Lame-duck President Joe Biden’s administration unveiled more environmental regulations the day after Christmas, banning the manufacture of many natural gas water heaters and potentially costing consumers an extra $450 when buying a new appliance.
The new regulations will go into full effect in 2029 and will require all new gas-powered tankless water heaters to use around 13 percent less energy than the current least efficient models.
Tankless gas water heaters come in two main types: the more efficient but more expensive condensing heaters and the cheaper but less efficient non-condensing type, set to be banned under the new regulations.
The Appliance Standards Awareness Project (ASAP) claims that only about 60 percent of tankless gas heaters on the market currently comply with the new regulations. If that’s accurate, then appliance companies will be forced to stop producing around 40 percent of their current heaters, likely requiring significant renovations to their production facilities.
According to ASAP, the regulations will reduce carbon dioxide emissions by 32 million metric tons from units sold in the next 30 years.
The group also claims that the regulations will ultimately save consumers a paltry $112 over the 20-year lifetime of their product
Assuming that the more expensive heaters actually last 20 years, that amounts to a savings of just $5.60 a year.
Not all energy experts supported the new regulations.
The American Gas Association (AGA) believes that, while the Biden Administration claims its regulations will save consumers a paltry sum, the new rules will actually cost consumers.
AGA cited manufacturer data showing the average cost to consumers forced to buy the newer models will be $450 more than they would pay if they bought one of the models set to be banned.
That is more than double the $231 price difference cited by the Department of Energy (DOE).
The organization pointed out that the new costs are most likely to impact low-income households, which are more likely to opt for cheaper but less efficient water heating options.
“Stakeholders, including AGA have made these issues known to DOE throughout this process, and regret that DOE chose not to incorporate our feedback into the final rule,” said AGA Chief Counsel Matthew Agen.
“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,” he added.
Agen suggested that, in addition to increasing costs for everyday Americans, the new regulations might be illegal.
“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,” said Agen.
The ban, specifically targeting all heaters with the non-condensing characteristic, may, according to the AGA, violate the law.
The AGA is currently suing the DOE over regulations on natural gas furnaces and commercial water heaters.
The organization believes that if they are successful in that case, the precedent could have a significant influence on the DOE’s ability to impose the new residential water heater requirements.
Democratic politicians have lately made a habit of targeting everyday household appliances as part of their crusade against carbon, a foundational element for all life on Earth.
Last month, Maine’s Democratic Reps. Chellie Pingree and Jared Golden united to oppose the Republican-led Liberty in Laundry Act.
The act would prevent the federal government from imposing potentially costly environmental regulations on washing machines.
The bill passed through the House despite opposition from Maine’s representatives.
President Biden has taken full advantage of his lame-duck period to push through as many last-minute environmental regulations as possible.
Biden signed an executive order on Monday banning oil companies from drilling in large swaths of the Gulf of Mexico and the Pacific Ocean off the coasts of California, Washington, Oregon, and Alaska.
That order, if President-elect Donald Trump is unable to quickly reverse it, could greatly hinder his ability to fulfill his promise to “drill, baby, drill” to increase domestic oil production and achieve energy independence.
