Appliance energy efficiency standards have quietly benefited American households for decades, putting money back in Americans’ wallets while driving innovation. However, efforts in Congress to roll back energy efficiency standards for tankless water heaters will have significant negative effects for American consumers.  

The standards, finalized in December 2024, require new gas-powered tankless water heaters to consume 13% less energy than the least efficient models currently available. The truth is that rolling back the standards will increase energy bills and stall innovation toward better, more efficient American products. 

Consumer Costs and Savings 

The updated efficiency standards are designed to help consumers save money without sacrificing performance. Under the new standards, American households will save $112 in total costs per unit, while collectively reducing energy costs by $3.1 billion over the coming decades. By rolling back these standards, Congress would stick American households with outdated, less efficient models that drive up energy bills. 

Consumer Choice 

Claims from some gas utilities that the updated standards impinge on consumer choice are misleading. Most existing models already meet the new standards, and manufacturers have a full five years to update their less-efficient models. In fact, some manufacturers supported the rule because it aligns with the broader market shift toward higher-efficiency appliances. Undoing the updated standards benefits one manufacturer unwilling to modernize, at the expense of American consumers who lose out on long-term savings and technological progress.  

A Step Backward 

In using the Congressional Review Act to rollback these updated standards, Congress would be siding with one manufacturer while leaving American consumers with the bill. Far from being an example of government overreach, the updated standards represent a collaborative process that included input from key stakeholders, including manufacturers, consumer groups, and energy efficiency experts. As a result, the updated standards deliver tangible economic benefits for American families.  

Conclusion 

The updated tankless water heater standards are a win for American consumers. The long-term consumer benefits of energy efficiency far outweigh one manufacturer having to invest to update a plant.  We call on Congress to act in the best interest of all Americans, not just corporate interests.