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Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters rule (2024)

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What is a significant rule?

Significant regulatory action is a term used to describe an agency rule that has had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. As part of its role in the regulatory review process, the Office of Information and Regulatory Affairs (OIRA) determines which rules meet this definition.


Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters
Agency: Energy Department
Action: Final rule
Res. of disapproval status: Enacted - rule nullified
Type: Section 3(f)(1) significant rule
Federal code: 10 CFR Part 430
Estimated cost:[1] $88 million
Estimated benefit:[1] $549 million
Policy topics: Energy, Environmental Regulation

The Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters rule is a significant rule rule issued by the Department of Energy (DOE) designed to go into effect on March 11, 2025, that amends energy conservation standards for gas-fired instantaneous water heaters to conserve energy.[2]

The rule was published on December 26, 2024, and became effective on March 11, 2025. The rule was repealed under the Congressional Review Act on May 9, 2025.

Timeline

The following timeline details key rulemaking activity:

  • May 9, 2025

    President Donald Trump (R) signed the resolution, repealing the rule.[4]

  • April 10, 2025

    Joint resolution of disapproval passed the Senate.[4]

  • February 27, 2025

    Joint resolution of disapproval passed the House.[4]

  • January 15, 2025

    Joint resolution of disapproval introduced in the House.[4]

  • March 11, 2025

    The final rule took effect.[2]

View all

Background

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DOE is required to periodically review its energy conservation standards for various consumer products as well as commercial and industrial equipment. Gas-fired instantaneous water heaters are a type of consumer water heater, and DOE has determined that amending its standards for these products would result in significant energy conservation.

Congressional Review Act

See also: Congressional Review Act

Under the CRA, Congress can nullify recent administrative rules if both the House and the Senate pass a joint resolution of disapproval by a simple majority and the President signs it.

Summary of the rule

The following is a summary of the rule from the rule's entry in the Federal Register:[2]

“ The Energy Policy and Conservation Act, as amended (“EPCA”), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including gas-fired instantaneous water heaters, which are a type of consumer water heater. EPCA also requires the U.S. Department of Energy (“DOE” or the “Department”) to periodically review its existing standards to determine whether more-stringent standards would be technologically feasible and economically justified, and would result in significant energy savings. In this final rule, DOE is adopting amended energy conservation standards for gas-fired instantaneous water heaters. It has determined that the amended energy conservation standards for these products would result in significant conservation of energy, and are technologically feasible and economically justified.[5] ”

Summary of provisions

The following is a summary of the provisions from the rule's entry in the Federal Register:[2]

“ DOE analyzed the benefits and burdens of four trial standard levels (“TSLs”) for gas-fired instantaneous water heaters with less than 2 gallons of effective storage volume and rated inputs greater than 50,000 Btu/h. The TSLs and their associated benefits and burdens are discussed in detail in sections V.A through V.C of this document. As discussed in section V.C of this document, DOE has determined that TSL 2 represents the maximum improvement in energy efficiency that is technologically feasible and economically justified. The adopted standards, which are expressed in UEF are shown in table I.1. These standards apply to products with effective storage volumes less than 2 gallons and input ratings greater than 50,000 Btu/h (as listed in table I.1) and manufactured in, or imported into, the United States starting on December 26, 2029.

For all other gas-fired instantaneous water heaters, DOE is adopting new standards that do not constitute an increase to stringency, but simply a change in rating metric to the UEF descriptor. These standards apply to all remaining products listed in table I.1 and manufactured in, or imported into, the United States starting on December 26, 2029.[5]

”

Responses or commentary on the rule

Supporting the rule

Supporting the rule and opposing the resolution of disapproval, 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.”[6]

Opposing the rule

Opposing the rule and supporting the resolution of disapproval, Congressman Gary Palmer, who introduced the resolution, said: “If that rule went into effect, you wouldn’t be able to get a tankless natural gas hot water heater, and this was another example of a Biden assault on hydrocarbon energy.”[7]

Significant impact

See also: Significant regulatory action

Executive Order 12866, issued by President Bill Clinton (D) in 1993, directed the Office of Management and Budget (OMB) to determine which agency rules qualify as significant rules and thus are subject to OMB review.

Significant rules have had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. Executive Order 12866 further defined an economically significant rule as a significant rule with an associated economic impact of $100 million or more. Executive Order 14094, issued by President Joe Biden (D) on April 6, 2023, made changes to Executive Order 12866, including referring to economically significant rules as section 3(f)(1) significant rules and raising the monetary threshold for economic significance to $200 million or more.[2]


The text of the rule states that OMB deemed this rule economically significant under E.O. 12866:

“ OIRA has determined that this final regulatory action constitutes a “significant regulatory action” within the scope of section 3(f)(1) of E.O. 12866, as amended by E.O. 14094.[5] ”


Text of the rule

The full text of the rule is available below:[2]

See also

External links

Footnotes

  1. ↑ 1.0 1.1 Note: Estimated costs and estimated benefits here refer to estimated quantitative costs represented by dollar amounts. The estimates are a required part of the rulemaking process and are provided in the rule text. For qualitative costs or benefits, see the summaries of rule purpose and provisions.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Federal Register, "Energy Conservation Program: Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters", accessed March 27, 2025
  3. ↑ Federal Register, "Energy Conservation Program: Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters", accessed March 27, 2025
  4. ↑ 4.0 4.1 4.2 4.3 Congress.gov, "House Joint Resolution 20," accessed March 27, 2025
  5. ↑ 5.0 5.1 5.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  6. ↑ Consumer Federation of America, "House Bill Canceling Water Heater Efficiency Standards Would Raise Household Costs", accessed March 27, 2025
  7. ↑ Karmactive, "House Votes to Repeal Water Heater Efficiency Standards", accessed March 27, 2025
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