Rinnai and 21 Attorneys General Challenge New Tankless Water Heater Rules
In a significant move against federal regulation, Rinnai America Corporation, a major player in the North American tankless water heater market, has joined forces with 21 state attorneys general in a legal battle against the U.S. Department of Energy (DOE). The coalition has filed a petition in the United States Circuit Court of Appeals for the Eleventh Circuit, contesting a recent DOE ruling that effectively bans noncondensing tankless water heaters, products long favored for their efficiency and low environmental impact.
The petition claims that the DOE's new measures amount to an unlawful prohibition on popular noncondensing tankless technologies that have demonstrably reduced carbon emissions in the U.S. since their introduction. Rinnai's President, Frank Windsor, emphasized the product's role in promoting a greener future, stating, "Noncondensing tankless water heaters have saved tens of billions of pounds of carbon emissions in just the few years they have been on the market."
Joining Rinnai in this endeavor are attorneys general from numerous states, including Georgia, Kansas, and Texas, as well as several industry associations like the National Propane Gas Association and the American Gas Association. The coalition argues that the DOE's decision disrupts a natural market transition toward decarbonization and unduly restricts consumer options, which could lead to increased costs and diminished job security in the manufacturing sector.
The contentious rule establishes a new efficiency standard for consumer instantaneous water heaters that can only be met by condensing models, which are more costly and less accessible to many consumers. Critics point out that this standard significantly diverges from regulations applied to traditional storage tank products, raising questions about fairness and regulatory consistency.
Georgia Attorney General Christopher Carr criticized the Biden Administration, arguing that the federal government should not dictate the types of appliances consumers are allowed to choose. He contended that this ruling would exacerbate the financial strain on families already struggling to balance their budgets.
The legal challenge was filed in the wake of a DOE final rule issued in December 2024 that many industry advocates viewed as unrealistic. The response from Rinnai and the coalition indicates a broader frustration with federal overreach in the appliance market and a commitment to defending consumer choice.
Rinnai’s efforts come on the heels of significant investments in U.S. manufacturing, including a state-of-the-art facility in Griffin, Georgia, opened in 2021. With over 550 employees and a stark commitment to enhancing local job markets, Rinnai sees this challenge not just in terms of regulatory compliance, but as a safeguard for the future of American manufacturing jobs.
The outcome of this legal action will be closely watched, as it may set a precedent for future regulatory measures affecting the home appliance industry. As the coalition rallies support both in legal courts and among public sentiment, it remains to be seen how the DOE will respond to these mounting pressures. Rinnai's President has voiced optimism about the support received so far, hinting at a strong resolve to challenge policies perceived as detrimental to consumers and proactive environmental efforts.
For Rinnai, the fight symbolizes a significant crossroads between regulation and innovation, revealing the complexities of achieving both desirable environmental outcomes and preserving market dynamics essential for consumer choice. The upcoming proceedings could shape the landscape for water heater technology in America, as both the company and supporting states push back against what they term a misguided regulatory move.