2026 Colorado codes that affect you!

When it comes to heating and cooling services, our customers have come to expect quick responses, transparent pricing, and reliable service.

Aside from our regular day-to-day operation, however, there are state-specific regulations that impact not only our company but also consumers. We are dedicated to complying with all applicable federal and state regulations and strive to keep our clients informed.

The impact usually means tighter regulations, which, as a rule, drive equipment cost and availability. We can only imagine how the dust is going to settle once we find out exactly what purchasing limitations this will put on our industry.

Understanding the NEW ultra-low NOx (nitrogen oxide) code

Starting January 1, 2026, new regulations in Colorado (HB23-1161) will require all newly sold or installed gas-fired central furnaces and water heaters to meet specific ultra-low NOx (nitrogen oxide) emission standards. Older, non-compliant models will no longer be available for sale in the state after that date. 

New NOx Emission Limits 

The new standards set maximum limits for nitrogen oxide emissions, measured in nanograms per joule (ng/J): 

• Appliances ≤ 75,000 Btu/hr: Maximum 10 ng/J NOx.

• Appliances > 75,000 Btu/hr (up to 2,000,000 Btu/hr): Maximum 14 ng/J NOx. 

Impact on Homeowners and Products

• Product Availability: Many standard-efficiency furnace models (such as 80% AFUE) and some current water heater models will be phased out and unavailable once existing inventory is gone (meaning no longer available at warehouses in Colorado).

  
  

• Only "ultra-low NOx" (ULN) units will be legal to sell or install in Colorado.

  
  

• Efficiency Standards: New systems will generally be high-efficiency models (often 95%+ AFUE) and will need to include programmable or smart thermostat technology.

  
  

• Potential Costs: Due to the required redesign of products by manufacturers, the costs for compliant furnaces and water heaters are expected to increase.

  
  

• California vs. Colorado: While some areas in California already have ultra-low NOx standards in place (e.g., San Joaquin Valley since 2019), the new January 1, 2026 date applies specifically to a statewide mandate in Colorado. The Bay Area Air Quality Management District (BAAQMD) is also moving towards zero-NOx standards in the future, beginning in 2027 for water heaters and 2029 for furnaces.

Homeowners in Colorado with older units are advised to plan ahead for a potential replacement before the new regulations take effect to avoid potential cost increases and ensure a wider range of product choices. c

You heard this right! It's restrictive enough that it's got everyone's attention! We are still wrapping our heads around this while trying to forewarn our clients about how this might affect supply and demand. What we want you to know is that we will try to keep you posted if you have a need for a new system, as the current warehouse supplies are going to dwindle fast! We are expecting this to affect pricing as well.

We have been checking daily with our suppliers to see what they still have in stock! We will do our best to find you an affordable option for your needs. Please be aware, we are not trying to use scare tactics to prompt you into purchasing anything before the first of the year; we are only trying to provide you with affordable options. When the warehouses run out of current stock, we are not sure how this is all going to turn out, but it might mean unexpected delays. Beyond that, it would be speculation.

We could all get lucky, and the transition could be smooth.

What we do know is that we are still going to continue to provide the best affordable prices we can. If we think in terms of what we are doing to contribute to the well-being of our planet and each other, we can hopefully find some comfort in this code change.