State attorneys general, Rinnai challenge U.S. Department of Energy's tankless water heater rule

PEACHTREE CITY, Ga., Jan. 17, 2025 /PRNewswire/ -- Rinnai America Corporation, the leading manufacturer of noncondensing tankless water heaters in North America, joined 21 attorneys general and a broad coalition of business groups in filing a petition for review of the U.S. Department of Energy's final rule on consumer tankless water heaters, which resulted in a de facto ban of popular noncondensing tankless products.

The petition, filed Friday in the United States Circuit Court of Appeals for the Eleventh Circuit, likely represents the last multistate action of the Biden Administration.

In addition to Rinnai, other plaintiffs include the attorneys general of Georgia, Kansas, Tennessee, Alabama, Arkansas, Idaho, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, Utah, Virginia, and West Virginia; the National Propane Gas Association, the National Association of Homebuilders, the American Gas Association, the American Public Gas Association, the Natural Gas Association of Georgia, the Florida Propane Gas Association, and the Florida Natural Gas Association.

"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," Rinnai America President Frank Windsor said. "The Department of Energy's unlawful and ill-considered ban on noncondensing tankless technology interrupts an organic free-market shift towards decarbonization, denies consumer choice, and threatens hundreds of quality U.S. manufacturing jobs. Our employees and the American families we serve are extremely gratified by the outpouring of material support from state attorneys general and federal lawmakers, who have introduced a Congressional Review Act measure to block DOE's rule."

"Once again, the Biden administration shows it's completely out of touch with everyday Americans," Georgia Attorney General Christopher Carr said. "The federal government cannot dictate the type of water heater you choose to own in your home. This is an ill-conceived ban that will only serve to drive up costs for hardworking families who are already struggling to make ends meet."

In December 2024, DOE issued a revised final rulemaking that mandated an efficiency level for consumer instantaneous water heaters that is technologically achieved only by condensing tankless water heaters, which are the most expensive products in the category. Despite mandating a technologically impossible efficiency standard for most tankless water heaters, DOE's final rule did not apply the same standard to less efficient storage tank products.

Rinnai America Corporation employs over 550 workers at its U.S. headquarters, manufacturing facilities, and distribution centers. In 2021, Rinnai opened a 360,000-square-foot state-of-the-art manufacturing facility in Griffin, Georgia. Over the last five years, the company has invested more than $100 million to expand U.S. manufacturing capacity of tankless water heaters.

Media contact:
James Richardson, Dentons US LLP
[email protected]

About Rinnai:

Rinnai America Corporation, a subsidiary of Rinnai Corporation in Nagoya, Japan, was established in 1974 and is headquartered in Peachtree City, Georgia. Rinnai Corporation manufactures gas appliances, including tankless water heaters, a wide range of kitchen appliances, and heating and air conditioning units. As the technology leader in its industry, Rinnai is the largest gas appliance manufacturer in Japan and is a top-selling brand of tankless gas water heaters in the United States and Canada. Annual corporate revenues, including those of its subsidiaries, are in excess of $3.3 billion. With a global perspective to create 21st-century products for the home and business, Rinnai Corporation commits itself to safety and Creating a healthier way of living^®. For more information about Rinnai's entire product line, visit rinnai.us.

Copyright 2024. All rights reserved. Rinnai^® and Creating a healthier way of living^® are the registered trademarks of Rinnai Corporation used under license by Rinnai America Corporation.

SOURCE Rinnai America