting energy production and manufacturing.

Trump’s energy policies aim to prioritize economic growth and bolster domestic industries.

The DOE’s latest rule underscores the tension between federal climate initiatives and their impact on consumers, manufacturers, and local economies.

As the 2029 implementation deadline approaches, industry groups and legal experts continue to challenge the regulations’ validity and potential consequences.

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