The Biden administration quietly dropped a regulatory bombshell one day after Christmas that could leave millions out in the cold.
In a controversial move, the Department of Energy (DOE) finalized sweeping new climate regulations that would drastically raise prices on gas-powered water heaters.
Industry experts and lawmakers are blasting the decision as 'reckless,' 'tone-deaf,' and catastrophic for households grappling with inflation and rising energy costs.
Unlike past announcements of similar magnitude, the DOE made no public fanfare about this far-reaching regulation.
The Biden Administration delivered no press releases or public briefings - just a quiet publication in the federal register.
Critics argue that the lack of transparency is indicative of a broader trend from the White House to push through green agenda without public scrutiny.
Trump has vowed to roll back a host of the climate regulations issued under Biden in an effort to boost energy production and drive economic growth.
Under the new rules, efficiency requirements for tankless water heaters will increase to levels that effectively ban all non-condensing models - a category that currently makes up 40 percent of the market.
The Department of Energy (DOE) finalized sweeping new climate regulations targeting natural gas-powered instantaneous water heaters, a move that has ignited a firestorm of controversy
Officials estimated the new rules would save Americans on average $1,868 over the life of their water heater
The soon-to-be-banned models are favored by many households, particularly in low-income and senior communities, for their affordability.
An industry analysis predicts that consumers will face an average price hike of $450 when replacing their water heaters.
With energy costs already surging and winter weather gripping much of the nation, the timing could not be worse.
'It's one more example of an appliance regulation that raises costs and reduces choices,' Ben Lieberman, a senior fellow at the Competitive Enterprise Institute, told the Washington Free Beacon. 'It bans an entire category of tankless water heaters and the ones that are most affordable.
'This is all part of the climate change agenda. One of the things we see is an antipathy towards natural gas versions of appliances because natural gas is a fossil fuel and they want to electrify everything. When you see bad regulations from the Biden administration, usually it has something to do with climate change.'
The ramifications extend beyond household budgets.
Rinnai America, which recently invested $70 million in a state-of-the-art factory in Georgia to manufacture non-condensing gas water heaters, could see its efforts rendered obsolete by the new regulations. Hundreds of jobs are now at risk.
'Our point has always been - I think that the incoming administration will understand this - why would you eliminate a higher efficiency product category? It makes no sense. It makes no sense at all,' said Frank Windsor, the president of water heater manufacturer Rinnai America
The Japanese company Noritz makes wall mounted units they claim can provide an endless supply of hot water at lower cost and in less space than traditional tank heaters
'If you really want to impact the water heating ruling, you really need to deal with the tank models.
'As this administration is coming to the end, they have basically rushed to put this forward. But the fact of the matter is they're making a bad choice here,' Windsor said.
The American Gas Association (AGA) has already signaled its intention to fight the regulations in court.
The group argues that the DOE's actions may violate the Energy Policy and Conservation Act, which prohibits federal agencies from banning products with distinct performance characteristics.
'DOE's decision to ban an entire segment of instantaneous water heaters is deeply concerning and irresponsible,' said AGA chief counsel Matthew Agen. 'This regulation not only oversteps legal boundaries but also ignores the reality of what American consumers need and can afford.'
This legal challenge comes on the heels of similar litigation over DOE rules targeting gas-powered residential furnaces. If successful, it could set a precedent that forces the administration to rethink its aggressive climate agenda.
The water heater regulations are the latest in a series of DOE actions aimed at curbing carbon emissions through appliance restrictions.
Earlier in 2023, the administration faced fierce backlash for proposing limits on gas stoves - a move that sparked widespread public outcry and accusations of government overreach.
The water heater regulations are the latest in a series of DOE actions aimed at curbing carbon emissions through appliance restrictions
Earlier in 2023, the administration faced fierce backlash for proposing limits on gas stoves - a move that sparked widespread public outcry and accusations of government overreach
The DOE has also targeted refrigerators, dishwashers, furnaces, and clothes washers, often citing climate change as justification.
But critics argue that these policies are being pushed without consideration for their cumulative impact on everyday Americans.
As winter storms sweep across the nation, millions of Americans are left wondering how the regulations might impact their ability to stay warm and keep the water running.
For low-income families, the elderly, and those living paycheck to paycheck, the stakes couldn't be higher.
The Biden administration insists that the regulations are a necessary step to combat climate change and reduce greenhouse gas emissions, but for many Americans, the cost of this green transition feels far too high.
President-elect Donald Trump has already vowed to dismantle what he calls the 'extreme climate agenda' of the Biden administration.
With Republicans set to take control of the White House in just over two weeks, the future of such regulations is uncertain.
Still, for families bracing for another cold winter, the damage may already be done.
Critics argue that the rush to finalize such sweeping changes in the twilight days of the Biden presidency is emblematic of an administration out of touch with its people.