Montgomery, AL – Alabama Attorney General Steve Marshall has joined a coalition of 15 states and the National Association of Home Builders to challenge new federal energy efficiency standards implemented by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA). The coalition argues that the standards will significantly increase housing costs, making homeownership less attainable for low-income and first-time buyers.
The coalition contends that the requirements, designed to enhance energy efficiency, will impose financial burdens far beyond the agencies’ projections. HUD and USDA estimate an additional cost of up to $8,345 per new home, but industry professionals suggest the true impact could exceed $30,000 per unit. These increases could affect over 161,000 single-family homes and 17,000 multi-family units annually, potentially reducing the availability of affordable housing.
Attorney General Marshall criticized the Biden administration for adopting policies that, he argues, disproportionately affect low-income Americans. “Biden’s bureaucrats at HUD and USDA thought it was wise to impose energy-efficiency requirements that stand to cost low-income homebuyers over $30,000. That’s ridiculous,” Marshall stated. He further accused the administration of undermining affordable housing efforts amid rising inflation and cost-of-living challenges.
The lawsuit also highlights concerns about the delegation of regulatory authority. The coalition seeks a declaration that Section 109 of the Cranston-Gonzalez Act, which allows the International Code Council (ICC) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) to set energy efficiency standards, is unconstitutional. The coalition argues that the 2024 Final Declaration is arbitrary and inconsistent with legal requirements.
The coalition argues that the new standards, which have already been partially rolled back by the ICC and ASHRAE, could exacerbate the nation’s housing crisis. With homelessness at record levels and middle-class families struggling to afford homes, the states contend that these regulations may further hinder affordable housing production.
The lawsuit, led by Utah and Texas, is supported by Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, Tennessee, and West Virginia, as well as the National Association of Home Builders.
The coalition is asking the court to:
- Declare Section 109 unconstitutional to the extent that it delegates standard-setting authority to ICC and ASHRAE.
- Declare the 2024 Final Declaration arbitrary, capricious, and contrary to law.
- Enjoin HUD and USDA from applying the energy efficiency standards to housing where such standards are inconsistent with constitutional provisions.
This case underscores ongoing tensions between federal regulatory policies and state-led efforts to maintain affordability in housing markets. It also highlights the broader debate over balancing energy efficiency goals with economic accessibility.
