A New Colorado Law Took Effect in January—Why Acting Now Could Save You Thousands

If you’ve been thinking about replacing your furnace or water heater in Denver, Colorado just put a deadline on that decision.

Beginning January 1, 2026, a new state law changed how gas furnaces and water heaters can be manufactured for sale here—meaning fewer equipment choices and higher prices for many homeowners. The solution? If your system is aging, acting before the switch can help you avoid the biggest cost jump and lock in options that may not be available once the current inventory is gone.

Here’s what House Bill 23-1161 means—and why replacing sooner could save you thousands.

House Bill 23-1161

Beginning January 1, 2026, Colorado’s House Bill 23-1161 set new emissions standards for gas-fired central furnaces and water heaters. These Ultra Low NOx (ULN) regulations officially changed how furnaces and water heaters are manufactured for sale in our state. All new units must meet NOₓ (nitrogen oxide) emissions limits.

Nitrogen oxides are gases produced when fuel is burned in appliances like furnaces and boilers. These emissions contribute to smog and poor air quality. Ultra Low NOx furnaces and water heaters use advanced combustion technology to significantly reduce those emissions—often by 65–75% compared to older systems.

Why This Bill Is Important

By tightening emissions standards for household heating equipment, the law aims to reduce smog and protect public health, particularly important in Denver’s high elevation. Our air quality is notably sensitive due to the combination of altitude, dry air, intense sun, and ground-level ozone, which significantly impacts respiratory health.

Beginning January 1, 2026, only Ultra Low NOx–compliant furnaces and water heaters can be manufactured for sale in Colorado. Standard-efficiency and older-design equipment will no longer be produced for our market, limiting the options previously available.

Why Acting Now Could Save You Thousands

Colorado’s Ultra Low NOx regulations are here, and they’ve permanently changed the furnace and water heater market. While the environmental benefits are real, so are the equipment costs. In fact, furnace replacement costs are expected to increase by up to 200%.

If your furnace or water heater is over 10 years old, it might be a good time to look at your replacement options. Bell can still secure equipment manufactured before the law changed, but once those supplies run out, all equipment will be priced to comply with the new standards.

Call Bell for Furnace or Water Heater Today

This law is now in place. If your furnace or water heater is 10+ years old, now is the window to explore replacement options before equipment choices shrink and costs rise.

Call Bell to schedule an evaluation. We’ll look at what you have, walk you through your best options, and give you an honest, upfront price—so you can decide with confidence, not pressure.