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New federal rule targets certain gas water heaters: Here’s what you should know

  • The Biden administration announced new regulations banning many natural gas water heaters, which will cost consumers an average of $450 more for new appliances.
  • The new rules, effective in 2029, will require tankless gas water heaters to be 13 percent more energy efficient.
  • The American Gas Association claims that the regulations will disproportionately affect low-income households and are likely illegal.
  • The regulations will phase out about 40 percent of current tankless gas water heaters by 2029, raising manufacturing costs and consumer expenses.
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