Important Colorado Law Update: What HB 23-1161 Means for Your Furnace & Water Heater (Effective January 1, 2026)
Colorado homeowners – if you’re planning to replace your furnace or water heater in the next few years, there’s an important change coming that may affect your options, timing, and budget.
Colorado House Bill 23-1161 (HB 23-1161) introduces new environmental and emissions standards for gas-fired furnaces and water heaters that go into effect
January 1, 2026. This does not ban gas equipment, but it does change what types of units can be sold and installed in Colorado after that date.
At Brothers Plumbing Heating & Electric, we want you to be informed, prepared, and confident. This page explains what’s changing, how it affects you, and what you can do now to plan ahead for your home and your budget.
What Is House Bill 23-1161?
House Bill 23-1161 is a Colorado law that tightens environmental standards for certain home appliances, including gas-fired furnaces and water heaters. Starting January 1, 2026, any new gas furnace or water heater sold or installed in Colorado must meet ultra-low nitrogen oxide (NOₓ) emissions standards.
Nitrogen oxides (NOₓ) are gases produced when fuels like natural gas are burned. These emissions contribute to ground-level ozone, smog, and can aggravate respiratory conditions such as asthma. HB 23-1161 is designed to reduce this type of pollution and improve Colorado’s air quality.
A few key points:
- You are not required to replace existing, working equipment just because the law took effect.
- Repairs to existing furnaces and water heaters are still allowed; the rules apply to new units only.
You can review the full bill text on the Colorado Legislature website:
Colorado HB 23-1161 (official PDF).
Which Equipment Is Affected?
HB 23-1161 primarily affects new gas-fired furnaces and water heaters installed after the effective date. In general:
- Gas water heaters up to specific BTU input levels must meet strict ultra-low NOₓ emission limits.
- Gas furnaces (including common fan-type central furnaces) must also comply with ultra-low NOₓ standards.
- Electric equipment such as heat pumps, electric furnaces, and electric water heaters are not limited by these NOₓ requirements.
If you purchase new gas equipment after January 1, 2026, your options will be limited to models that meet these more stringent emission levels.
Why This Matters for Your Home
Cleaner Air & Health Benefits
NOₓ emissions contribute to smog and ground-level ozone, which can impact air quality and worsen respiratory issues. By requiring ultra-low NOₓ furnaces and water heaters, the law aims to cut pollution from everyday home appliances and improve overall air quality across Colorado.
Avoid Cost Surprises
As manufacturers update equipment to meet the new standards, equipment prices may increase, and certain standard-emission models will no longer be produced. If you wait until your system fails, you could be facing higher equipment costs and fewer choices.
Inventory & Availability
Units already in Colorado inventory before January 1, 2026 may still be sold for a period of time, but once that stock is gone, it will not be replenished. That means options for older-style equipment will gradually shrink, and in some cases, ultra-low NOₓ equipment may become the only choice.
What You Should Do Now
1. Check Your Equipment’s Age & Condition
If your furnace or water heater is 10–15 years old or showing signs of age — frequent breakdowns, higher energy bills, or inconsistent performance — now is the time to start planning. Waiting until a mid-winter failure could leave you with limited options under the new rules.
2. Ask Your Contractor Key Questions
When you speak with a contractor about replacement, consider asking:
- Will this unit meet the ultra-low NOₓ requirements that start January 1, 2026?
- What is the NOₓ emission rating of the proposed furnace or water heater?
- Are there cost differences if I replace now versus waiting until after the new law is in effect?
Our team at Brothers Plumbing Heating & Electric is happy to walk through these questions with you so you fully understand your options.
3. Explore Alternative Technologies
In some homes, it may make sense to consider alternatives such as:
- High-efficiency gas furnaces that already meet or exceed upcoming standards
- Electric or heat pump furnaces
- Electric or heat pump water heaters
These systems may reduce your reliance on fossil fuels and can sometimes qualify for rebates or incentives. We can help you evaluate what makes sense for your specific home and utility rates.
4. Budget for Possible Premiums
Ultra-low NOₓ equipment can be more complex and costly to manufacture. That may translate into higher prices for some models once the new standards are fully in place. Planning ahead allows you to budget over time or explore financing options instead of being forced into an emergency replacement at a higher cost.
5. Schedule in Advance
As the January 1, 2026 deadline approaches, more homeowners will decide to upgrade their equipment. This can create scheduling backlogs, especially during the busy heating season. Scheduling an evaluation or replacement early can help you avoid delays and last-minute stress.
How Brothers Plumbing Heating & Electric Can Support You
At Brothers Plumbing Heating & Electric, we understand that new laws and regulations can be confusing. Our job is to make this transition as simple, transparent, and low-stress as possible for you.
When you schedule an estimate with us, our team can:
- Inspect your current furnace and/or water heater
- Identify whether your equipment is nearing end-of-life
- Explain how HB 23-1161 may affect your future replacement options
- Present different replacement choices that fit your comfort needs and budget
- Compare “replace now vs. later” scenarios so you can make an informed decision
- Review financing or payment options if you want to spread out costs
We’re here to answer your questions, help you plan ahead, and make sure you’re never surprised by a sudden change in availability or pricing.
Frequently Asked Questions About HB 23-1161 & Your Home
Do I have to replace my furnace or water heater because of this law?
No. HB 23-1161 applies only to new equipment sold or installed on or after January 1, 2026. If your current system is still running, you are not required to replace it just because the law is in effect. However, if your equipment is older or unreliable, it may be wise to plan a replacement on your own timeline instead of waiting until it fails.
Are gas furnaces and gas water heaters being banned?
No. Gas equipment is not being banned. However, after January 1, 2026, only ultra-low NOₓ compliant models will be allowed to be sold or installed in Colorado. Some of today’s standard-emission models will gradually disappear from the market.
Can I still repair my existing furnace or water heater after 2026?
Yes. The law does not prevent you from repairing your existing equipment. It focuses on the sale and installation of new units. If repair is a safe and cost-effective option for your situation, our technicians will always discuss it with you.
Will there be rebates or incentives for alternative systems?
In some areas, utilities or government programs offer rebates for heat pumps, high-efficiency equipment, or electric/heat pump water heaters. Availability and amounts vary by program and can change over time. We can help you check current offers and determine whether any incentives apply to your project.
What should I do first if I’m unsure?
Your best first step is to:
- Find out how old your furnace and water heater are.
- Schedule a professional evaluation of their condition and safety.
- Talk through your budget and long-term plans with a licensed contractor.
From there, you can decide whether to replace soon, prepare a future budget, or continue with repairs for now.
Ready to Talk About Your Options? We’re Here to Help.
You don’t have to figure out HB 23-1161 on your own. The team at Brothers Plumbing Heating & Electric is here to guide you through the changes, explain your equipment options, and help you make the best decision for your home and family.
Whether you’re planning ahead or dealing with a current issue, we’re committed to:
- Honest, straightforward recommendations
- No-pressure consultations
- Clear explanations of your options under current and future rules
- Helping you budget and prepare for upcoming changes
If you have questions about HB 23-1161 or want your furnace and water heater evaluated, we’re ready to help.
Schedule an appointment or request an estimate at BrothersPlumbing.com
