Federal Court rules in favor of Utah, other states, in lawsuit surrounding energy efficiency standards

A federal court has ruled in favor of Utah, 15 other states, and the National Association of Home Builders (NAHB) in their lawsuit against the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) regarding new energy efficiency standards for housing construction. The lawsuit stemmed from a 2024 determination by HUD and USDA requiring certain homes to follow the 2021 International Energy Conservation Code (IECC), a move the plaintiffs argued would increase the cost of new homes by $9,600 to $21,400. They contended this violated the Cranston-Gonzalez National Affordable Housing Act, intended to make housing more affordable. The court found that the agencies’ Final Determination supporting the IECC codes was unlawful under the Administrative Procedure Act, as the Act only authorizes agencies to update energy efficiency standards once—which HUD and USDA had already done in 2015. The court also noted the agencies’ own findings indicated a 1.5 percent reduction in the availability of new homes due to the standards. While the court dismissed the claim that delegating power to private code bodies was a violation, it ultimately vacated the agencies’ Final Determination, meaning the new standards are not currently enforceable. NAHB Chairman Bill Owens stated the ruling prevents “new energy code mandates that will raise construction costs and limit access to federal mortgage programs,” and Utah Attorney General Derek Brown called it “a victory for the Constitution and for every Utah family who dreams of owning a home.”

(Source：Salt Lake City)