The Biden administration has a new ban on certain gas-fueled hot water heaters, impacting roughly 40% of new tankless water heaters and forcing consumers to pay an extra $450 for alternatives. The ban goes into effect on March 11, 2025, for sales beginning in 2029. The ban severely limits consumers’ choices regarding their water heater purchases, often forcing Americans to ostensibly pay more for inferior products to help fulfill Biden’s climate agenda. Biden’s Department of Energy (DOE) finalized the rule the day after Christmas, hoping people would be too distracted by the holidays to pay attention to the impact of the new ban.
The new rule stipulates that new tankless gas water heaters must rely on 13% less energy than the least efficient comparable model on the market today. While the restrictions do not outright ban non-condensing models, only condensing models have been able to meet the new energy efficiency requirements, according to the Washington Free Beacon. Biden’s DOE also opted not to send out a press release or any other form of a public announcement as they have in the past with similar “climate oriented” appliance bans. The agency apparently sought to keep people in the dark about its new rule.
The proposed ban could significantly drive up costs for low-income individuals and the elderly, as tankless water heaters are commonly used in smaller homes and apartments where these groups tend to live. The ban would force consumers to choose between pricier models or traditional storage tank water heaters, which are typically more affordable but less energy-efficient than their tankless counterparts. For instance, a non-condensing Rinnai tankless natural gas water heater is priced around $1,000 at Home Depot, whereas a similar condensing tank model costs roughly $1,800. Additionally, Rinnai recently completed a $70 million facility in Georgia to manufacture non-condensing gas water heaters domestically.
According to Matthew Agen, the American Gas Association’s chief counsel for energy, “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.” Some courts have agreed. In its rebuke of the Biden clothes and dishwasher rules last January, the Fifth Circuit Court of Appeals concluded Congress never granted the DOE powers “to regulate water use for energy-using appliances.”
From targeting ceiling fans to attempting to enforce a federal ban on gas-powered vehicles, the Biden administration has been limiting Americans’ ability to choose the products that best suit their needs and manage their own spending. The government’s growing reach has increasingly sought to control various aspects of daily life. These restrictive policies have burdened consumers with significant costs, contributing to rising inflation. Throughout Biden’s presidency, regulations from the Department of Energy aimed at making appliances more “eco-friendly” are estimated to have added $9,000 to the expenses of the average American family.
President-elect Trump is considering an executive order to protect gas stoves and heaters, among other executive orders to reverse Biden administration actions. Trump has tapped Liberty Energy CEO Chris Wright to serve as his secretary of energy, and once confirmed, he will be tackling Biden’s lame-duck prohibitions on affordable energy, micromanagement of American families, and its decision-making about the appliances the agency chooses to fit their needs and budget best, among other onerous anti-fossil fuel policies by the Biden administration.
Conclusion
The Biden DOE has issued over 100 energy efficiency rules on appliances and household equipment, which they claim will fight climate change and save consumers money. If that were true, market forces would have achieved the same goals without the federal government’s enforcement. Most recently, Biden’s DOE finalized a rule that would ban about 40% of new tankless hot water heaters, raising costs and impacting low-income and elderly Americans more heavily as they live in smaller residences and rely on smaller appliances.
Historically, the appliances the DOE reviewed performed worse and cost more. DOE rulemaking, combined with state and local efforts to ban natural gas hook-ups in new homes and buildings, is how the Biden administration and environmentalists intend to take gas appliances away from consumers despite their affordability, reliability, and comfort factor. This is part of the Biden administration’s comprehensive effort to “end fossil fuels.”
President-elect Donald Trump and his administration plan to undo Biden’s absurd bans as early as day 1, but that may be more easily said than done, with opponents taking the reversals to court to keep Biden’s policies and regulations in place, as they did during Trump’s first term when he attempted to undo many Obama-Biden Administration policies.
*This article was adapted from content originally published by the Institute for Energy Research.