South Carolina Attorney General Alan Wilson has joined a coalition of 15 states and the National Association of Home Builders in challenging energy efficiency standards set by the US Department of Housing and Urban Development (HUD) and the US Department of Agriculture (USDA). The coalition argues that these standards negatively impact affordable housing, particularly affecting low-income and first-time homebuyers.
“These misguided energy mandates are yet another example of Washington overreach that hurts hardworking Americans,” said Attorney General Wilson. He emphasized that these policies impose unnecessary costs, making homeownership difficult for many families, especially those already facing financial challenges.
The HUD and USDA acknowledge that the standards could add up to $8,345 to each new home’s cost. However, industry professionals estimate the costs could be as high as $31,000 per new home. The agencies project that over 161,000 single-family housing units and more than 17,000 multi-family units will be impacted annually. They also concede that these standards might reduce affordable housing production at a time when middle-class families struggle with homeownership and homelessness rates are rising.
The state attorneys general seek a court ruling declaring Section 109 of the Cranston-Gonzalez Act unconstitutional concerning delegating authority to set energy efficiency standards to organizations like the International Code Council or ASHRAE. They also request a ruling against the 2024 Final Declaration as arbitrary and contrary to law, along with an order preventing HUD and USDA from applying inconsistent energy efficiency standards.
The lawsuit is led by Utah and Texas, with participation from Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Tennessee, West Virginia, and the National Association of Home Builders. The case is titled Utah v. Todman and is pending in the Eastern District of Texas.
