Biden Administration Finalizes Rule Banning Certain Natural Gas Water Heaters

The Department of Energy's new efficiency standards aim to reduce emissions but are criticized for raising costs and limiting consumer options.

The Department of Energy has finalized a rule banning less efficient, non-condensing natural gas water heaters, set to take effect in March 2025.
The new standards require tankless gas water heaters to use 13% less energy, effectively phasing out cheaper non-condensing models.
Critics argue the rule will significantly increase upfront costs for consumers, especially low-income and senior households, with limited long-term savings.
Supporters highlight the environmental benefits, projecting a reduction of 32 million metric tons of carbon dioxide emissions over 30 years.
The rule has sparked legal and industry backlash, with claims it violates the Energy Policy and Conservation Act by eliminating a distinct product category.