Attorney General Steve Marshall of Alabama has joined a coalition consisting of 15 states and the National Association of Home Builders to contest federal energy efficiency standards. These standards, implemented by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA), are argued to undermine affordable housing, particularly affecting low-income and first-time homebuyers.
The coalition's filing criticizes the Biden administration for maintaining these costly standards despite partial rollbacks by the International Code Council (ICC) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). Attorney General Marshall commented on the situation, stating: “Thanks to Biden’s skyrocketing inflation, Americans are feeling the pinch when it comes to cost-of-living and housing. Biden’s bureaucrats at HUD and USDA then thought it was wise to impose energy-efficiency requirements that stand to cost low-income homebuyers over $30,000. That’s ridiculous.”
While HUD and USDA acknowledge that these standards could increase new home costs by up to $8,345, industry professionals estimate potential increases up to $31,000 per new home. The agencies also admit that over 161,000 single-family housing units and more than 17,000 multi-family units will be impacted annually. This could reduce affordable housing production amid rising homelessness.
The state attorneys general are seeking a declaration that Section 109 of the Cranston-Gonzalez Act is unconstitutional in delegating authority for setting energy efficiency standards to ICC or ASHRAE. They also seek a declaration against the 2024 Final Declaration as arbitrary and capricious, along with an order preventing Defendants from applying these standards inconsistently with constitutional provisions.
States joining Alabama in this lawsuit include Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, Tennessee, West Virginia; Utah and Texas lead this initiative alongside the National Association of Home Builders.