The Biden administration quietly dropped a regulatory bomb a day after Christmas that could leave millions of people on the streets.
In a controversial move, the Department of Energy (DOE) finalized sweeping new climate regulations that would dramatically increase prices for gas water heaters.
Industry experts and lawmakers are criticizing the decision as “reckless,” “tone-deaf” and catastrophic for households struggling with inflation and rising energy costs.
Unlike previous announcements of similar magnitude, the DOE did not make any public fanfare about this far-reaching regulation.
The Biden Administration issued no press releases or public briefings, just a quiet publication in the federal register.
Critics argue that the lack of transparency is indicative of a broader trend by the White House to push the green agenda without public scrutiny.
Trump has promised to roll back a series of climate regulations issued during the Biden administration in an effort to boost energy production and boost economic growth.
Under the new rules, efficiency requirements for tankless water heaters will increase to levels that effectively ban all non-condensing models, a category that currently accounts for 40 percent of the market.
The Department of Energy (DOE) finalized sweeping new climate regulations targeting natural gas-powered instantaneous water heaters, a move that has sparked a storm of controversy.
Officials estimated the new rules would save Americans an average of $1,868 over the life of their water heater.
Many households, especially in low-income and senior communities, prefer the soon-to-be-banned models because of their affordability.
An industry analysis predicts that consumers will face an average price increase of $450 when replacing their water heaters.
With energy costs already rising and winter weather hitting much of the country, the timing couldn’t be worse.
“It’s yet another example of appliance regulation that increases costs and reduces choice,” Ben Lieberman, senior fellow at the Competitive Enterprise Institute, told the conference. Washington Free Beacon. ‘It bans an entire category of tankless and most affordable water heaters.
‘This is all part of the climate change agenda. One of the things we see is an antipathy toward natural gas versions of appliances because natural gas is a fossil fuel and they want to electrify everything. “When you see bad regulations from the Biden administration, it usually has something to do with climate change.”
The ramifications extend beyond family budgets.
Rinnai America, which recently invested $70 million in a state-of-the-art factory in Georgia to manufacture non-condensing gas water heaters, could see its efforts made obsolete by new regulations. Hundreds of jobs are now at risk.
‘Our point has always been – I think the incoming administration will understand – why would they eliminate a higher efficiency product category? It doesn’t make sense. It doesn’t make any sense,” said Frank Windsor, president of water heater maker Rinnai America.
Japanese company Noritz makes wall-mounted units that they claim can provide an infinite supply of hot water at a lower cost and in less space than traditional tank heaters.
‘If you really want to influence water heating regulations, you need to look at tank models.
‘As this administration is coming to an end, they’ve basically rushed this out. But the fact of the matter is they’re making a bad decision,” Windsor said.
The American Gas Association (AGA) has already expressed its intention to fight the regulations in court.
The group maintains that the DOE’s actions may violate the Energy Policy and Conservation Act, which prohibits federal agencies from banning products with different performance characteristics.
“DOE’s decision to ban an entire segment of instantaneous water heaters is deeply troubling and irresponsible,” said AGA Senior Attorney Matthew Agen. “This regulation not only crosses legal boundaries but also ignores the reality of what American consumers need and can afford.”
This legal challenge comes on the heels of similar litigation over DOE rules targeting gas-fired residential boilers. If successful, it could set a precedent that forces the administration to rethink its aggressive climate agenda.
The water heater regulations are the latest in a series of DOE actions aimed at curbing carbon emissions through restrictions on appliances.
In early 2023, the administration faced fierce backlash for proposing limits on gas stoves, a move that sparked widespread public outcry and accusations of government overreach.
The water heater regulations are the latest in a series of DOE actions aimed at curbing carbon emissions through restrictions on appliances.
In early 2023, the administration faced fierce backlash for proposing limits on gas stoves, a move that sparked widespread public outcry and accusations of government overreach.
The DOE has also targeted refrigerators, dishwashers, ovens and clothes washers, often citing climate change as justification.
But critics argue that these policies are being pushed without regard for their cumulative impact on ordinary Americans.
As winter storms batter the country, millions of Americans are wondering how regulations could affect their ability to stay warm and keep the water running.
For low-income families, seniors and those living paycheck to paycheck, the stakes couldn’t be higher.
The Biden administration insists that regulations are a necessary step to combat climate change and reduce greenhouse gas emissions, but for many Americans, the cost of this green transition seems too high.
President-elect Donald Trump has already vowed to dismantle what he calls the Biden administration’s “extreme climate agenda.”
With Republicans set to take control of the White House in just over two weeks, the future of such regulations is uncertain.
Still, for families bracing for another cold winter, the damage may already be done.
Critics argue that the rush to finalize such sweeping changes in the final days of Biden’s presidency is emblematic of an administration out of touch with its people.