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US plans water heater standards, says will save consumers $11 bln yearly

Reuters.com · last updated

The U.S. Department of Energy on Friday proposed energy efficiency standards on water heaters it said would save consumers $11.4 billion on energy and water bills annually. The standards on residential water heater efficiency, which are required by Congress, have not been updated in 13 years. Water heating is responsible for roughly 13% of both annual residential energy use and consumer utility costs, the DOE said. The proposal would require the most common-sized electric water heaters to achieve efficiency gains with heat pump technology and gas-fired water heaters to achieve efficiency gains through condensing technology. The standards, to take effect in 2029 if finalized, are expected to save nearly $200 billion and reduce more than 500 million metric tonnes of carbon dioxide emissions over 30 years, about equal to the combined annual emissions of 63 million homes, or approximately 50 percent of homes in the United States, the DOE said. Energy Secretary Jennifer Granholm said the proposal “builds on the unprecedented actions already taken by this administration to lower energy costs for working families”. The administration of President Joe Biden, a Democrat, has issued proposed or final efficiency standards for 18 product categories so far this year. Former President Donald Trump, a Republican, complained about efficiency standards for shower heads saying that they interfered with the rinsing of his hair. His Energy Department eased energy standards on such fixtures. The Biden administration reversed the rule on shower heads in 2021. Our Standards: The Thomson Reuters Trust Principles.

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State of Play

The energy price spikes of the 1970s drove consumers, businesses and government to calculate opportunities for energy efficiency — investments, practices, and regulations to avoid some of the energy costs associated with particular products or services. Those calculations ran counter to a lot of engrained practices, and the friction between business and government is a feature of energy and environment policy discussions. Now, energy efficiency decisions — whether involving building practices, appliance efficiency, or vehicle mileage and emissions standards — are a complex mix of government regulation and market behavior.

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