[Federal Register Volume 87, Number 104 (Tuesday, May 31, 2022)]
[Notices]
[Pages 32405-32407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10931]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF ENERGY


Record of Decision for the Final Environmental Impact Statement 
for Proposed Energy Conservation Standards for Manufactured Housing 
(DOE/EIS-0550)

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Record of decision.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Energy (``DOE'') has determined that it 
will establish energy conservation standards for manufactured housing 
based on the 2021 International Energy Conservation Code (``IECC'') 
using a tiered approach based on the size of the manufactured home, as 
described in Alternative B2 in the Final Environmental Impact Statement 
for Proposed Energy Conservation Standards for Manufactured Housing 
(DOE/EIS-0550). This Record of Decision (``ROD'') was prepared in 
accordance with the requirements of the National Environmental Policy 
Act (``NEPA''), Council on Environmental Quality (``CEQ'') regulations 
for implementing NEPA, and DOE NEPA regulations.

ADDRESSES: The final EIS, this ROD, and other EIS documents are 
available on the Project website at: https://ecs-mh.evs.anl.gov and on 
Energy.gov at: www.energy.gov/node/4810038.

FOR FURTHER INFORMATION CONTACT: For additional information on the EIS 
process or this ROD, please contact Kristin Kerwin at the Department of 
Energy--Golden Field Office, 15013 Denver West Parkway, Golden, 
Colorado 80401, email: [email protected], (240) 
562-1800. For general information on the DOE NEPA review process, 
please contact Brian Costner, Office of NEPA Policy and Compliance, GC-
54, U.S. Department of Energy, 1000 Independence Avenue SW, Washington, 
DC 20585-0119, email: [email protected], telephone (202) 586-4600 or 
(800) 472-2756, facsimile (202) 586-7031.

SUPPLEMENTARY INFORMATION:

Background

    DOE is obligated to establish energy conservation standards for 
manufactured housing, as directed by Section 413 of the Energy 
Independence and Security Act of 2007 (``EISA''). (42 U.S.C. 17071) 
EISA directs DOE to base these standards on the most recent version of 
the IECC and any supplements to that document, except where DOE finds 
that the IECC is not cost effective or where a more stringent standard 
would be more cost effective based on the impact of the IECC on the 
purchase price of manufactured housing and on total lifecycle 
construction and operating costs. In accordance with Section 413 of 
EISA, DOE is establishing energy conservation standards for 
manufactured housing in a final rulemaking published elsewhere in this 
issue of the Federal Register. To inform the proposed rulemaking, DOE 
prepared an EIS pursuant to NEPA, the CEQ NEPA implementing regulations 
(40 CFR parts 1500-1508), and DOE's procedures for implementing NEPA 
(10 CFR part 1021).

Purpose and Need for Agency Action

    In accordance with EISA, DOE will establish energy conservation 
standards for manufactured housing that are based on the 2021 IECC. In 
fulfilling its statutory mandate to establish energy conservation 
standards, the standards will also:
     Reduce national energy consumption,
     Reduce energy costs for owners of manufactured homes,
     Reduce emissions of outdoor pollutants associated with 
electricity production,
     Reduce emissions of greenhouse gases (``GHGs'') associated 
with electricity production that may lead to climate change, and
     Protect public health and safety related to energy 
efficiency.

DOE's Proposed Action and Alternatives

    DOE considered three approaches for establishing the energy 
conservation standards for manufactured housing. The final EIS refers 
to each approach as an action alternative. The alternatives were 
informed by public comments on the scope of the EIS and on the draft 
EIS, and by comments on DOE's 2016 notice of proposed rulemaking 
(``NOPR'') 81 FR 39756, 2016 draft environmental assessment, 2021 
supplemental notice of proposed rulemaking (``SNOPR'') 86 FR 47744, and 
subsequent 2021 notice of data availability (``NODA'') 86 FR 59042, as 
well as coordination and consultation with the U.S. Department of 
Housing and Urban Development (``HUD''). In accordance with NEPA, DOE 
also considered the alternative of taking no action, which serves as a 
baseline against which potential consequences of the action 
alternatives can be compared. Thus, four alternatives (referred to as 
A, B, C, and D) are evaluated in detail in the EIS.
    Under Alternative A, the proposed standards for energy conservation 
would be tiered (including ``Tier 1'' and ``Tier 2'' standards) based 
on a manufacturer's retail list price of $63,000. Within Alternative A, 
two detailed alternatives (A1 and A2) were analyzed. Under Alternative 
A1, Tier 1 standards would apply to homes with a retail list price of 
$63,000 or less, with requirements based on the 2021 IECC, but with 
less stringent building thermal envelope requirements that would

[[Page 32406]]

correspond to an incremental increase in purchase price of less than 
$750. Tier 2 standards would apply to homes with a manufacturer's 
retail list price above $63,000 and would be the same as the Tier 1 
requirements, but with more stringent building thermal envelope 
requirements similar to those of the 2021 IECC. Alternative A2, is the 
same as Alternative A1 except it would include relaxed insulation 
requirements for Tier 2 manufactured houses in certain climate zones.
    Under Alternative B, the proposed standards for energy conservation 
would be tiered (including ``Tier 1'' and ``Tier 2'' standards) based 
on the size of the manufactured home. Similar to Alternative A, two 
detailed alternatives were analyzed within Alternative B (B1 and B2). 
For Alternative B1, the Tier 1 standards would apply to single-section 
manufactured homes with requirements based on the 2021 IECC, and, as 
with Alternative A, the building thermal envelope requirements would 
correspond to an incremental purchase price increase of less than $750. 
Tier 2 standards would apply to multi-section manufactured homes and 
would be the same as the Tier 1 requirements but with more stringent 
building thermal envelope requirements similar to those of the 2021 
IECC. The building thermal envelope requirements for Alternative B1 are 
the same as those identified for Alternative A1. Alternative B2 is the 
same as Alternative B1 except it would include relaxed insulation 
requirements for Tier 2 manufactured homes in certain climate zones.
    Alternative C represents an untiered approach to establishing 
energy conservation standards. Under this alternative, the proposed 
standards based on the 2021 IECC would apply to all manufactured homes, 
without considering the manufacturer's retail list price or size or 
less stringent building thermal envelope requirements to address 
affordability concerns. As with Alternatives A and B, two detailed 
alternatives were analyzed within Alternative C (C1 and C2). Under 
Alternative C1, the building thermal envelope requirements would be the 
same as those identified for Tier 2 in Alternative A and Alternative B. 
Alternative C2 is the same as C1 except it would include relaxed 
insulation requirements for all manufactured houses in certain climate 
zones.
    Alternative D represents the no action alternative. Under this 
alternative, DOE would not establish energy conservation standards for 
manufactured housing, and manufacturers would continue to follow the 
requirements in the existing HUD Code.
    DOE considered, but did not analyze in detail, several potential 
alternatives, including alternatives suggested in comments received 
during the scoping process for this EIS and in response to the NOPR, 
SNOPR, NODA, and draft EIS. These alternatives fall within four themes: 
(1) The mechanism for implementing standards; (2) the basis for the 
standards, (3) the structure of the standards, and (4) other efficiency 
requirements. The EIS, in section 2.5, describes why these alternatives 
were not analyzed in detail.
    As presented in the final EIS, Alternatives A, B, and C would 
result in:
     Conservation of energy,
     Avoidance of GHGs and other emissions (reducing impacts to 
climate change and outdoor air quality),
     Better indoor protection from outdoor air pollutants,
     Higher indoor air concentrations of pollutants emitted 
indoors, and
     National cost savings.
    DOE did not have a preferred alternative at the time of the 
publication of the draft EIS. In the final EIS, DOE identified the 
preferred alternative as the untiered alternative with relaxed 
insulation (Alternative C2).

Environmentally Preferable Alternatives

    DOE considers both Alternatives B and C to be environmentally 
preferrable. There are minor tradeoffs between Alternatives B and C 
relative to which is more environmentally preferable over different 
time periods. DOE considers the untiered approach (Alternative C) to be 
environmentally preferrable as it would result in the most energy 
savings and emissions reductions and would provide the same benefits to 
all residents of manufactured homes. Alternative C, however, has a 
somewhat greater socioeconomic and environmental justice impacts 
associated with first cost (home purchase) and a longer payback period 
than the Tier 1 homes in Alternative B. DOE considers Alternative B to 
be environmentally preferrable as it addresses the socioeconomic and 
environmental justice impacts associated with the upfront cost and 
shortens the payback period (for Tier 1 homes) by only including 
components that would increase the incremental purchase price by less 
than $750.

Public Involvement

    The Notice of Intent (``NOI'') to prepare an EIS was published in 
the Federal Register on July 7, 2021, beginning the scoping process 
that extended through August 6, 2021. 86 FR 35773. The NOI invited 
public participation in the EIS scoping process and solicited public 
comments on the scope and content of the EIS. DOE solicited comments 
from Federal, State, and local agencies; tribal governments; other 
organizations and the public. In July 2021, DOE hosted two online 
public scoping meetings to provide the public an opportunity to comment 
on the scope of the EIS and ask questions about the EIS process. DOE 
received oral and written comments from 17 organizations and two 
individuals. DOE's scoping process and public involvement along with a 
summary of the scoping comments received, are summarized in Appendix A 
of the final EIS.
    The Notice of Availability (``NOA'') for the draft EIS was 
published in the Federal Register on January 14, 2022, and comments on 
the draft EIS were invited for 45-days (through February 28, 2022). 87 
FR 2430. Two online public meetings were held in January 2022. DOE 
received 24 oral and written comment submittals on the draft EIS from 
organizations across 13 states and the District of Columbia. Appendix C 
of the final EIS provides a summary of the comments received and 
describes how the final EIS reflects the comments received on the draft 
EIS.

Decision

    The agency has considered all the alternatives, information, 
analyses, and objections submitted by State, Tribal, and local 
governments and public commenters for consideration by DOE in 
developing the EIS. Further, informed by the analyses and environmental 
impacts documented in the final EIS and related analysis, DOE has 
decided to establish energy conservation standards for manufactured 
housing that are tiered based on the size of the manufactured home, 
with relaxed insulation for Tier 2 homes in certain climate zones 
(Alternative B2).
    DOE will issue a final rule that will codify the energy 
conservation standards in a new part of the Code of Federal Regulations 
(``CFR'') under 10 CFR part 460 subparts A, B, and C. Subpart A will 
present generally the scope of the rule and provides definitions of key 
terms. Subpart B will establish new requirements for manufactured homes 
that relate to climate zones, the building thermal envelope, air 
sealing, and installation of insulation. Subpart C will establish new 
requirements related to duct sealing, heating, ventilation, and air 
conditioning (``HVAC''); service hot water systems; mechanical 
ventilation

[[Page 32407]]

fan efficacy; and heating and cooling equipment sizing.
    Under the energy conservation standards, the stringency of the 
requirements under subpart B will depend on the size of the 
manufactured home for the tiered approach. Accordingly, two sets of 
standards will be established in subpart B (i.e., Tier 1 and Tier 2). 
Tier 1 will apply to single-section manufactured homes and will 
incorporate building thermal envelope measures based on certain thermal 
envelope components subject to the 2021 IECC, but only including 
components that would increase the incremental purchase price by less 
than $750. Tier 2 will apply to multi-section manufactured homes and 
incorporate building thermal envelope measures based on certain thermal 
envelope components and specifications of the 2021 IECC, with alternate 
exterior wall insulation requirements for climate zones 2 and 3, as 
presented in the August 2021 SNOPR and the October 2021 NODA and 
analyzed in the final EIS. Further, the energy conservation standards 
for both tiers also include duct and air sealing, insulation 
installation, HVAC and service hot water system specifications, 
mechanical ventilation fan efficacy, and heating and cooling equipment 
sizing provisions, based on the 2021 IECC. DOE will adopt a compliance 
date such that the standards will apply to manufactured homes starting 
one year after the publication date of the final rule in the Federal 
Register.
    DOE notes that its decision to adopt Alternative B2 differs from 
the preferred alternative presented in the final EIS (Alternative C2). 
DOE decided to adopt Alternative B2 because of affordability and cost-
effectiveness concerns identified in the consultation process and 
during the rulemaking process. Following the issuance of the final EIS, 
DOE continued to consider comments received on the rulemaking and in 
the interagency review process under Executive Order 12866, which 
included the aforementioned concerns regarding first-costs, 
affordability, and cost-effectiveness. DOE believes that access to 
affordable housing and reducing energy burdens of low-income purchasers 
are of the utmost importance in the manufactured housing market. 
Alternative B2 better addresses both of these concerns than Alternative 
C2 because it will ensure continued availability for the homes most 
often purchased by low-income purchasers (single-section homes) with 
little change to the current manufactured housing market, while 
providing energy cost savings in the nearer term for residents of these 
homes. A more detailed explanation of DOE's bases for adopting 
Alternative B2 will be provided in the final rule and its Technical 
Support Document in the rulemaking docket. The docket, and all 
documents contained therein, may be found at www.regulations.gov/docket?D=EERE-2009-BT-BC-0021.

Mitigation

    The analyses presented in the final EIS identify both beneficial 
and adverse impacts to indoor air quality, health, socioeconomic 
conditions, environmental justice, and cumulative effects of DOE's 
proposed action alternatives. The final EIS describes measures that 
could mitigate potential adverse impacts. To address adverse impacts to 
indoor air quality, health, socioeconomics, and environmental justice, 
the final EIS identifies the following mitigation measures:
     Promoting installation of energy-efficient fans for 
ventilation,
     Advancing research and stakeholder engagement to increase 
implementation of energy-efficient ventilation,
     Promoting training and technical assistance to 
manufacturers, and
     Promoting improved indoor air quality and environmental 
justice through efficiency labeling and informational resources about 
healthy homes and financing options.
    The final EIS identifies that DOE could further address adverse 
impacts to socioeconomics and environmental justice by promoting 
financial mechanisms to offset first costs through incentives, 
assistance, and informational resources. Also, the final EIS identifies 
that DOE could promote awareness of DOE's energy justice initiative to 
address impacts to environmental justice.
    Along with DOE's decision to implement energy conservation 
standards for manufactured housing, DOE will:
     Collaborate with HUD to promote efficient ventilation, 
including whole-house ventilation and exhaust fan techniques.
     Advance research and stakeholder engagement on energy-
efficient heating, ventilating, and air-conditioning solutions for 
modular housing.
     Leverage existing funded research projects to provide 
training and technical assistance to manufactured housing manufacturers 
intended to help manufacturers achieve the energy conservation 
standards in the most cost-efficient manner.
     Develop and implement informational campaigns to promote 
improved indoor air quality and environmental justice--specifically to 
aid potential buyers in identifying and comparing energy efficiency 
between homes.
     Collaborate with the Manufactured Housing Task Force to 
address market barriers to energy-efficient manufactured housing as an 
affordable, equitable, and accessible housing option, including better 
consumer education around how energy-efficient manufactured homes are 
financed.
     Coordinate with DOE's Office of Economic Impact and 
Diversity to promote partnerships that enhance community awareness and 
engagement in advancing energy justice concepts for manufactured 
housing.
    DOE has committed to all practicable means to avoid or minimize 
environmental harm.

Signing Authority

    This document of the Department of Energy was signed on May 16, 
2022, by Derek G. Passarelli, Director, Golden Field Office, Office of 
Energy Efficiency and Renewable Energy, pursuant to delegated authority 
from the Secretary of Energy. That document with the original signature 
and date is maintained by DOE. For administrative purposes only, and in 
compliance with requirements of the Office of the Federal Register, the 
undersigned DOE Federal Register Liaison Officer has been authorized to 
sign and submit the document in electronic format for publication, as 
an official document of the Department of Energy. This administrative 
process in no way alters the legal effect of this document upon 
publication in the Federal Register.

    Signed in Washington, DC, on May 17, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-10931 Filed 5-27-22; 8:45 am]
BILLING CODE 6450-01-P