Contact:
ASAP: Ben Somberg, 202-658-8129, bsomberg@aceee.org
CFA: Courtney Griffin, 202-567-7240, cgriffin@consumerfed.org
Washington, DC—A resolution passed by the U.S. House of Representatives today to cancel energy efficiency standards for new gas tankless water heaters would increase monthly bills for households that choose these models.
Andrew deLaski, executive director of the Appliance Standards Awareness Project, said: “The House put the interests of one manufacturer and a group of gas utilities ahead of American families today. If this passes the Senate and is signed by the president, many households will face increased costs.”
Courtney Griffin, director of consumer product safety at Consumer Federation of America, said: "Canceling tankless water heater efficiency standards isn’t about consumer choice—it’s about higher energy bills. Today, the House turned its back on American consumers, siding instead with a single manufacturer resisting progress."
The standards at issue, finalized by the Department of Energy (DOE) last year and set to take effect in 2029, require new gas tankless (also known as instantaneous) water heaters to use about 13% less energy than today’s least efficient models. They will reduce a household’s total costs by an average of $112 over the life of the product when compared to purchasing and using less-efficient tankless models, DOE found. Consumers will cumulatively save $3.1 billion in total.
About 60% of new tankless units sold today already meet the new standards, and all major water heater manufacturers sell such models. Since tankless models are only a small portion of all gas water heaters, the standards will affect less than 10% of all gas water heaters sold.
The standards—due six years ago by law—are based on efficiency levels recommended by a coalition of product manufacturers and consumer, energy efficiency, and environmental advocates. They complement strengthened standards DOE finalized earlier last year for electric tank and gas tank water heaters.
The manufacturer that has lobbied against the standards for tankless models, Rinnai, estimated to DOE that it would cost $15 million to retrofit a plant that produces models that do not meet the standards. Rinnai has suggested it would invest to “retool” the plant. In 2024, the company earned about $250 million in profits and had close to $1 billion in cash on hand. The company, together with gas utility trade associations, has also sued to try to block the standards.
More information about the gas tankless water heater standards is available in an ASAP fact sheet and myths and facts document.
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The Appliance Standards Awareness Project (ASAP) advocates for appliance, equipment, and lighting standards that cut planet-warming emissions and other air pollution, save water, and reduce economic and environmental burdens for low- and moderate-income households. ASAP’s steering committee includes representatives from environmental and efficiency nonprofits, consumer groups, the utility sector, and state government.
The Consumer Federation of America is a national organization of more than 250 nonprofit consumer groups that was founded in 1968 to advance the consumer interest through research, advocacy, and education.
