Senate passes S.J.Res.4 to preserve customer water heater choice
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UPDATE – April 10: The Senate has passed S.J.Res.4 with a 53-44 vote, taking a major step toward overturning DOE’s ban on non-condensing tankless water heaters. ACCA has supported this resolution from its introduction, recognizing the critical importance of preserving consumer choice and contractor flexibility in water heater installations.
While this Senate passage represents important progress, ACCA encourages contractors to continue advocating for similar protective measures at the state level. We will closely monitor developments as the resolution moves forward and provide regular updates to ensure you remain informed of any changes that could impact your businesses and customers.
This development underscores the impact that industry advocacy can have on regulatory decisions affecting the HVACR industry.
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UPDATE – April 2: The Senate vote on S.J.Res.4, which would overturn DOE’s ban on non-condensing tankless water heaters, has been delayed by a filibuster—but the April 7 deadline to act remains firm.
The House has already passed its version (H.J.Res.20) to stop this regulation that would eliminate viable options for older buildings and multi-unit housing where condensing models are often impossible to install.
Time is running out. If the Senate doesn’t act by April 7, the opportunity to use the streamlined CRA process expires. A vote could happen as early as April 3, but there’s still time to make your voice heard. Take one minute to participate in ACCA’s Action Alert to tell your Senators to vote YES on S.J.Res.4 and preserve contractor installation options.
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Today, the House of Representatives passed H.J.Res.20, a Congressional Review Act (CRA) resolution disapproving of the Department of Energy’s (DOE) recent rule on energy conservation standards for gas-fired instantaneous water heaters. This rule, finalized by DOE last year, bans non-condensing instantaneous (tankless) gas water heaters effective December 26, 2029. By doing so, it eliminates a technically feasible, cost-effective option that consumers currently depend on, despite violating the Energy Policy and Conservation Act (EPCA). EPCA explicitly prohibits standards that eliminate product classes with distinct performance characteristics. For HVACR contractors, this ban would limit product offerings to customers, reduce installation flexibility, and potentially decrease revenue opportunities in retrofit situations. Plus, the rule disproportionately affects those living in older buildings and residents of multi-unit housing where condensing models can be technically difficult, expensive, and even impossible to install.
The Congressional Review Act (CRA) allows Congress to review and overturn federal regulations by passing a joint resolution of disapproval. If both the House and Senate approve the resolution by a simple majority and the President signs it, the regulation is nullified. Also, federal agencies are prohibited from issuing a substantially similar rule in the future, meaning any attempt to reinstate a ban on non-condensing tankless water heaters would be blocked, preserving contractors’ ability to offer a full range of solutions to meet diverse customer needs.
Congress has 60 legislative days (days in which Congress is in session) to act on a CRA resolution. If lawmakers fail to pass the resolution within this window, the opportunity closes, and any effort to repeal the regulation must go through the full legislative process. This means committee consideration, floor debate, and, in the Senate, overcoming the 60-vote filibuster threshold—a significantly higher bar for repeal.
Having supported H.J.Res.20, ACCA is thrilled that it passed the House. There is more work to be done, though. The Senate companion resolution, S.J.Res.4, introduced by Senator Ted Cruz (R-TX), has 14 cosponsors and is awaiting action. The clock is ticking. The Senate has until April 7 to act. If you haven’t already, please take a moment to participate in ACCA’s S.J.Res.4 Action Alert to let your Senators know why they should support this resolution. For more information or assistance, please contact ACCA’s Government Relations team at govt@acca.org.
Posted In: Government