[Federal Register Volume 90, Number 168 (Wednesday, September 3, 2025)]
[Proposed Rules]
[Pages 42544-42550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-16881]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 168 / Wednesday, September 3, 2025 /
Proposed Rules
[[Page 42544]]
DEPARTMENT OF ENERGY
10 CFR Part 460
[EERE-2009-BT-BC-0021]
RIN 1904-AG10
Public Input on Energy Conservation Standards for Manufactured
Housing
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Request for information.
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SUMMARY: The U.S. Department of Energy (DOE or the Department) is
issuing a request for information (``RFI'') to solicit public input
regarding certain aspects of its energy conservation standards for
manufactured housing. The public input received is anticipated to help
guide DOE's further refinement of certain aspects of its standards for
manufactured housing, as well as the supporting technical analysis,
including anticipated costs and benefits. It may also serve as the
basis for restructuring the approach and framework for standards that
would apply to manufactured housing. DOE also seeks any additional
information from the industry and public which may further inform the
agency's views and regulatory program.
DATES: Written comments and information are requested and will be
accepted on or before December 2, 2025.
ADDRESSES: Interested persons are encouraged to submit comments using
the Federal eRulemaking Portal at www.regulations.gov. Follow the
instructions for submitting comments. Alternatively, interested persons
may submit comments, identified by docket number EERE-2009-BT-BC-0021,
by any of the following methods:
1. Federal eRulemaking Portal: www.regulations.gov. Follow the
instructions for submitting comments.
2. Email: [email protected]. Include EERE-
2009-BT-BC-0021 in the subject line of the message.
3. Postal Mail: Appliance and Equipment Standards Program, U.S.
Department of Energy, Building Technologies Office, Mailstop EE-5B,
1000 Independence Avenue SW, Washington, DC 20585-0121. If possible,
please submit all items on a compact disc (CD), in which case it is not
necessary to include printed copies.
4. Hand Delivery/Courier: Appliance and Equipment Standards
Program, U.S. Department of Energy, Building Technologies Office, 1000
Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202)
287-1445. If possible, please submit all items on a CD, in which case
it is not necessary to include printed copies.
No telefacsimiles (faxes) will be accepted. For detailed
instructions on submitting comments and additional information on the
rulemaking process, see section III of this document.
Docket: The docket for this activity, which includes Federal
Register notices, comments, and other supporting documents/materials,
is available for review at www.regulations.gov. All documents in the
docket are listed in the www.regulations.gov index. However, some
documents listed in the index, such as those containing information
that is exempt from public disclosure, may not be publicly available.
The docket web page can be found at www.regulations.gov/docket?D=EERE-2009-BT-BC-0021. The docket web page contains simple
instructions on how to access all documents, including public comments,
in the docket. See section III for information on how to submit
comments through www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Williams, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies Office, EE-5B,
1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone:
(202) 287-1941. Email: [email protected].
Ms. Ani Esenyan, U.S. Department of Energy, Office of the General
Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121.
Telephone: (202) 586-4798. Email: [email protected].
For further information on how to submit a comment or review other
public comments and the docket, contact the Appliance and Equipment
Standards Program staff at (202) 287-1445 or by email:
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority and Background
B. Rulemaking History
II. Request for Information
A. Recent Updates to the IECC
B. May 2022 Final Rule's Analytical Assumptions
C. Affordability
D. Other Analytical Issues
E. Other Issues
III. Submission of Comments
IV. Approval of the Office of the Secretary
I. Introduction
Manufactured housing comprises a housing category that consists of
structures constructed in a factory, built on a permanent chassis, and
transportable in one or more sections that are then erected on-site.
See 24 CFR 3280.2. This type of housing has traditionally been
regulated by the Department of Housing and Urban Development (``HUD''),
with the purpose of reducing personal injuries, deaths, property
damage, and insurance costs, and to improve the quality, durability,
safety, and affordability of these homes. See 42 U.S.C. 5401(b).
Consistent with its statutory authority, HUD administers a
comprehensive regulatory framework to address a variety of aspects
related to these structures, including certain elements related to
their energy efficiency. See, e.g., 24 CFR 3280.507(a) (specifying
thermal insulation requirements) and 24 CFR 3280.508(d) (detailing
requirements related to the installation of high-efficiency heating and
cooling equipment in manufactured homes). HUD's standards are
preemptive nationwide and differ from standards developed under the
auspices of (and published by) the International Code Council
(``ICC''). The ICC standards, known as the International Energy
Conservation Code (``IECC''), have been adopted by many state and local
governments in establishing minimum design and construction
requirements for the energy efficiency of traditional site-built
residential and commercial buildings. Consistent with Federal law, DOE
published a final rule in May 2022 establishing energy conservation
[[Page 42545]]
standards for manufactured housing based on the IECC. See 87 FR 32728.
DOE is publishing this RFI to seek input from the industry and general
public on a variety of issues that the Department will review as it
considers whether to amend its energy conservation standards for
manufactured housing.
A. Authority and Background
Section 413 of the Energy Independence and Security Act of 2007,
Public Law 110-140 (December 19, 2007) (``EISA'') requires DOE to
establish by regulation standards for energy efficiency in manufactured
housing. See 42 U.S.C. 17071(a)(1). Prior to establishing these
regulations, DOE must--(1) provide manufacturers and other interested
parties with notice and an opportunity for comment and (2) consult with
the Secretary of HUD, who may seek further counsel from the
Manufactured Housing Consensus Committee.\1\ See 42 U.S.C. 17071(a)(2).
These standards must generally be based on the most recent version of
the IECC, except where DOE finds that the IECC is not cost effective,
or a more stringent standard would be more cost effective. A finding
that standards based on the IECC are not cost effective or that
standards more stringent than the IECC are cost effective would be
based on the impact of the adoption of the IECC standards on the
purchase price of manufactured housing and on total life-cycle
construction and operating costs. See 42 U.S.C. 17071(b)(1). In
establishing its standards, DOE may consider:
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\1\ HUD describes its Manufactured Housing Consensus Committee
as ``a statutory Federal Advisory Committee body charged with
providing recommendations to the Secretary on the revision and
interpretation of HUD's manufactured home construction and safety
standards and related procedural and enforcement regulations. By
regulation, HUD includes the MHCC in the process of revising the
Manufactured Home Construction and Safety Standards, Procedural and
Enforcement Regulations, Model Installation Standards, Installation
Program Regulations, and Dispute Resolution Program regulations.''
www.hud.gov/hud-partners/manufactured-home#3 (last accessed on
August 4, 2025).
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The design and factory construction techniques of
manufactured homes;
The climate zones established in the U.S. Department of
Housing and Urban Development's Manufactured Home Construction and
Safety Standards (``the HUD Code'') rather than the climate zones under
the IECC; and
Alternative practices that result in net estimated energy
consumption equal to or less than the specific IECC standards. See 42
U.S.C. 17071(b)(2).
DOE is directed to update its standards not later than one year
after any revision to the IECC.\2\ (42 U.S.C. 17071(b)(3))
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\2\ The IECC is administered by the International Code Council
(ICC) and typically published on a 3-year development and update
cycle.
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B. Rulemaking History
On May 31, 2022, DOE published a final rule to establish energy
conservation standards for manufactured housing pursuant to the Energy
Independence and Security Act of 2007 (``May 2022 Final Rule''). 87 FR
32728. These standards were based on the 2021 version of the
International Energy Conservation Code (``IECC'') and comments received
during interagency consultation with the U.S. Department of Housing and
Urban Development, as well as from stakeholders through a variety of
opportunities for public input. The adopted standards provide a set of
``tiered'' standards based on size that would apply the 2021 IECC-based
standards to manufactured homes, which was adjusted to account for the
fact that the IECC was not written for manufactured housing, with the
provision that single-section manufactured homes would be subject to
less stringent building thermal envelope requirements compared to
multi-section manufactured homes. The tiered approach adopted by DOE
was to address cost concerns by limiting the incremental cost for lower
tier (i.e., single-section) homes. Throughout the rulemaking process
that culminated in the May 2022 Final Rule, various stakeholders,
including HUD, expressed concern about impact of efficiency standards
on affordability, especially for lower-income households. DOE did not
adopt any enforcement procedures in the May 2022 Final Rule and noted
that such would be established through later action.
In the May 2022 Final Rule, DOE codified 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 presents
generally the scope of the rule and provides definitions of key terms.
Subpart B would establish new requirements for manufactured homes that
relate to climate zones, the building thermal envelope, air sealing,
and installation of insulation, based on certain provisions of the 2021
IECC. Subpart C would establish new requirements based on the 2021 IECC
related to duct sealing, heating, ventilation, and air conditioning
(``HVAC''); service hot water systems; mechanical ventilation fan
efficacy; and heating and cooling equipment sizing.
In the May 2022 Final Rule, DOE adopted a compliance date such that
the standards would apply to manufactured homes that are manufactured
on or after one year following the publication date of the final rule
in the Federal Register, which was May 31, 2023. In doing so, DOE noted
its belief that many manufacturers already have experience complying
with efficiency requirements similar to what DOE required in the May
2022 Final Rule. 87 FR 32728, 32759. DOE did not specify its approach
for enforcement of the standards in the May 2022 Final Rule, and noted
that manufacturers would be able to comply with the standards as they
were issued. DOE noted in the May 2022 Final Rule that it may address
compliance and enforcement issues and procedures in a future agency
action (see 87 FR 32728, 32757-32758).
On February 14, 2023, the Manufactured Housing Institute and the
Texas Manufactured Housing Association filed a lawsuit against DOE in
the U.S. District Court for the Western District of Texas alleging that
DOE violated the Administrative Procedure Act (APA) and the EISA in
promulgating the May 2022 Final Rule. Among the allegations made by
plaintiffs are that DOE (1) failed to consider all relevant costs, (2)
acted arbitrarily and capriciously in setting a one-year compliance
deadline, and (3) failed to consult with HUD about the final rule's
energy standards. DOE has denied the plaintiffs' allegations, and the
lawsuit remains pending.
On March 24, 2023, DOE published in the Federal Register a NOPR
proposing to amend the compliance date for the manufactured housing
energy conservation standards (``March 2023 NOPR''). 88 FR 17745. In
that NOPR, DOE described the need to amend the compliance date for the
manufactured housing standards, noting that it had not yet issued
procedures for investigating and enforcing against noncompliance with
the standards, and that a delay is necessary to ensure that DOE can
receive and incorporate meaningful stakeholder feedback into its
enforcement procedures prior to part 460's compliance date.
Accordingly, DOE proposed to require compliance with the Tier 1
standards beginning 60 days after publication of its final enforcement
procedures, and compliance with the Tier 2 standards beginning 180 days
after publication of its final enforcement procedures.
On May 30, 2023, DOE published a final rule amending the compliance
date for its manufactured housing standards delaying compliance until
July 1, 2025, for Tier 2 homes, and until 60 days after
[[Page 42546]]
issuance of enforcement procedures for Tier 1 homes (``March 2023 Final
Rule''). 88 FR 34411.
On December 26, 2023, DOE published a notice of proposed rulemaking
(NOPR) to establish enforcement procedures for its energy conservation
standards for manufactured housing (``December 2023 NOPR''). 88 FR
88844. DOE did not propose specific test procedures or requirements for
manufacturers to certify that their homes meet the energy conservation
standards, but rather proposed a system by which the Department would
determine compliance through review of manufacturer-provided records.
The NOPR outlined DOE and manufacturer responsibilities, prohibited
acts and penalties, investigation procedures, and civil enforcement
procedures, including related penalties. In addition, via the NOPR, DOE
concluded that the additional costs to manufacturers imposed by the
proposed enforcement procedures would be minimal, and would not alter
DOE's assessment of the costs resulting from the standard published in
the May 2022 Final Rule. DOE received comments on the December 2023
NOPR and proposed enforcement procedures but has not issued a final
rule.
On April 24, 2025, DOE published a NOPR proposing to partially
amend the compliance dates for manufactured housing standards (``April
2025 NOPR''). 90 FR 17230. Specifically, DOE proposed to require
compliance with the Tier 2 standards in subparts B and C beginning 180
days after publication of its final enforcement procedures. DOE did not
propose to amend the compliance date for Tier 1 homes as such homes
will be subject to the standards in subparts B and C beginning 60 days
after publication of DOE's final enforcement procedures. DOE noted that
this proposal aligns with the proposal in the March 2023 NOPR.
On July 2, 2025, DOE published a final rule to amend the compliance
date for its manufactured housing energy conservation standards (``July
2025 Final Rule''). 90 FR 28873. DOE's final rule adopted the NOPR
proposal and as such the earlier Tier 2 compliance date was modified to
set compliance 180 days after publication of final enforcement
procedures. No change was made to the Tier 1 compliance date.
II. Request for Information
Since DOE published the May 2022 Final Rule, several changes have
taken place that DOE now proposes to investigate, and through this RFI
to ask for feedback from stakeholders. As noted previously, in 2023 DOE
issued a NOPR to establish enforcement tools to accompany the May 2022
Final Rule's energy conservation standards. DOE is still reviewing
comments on the enforcement NOPR, and manufacturers are not currently
required to comply with the May 2022 Final Rule. Under EISA's
requirement that DOE review IECC standards as they become available,
DOE must now review the potential for standards that take into account
the more recent 2024 IECC standards.\3\ Also of significant interest,
since the May 2022 Final Rule was published, the United States has
undergone a period of elevated inflation as well as a period in which
many industries experienced mild to severe supply chain disruptions
which exacerbated affordability concerns for many Americans,
particularly in the housing sector. As a consequence of such changing
background conditions, DOE is requesting feedback on the regulatory
framework it has relied upon in developing standards for manufactured
housing, including supporting technical analysis.
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\3\ As of publication of this RFI, the 2024 IECC is the latest
published standard and the 2027 IECC is under development.
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In developing the May 2022 Final Rule, DOE gave careful
consideration to a variety of factors, including the ``first costs''
related to the purchase of manufactured homes. In the May 2022 Final
Rule, DOE established a set of tiered energy conservation standards
that DOE believed was respectful of the industry imperative to maintain
the affordability of manufactured homes while at the same time meeting
DOE's obligation under EISA to establish energy conservation standards
based on the most current version of the IECC standards. In the
following sections, DOE presents a series of issues on which it seeks
input to aid in reviewing the technical and economic analyses
underlying DOE's May 2022 Final Rule in light of the changing
background conditions.
Additionally, DOE seeks stakeholder input on commencing efficiency
standards rulemaking for manufactured homes at this time and welcomes
comments on other issues relevant to the conduct of this process that
may not specifically be identified in this document. For example, DOE
is interested in understanding the timing necessary for industry to
comply with the 2022 Final Rule.
DOE is also revisiting the 2022 Final Rule in light of E.O. 14192
``Unleashing Prosperity Through Deregulation,'' and as identified in
the below sections, seeks stakeholder input on reducing regulatory
burden of these regulations.
A. Recent Updates to the IECC
Under EISA, DOE is required to update energy conservation standards
following any revision to the IECC. 45 U.S.C. 17071(b)(3). Since the
IECC was updated in August 2024, DOE has a legislative requirement to
review energy conservation standards for manufactured housing. Under
EISA, DOE is required to consider the design and factory construction
techniques, the IECC standards, and cost effectiveness given the impact
on purchase price and on total life-cycle construction and operating
costs. 45 U.S.C. 17071(b)(1); 45 U.S.C. 17071(b)(3)(2).
Because manufacturers are not yet required to comply with the 2022
Final Rule, the Department finds that the requirement to analyze the
cost-effectiveness of the IECC 2024 standard presents a question as to
the proper baseline for further technical analysis. At present,
manufacturers are required to comply with existing HUD requirements
related to the energy efficiency of manufactured homes. Typically, when
DOE performs an energy conservation standard analysis, the existing
standards provide the minimum efficiency level against which proposed
efficiency requirements are analyzed.
Issue A-1: DOE seeks data and information regarding basing
standards on the most recent version of the IECC; in particular,
whether standards based on the 2024 IECC would or would not likely be
cost effective or that standards more stringent than 2024 IECC would or
would not be cost effective. In addition, comments should describe the
basis for their perspective on compliance cost and other costs borne by
consumers (e.g., layout of housing less attractive or functional due to
increase insultation), cost effectiveness, including a description of
methodology or analytical assumptions.
Issue A-2: DOE seeks input on the appropriate baseline to use in
conducting further technical analysis in support of an updated
manufactured housing energy conservations standards rulemaking. We seek
information on the best representation of the current state of energy
efficiency in manufactured housing to characterize the baseline--e.g.,
the HUD standards, the 2022 Final Rule efficiency levels, or another
efficiency level.
Issue A-3: While DOE typically considers existing standards to be
the minimum baseline, DOE also typically takes into account any
information that demonstrates current manufacturing
[[Page 42547]]
practice results in a range of efficiencies available in the
marketplace. For example, significant percentages of manufactured home
shipments historically met the Energy Star criteria. Between 2020 and
2022, approximately 21 percent of buildings met the Energy Star
criteria for manufactured homes, while in 2023 the fraction was 36
percent. DOE notes that in 2023 the Federal tax credits were increased
from $1,000 to $2,500 for manufactured homes meeting Energy Star and
certain researchers have postulated that the tax credit program
influenced the 2023 results.\4\ DOE seeks input to best assess
appropriate baseline efficiency levels reflective of what is observed
in shipments in the manufactured housing market. Specifically, DOE
seeks input on fractions of manufactured homes with building envelopes
constructed effectively at the current HUD requirements for their HUD
region, fractions that would meet the lower Uo \5\ envelope
requirements under the EnergyStar 2.0 criteria, and fractions currently
constructed at the 2022 final rule Uo levels to best assess appropriate
baseline efficiency levels reflective of what is observed in shipments
in the manufactured housing market. As part of this request, DOE
requests input on the impact of the expected expiration of the Federal
tax credit on the fraction of shipments that meet Energy Star criteria.
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\4\ Source: Vermeer, Kim. 2024. I'm HOME Manufactured Housing
Industry Benchmark Report 2024. Prepared by Urban Habitat
Initiatives Inc for the Lincoln Institute of Land Policy. https://tinyurl.com/mvw57ham.
\5\ Uo refers to the overall thermal transmittance
represented by the coefficient of heat transmission (air-to-air)
through the building thermal envelope equal to the time rate of heat
flow per unit area of envelope with a unit temperature difference
between the warm side and cold side air films (Btu/h x ft\2\ x
[deg]F).
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B. May 2022 Final Rule's Analytical Assumptions
The May 2022 Final Rule incorporated analytical assumptions to
determine the minimum level of efficiency for which DOE seeks further
stakeholder input through the current RFI, as described in the itemized
paragraphs below. These assumptions spanned a variety of issues, such
as: affordability; the use of HUD climate zones; the price elasticity
value to use in DOE's calculation of potential shipment impacts;
whether to include certification, compliance, and enforcement costs as
part of DOE's analysis; the availability of windows that meet the U-
value and Solar Heat Gain Coefficient (SHGC) and the availability of
doors and insulation that meet U-values required by the 2022 Final
Rule; and whether the tightening of a manufactured home's building
envelope with regard to air leakage would impact indoor air quality by
increasing the likelihood of trapping pollutants inside the building
and other issues that are relevant.
Issue B-4: What analytical aspects related to DOE's May 2022 Final
Rule should DOE consider re-examining as part of its ongoing
consideration of energy efficiency standards for manufactured housing?
This request for input encompasses whether DOE's analysis sufficiently
addressed the cost-effectiveness of standards based on the then-current
2021 IECC when considering the code's impact on both the purchase price
of manufactured housing and on total life-cycle construction and
operating costs. See 42 U.S.C. 17071(b)(1). If changes are recommended,
how should DOE reconsider how it addressed costs (even those that are
hard to quantify) and the cost-effectiveness of the IECC criteria and
what specific changes, if any, should DOE make to its assumptions or
analyses to better address this in any future analysis for manufactured
housing? As part of this request, DOE encourages commenters to provide
specific supplemental supporting data regarding any changes that
commenters may suggest.
EISA explicitly stated that DOE could establish efficiency
standards based on the climate zones used by HUD rather than the
climate zones embodied in the IECC standards. 42 U.S.C. 17071(b)(2)(B).
The 2022 May Final Rule utilized the HUD climate zones to reduce the
complexities and burden faced by manufacturers, and to reduce the
potential confusion faced by consumers if the energy standards were
based on different climate zones than other HUD requirements. 87 FR
32728, 32761.
Issue B-5: DOE seeks comments on the appropriateness of using the
HUD climate zones, and whether the use of the HUD climate zones
continues to be appropriate.
In further researching the manufactured housing market, DOE has
examined additional information from a variety of sources. Of note is
information from the Urban Institute which released a report in 2023
that analyzed mortgage data from the Home Mortgage Disclosure Act
database covering 2022 mortgage data.\6\ The 2023 Urban Institute
report detailed the characteristics of manufactured housing consumers
and the market for manufactured home financing from 2022. Key findings
from the report include:
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\6\ See https://www.urban.org/research/publication/housing-finance-glance-monthly-chartbook-july-2023.
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Manufactured homeowners tend to have lower incomes than
their counterparts who own site-built homes:
[cir] homeowners with chattel \7\ loans had median incomes of
$60,000;
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\7\ A ``chattel'' loan is a loan to buy movable personal
property and can include manufactured homes, but also for example
machinery or vehicles. Chattel loans hold the movable property in
collateral as opposed to mortgages which typically hold fixed
buildings and the occupied land as collateral. Chattel loans for
manufactured homes are commonly of shorter duration than mortgages
and commonly accompanied by higher interest rates.
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[cir] homeowners with manufactured housing mortgage loans had
median incomes of $65,000;
[cir] homeowners of site-built homes had median incomes of
$101,000.
Manufactured-housing purchasers used chattel loans in 42
percent of purchases requiring loans.
Personal property (chattel) loans included a significant
fraction (25.3 percent) of loans in which the consumers also owned
(purchased) the land.
Median loan amounts were:
[cir] Personal property (chattel) loans--$95,000;
[cir] Real property (i.e., mortgage) manufactured housing loans--
$175,000;
[cir] Site-built home loans--$305,000.
Median interest rates reported were 8.0 percent for
chattel loans, 5.5 percent for manufactured home real property loans,
and 5.0 percent for site-built home mortgages.
Denial rates among loan applications for chattel loans
were 65.5 percent of applications, compared to 43 percent of
manufactured home real property loan applications, and 10.4 percent of
site-built home mortgage applications.
This data suggest that manufactured housing purchasers face
substantial constraints in receiving financing compared to traditional
site-built home purchasers. In turn, these constraints may make
purchasers of manufactured homes more price-sensitive to potential
changes that would impact the costs to construct (and purchase) a
manufactured home.
U.S. Census Bureau American Housing Survey data analyzed and
referenced by the National Association of Home Builders (NAHB) \8\
found that
[[Page 42548]]
36.6 percent of single-section manufactured home owners spend more than
30 percent of their income on housing, or in other words, 36.6 percent
are considered to be cost burdened.\9\ The percentage of multi-section
homeowners that are cost burdened, at 28.4 percent, is roughly similar
to the single-family homeowner group (27.6%).
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\8\ Koh, Catherine. 2025. ``Manufactured Homes: An Alternative
Means of Housing Supply.'' Published in National Association of Home
Builders' Eye On Housing. https://eyeonhousing.org/2025/04/manufactured-homes-an-alternative-means-of-housing-supply/#comments.
\9\ The 30% threshold dates back to dates back to 1981 when
Congress set the cap in a change to the original value established
in 1969 by the Brooke Amendment to National Housing Act. In essence
it says any household paying more than 30% of total income on
housing costs (rent, mortgage payments, property taxes and
utilities) is cost burdened. While it is widely used it as a measure
of whether a household lacks resources for other necessities of life
after covering their monthly housing costs, it is more of a rule of
thumb than a metric based on a strong, scientific analysis. The
benchmark is used by the U.S. Department of Housing and Urban
Development (HUD).
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Manufactured homeowners who finance their homes tend to pay higher
interest rates than their site-built home counterparts. Chattel
financing is typically offered to purchasers at a significantly higher
interest rate than the rates offered to their site-built home
counterparts. However, approximately one-quarter of manufactured
homeowners with chattel loans own or are purchasing the land on which
the manufactured home is sited and could potentially be eligible for
mortgage financing but used a chattel loan. Relevant factors in the
decision making include the willingness of lenders to make smaller
personal property loans than mortgage lenders, the possibility that
personal property lenders may be willing to loan money to people with
lower credit scores than mortgage lenders, and the possibility the
homeowner doesn't want to encumber the land with a lien. The Urban
Institute report also noted there is a tradeoff between lower
origination costs with significantly higher interest rates (chattel
loans) and higher origination costs with significantly lower interest
rates and greater consumer protections (mortgage).
Issue B-6: DOE acknowledges that interest rates change over time
and expects the interest rates used in the 2022 Final Rule will change
as more data becomes available. DOE seeks comments regarding the
previous financial findings regarding the economic impact of energy
conservation standards on the ability of purchasers to buy manufactured
homes. In stakeholders' experiences, are these findings reasonably
accurate, and are there other data that DOE should examine, or other
factors that DOE should consider? In addition, are the total costs of
ownership accurately reflected in the analysis? Assuming that these
findings are reasonably accurate, what role, if any, should they play
in shaping potential amended standards that DOE may ultimately adopt
for manufactured housing and why? If these findings do not appear
accurate, what data supports the discrepancy, what specific
shortcomings are indicated, and what assumptions/changes should DOE
apply when determining the stringency and structure of energy
conservation standards for manufactured housing? DOE also seeks input
on the advisability of using current interest rates versus longer
historical averages. DOE also seeks input on the advisability of
continuing to use 30-year analytic time horizon in the analysis or
whether the analytic time horizon should reflect average ownership of
manufactured housing.
C. Affordability
DOE's analysis for its May 2022 Final Rule considered the economic
impacts of the proposed standards on individual manufactured home
purchasers. DOE's 2022 Final Rule established separate minimum
efficiency standards for single- and multi-section homes, and within
each of these two home classes with requirements varying across three
geographic regions.
Under the statutory provision requiring the Department to develop
standards for manufactured housing, the May 2022 final standards were
generally based on the then-current version of the IECC (i.e., the 2021
IECC). In the 2022 Final Rule, DOE found a set of standards based on
the 2021 IECC to be cost effective. Because of the emphasis placed on
affordability by stakeholders previously commenting on the rulemaking
documents, the 2022 Final Rule placed an incremental cost ceiling of
$750 on the changes made to the single section manufactured homes. This
was roughly based on an amount that DOE's analysis of financing costs
and energy benefits determined to result in a positive return on
investment in the first year, across all HUD zones, for the average
purchaser. While standards more stringent than those adopted by DOE for
single-section homes may also have been life-cycle cost effective for
the average purchaser, such stricter standards may not have met the
$750 incremental cost ceiling used for Tier 1. While DOE's analysis
focused on standards based on the 2021 IECC, it also considered the
consequent impact on the purchase price of manufactured housing and on
total life-cycle construction and operating costs. However, DOE
recognizes the approach may not have explicitly considered all relevant
factors regarding the potential impacts of the final standard.
Consequently, in this RFI, DOE is seeking comments on a variety of
issues related to these factors to help further inform the Department's
views regarding the economic impacts related to its energy
conservations standards for manufactured housing, including how they
may impact the use of the IECC.
Issue C-7: In the 2022 Final Rule analyses DOE analyzed
``packages'' of efficiency changes that reflected the 2021 IECC
requirements. For the Tier 1 standards, DOE analyzed individual energy
efficiency options to identify a package of options that totaled less
than $750 and that yielded a positive cash flow in year 1 taking into
account the increases in first-year loan cost and the down payment and
the reductions in first year energy costs. (See 2022 Final Rule
Technical Support Document, p. 6-3.) Further, in this analysis, DOE
assumed the purchaser would use a chattel loan. DOE seeks comments on
the appropriateness of this methodology for assessing affordability.
Are there metrics DOE could use to assess the impact of standards on
consumers other than the life-cycle cost analysis and the cash flow
analysis? Are there other consumer impacts that the life-cycle cost and
cash flow analysis should reflect, such as availability of other
housing options using cross-price elasticities?
For Tier 2, DOE considered a package of energy efficiency options
that mirror the 2021 IECC, with adjustments made for the practicalities
of manufacturing and transporting and setting homes up on-site. For
example, because of the need to join sections in order to perform an
envelope air-sealing test, DOE, working with the Manufactured Housing
Working Group,\10\ came up with an alternative requirement based on
visual assessment. Minimum ceiling R-values from the IECC were reduced
in consideration of factory construction techniques when compared to
site-built homes. In the analysis of options, DOE found R-20+5 exterior
wall insulation to not be cost effective and reduced that requirement
to R-21. For Tier 2, DOE analyzed the life-cycle cost effectiveness of
standards. DOE seeks input on the appropriateness of the methodologies
used in the 2022 Final Rule, including both the use of life-cycle cost
and the first-year positive cash flow analyses,
[[Page 42549]]
for analyzing possible updates to the 2022 Final Rule.
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\10\ See https://www.federalregister.gov/documents/2014/08/15/2014-19299/appliance-standards-and-rulemaking-federal-advisory-committee-asrac-manufactured-housing-working.
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Issue C-8: Manufactured housing owners tend to be lower-income
compared to other homeowners and are also likely to finance their
manufactured housing purchase using higher-rate chattel loans. As a
result, the Department is particularly interested in specific comments,
analysis, and data regarding the affordability of manufactured housing
and how the requirements adopted in the 2022 Final Rule for both Tier 1
and Tier 2 manufactured homes will likely affect affordability, and
which manufactured home purchasers may be most impacted.
Issue C-9: In the 2022 Final Rule the Department took into account
the impact of price sensitivity of manufactured home purchasers when
estimating the shipments of products by applying an estimate of price
elasticity to percentage changes in the up-front price of manufactured
homes. Lenders and home purchasers often take into account costs and
benefits beyond the simple up-front cost when making lending or
purchasing decisions. including default risks and changes in the
features of manufactured housing. The Department seeks input concerning
whether there is a more comprehensive way to model lending behavior and
purchasing behavior rather than simply first-cost, particularly when
considering that DOE's assessment of the financing mechanisms typically
relied upon and the energy benefits that accrue from energy efficiency
standards.
Issue C-10: DOE has previously viewed ``affordability'' as a
combination of up-front cost, which may price out some number of
potential homeowners at time of purchase, as well as operating costs,
which will affect all manufactured housing owners over a longer time
horizon. HUD and prominent industry organizations generally define
housing affordability in terms of a percentage of income.\11\ The
Department seeks comments that provide information on how to weigh
these components in defining affordability, with consideration for
economic factors such as income, and with a particular focus on
affordability for lower-income consumers.
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\11\ See https://archives.huduser.gov/portal/pdredge/pdr-edge-featd-article-081417.html.
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D. Other Analytical Issues
Issue D-11: The cost of efficiency improvements directly affects
the affordability of any standard DOE might adopt. To avoid short-term
cost fluctuations, DOE's engineering analyses supporting appliance
efficiency rulemakings will commonly use 5-year averages in prices of
materials such as structural steel that fluctuate with world markets.
In doing so, the analyses smooth out some of the effects of transitory
price shocks, without removing the shocks from the data. DOE seeks
input on appropriate methods for establishing costs for major cost
categories such as insulation, softwood lumber, window products, and
other major components that may impact the cost effectiveness of energy
conservation standards for manufactured housing. Certain stakeholders
have also highlighted the impact of inflation and recent supply
shortages on the construction and manufactured housing industry. Has
cost inflation related to materials needed for manufactured housing
eased? Are there residual supply chain shortages for materials needed
to construct manufactured housing? Are changing tariff structures
expected to impact costs or materials availability? How should DOE
conduct sensitivity analysis incorporating different price scenarios
systematically to offer better analysis?
Issue D-12: The Department also seeks comment on whether cost-
effectiveness analyses should be performed over the expected life of
manufactured homes, or over some other time period, for example that
reflecting the average time period that the original owner of the home
will live in the home and benefit from the efficiency improvements.
Since any subsequent owners of the home will continue to receive the
energy benefits for the entire life of the home, is it reasonable to
model the economic benefits of the improvements to energy efficiency of
the home over any lifetime less than the expected 30-year life of the
home, and if so, what are the arguments for doing so? Or should DOE
also analyze the consumer discounting of the future decrease in energy
consumption seen in used energy efficient goods such as cars and
appliances? Is this a life-cycle cost question or is this an
affordability question?
E. Other Issues
Issue E-13: EISA requires DOE to consult with the Secretary of HUD,
who may seek input from the Manufactured Housing Consensus Committee
(MHCC). In the prior rulemaking process, which eventually led to the
2022 Final Rule, DOE met with HUD on multiple occasions and attended
and presented at MHCC meetings. DOE consulted with HUD on pathways to
compliance and enforcement of the energy conservation standards toward
the objective of aligning with HUD's current inspection and enforcement
processes and reducing regulatory burden and duplication of effort. In
addition, as part of the rulemaking process, DOE empaneled and took
input from a Manufactured Housing Working Group. The rulemaking process
itself also provides an additional avenue for consultation through
which industry stakeholders and the general public can review
rulemaking documents, supporting analysis, and provide input.
Consultation with HUD also occurs during interagency clearance required
by Executive Order 12866. DOE intends to continue consultation with HUD
as it considers whether to amend its energy conservation standards for
manufactured housing. Given HUD's historic and ongoing role in the
regulation of manufactured housing generally, DOE seeks input on how
DOE can best identify synergies with existing HUD processes and
standards, while still satisfying DOE's statutory mandate to establish
standards for energy efficiency in manufactured housing. How can DOE
operationalize or amend this rule in a manner that reduces compliance
burden on manufacturers?
Issue E-14: DOE published a NOPR in December 2023 to establish
enforcement procedures for its energy conservation standards for
manufactured housing. These procedures were not included in the May
2022 final rule, where the Department established its standards, and
were published separately via the later NOPR. However, while DOE
received comments on the NOPR and proposed enforcement procedures, it
never finalized such procedures by issuing a final rule. In considering
whether to further amend its energy conservation standards for
manufactured housing, should DOE more comprehensively incorporate
enforcement procedures into updated standards or continue in separately
issuing enforcement procedures? How might such enforcement standards
leverage the enforcement program administered by HUD?
DOE encourages stakeholders to review and submit comments on the
issues listed previously and on other issues that they believe warrant
DOE's consideration in any potential future rulemaking on energy
conservation standards for manufactured housing.
III. Submission of Comments
DOE invites all interested parties to submit in writing by the date
listed in DATES section of this document, comments and information on
matters addressed in this notice and on other
[[Page 42550]]
matters relevant to DOE's consideration of energy conservation
standards for manufactured housing.
Submitting comments via www.regulations.gov. The
www.regulations.gov web page will require you to provide your name and
contact information. Your contact information will not be publicly
viewable except for your first and last names, organization name (if
any), and submitter representative name (if any). If your comment is
not processed properly because of technical difficulties, DOE will use
this information to contact you. If DOE cannot read your comment due to
technical difficulties and cannot contact you for clarification, DOE
may not be able to consider your comment.
However, your contact information will be publicly viewable if you
include it in the comment or in any documents attached to your comment.
Any information that you do not want to be publicly viewable should not
be included in your comment, nor in any document attached to your
comment. If this instruction is followed, persons viewing comments will
see only first and last names, organization names, correspondence
containing comments, and any documents submitted with the comments.
Do not submit to www.regulations.gov information for which
disclosure is restricted by statute, such as trade secrets and
commercial or financial information (hereinafter referred to as
Confidential Business Information (``CBI'')). Comments submitted
through www.regulations.gov cannot be claimed as CBI. Comments received
through the website will waive any CBI claims for the information
submitted. For information on submitting CBI, see the Confidential
Business Information section.
DOE processes submissions made through www.regulations.gov before
posting. Normally, comments will be posted within a few days of being
submitted. However, if large volumes of comments are being processed
simultaneously, your comment may not be viewable for up to several
weeks. Please keep the comment tracking number that www.regulations.gov
provides after you have successfully uploaded your comment.
Submitting comments via email, hand delivery, or postal mail.
Comments and documents submitted via email, hand delivery, or mail also
will be posted to www.regulations.gov. If you do not want your personal
contact information to be publicly viewable, do not include it in your
comments or any accompanying documents. Instead, provide your contact
information on a cover letter. Include your first and last names, email
address, telephone number, and optional mailing address. The cover
letter will not be publicly viewable as long as it does not include any
comments.
Include contact information each time you submit comments, data,
documents, and other information to DOE. If you submit via mail or hand
delivery, please provide all items on a CD, if feasible. It is not
necessary to submit printed copies. No facsimiles (faxes) will be
accepted.
Comments, data, and other information submitted to DOE
electronically should be provided in PDF (preferred), Microsoft Word or
Excel, WordPerfect, or text (ASCII) file format. Provide documents that
are not secured, written in English and free of any defects or viruses.
Documents should not contain special characters or any form of
encryption and, if possible, they should carry the electronic signature
of the author.
Campaign form letters. Please submit campaign form letters by the
originating organization in batches of between 50 to 500 form letters
per PDF or as one form letter with a list of supporters' names compiled
into one or more PDFs. This reduces comment processing and posting
time.
Confidential Business Information. Pursuant to 10 CFR 1004.11, any
person submitting information that he or she believes to be
confidential and exempt by law from public disclosure should submit via
email, postal mail, or hand delivery two well-marked copies: One copy
of the document marked confidential including all the information
believed to be confidential, and one copy of the document marked ``non-
confidential'' with the information believed to be confidential
deleted. Submit these documents via email or on a CD, if feasible. DOE
will make its own determination about the confidential status of the
information and treat it according to its determination.
It is DOE's policy that all comments may be included in the public
docket, without change and as received, including any personal
information provided in the comments (except information deemed to be
exempt from public disclosure).
DOE considers public participation to be a very important part of
the process for developing energy conservation standards and related
rulemaking activities. DOE actively encourages the participation and
interaction of the public during the comment period in each stage of
the rulemaking process. Interactions with and between members of the
public provide a balanced discussion of the issues and assist DOE in
the rulemaking process. Anyone who wishes to be added to the DOE
mailing list to receive future notices and information about this
process should contact the Appliance and Equipment Standards Program at
[email protected].
IV. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of this request
for information.
Signing Authority
This document of the Department of Energy was signed on August 28,
2025, by Lou Hrkman, Principal Deputy Assistant Secretary for 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 August 29, 2025.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2025-16881 Filed 9-2-25; 8:45 am]
BILLING CODE 6450-01-P