The Biden administration is taking action to eliminate certain natural gas water heaters from the market as part of its broader climate change initiatives, a decision that critics argue will lead to higher energy costs for low-income and senior households.
As part of the final actions before the administration concludes, non-condensing, natural gas-powered water heaters will be phased out by 2029. This is an effort to reduce carbon dioxide emissions, which both climate change advocates and President Biden assert contribute to global warming.
The new regulations will require new tankless gas water heaters to be approximately 13% more energy-efficient than the least efficient models available today.
These rules will apply to both non-condensing and condensing gas water heaters, but the efficiency standards are being raised to a level that only condensing models can achieve. This change effectively bans the less expensive, less efficient non-condensing models, according to The Washington Free Beacon. Condensing technology is more efficient as it reduces heat waste.
Consumers will be forced to choose between more costly models or less efficient non-instantaneous storage tank water heaters, which are typically cheaper than the models being banned by the Department of Energy (DOE).
Tankless technology is commonly utilized in spaces where room is limited, such as in apartment buildings and smaller homes, as noted by Diana Furchtgott-Ruth, director of the Center for Energy, Climate and Environment, in The Daily Signal.
For example, Rinnai America is the only U.S.-based manufacturer of tankless water heaters. The company’s non-condensing tankless natural gas water heater sells for around $1,000 at Home Depot, while a condensing 75-gallon tank model is priced at $1,800.
The new regulations were issued by the Department of Energy (DOE) the day after Christmas, though no public announcement was made. Fox Business has reached out to the DOE for comment.
Matthew Agen, chief counsel for energy at the American Gas Association, sharply criticized the decision, 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 in a comment prior to the official publication of the rules.
Agen further noted that the DOE’s own analysis suggests that the average savings over the life of the product would amount to just $112 over 20 years. He criticized the rule on both legal and practical grounds.
“Forcing low-income and senior customers to pay far more upfront is particularly concerning. DOE’s decision to go ahead with a flawed final rule is deeply disappointing,” Agen said.
Rinnai recently opened a $70 million, 360,000-square-foot manufacturing facility in Georgia to produce non-condensing gas water heaters for the American market, according to The Washington Free Beacon.
Frank Windsor, president of Rinnai America, told the outlet that this regulatory change represents a “bad deal.”
He explained that the company built the facility in 2020 as part of an effort to boost American manufacturing under President Trump, and that it provides employment to hundreds of workers.
“When the rule goes into effect, all that manufacturing will basically be irrelevant,” Windsor said. “A lot of the major equipment that we’ve invested in will basically have to be scrapped.”
Despite the criticism, the Appliance Standards Awareness Project (ASAP), a nonprofit group, has supported the change, arguing it will prevent the emission of 32 million metric tons of carbon dioxide from water heaters over the next 30 years.
The group, which advocates for reducing energy and water use in appliances, claims it helped influence the DOE’s efficiency standards.
“This is a commonsense step that will lower total household costs while reducing planet-warming emissions,” said Andrew deLaski, executive director of ASAP.
“These long-awaited standards will ensure more families save with proven energy-efficient technology already used in a majority of tankless units.”
{Matzav.com}