New Biden Admin Ban on Certain Gas Powered Water Heaters Expected to Drive Up Energy Prices

The Biden administration plans to remove certain natural gas water heaters from the market, and some believe this will make energy costs more expensive for low-income households.

Key Facts:

– New rules would prohibit non-condensing, natural gas-fired water heaters by 2029.
– The Department of Energy (DOE) quietly published the regulation after Christmas.
– Industry experts warn the ban will drive many buyers toward pricier condensing models.
– Some critics say the rule will especially hurt older adults and people on tight budgets.

The Rest of The Story:

The proposed ban specifically targets non-condensing models, which release more heat than the new standards would allow.

By requiring higher efficiency, the rule essentially forces consumers to choose more expensive condensing units or switch to larger storage tank models.

Critics fear the extra upfront cost could lead to further financial stress for people already facing rising utility bills.

One example is Rinnai America, which invested millions in a Georgia facility to build non-condensing water heaters.

Frank Windsor, the company’s president, called the ban a “bad deal,” saying it might render the new factory and its expensive equipment unnecessary.

He explained that employees working there could be impacted if demand for non-condensing models disappears.

Matthew Agen, chief counsel for energy at the American Gas Association, said the new standard violates the Energy Policy and Conservation Act because it removes an entire category of products from the market.

He also pointed out that the DOE itself projected only modest life-cycle savings for customers, raising doubts about the rule’s true value.

A nonprofit group called the Appliance Standards Awareness Project (ASAP) praised the move as a way to lower emissions.

According to ASAP, the increased efficiency could help reduce household utility bills over time and reduce carbon dioxide output over the coming decades.

The Bottom Line:

While the Biden administration says the ban will curb pollution, several industry voices worry about higher purchase costs for everyday consumers.

Businesses that spent millions to expand non-condensing production could face setbacks.

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Whether the benefits outweigh the drawbacks depends on how much energy efficiency actually saves people in the long run.