The Biden administration has finalized a rule change that stands to revolutionize the way American homes are built, promising more than just energy-efficient houses but also a considerable reduction in utility bills. This ambitious move is expected to affect at least 140,000 new homes each year and could lead to a staggering $2.1 billion in energy bill savings. It marks a significant milestone in the administration’s broader strategy to tackle climate change and enhance the sustainability of American housing.
This major advancement comes in tandem with the Environmental Protection Agency’s groundbreaking rules on power plants’ carbon emissions and the Energy Department’s regulations to simplify permitting for transmission lines. Together, these form a regulatory package aimed at modernizing the United States’ energy landscape, from how homes are powered to how power itself is generated and distributed.
The shift entails raising the standards for homes to qualify for U.S. government-backed loans through the Department of Housing and Urban Development and the U.S. Department of Agriculture, with the Department of Veterans Affairs likely to follow. The new criteria are based on breakthrough energy codes that have stirred the construction industry but are seen as crucial in making housing more affordable and reducing climate pollution.
Despite the additional $605 million this might add to construction costs, regulators are confident the overall benefits are undeniable. As Lowell Ungar, the federal policy director of the American Council for an Energy-Efficient Economy, aptly put it, “This long-overdue action will protect homeowners and renters from high energy costs while making a real dent in climate pollution.”
The administration’s initiative to enforce stricter building codes and enhance the nation’s electrical infrastructure can potentially usher in a new era of energy consumption and carbon footprint reduction. Energy Secretary Jennifer Granholm acknowledges the need for speedier projects, stating, “We need to build new transmission projects more quickly, as everybody knows.”
Critics from the construction and gas industries argue that the new standards may be overly ambitious. The codes demand electrical circuitry that could facilitate a future shift to electric vehicles and heat pumps, a move that gas companies have fiercely opposed. Nonetheless, the International Code Council (ICC), which authors standards for single-family homes, has kept most of the stringent codes intact despite resistance.
The Biden administration’s decisive stance on building efficiency underscores the urgency of addressing both the climate crisis and economic burdens facing homeowners. With a projected $2.1 billion energy cost savings, the new building codes may not only lower expenses for Americans but also contribute to a greener, more resilient housing market.
The economic implications of the new rule are far-reaching. As Jessica Garcia, senior policy analyst for climate finance at Americans for Financial Reform Education Fund, points out, “Implementing up-to-date energy codes will help ease the financial strain on homeowners and renters across the country as they fight to remain housed.” This sentiment is echoed by advocates who see the federal government’s use of the 2021 code as a benchmark for more housing loans as a way to “decrease burdensome energy costs for future homeowners and renters,” potentially lowering default risks and loan delinquency rates.
With the Inflation Reduction Act providing over $1 billion in aid to help energy regulators adopt newer codes, the update to federal loan requirements marks an assertive step by the administration to promote stricter codes.
Relevant articles:
– This New Biden Rule Will Save Americans $2 Billion On Utility Bills, HuffPost, 04/27/2024
– 3 energy questions hang over EPA’s carbon rule, E&E News by POLITICO, Fri, 26 Apr 2024 10:57:00 GMT
– Low Income Home Energy Assistance Program (LIHEAP), The Administration for Children and Families, Wed, 24 Apr 2024 12:00:00 GMT
– Biden Finalizes Plan To Overhaul Dirty Power Grid And Reduce Blackouts, Yahoo! Voices, Thu, 25 Apr 2024 09:00:01 GMT