Rolling Back Red Tape in American Homes

Getty Images IkFVfdWb8Z4 Unsplash
Rolling Back Red Tape in American Homes

The House is set to consider two bills to reduce costs for American homeowners: the Affordable Housing Over Mandating Efficiency Standards (HOMES) Act and the Saving Homeowners from Overregulation With Exceptional Rinsing Act (SHOWER) Act. These bills would roll back unnecessary federal regulations, lower costs, and reassert Congress’ role in setting standards.

Affordable HOMES Act

The Affordable HOMES Act, introduced by Rep. Erin Houchin (R-IN-09), would repeal section 413 of The Energy Independence and Security Act of 2007, which requires the Department of Energy (DOE) to regulate the energy efficiency of manufactured homes.

In 2023, the DOE under the Biden Administration proposed regulations that would set energy conservation standards for manufactured homes primarily based on the 2021 International Energy Conservation Code (IECC). Adopting the 2021 IECC standards would add thousands of dollars in upfront costs for new homes, reducing housing affordability, while it could take decades for potential energy savings to pay back those costs.

This bill would remove the need for the DOE to create and enforce burdensome and costly regulations for manufactured homes. As Congress looks to address housing affordability, this bill is a step in the right direction.

The SHOWER Act

The SHOWER Act, introduced by Rep. Russell Fry (R-SC-07), would align the DOE’s definition of a “showerhead” with the American Society of Mechanical Engineers (ASME) 2024 definition. However, this definition is not publicly available due to the copyright restrictions imposed by the ASME without paying a $150 fee to access it.

The Energy Policy Act of 1992 established a maximum flow rate of 2.5 gallons per minute (gpm) for showerheads, applied to each nozzle independently. The Obama Administration reinterpreted it such that the 2.5 gpm limit applied to all nozzles in a multi-nozzle showerhead collectively.

Under subsequent administrations, this interpretation has changed multiple times. During the first Trump Administration, the definition returned to the original 1992 approach, allowing each showerhead in a multi-showerhead unit to operate at up to 2.5 gpm. The Biden Administration reversed that policy, and the current Trump Administration restored the original interpretation through Executive Order 14264.

The SHOWER Act would require the Secretary of Energy to promulgate such regulations as may be necessary to conform to the new definition of showerhead. However, these regulations may be changed by future administrations. Additionally, the SHOWER Act only revises the definition of a showerhead, it does not change the requirement for the Secretary to ensure that a showerhead meets the ASME 1989 showerhead standards and any potential amendments to that standard as proposed by future ASME committees.

By aligning DOE’s definition with the 2024 ASME standard, the SHOWER Act reduces regulatory burdens by giving manufacturers and builders a clear, stable standard, and cutting the compliance costs that are passed on to consumers. More importantly, this bill reinforces a core principle of a free economy by ensuring that consumers, instead of federal regulators, determine which products succeed in the marketplace.

Congressional Opportunities to Lower Costs

By rolling back costly mandates and standardizing definitions, Congress can reduce unnecessary compliance costs. Repealing burdensome manufactured housing regulations and aligning appliance standards with industry definitions would mark a commitment to lowering regulatory burdens and improving affordability for Americans.

Wagoner, Sarah Summer 2024
Research Assistant

Sarah Wagoner is a Research Assistant at the Economic Policy Innovation Center.

Gadai Bulgac Headshot
Research Assistant

Gadai Bulgac is a Research Assistant at the Economic Policy Innovation Center (EPIC).

Related Content

Subscribe

Newsletter Signup