Big changes are coming! Colorado House Bill 23-1161 is set to go into effect January 1st, 2026 and certain water heaters must meet new requirements. We're still working on some clarifications from the State, but here's what we know...
Last updated 9/29/25
-Gas Water Heaters-
New gas water heater must meet more strict requirements for NOx emissions. This will apply to heaters 2MBTU input or less. It will require a maximum of 10 nanograms of NOx per joule up to 75KBTU and 14 nanograms of NOx for heaters more than 75KBTU and less than 2MBTU.
-Electric Water Heaters-
New electric water heaters must incorporate a CTA-2045 communication port. This will only apply to heaters between 40 and 120 gallons and an input of 12KW or less.
Does this affect existing installations?
No. This only applies to new installations.
Do the regulations impact commercial heaters?
Yes. The law doesn't differentiate between residential and commercial.
Are LP heaters affected?
Yes. LP heaters are required to meet the new emission standards. The majority of ultra-low NOx heaters aren't available in propane, so we are working with the Colorado Department of Public Health and Environment (CDPHE) for guidance on customers that won't have a replacement that meets the emission requirements.
What about manufactured housing?
The law does not apply to heaters that were installed in the manufactured home at the time of construction, but retrofit applications will have to meet the new standards.
Are circulating water heaters (domestic boilers) impacted?
Yes. Tank-style, tankless, and circulating water heaters must comply.
Can I sell noncompliant heaters I still have in my inventory?
Yes. The law does not apply to heaters held in inventory prior to January 1st, 2026.
How will this be enforced?
The CDPHE will conduct unannounced inspections of distributors to ensure compliance. This includes wholesale, retail, and online. An anonymous online reporting system will also allow individuals to report violations. Penalties up to $2000 per violation could be issued.
What is NOx?
A group of air pollutants compose of nitrogen and oxygen. The most common are nitric oxide, nitrogen dioxide, and nitrous oxide. These pollutants contribute to respiratory problems, low-level ozone, reduced visibility, acid rain, and eutrophication.
What is CTA-2045?
A modular communication interface for energy management that utility providers can use to control electric water heaters during events that require demand response. This will optimize energy usage, lowering cost for consumers, reduced peak demand, and increase grid reliability.