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• Colorado and other states are banning new gas furnaces and water heaters unless they meet strict low-emission or efficiency standards starting in 2025-2026.
• The rules require a shift to electric heat pumps or hybrid systems and new refrigerants, impacting HVAC training, equipment sourcing, and installation practices.
• Non-compliance can lead to fines and failed inspections, forcing contractors and manufacturers to adapt quickly to updated regulations and increased costs.

Starting January 1, 2026, new Colorado laws will ban most new gas furnaces and water heaters in homes unless they meet very strict pollution rules or energy-saving ratings. This means heating and cooling professionals must switch to electric heat pumps or special hybrid systems that meet these new standards. These changes affect HVAC contractors, equipment makers, and building managers who now have to follow new training, find updated parts, and handle tougher inspections. The rules are part of a wider push in several states to reduce pollution and improve energy efficiency in heating and cooling systems.

Preparing Now for Colorado’s New Gas Equipment Laws

HVAC professionals should start training right away on installing electric heat pumps, which are the new preferred systems. These heat pumps use electricity instead of gas and are more eco-friendly. Updating certifications to meet the latest heat pump standards will be crucial. Next, source equipment that meets strict emission and energy rules—this means looking for ultra-low nitrogen oxide, or NOx, models and those with Energy Star labels. Keep in mind that supply chains are tight as manufacturers adjust to new federal efficiency rules and safer refrigerants like R-454B and R-32, which are mildly flammable and replacing older types. Also, talk with your customers early about switching from gas furnaces or water heaters, since new installations of non-compliant gas units will no longer be allowed after January 1, 2026. Help them plan upgrades to avoid fines or inspection failures under the 2024 building codes. Finally, expect equipment costs to rise by 5-10%, so start budgeting accordingly. Taking these steps today will keep you ready and competitive as Colorado’s electrification rules take effect.

Market Impact: Supply, Pricing, and Manufacturer Changes

The new electrification laws in Colorado are shaking up the HVAC market. Contractors now face tighter inventory risks because gas furnaces and water heaters must meet strict pollution and energy rules—or be electric heat pumps instead. This means manufacturers have to redesign products to handle new refrigerants like R-454B and R-32, which are mildly flammable but much better for the environment. These changes create supply chain challenges as factories adjust, causing delays and limiting equipment availability. To cover redesign and production costs, manufacturers plan to increase prices by about 5–10% starting in 2026. Distributors and contractors should prepare for these cost rises and possible shortages when ordering. Also, new equipment demands extra staff training, adding to expenses. Overall, the market is shifting toward more expensive, highly regulated products, making budgeting and inventory planning tougher. Staying ahead means working closely with suppliers and keeping an eye on the latest product certifications to avoid being caught off guard.

What HVAC Technicians Need to Know About New Colorado Rules

Starting January 2026, new Colorado rules ban most new gas furnaces and water heaters unless they meet very strict pollution limits called ultra-low NOx emissions or the latest Energy Star standards, which mean better energy efficiency. This means HVAC techs must shift to installing electric heat pumps or special hybrid systems that combine gas and electric. To keep up, technicians need to update their training, especially on heat pump design and installation, following guidelines from groups like ASHRAE. Since newer heat pumps use refrigerants like R-454B or R-32, which are mildly flammable and called A2L refrigerants, techs must learn safe handling and certification for these chemicals. Also, new equipment has different efficiency ratings (like SEER2) requiring careful understanding during installation and maintenance. On the job, technicians will face inspections that won't approve non-compliant gas equipment, so mistakes could stop a project or cause fines. Overall, HVAC professionals must adapt quickly by learning new skills, following updated safety rules, and stocking approved equipment to stay on the job and keep customers satisfied.

Colorado Electrification Rules and Deadlines

Starting January 1, 2026, Colorado will ban the installation of new residential gas furnaces and water heaters unless they meet ultra-low NOx (nitrogen oxide) emissions or the latest Energy Star efficiency standards. These rules apply statewide and align with similar laws in at least 13 other states, including California and New York. HVAC professionals must follow these regulations when installing heating equipment. The law requires switching to electric heat pumps or hybrid systems that comply with the new emissions and efficiency limits. Non-compliant gas equipment cannot be installed, or contractors may face fines and failed inspections under the 2024 International Energy Conservation Code (IECC). Manufacturers must redesign equipment to meet these standards by 2026, which affects the types available to installers. Additionally, new HVAC systems must use updated refrigerants with low global warming potential, like R-454B or R-32, which are mildly flammable (called A2L refrigerants). These refrigerants replace older types, such as R-410A, which will be phased out after 2025. Contractors need updated training to handle these new systems safely and legally.

Key Takeaways

• Colorado bans new residential gas furnaces and water heaters unless they meet ultra-low NOx or latest Energy Star standards starting 2026.
• HVAC pros must update training and certification to handle electric heat pumps and hybrid systems to comply with new rules.
• Manufacturers face 5-10% price increases in 2026 due to equipment redesigns for SEER2 ratings and A2L refrigerants.
• Non-compliance risks job stoppages and fines under IECC 2024 code; immediate adaptation is required to meet state mandates.

Frequently Asked Questions

What are the new deadlines for complying with Colorado’s electrification laws?

Starting January 1, 2026, contractors cannot install new residential gas furnaces or water heaters unless they meet ultra-low NOx or Energy Star standards. It’s important to prepare now to avoid delays or job cancellations.

What is A2L refrigerant, and why is it important for new HVAC systems?

A2L refrigerants like R-454B and R-32 are mildly flammable but more environmentally friendly than older options like R-410A. Handling these safely requires special training and equipment, so make sure your team is certified and ready.

How should contractors manage inventory risks with the shift to compliant electric heat pumps?

Supply chains are tightening as manufacturers retool for new efficiency and refrigerant standards, so plan orders carefully and build relationships with suppliers to avoid stock shortages or delays.

What changes should HVAC professionals expect from manufacturers and installers under these new laws?

Manufacturers are redesigning equipment, causing price increases around 5-10% starting in 2026. Installers will need updated training for heat pump technology and A2L refrigerant handling to meet new codes and customer demands.

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