Biden Administration Calls for Increased Energy Efficiency of Water Heaters

The Biden administration is progressing with stricter energy efficiency regulations for newly manufactured residential water heaters, targeting the second most energy-consuming appliances found in the majority of households.

The Energy Department said their proposal, which would take effect in 2030, would save consumers about $11.4 billion a year in energy and water costs while reducing hundreds of millions of tons of greenhouse gas emissions over the 30-year life of the rules.

According to the agency’s proposal, the most commonly used electric water heaters would require heat pump technology instead of electric resistance, while gas-powered through-flow heaters would require condensation technology. The rule also sets standards for gas-fired storage water heaters and oil-fired storage water heaters. Overall, the Energy Department said the rule would reduce residential water heater energy use by 21 percent.

The new requirements come when the energy efficiency standards for household appliances have been subject to new political scrutiny. Earlier this year, the U.S. Consumer Product Safety Commissioner floated the idea of banning gas stoves in January, drawing outrage from congressional Republicans and the broader public, who denounced the idea as a symbol of government supremacy. The White House later issued a statement saying the president did not support banning the zones.

The energy department said in a statement that the water heater standards mandated by Congress, last updated in 2010, had the support of the two largest water heater manufacturers.

The administration’s past and planned energy efficiency requirements will save America $570 billion and reduce greenhouse gas emissions by more than 2.4 billion tons over 30 years, the energy department said.

Still, the Energy Department estimates the water heater rule could cost manufacturers more than $228 million in conversion costs to bring products into compliance and $2.2 billion a year in increased product costs over the rule’s 30-year life. The department said the rule would result in many more annual benefits, including nearly $7.9 billion in reduced operating costs per year alone.