2026-08145Proposed RuleWallet

Gas Groups Push DOE to Delay Water Heater Energy Rules

Published Date: 4/27/2026

Proposed Rule

Summary

The Department of Energy got a request from gas and propane groups to change the deadlines for new energy-saving rules on commercial water heaters and home furnaces. DOE wants your thoughts on whether to approve this and possibly update the rules. If you care about energy bills or equipment rules, now’s the time to speak up before May 27, 2026!

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

Petition to Delay Consumer Furnace Deadline

Petitioners asked DOE to amend the consumer furnace standard compliance date from December 18, 2028 to at least January 1, 2030. The December 18, 2028 final rule sets a 95% AFUE standard that the petitioners say effectively requires condensing technology and that changing the compliance date would preserve homeowner fuel choice and limit near-term costs.

Consumer Furnace Standard Would Ban Non‑Condensing Units

The December 18, 2023 consumer furnace standard (95% AFUE) is described as effectively banning manufacturing of non‑condensing furnaces. The petition states non‑condensing furnaces are about 55% of the U.S. natural gas furnace market and that the rule would negatively affect 30% of senior‑only households, 26% of low‑income households, 27% of small business consumers, and 39% of mobile‑home gas furnace consumers.

Petition to Delay Commercial Water Heater Rule

The American Gas Association, American Public Gas Association, and National Propane Gas Association asked DOE to change the compliance date for the commercial water heater standard from October 6, 2026 to at least January 1, 2030. The standard sets thermal efficiency (TE) requirements (95% TE and 96% TE) that effectively require condensing technology; the petition says extending the date would reduce regulatory burden and uncertainty for manufacturers and others.

Manufacturers Face Stranded Investment Risk

The petition says manufacturers and associated venting‑equipment makers are spending millions to prepare to comply and that those expenditures could be stranded if the rules are later found unlawful. The petitioners request amending compliance dates to avoid those stranded investments and regulatory uncertainty.

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Key Dates

Published Date
Comments Due
4/27/2026
5/27/2026

Department and Agencies

Department
Independent Agency
Agency
Energy Department
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