As of January 1, 2026, Colorado’s updated appliance regulations are officially in effect. If you own a home in Northern Colorado and rely on a gas furnace, water heater, or fireplace, these changes now directly impact what equipment can be installed in your home and how much replacement systems may cost.
Understanding the new Colorado furnace law can help you make informed decisions if your heating or water heating system needs to be replaced this year or beyond.
Colorado’s Ultra Low NOx appliance law (HB23-1161) is now active. The law requires that all newly manufactured gas furnaces and water heaters sold or installed in the state meet Ultra Low NOx (nitrogen oxide) emission standards or qualify as Energy Star–rated equipment.
The purpose of the law is to reduce air pollution and improve air quality across Colorado by lowering NOx emissions from residential appliances.
Important:
Homeowners are not required to replace existing equipment. The law only applies when new equipment is purchased and installed.
For many years, 80% efficient gas furnaces were a common and affordable option for Northern Colorado homes. Now that the law is in place:
Because of the added emissions technology, these furnaces cost more than traditional 80% models.
With Ultra Low NOx requirements now in effect, homeowners should expect higher replacement costs when installing a new system.
Typical cost ranges:
These increases—often approaching 40%—are tied to new manufacturing standards, advanced components, and reduced equipment options.
The law applies to more than just furnaces. Other gas-burning appliances now affected include:
Any newly manufactured and installed units must meet Ultra Low NOx or Energy Star requirements.
Yes. Homeowners can continue to repair and maintain existing furnaces and water heaters. There is no requirement to replace working equipment simply because of the new regulations. However, when replacement becomes necessary, the new standards must be followed.
For some homeowners, replacement in 2026 still makes sense—especially if a system is failing or inefficient.
You may want to consider replacement now if:
Even with higher upfront costs, modern systems can offer improved performance, efficiency, and long-term savings.
Origin Plumbing Heating Cooling Electrical is a Preferred Rebate Contractor with the State of Colorado. Our team helps homeowners understand current rebate programs, tax incentives, and available options, and guides you through selecting and installing systems that meet Colorado’s updated requirements.
We stay up to date on changing regulations so you can move forward with confidence when upgrading or replacing your home’s comfort systems.
