Important Colorado Law Update: What HB 23-1161 Means for Your Furnace & Water Heater (Effective January 1, 2026)

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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 on January 1, 2026. This law 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 guide explains what’s changing, how HB 23-1161 affects homeowners, and what steps you can take now to plan ahead for your home and budget.

What Is Colorado House Bill 23-1161?

House Bill 23-1161 is a Colorado law designed to tighten environmental standards for certain residential appliances, including gas-fired furnaces and water heaters.

Beginning January 1, 2026, any new gas furnace or gas water heater sold or installed in Colorado must meet ultra-low nitrogen oxide (NOₓ) emissions standards.

Nitrogen oxides (NOₓ) are gases created when fuels such as natural gas are burned. These emissions contribute to ground-level ozone and smog and can worsen respiratory conditions like asthma. HB 23-1161 aims to reduce this pollution and improve overall air quality across Colorado.

Key Points Homeowners Should Know

• You are not required to replace existing, working equipment because of this law.
• Repairs to existing furnaces and water heaters are still allowed.
• The requirements apply only to new equipment sold or installed on or after January 1, 2026.
• The full bill text is available on the Colorado Legislature website: Colorado HB 23-1161 (official PDF).

Which Furnaces and Water Heaters Are Affected?

HB 23-1161 primarily affects new gas-fired furnaces and gas 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—is not subject to these NOₓ requirements.

If you plan to purchase new gas equipment after January 1, 2026, your choices will be limited to models that meet these stricter emissions standards.

Why HB 23-1161 Matters for Your Home

Cleaner Air and Health Benefits

NOₓ emissions contribute to smog and ground-level ozone, which can reduce air quality and aggravate respiratory issues. By requiring ultra-low NOₓ furnaces and water heaters, HB 23-1161 aims to lower pollution from everyday household appliances and improve public health statewide.

Avoid Unexpected Replacement Costs

As manufacturers transition to compliant equipment, prices may increase and some standard-emission models will no longer be produced. If you wait until your furnace or water heater fails, you may face higher costs and fewer equipment options.

Equipment Availability Concerns

Gas furnaces and water heaters already in Colorado inventory before January 1, 2026 may still be sold for a limited time. Once that inventory is depleted, it will not be replenished. Over time, ultra-low NOₓ models may become the only available option.

What Colorado Homeowners Should Do Now

1. Check the Age and Condition of Your Equipment

If your furnace or water heater is 10–15 years old or showing signs of wear—such as frequent breakdowns, rising energy bills, or inconsistent performance—now is the time to plan. Waiting for a mid-winter failure could limit your choices under the new rules.

2. Ask the Right Questions Before Replacing Equipment

When speaking with a licensed contractor, consider asking:

• Will this unit meet ultra-low NOₓ requirements starting January 1, 2026?
• What is the NOₓ emission rating of this furnace or water heater?
• Are there cost differences between replacing now versus after the law takes effect?

The team at Brothers Plumbing Heating & Electric is happy to walk through these questions so you fully understand your options.

3. Consider Alternative Heating and Water Heating Technologies

Depending on your home, alternatives may include:

• High-efficiency gas furnaces that already meet upcoming standards
• Electric or heat pump furnaces
• Electric or heat pump water heaters

These systems can reduce fossil fuel use and may qualify for rebates or incentives. We can help evaluate which options make sense based on your home and utility rates.

4. Plan for Potential Price Changes

Ultra-low NOₓ equipment is often more complex to manufacture, which can lead to higher prices. Planning ahead allows you to budget, compare options, or explore financing rather than facing a last-minute emergency replacement.

5. Schedule Evaluations and Replacements Early

As the January 1, 2026 deadline approaches, demand for new equipment is likely to increase. This can create scheduling delays, especially during peak heating season. Planning early helps avoid backlogs and stress.

How Brothers Plumbing Heating & Electric Can Help

At Brothers Plumbing Heating & Electric, we know that new laws and regulations can be confusing. Our goal is to make this transition simple, transparent, and stress-free.

When you schedule an estimate with us, our team can:

• Inspect your existing furnace and/or water heater
• Determine whether your equipment is nearing the end of its lifespan
• Explain how HB 23-1161 may affect future replacement options
• Present multiple replacement solutions that fit your comfort needs and budget
• Compare “replace now vs. replace later” scenarios
• Review financing or payment options if needed

We’re here to help you plan ahead and avoid surprises related to pricing or equipment availability.

Frequently Asked Questions About HB 23-1161

Do I have to replace my furnace or water heater because of HB 23-1161?

No. The law applies only to new equipment sold or installed on or after January 1, 2026. If your current system is working, you are not required to replace it. However, older or unreliable systems may be worth replacing on your own timeline.

Are gas furnaces and gas water heaters being banned in Colorado?

No. Gas equipment is not being banned. After January 1, 2026, only ultra-low NOₓ compliant gas models will be allowed for sale or installation. Some standard-emission models will gradually disappear from the market.

Can I still repair my furnace or water heater after 2026?

Yes. HB 23-1161 does not prevent repairs to existing equipment. If repair is safe and cost-effective, it remains a valid option.

Are rebates or incentives available for alternative systems?

Some utilities and government programs offer rebates for heat pumps, electric equipment, or high-efficiency systems. Availability varies and may change. We can help check current incentives for your project.

What should I do first if I’m unsure how this law affects me?

Start by:

• Checking the age of your furnace and water heater
• Scheduling a professional inspection
• Discussing your long-term plans and budget with a licensed contractor

From there, you can decide whether to replace now, plan for the future, or continue with repairs.

Ready to Discuss Your Furnace or Water Heater Options?

You don’t have to navigate HB 23-1161 alone. Brothers Plumbing Heating & Electric is here to explain your options, help you plan ahead, and ensure you make the best decision for your home and family.

We’re committed to:

• Honest, straightforward recommendations
• No-pressure consultations
• Clear explanations of current and future equipment 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.