The U.S. House of Representatives has passed a resolution to repeal efficiency standards for water heaters, igniting debate over consumer costs, energy savings, and environmental impact. The resolution, H.J.Res.20, aims to overturn Department of Energy (DOE) standards using the Congressional Review Act (CRA).
Battle Lines Drawn Over Tankless Water Heaters
At the center of the controversy are efficiency requirements for gas tankless water heaters set to take effect in 2029. These standards would require new tankless units to use about 13% less energy than today’s least efficient models.
Congressman Gary Palmer, who introduced the resolution, framed the vote as protecting consumer choice.
“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,” Palmer told Alabama Daily News.
However, Rep. Frank Pallone Jr. (D-NJ) countered this characterization on the House floor: “This isn’t an effort to pull products from shelves – instead it is an effort to raise the quality of products on the shelves.”
The Numbers: Costs vs. Savings
The DOE estimates these standards would save households $7.6 billion annually on energy and water bills. Over 30 years, Americans could save $124 billion while reducing carbon emissions by 332 million metric tons.
For individual households, the DOE calculated an average savings of $112 over the lifetime of a new water heater compared to less-efficient models, with cumulative consumer savings of $3.1 billion.
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Industry groups present a different picture. The American Gas Association labeled the rule “concerning” and “irresponsible,” while the National Association of Home Builders warned of “unnecessary challenges” for homebuilders.
Technical Reality Check
Industry analysis shows about 60% of new tankless units sold already meet these standards, and all major manufacturers offer compliant models. Since tankless water heaters represent less than 10% of all gas water heaters sold, the standards would affect only a small segment of the market.
One manufacturer, Rinnai, has lobbied against the standards, estimating it would cost $15 million to retrofit a non-compliant production plant. The company earned approximately $250 million in profits in 2024 with nearly $1 billion in cash reserves.
Consumer Advocacy Response
Jackie Wong, senior vice president of Climate & Energy at the Natural Resources Defense Council (NRDC), criticized the repeal effort: “Water heaters are one of the biggest energy hogs in your home; so, a vote for this bill is a vote to increase Americans’ monthly energy bills.”
Courtney Griffin, director of consumer product safety at Consumer Federation of America, was equally direct: “Canceling tankless water heater efficiency standards isn’t about consumer choice—it’s about higher energy bills.”
What’s Next
The resolution now moves to the Senate, where Senator Ted Cruz (R-TX) is sponsoring the measure. If passed by the Senate and signed by President Trump, the repeal would prevent the DOE from implementing similar standards in the future.
The Trump Administration has already expressed strong support for Palmer’s resolution, stating the rule would make it “harder for American home owners to maintain affordable living standards.”
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The Technical Context
These standards were part of a broader DOE effort that included updated efficiency requirements for electric tank and gas tank water heaters. The standards were actually due six years ago by law and were based on efficiency levels recommended by a coalition that included product manufacturers, consumer advocates, and environmental groups.