After urging from industry, and approval of a similar measure by the United States House of Representatives earlier this year, Senator Mike Lee (R-UT) introduced S. 5338 – the Energy Efficiency Reform Act of 2026 (EERA), to the United States Senate. The bill would make significant changes to the federal Energy Policy and Conservation Act (EPCA) that many in the HVAC and water heater industries have been heavily discussing in Washington for the past several months.

Among other provisions, EERA would put an end to the practice of state and local governments banning natural gas appliances in buildings, which are policies that have been proposed in some jurisdictions and enacted in others throughout the country. The bill specifically states: “State restrictions on fuel use…or affecting the sale and use of a covered products are…preempted under this section”. The bill also includes language that would prohibit DOE from regulating non-condensing gas appliances out of existence, as well as preventing the Department from measuring and utilizing the social cost of greenhouse gasses when determining if proposed energy conservation standards are appropriate.

While the bill does not appear to be a finished product, and each provision is worth further discussion for improvement, its mere introduction is a highly positive sign for our industry. Throughout the past few years, plumbers, contractors, manufacturers, and many of our trade associations have actively discussed this issue with members of Congress and their staff on Capitol Hill and explained the realities of how overly aggressive energy conservation standards negatively impact individuals, families and job providers across the United States. Introduction of EERA is direct evidence that these efforts have been and can continue to be effective.

With this legislation now being introduced, the next important phase of the legislative process begins with our industry persisting in making our thoughts and concerns with this bill known in Washington. This requires continued engagement with policymakers on our likes in the bill, as well as offering ideas on how it can be improved.

EERA has been referred to the Senate Committee on Energy and Natural Resources, which Senator Lee Chairs, for further consideration but it has not yet been scheduled for a hearing. Please reach out to your members of Congress and share your thoughts on this bill, and EPCA reform in general. Your perspective on how policy impacts you and your customers is important, and introduction of EERA now proves that. If you need help locating your member of Congress and their contact information, please click here.

As this legislation continues to work its way through the process, BWC Government and Regulatory Affairs staff will be carefully watching all developments and will keep you informed of the latest information. If you have any questions about this situation, or any others pertaining to government and regulatory affairs in our industry, please to do not hesitate to contact us directly at BWCGovReg@bradfordwhite.com.