A new federal rule sets updated energy efficiency standards for tankless gas water heaters by 2029 — but it doesn’t ban them.
In early January, there were misleading reports suggesting that the Biden administration had imposed a wide-ranging prohibition on natural gas water heaters. It was claimed that this action would result in increased energy costs, particularly affecting low-income individuals and seniors. Some individuals, including Republican Sen. Marsha Blackburn, echoed these assertions on social media.
A post circulating on social media declared that Biden was restricting access to water heaters, alleging that the Department of Energy’s new regulations would eliminate 40% of natural gas water heaters by 2029, impacting more than half of households in the U.S. Critics expressed concerns that this environmentally-focused measure would raise the average replacement costs by $450, disproportionately impacting low-income families and the elderly. Legal disputes regarding this issue have already begun.
VERIFY reader Jordan sent us a text asking if there is any validity to these claims.
THE QUESTION
Did the Biden administration ban all natural gas water heaters?
THE SOURCES
THE ANSWER
No, the Biden administration is not banning all natural gas water heaters.
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WHAT WE FOUND
However, the reality is that the Biden administration has introduced a federal regulation that establishes stricter energy efficiency requirements for tankless gas water heaters. It is important to note that this action does not amount to a complete ban on these appliances, contrary to the misinformation that has been circulating.
In late December, the U.S. Department of Energy finalized new energy efficiency standards for tankless (also known as instantaneous) gas water heaters. However, these standards only apply to new products sold starting in 2029. Existing water heaters and those already on the market won’t be affected, and homeowners won’t need to replace their current units.
“The law that governs DOE’s standards program does not give DOE authority to ban the use of any specific fuels in particular products, such as gas instantaneous water heaters,” An Energy Department spokesperson told VERIFY. “Instead, DOE is increasing the required efficiency of newly produced gas instantaneous water heaters that will become available for sale in 2029.”
Heating water is one of the largest energy uses in most homes, usually second only behind heating, according to the American Standards Awareness Project (ASAP), a nonprofit that advocates for stricter legislation regarding appliances and their energy output.
ASAP says that the standards adopted in 2029 will require new tankless gas water heaters to use about 13% less energy than today’s least efficient models. More than 60% of new units sold today already meet the new standards, and all major water heater manufacturers sell models that do, according to ASAP.
While the water heaters that meet the new, stricter standard, are currently more expensive, the DOE estimates that the higher efficiency will save customers more than $100 over its lifetime. They will also cut 32 million metric tons of carbon dioxide emissions from water heaters sold over 30 years, according to the agency.
“This is a commonsense step that will lower total household costs while reducing planet-warming emissions,” Andrew deLaski, ASAP’s executive director, said in December. “These long-awaited standards will ensure more families save with proven energy-efficient technology already used in a majority of tankless units.”
But critics disagree that the rule change will help reduce costs. In December, the American Gas Association, a trade association that represents more than 200 local energy companies that deliver clean natural gas throughout the U.S., criticized the new rule, saying it “would eliminate cost effective non-condensing natural gas water heaters from the market.”
“DOE’s decision to ban an entire segment of instantaneous water heaters is deeply concerning and irresponsible,” said Matthew Agen, the AGA’s Chief Regulatory Counsel, Energy. “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.”
The standards, which were due in 2016 by law, are based on efficiency levels recommended by a coalition of product manufacturers, consumer advocacy organizations and environmental groups, according to the DOE and ASAP. The Energy Policy and Conservation Act requires the DOE to revisit the standards for appliances, like water heaters, every six years. The DOE says it entered into a consent decree that required a final rule to be issued by December 2024.
The new rule complements strengthened standards finalized by the DOE in April 2024 for electric tank and gas tank water heaters, according to ASAP. These separate standards will require a similar percentage efficiency improvement for gas tank models and a significantly larger efficiency improvement for most electric tank models. These standards will also take effect in 2029.
In 2023, online reports claimed the federal government was considering a ban on the use of gas stoves nationally. However, we found that those claims were similarly false. But some cities and counties across the country have issued bans on new natural gas hookups for things like gas stoves in future construction projects to lower greenhouse gas emissions.