Disapproval of energy efficiency standard

Full Title:
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Energy relating to "Energy Conservation Program: Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters".

Summary#

This joint resolution cancels a Department of Energy (DOE) regulation that set new energy efficiency rules for consumer gas-fired instantaneous (tankless) water heaters. The resolution says the rule published on December 26, 2024, has no force or effect. It was passed by Congress and signed into law on May 9, 2025.

  • Main change: The DOE rule titled “Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters” (89 Fed. Reg. 105188) is nullified.
  • Legal effect: Congress used the Congressional Review Act (chapter 8 of title 5, U.S. Code) to disapprove the rule.
  • Broader consequence: Under that law, the DOE generally may not issue a “substantially the same” rule again unless Congress later authorizes it.
  • Timing: The resolution was enacted into law on May 9, 2025.
  • What is unclear: The bill text here does not include the detailed technical standards that the DOE rule would have required, or the rule’s compliance date.

What it means for you#

  • Manufacturers of gas tankless water heaters: The new federal efficiency requirements in the DOE rule no longer apply. This could mean you do not have to redesign products or meet the specific standards that were in the December 2024 rule.
  • Retailers and installers: You would not be required to stop selling or installing existing models because of the canceled rule. Inventory and product offerings remain governed by prior standards (the rule does not impose new sale bans).
  • Consumers (homeowners, renters): There is no change from current federal rules because the new DOE standard was canceled. This could mean that any expected increases in upfront cost or improvements in long‑term energy savings tied to the canceled rule will not occur due to this law.
  • State and local governments: State or local energy-efficiency rules are not directly changed by this federal disapproval. States can still set their own standards if allowed by federal law.
  • Department of Energy: DOE cannot enforce the canceled rule and is limited from issuing a substantially similar rule in the future unless Congress allows it.

Expenses#

No publicly available information on federal cost estimates or a fiscal note is included with the material provided.

  • Possible private costs or savings (not stated in the bill): manufacturers might avoid compliance costs tied to the canceled standard; consumers might avoid higher purchase prices but also miss some long-term energy savings. These are reasonable possibilities based on the nature of efficiency standards, but the bill text does not provide numbers or official estimates.
  • Possible administrative effect: DOE would not carry out activities required to implement or enforce the canceled rule, but no cost estimate for that change is given.

Proponents' View#

The bill appears intended to block the DOE rule. Possible arguments in favor, drawn from that purpose, include:

  • The bill appears intended to prevent the immediate legal effect of the DOE standard on gas-fired instantaneous water heaters.
  • A possible argument for the bill is that canceling the rule avoids new regulatory or manufacturing costs that would come from complying with the DOE standard.
  • Supporters may view this as preserving existing product choices and market arrangements until a different standard is negotiated or authorized.

(These are inferred from the action of disapproval. The provided material does not include direct public statements from supporters.)

Opponents' View#

Possible concerns or criticisms that follow from canceling an energy-efficiency rule include:

  • One concern is that nullifying the DOE standard could reduce expected energy savings and associated reductions in utility bills or greenhouse gas emissions that the DOE rule was intended to deliver.
  • The bill does not explain the technical details or projected impacts of the canceled rule, so it is unclear how large any lost savings or costs avoided would be.
  • Another concern is that using the Congressional Review Act blocks the agency from issuing a substantially similar rule without new congressional action. That could limit the agency’s ability to update standards in the near term even if new data supports them.
  • It is unclear how this change affects state or private-sector initiatives that were relying on the federal standard to drive product changes.

(These concerns are drawn from the effect of disapproving an agency rule. The provided material does not include explicit criticisms from named opponents.)