ASA Platinum Supplier Partner Spotlight

As federal commercial and residential efficiency standards approach, the water heating industry faces a pivotal moment. A. O. Smith is committed to leading through change by working closely with the American Supply Association (ASA) to ensure the channel is informed, prepared and positioned to support customers.

At the center of today’s regulatory landscape is the Energy Policy and Conservation Act (EPCA), which establishes energy conservation standards for consumer products and commercial and industrial equipment, including water heaters. EPCA also requires the U.S. Department of Energy (DOE) to periodically review these standards to determine whether more stringent requirements are technologically feasible, economically justified and capable of delivering significant energy savings.

“Our role is to ensure the voice of the industry is heard as these standards are developed,” said Josh Greene, vice president of government, regulatory and industry affairs for A. O. Smith. “Advocacy means working with regulators to arrive at solutions that support efficiency goals while remaining practical for manufacturers, distributors and contractors.”

Under this authority, DOE has issued final rules amending energy conservation standards for both residential and commercial water heating equipment, representing one of the most significant regulatory transitions the industry has faced.

Preparing the channels for new standards

DOE has also finalized amended standards for commercial storage water heaters, which go into effect Oct. 6, 2026. Under the new standard, all gas-fired storage water heaters must meet high-efficiency, condensing levels, and manufacturers will no longer be permitted to sell noncondensing technology. Electric storage water heaters will also face increased standby loss efficiency requirements.

Because commercial equipment often serves large facilities and complex applications, preparation across the supply chain is especially important.

“Commercial DOE standards require a high level of coordination across the supply chain,” said Matt Schulz, commercial product manager for A. O. Smith. “The more informed distributors and contractors are today, the smoother the transition will be when the standards take effect.”

For residential products, changes are being implemented through the National Appliance Energy Conservation Act (NAECA). The new standards, commonly referred to as NAECA 4, take effect May 6, 2029. They primarily impact electric storage water heaters over 35 gallons, which will be required to use heat pump technology. Gas-fired storage water heaters will also see modest efficiency increases. DOE estimates the updated residential standards will save American households about $7.6 billion annually in combined energy and water costs.

Clear, actionable guidance is critical to supporting the channel through the transition.

“Distributors need clarity early so they can plan inventory, training and customer communications confidently,” said Dave Richardson, residential product manager for A. O. Smith. “Our focus is making sure those requirements are understood long before they take effect.”

Education and advocacy as the foundation for readiness

Education remains a cornerstone of A. O. Smith’s regulatory readiness strategy. A. O. Smith University offers virtual and in-person training programs designed to support regulatory transitions. These programs explain what the new standards require and why they matter, equipping the channel to guide customer decisions with confidence.

It’s important for manufacturers to be a go-to source for information on changing efficiency standards. A. O. Smith is focused on educating customers on the logistics and specifics of the transition, so distributors and contractors are prepared well in advance.

To streamline communication, A. O. Smith maintains a dedicated webpage focused on DOE regulatory changes, providing updates and educational resources for distributors and contractors.

Collaboration with ASA is fundamental to this work. ASA provides a critical forum for distributor perspectives, helping ensure regulatory discussions remain grounded in real-world supply chain considerations. A. O. Smith values this partnership and supports ASA-led education and advocacy efforts.

Change is inevitable; preparedness is a choice. With clear timelines now established for both commercial and residential standards, A. O. Smith is choosing to lead by advocating for the industry, educating the channel, and working alongside ASA to help distributors navigate regulatory change with confidence.