[House Report 118-424]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-424
======================================================================
AFFORDABLE HOUSING OVER MANDATING EFFICIENCY
STANDARDS ACT
_______
March 12, 2024.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mrs. Rodgers of Washington, from the Committee on Energy and
Commerce, submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 6421]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 6421) to prohibit the Secretary of Energy from
enforcing energy efficiency standards applicable to
manufactured housing, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 3
Committee Votes.................................................. 4
Oversight Findings and Recommendations........................... 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Congressional Budget Office Estimate............................. 6
Federal Mandates Statement....................................... 7
Statement of General Performance Goals and Objectives............ 7
Duplication of Federal Programs.................................. 7
Related Committee and Subcommittee Hearings...................... 7
Committee Cost Estimate.......................................... 8
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 8
Advisory Committee Statement..................................... 8
Applicability to Legislative Branch.............................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
Minority Views................................................... 11
Purpose and Summary
H.R. 6421, the ``Affordable Housing Over Mandating
Efficiency Standards Act'' or the ``Affordable HOMES Act,'' was
introduced by Representative Bucshon (R-OH) on November 15,
2023. This legislation would repeal section 413 of the Energy
Independence and Security Act (EISA) of 2007 relating to energy
efficiency standards related to manufactured Housing. The
legislation would also vitiate the final rule titled ``Energy
Conservation Program: Standards for Manufactured Housing''
published in Federal Register on May 31, 2022.
Background and Need for Legislation
Under current law, both the U.S. Department of Housing and
Urban Development (HUD) and the Department of Energy (DOE) have
authority to impose energy efficiency mandates on manufactured
housing. In 1974, Congress passed the Manufactured Housing
Construction Safety Standards Act of 1974 (MHCSS), which
designated HUD as the primary agency with authority over
manufactured home construction standards, known as the ``HUD
Code.'' It delegated to HUD with preemptive authority to
regulate energy efficiency standards for manufactured housing
and specifically requires that the energy conservation
standards be cost-effective and take into consideration the
design and factory construction techniques of manufactured
homes.\1\ Congress's goal in passing MHCSS was to balance
safety, efficiency, and housing costs for Americans.
---------------------------------------------------------------------------
\1\42 U.S.C. Sec. 5403(g).
---------------------------------------------------------------------------
In 2007, Congress passed the EISA, which included an
amendment that required the DOE to establish energy efficiency
standards for manufactured housing based on the most recent
version of the International Energy Conservation Code (IECC) in
contravention of the MHCSS.\2\
---------------------------------------------------------------------------
\2\42 U.S.C. Sec. 17071.
---------------------------------------------------------------------------
The Committee finds that the IECC standards are overly
prescriptive and incompatible with the HUD code. The IECC
standards are based on site-built homes, where the builder
designs the home to a specific locale and conditions of that
locale. In contrast, manufactured housing producers and
retailers do not ultimately know the home's ultimate location
and orientation, and therefore are unable to conform with the
IECC requirements. The Committee additionally finds that unlike
HUD, the DOE lacks the requisite knowledge and expertise to
establish regulations that adequately consider the unique
attributes of factory-built housing.
Pursuant to EISA authorities, the DOE published a final
rule titled ``Energy Conservation Program: Energy Conservation
Standards for Manufactured Housing'' published in the Federal
Register on May 31, 2022.\3\ The Committee finds significant
problems with DOE's efficiency standards for manufactured
homes: they rely on the IECC, which is incompatible with off-
site built homes; they lack testing, compliance, and
enforcement capabilities; and they create conflicting sets of
energy standards between DOE and HUD.
---------------------------------------------------------------------------
\3\87 Fed. Reg. 32728.
---------------------------------------------------------------------------
If the DOE standards are enforced, there will be two
different sets of manufactured home energy standards which
would create a significant compliance burden for manufactured
home manufacturers, which will discourage the production of new
affordable homes, thereby threatening the supply of these homes
and increasing cost. This will add to our nation's existing
housing affordability crisis as manufactured homes are the most
affordable homeownership option. In 2022, the average price of
a manufactured home was $127,250, while the average price of a
site-built home was $413,000. The average income of a
manufactured home buyer was around $35,000, while the average
income of a site-built homebuyer was over $100,000.\4\
---------------------------------------------------------------------------
\4\2023 Manufactured Housing Facts Industry Overview, The
Manufactured Housing Institute (June 2023), 2023-Industry-Overview.pdf
(manufacturedhousing.org).
---------------------------------------------------------------------------
To support housing affordability and improve energy
efficiency, this Committee finds it necessary to halt the
implementation of DOE's flawed final rule. The Committee also
finds it necessary to clarify HUD's primacy over the regulation
of manufactured housing by rescinding the provision from EISA
that gives DOE the duplicative authority to establish energy
efficiency standards for manufactured housing.
Committee Action
On September 13, 2023, the Subcommittee on Energy, Climate,
and Grid Security held a hearing related to H.R. 6421. The
title of the hearing was ``Keeping the Lights On: Enhancing
Reliability and Efficiency to Power American Homes.''
During this hearing, the DOE testified on the agency's
process for implementing and reviewing energy efficiency and
conservation standards. Energy efficiency experts also
testified as to how these standards impact regulated
industries. The Subcommittee received testimony from:
Gene Rodrigues, Assistant Secretary for
Electricity, Office of Electricity, U.S. Department of
Energy;
David Ortiz, Director, Office of Electric
Reliability, Federal Energy Regulatory Commission;
Kevin Messner, Executive Vice President and
Chief Policy Officer, Association of Home Appliance
Manufacturers;
B. Robert Paulling, President and Chief
Executive Officer, Mid-Carolina Electric Cooperative on
behalf of the National Rural Electrical Cooperatives
Association;
Ben Lieberman, Senior Fellow, Competitive
Enterprise Institute; and
Andrew deLaski, Executive Director,
Appliance Standards Awareness Project.
On October 24 and 25, 2023, the Subcommittee on Energy,
Climate, and Grid Security met in open markup session and
forwarded a discussion draft titled ``Affordable Housing Over
Mandating Efficiency Standards Act'' or the ``Affordable HOMES
Act,'' without amendment, to the full Committee by a record
vote of 15 yeas and 12 nays.
On December 5 and 6, 2023, the full Committee on Energy and
Commerce met in open markup session and ordered H.R. 6421,
without amendment, favorably reported to the House by a record
vote of 24 yeas and 20 nays.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing and made findings that
are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 6421 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, the following is
the cost estimate provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 6421 would repeal the authority for the Department of
Energy (DOE) to establish energy conservation standards for
manufactured housing and would prohibit DOE from implementing
the rule, ``Energy Conservation Program: Energy Conservation
Standards for Manufactured Housing,'' as published in the
Federal Register in May 2022.\5\ Manufacturers must comply with
that rule at different times depending on the type of home they
manufacture; however, CBO expects none would be required to
comply until 2025.
---------------------------------------------------------------------------
\5\See Office of Energy Efficiency and Renewable Energy, Department
of Energy, ``Energy Conservation Program: Energy Conservation Standards
for Manufactured Housing,'' Final Rule, 87 Fed. Reg. 32728 (May 31,
2022), http://tinyurl.com/mrtecmx2.
---------------------------------------------------------------------------
Under current law, manufacturers that do not comply with
DOE's standards for manufactured housing would be liable for
civil penalties, which are recorded in the budget as revenues.
Accordingly, enacting the bill could reduce revenues if fewer
civil penalties were collected. Based on the number of cases
likely to be affected, CBO estimates that any effect under the
bill would reduce revenues by an insignificant amount over the
2024-2034 period.
CBO estimates that implementing the bill would reduce
spending subject to appropriation by less than $500,000 because
the bill would lessen DOE's requirement to establish energy
conservation standards. Any reduction in spending would depend
on future appropriations being reduced by the estimated amount.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to ensure
housing affordability by repealing duplicative regulation of
manufactured housing by rescinding the provision from EISA,
which grants DOE the duplicative authority to establish energy
efficiency standards for manufactured housing.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 6421 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Related Committee and Subcommittee Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearing was used to develop or consider H.R. 6421:
On September 13, 2023, the Subcommittee on
Energy, Climate, and Grid Security held a hearing
related to H.R. 6421. The title of the hearing was
``Keeping the Lights On: Enhancing Reliability and
Efficiency to Power American Homes.''
During this hearing, the DOE testified on the
agency's process for implementing and reviewing energy
efficiency and conservation standards. Energy
efficiency experts also testified as to how these
standards impact regulated industries. The Subcommittee
received testimony from:
Gene Rodrigues, Assistant
Secretary for Electricity, Office of
Electricity, U.S. Department of Energy;
David Ortiz, Director, Office of
Electric Reliability, Federal Energy Regulatory
Commission;
Kevin Messner, Executive Vice
President and Chief Policy Officer, Association
of Home Appliance Manufacturers;
B. Robert Paulling, President
and Chief Executive Officer, Mid-Carolina
Electric Cooperative on behalf of the National
Rural Electrical Cooperatives Association;
Ben Lieberman, Senior Fellow,
Competitive Enterprise Institute; and
Andrew deLaski, Executive
Director, Appliance Standards Awareness
Project.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 6421 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the Act may be cited as the ``Affordable
Housing Over Mandating Efficiency Standards Act'' or the
``Affordable HOMES Act.''
Section 2. Prescribing new or amended energy conservation standards
Section 2(a) strikes section 413 of the Energy Independence
and Security Act of 2007, which directs the DOE to establish
energy standards for manufactured homes.
Section 2(b) vitiates the final rule titled ``Energy
Conservation Program: Energy Conservation Standards for
Manufactured Housing'' published by the DOE on May 31, 2022.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets and
existing law in which no change is proposed is shown in roman):
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Independence and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
Sec. 401. Definitions.
Subtitle A--Residential Building Efficiency
Sec. 411. Reauthorization of weatherization assistance program.
* * * * * * *
[Sec. 413. Energy code improvements applicable to manufactured
housing.]
* * * * * * *
TITLE IV--ENERGY SAVINGS IN
BUILDINGS AND INDUSTRY
* * * * * * *
Subtitle A--Residential Building Efficiency
* * * * * * *
[SEC. 413. ENERGY CODE IMPROVEMENTS APPLICABLE TO MANUFACTURED
HOUSING
[(a) Establishment of Standards.--
[(1) In general.--Not later than 4 years after the
date of enactment of this Act, the Secretary shall by
regulation establish standards for energy efficiency in
manufactured housing.
[(2) Notice, comment, and consultation.--Standards
described in paragraph (1) shall be established after--
[(A) notice and an opportunity for comment by
manufacturers of manufactured housing and other
interested parties; and
[(B) consultation with the Secretary of
Housing and Urban Development, who may seek
further counsel from the Manufactured Housing
Consensus Committee.
[(b) Requirements.--
[(1) International energy conservation code.--The
energy conservation standards established under this
section shall be based on the most recent version of
the International Energy Conservation Code (including
supplements), except in cases in which the Secretary
finds that the code is not cost-effective, or a more
stringent standard would be more cost-effective, based
on the impact of the code on the purchase price of
manufactured housing and on total life-cycle
construction and operating costs.
[(2) Considerations.--The energy conservation
standards established under this section may--
[(A) take into consideration the design and
factory construction techniques of manufactured
homes;
[(B) be based on the climate zones
established by the Department of Housing and
Urban Development rather than the climate zones
under the International Energy Conservation
Code; and
[(C) provide for alternative practices that
result in net estimated energy consumption
equal to or less than the specified standards.
[(3) Updating.--The energy conservation standards
established under this section shall be updated not
later than--
[(A) 1 year after the date of enactment of
this Act; and
[(B) 1 year after any revision to the
International Energy Conservation Code.
[(c) Enforcement.--Any manufacturer of manufactured housing
that violates a provision of the regulations under subsection
(a) is liable to the United States for a civil penalty in an
amount not exceeding 1 percent of the manufacturer's retail
list price of the manufactured housing.
[(e) Cost Sharing.--In carrying out this section, the
Commercial Director shall require cost sharing in accordance
with section 988 of the Energy Policy Act of 2005 (42 U.S.C.
16352).
[(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
[(1) $20,000,000 for fiscal year 2008;
[(2) $50,000,000 for each of fiscal years 2009 and
2010;
[(3) $100,000,000 for each of fiscal years 2011 and
2012; and
[(4) $200,000,000 for each of fiscal years 2013
through 2018.]
* * * * * * *
MINORITY VIEWS
H.R. 6421, the ``Affordable Housing Over Mandating
Efficiency Standards Act,'' prevents households that live in
manufactured housing from benefiting from energy efficiency
standards that are established by energy sector experts.
Specifically, H.R. 6421 repeals Section 413 of the Energy
Independence and Security Act of 2007 (EISA) and removes this
authority from the Department of Energy's (DOE) jurisdiction,
thus sending energy efficiency standards for manufactured homes
to another federal agency that does not specialize in energy
efficiency rulemaking. Additionally, the bill prevents a
recently finalized energy efficiency standard for manufactured
housing from taking effect and lowering household utility
bills. H.R. 6421 also was not supported by expert testimony as
the bill was not included in a Committee hearing and instead
sent straight to markup without the necessary witness
testimony. For these reasons, the Committee Minority strongly
opposes H.R. 6421.
Repealing section 413 of EISA will send authority of
manufactured housing efficiency standards to the Department of
Housing and Urban Development (HUD). EISA passed in a
bipartisan fashion, and Congress explicitly directed DOE to
develop energy efficiency standards for manufactured homes. The
law directs DOE to base the standards on the most recent
International Energy Conservation Code (IECC) unless the
Secretary finds that IECC is not cost-effective or that a more
stringent standard would be cost-effective.\1\ Prior to the
passage of EISA, HUD, which was responsible for energy
standards for manufactured homes, had not updated its energy
provisions since 1994.\2\ EISA requires DOE to provide notice
and the opportunity for comment from manufacturers and
stakeholders, and to consult with the Secretary of HUD on
energy efficiency standards for manufactured housing.\3\ DOE
has a rigorous rulemaking process with extensive stakeholder
engagement and energy sector expert input, and has significant
experience setting energy efficiency standards. Repealing
Section 413 of EISA removes this important DOE authority.
---------------------------------------------------------------------------
\1\Congressional Research Service, Housing Issues in the 118th
Congress (Jan. 19, 2024) (R47628).
\2\American Council for an Energy-Efficient Economy, Biden Standard
for Manufactured Homes Will Leave Low-Income Households with High
Energy Bills (May 18, 2022) (press release).
\3\See note 1.
---------------------------------------------------------------------------
H.R. 6421 also prevents the final rule titled ``Energy
Conservation Program: Standards for Manufactured Housing''
published in the Federal Register on May 31, 2022 from having
any effect. In May 2022, DOE finalized a court-mandated rule
adopting energy conservation standards for new manufactured
homes. The rule will help those living in manufactured housing
save up to $475 per year on average on their utility bills.\4\
Energy costs are about 70 percent higher per square foot in
manufactured homes compared to site-built homes.\5\ The median
energy burden of manufactured housing residents is 39 percent
higher than that of single-family households.\6\ The Committee
Minority believes it is important to support this standard and
the crucial savings the standard will provide for these
households.
---------------------------------------------------------------------------
\4\Department of Energy, DOE Updates Mobile Home Efficiency
Standards to Lower Household Energy Bills (May 18, 2022) (press
release).
\5\See note 2.
\6\American Council for an Energy-Efficient Economy, How High Are
Household Energy Burdens? (Sept. 2020).
---------------------------------------------------------------------------
In the Committee report for H.R. 6421, the Majority cites a
Subcommittee on Energy, Climate, and Grid Security hearing on
September 13, 2023 as what was used to develop this bill. This
hearing, titled ``Keeping the Lights On: Enhancing Reliability
and Efficiency to Power American Homes'' did not include
testimony on H.R. 6421 or manufactured homes energy efficiency
standards. As a result, the Committee did not receive any
expert witness testimony on the need for the bill or its
effects. Given the significant impacts of this bill, and the
striking of a section from a long-standing energy statute, this
bill should have been given proper consideration and moved
through regular Committee order, which includes a legislative
hearing.
For the reasons stated above, we dissent from the views
contained in the Committee's report.
Frank Pallone, Jr.,
Ranking Member, Committee on Energy and Commerce.
[all]