In yet another attempt to regulate consumer products, and part of the outgoing administration’s continual efforts to thwart climate change, the Department of Energy (DOE) publisheda finalized rule that would ban most natural gas water heaters. This maneuver, which experts predict will most assuredly cost consumers more money, was quietly completed the day after Christmas when most individuals were busy with holiday celebrations and gatherings; not a single press release went out, as is generally customary.
The water heater ban joins the list of ill-conceived measures. It needs to be rescinded.
Under the new policy, non-condensing, natural gas-fired water heaters will be prohibited for sale starting in 2029 because they will not be able to meet the steep new standards. Natural gas-fired water heaters are fueled with a single heat exchanger, heating water on demand without a storage tank. Ideal for smaller living spaces, such as apartments and small homes, they are also less expensive.
Undoubtedly, these strict regulations hurt lower- and fixed-income households who will face higher upfront costs. Water heaters not affected by the ban cost approximately $450more than their tankless counterparts. Consumers are already dealing with excessive inflation rates inflicted over the last several years; these types of mandates only further squeeze financially strapped budgets.
Even worse, DOE’s own analysis claims the average life-cycle cost savings would amount to merely $112 over the entire 20-year average product life, falling far short of the extra upfront cost of a new water heater. The supposed energy savings? Only 0.58 quadrillion British thermal units (Btu), which represents “1.9 percent relative to the energy use of these products in the case without amended standards,” is conserved.
The American Gas Association’s chief counsel for energy, Matthew Agen, notes legal issues surrounding the edict: “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.” A separate lawsuit was already filed for a ban on natural gas furnaces, and if struck down, the verdict could have implications regarding this rule’s legality.
One company, Rinnai America, will greatly suffer at the hands of this rule. The nation’s only manufacturer of tankless water heaters recently constructed a $70 million factory in Georgia to produce these appliances for the American market. The company’s president laments, “A lot of the major equipment that we’ve invested in will basically have to be scrapped.”
The water heater rule limits consumer options and controls which appliances are used in home and business settings. Most Americans enjoy the freedom to choose what best fits their needs rather than hand that off to government bureaucrats.
Biden’s proposed ban on gas stoves a few years ago sparked national outrage; the final rule was scaled back. Even super progressive, climate-conscious city Berkely, CA overwhelmingly rejected a ballot measure in November that would have instituted a natural gas tax on buildings. Americans like natural gas.
Americans also need natural gas. It is reliable, inexpensive, and abundant. Despite efforts to rid the nation of its use (and other hydrocarbons), natural gas constitutes roughly 36 percent of all U.S. energy usage. It is an essential energy source.
Consumers deserve choice and the ability to purchase affordable products that suit household spaces and budgets, not those that favor a particular political agenda. This rule needs to be reversed.
Kristen Walker is a policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.theamericanconsumer.org or follow us on Twitter @ConsumerPal.