Eye Opening! Gas Industry vs DOE Compared to Manufactured Housing Institute vs DOE-Compare Fed Register Facts Reveals Manufactured Housing Industry Woes and MHI Behavior; plus MHVille Markets
On 12.18.2023, the U.S. Department of Energy (DOE) published a notice in the authoritative Federal Register / Vol. 88, No. 241 / Monday, December 18, 2023 / Rules and Regulations. Quoting from that notice in the Federal Register: “DEPARTMENT OF ENERGY 10 CFR Part 430 [EERE–2014–BT–STD–0031] RIN 1904–AD20 Energy Conservation Program: Energy Conservation Standards for Consumer Furnaces AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Final rule.” Also, per that Federal Register Notice on that “Final rule” for certain gas furnaces, it said under “Effective date: The effective date of this rule is February 16, 2024. Compliance date: Compliance with the amended standards established for the subject consumer furnaces in this final rule is required on and after December 18, 2028.” So, the final rule effect date was nearly two months off and the compliance date was 4 years off. Those factual elements and quoted remarks noted from the Federal Register, Utility Dive reported that the very next day after that Federal Register notice was issued that: “Gas trade groups and a furnace manufacturer sued the Department of Energy on Dec. 19, 2023.” Gas trade groups and a company were obviously ready to act in order to STOP that final rule from going into effect.
This fact check and analysis will unpack exclusive insights not previously published here or by others in MHVille. It will pull together years of reporting and insights that can be digested in minutes.
Part I
Utility Dive noted that: “The new rule will require gas furnaces to be 95% efficient, but the American Gas Association said it will drive prices higher for many consumers.” That was under the headline: “Gas industry sues DOE over new furnace efficiency rule, citing cost and other concerns.” As manufactured housing industry veterans and experts routinely know, trade associations and impacted businesses don’t just wake up and suddenly discover that a regulation is being announced. There is a process. There is feedback. There are announcements. Time goes by. If the regulator doesn’t give whatever reasonable consideration to filed remarks, as a possible step in the process, they can sue.
Also tellingly, trade publications can and do report, as Utility Dive did. “The U.S. Department of Energy announced the new appliance efficiency standard for consumer furnaces in September and published it in the Federal Register on Monday [12.18.2023], opening the window for groups to file legal challenges.” That suit was filed, per that trade group, the very next day. “Gas trade groups and a furnace manufacturer sued the Department of Energy on Dec. 19, 2023, over an energy efficiency standard for gas furnaces.” That appeal was filed at “The U.S. Court of Appeals for the District of Columbia Circuit.”
That “senior trade reporter” “Robert Walton” said the gas industry associations and a furnace manufacturer asked for the U.S. Court of Appeals for the District of Columbia Circuit on Monday asked a federal appeals court to review a new energy efficiency rule they say “effectively bans the sale of non-condensing natural gas furnaces.” Restated, for $4 a month in claimed savings, the DOE apparently wanted to initiate a suit that happens to include possible applications for mobile homes and manufactured homes.
That gas industry lawsuit vs. the DOE is linked here. “The new furnace standard will cut heating bills by about $50 annually [according to the DOE] for households that replace an old model with a new one, Andrew deLaski, executive director of the Appliance Standards Awareness Project, said in an email [to Utility Dive]. “The only parties that would benefit from keeping energy-wasting models on the market are gas utilities. Even so, several of the nation’s largest gas utilities support the standard,” deLaski reportedly stated.
“The legal challenge to DOE’s new furnace rule is not surprising, said Mike Henchen, RMI principal for carbon-free buildings,” wrote Walton.
“AGA has attempted to work with the Department of Energy to address the rule’s profound impacts on consumers and homeowners with a solutions-oriented approach to energy conservation,” President and CEO Karen Harbert said in a statement. “Unfortunately, our 114 pages of comments have been summarily ignored.”
Walton also reported that: “The National Propane Gas Association said it will seek to consolidate the lawsuit with others pending against DOE that also focus on whether the agency should have established a separate product class for non-condensing appliances in its energy efficiency rulemakings.”
Compare and contrast that swift reply by the gas industry with what the Manufactured Housing Institute (MHI) did in conjunction with the Texas Manufactured Housing Association (TMHA) with respect to the DOE manufactured housing energy rule. Note too how other trade media or bloggers in manufactured housing dealt with the reporting of the issue, which will be explored herein.
The U.S. Department of Energy (“DOE” or “the Department”) is publishing a final rule to establish energy conservation standards for manufactured housing pursuant to the Energy Independence and Security Act of 2007. This document presents standards based on the 2021 version of the International Energy Conservation Code (“IECC”) and comments received during interagency consultation with the U.S. Department of Housing and Urban Development, as well as from stakeholders. The adopted standards would provide a set of “tiered” standards based on size that would apply the 2021 IECC-based standards to manufactured homes, except that single-section manufactured homes would be subject to less stringent building thermal envelope requirements compared to multi-section manufactured homes.
DATES:
The effective date of this rule is August 1, 2022. Compliance with the adopted standards established for manufactured housing in this final rule is required on and after May 31, 2023.
The incorporation by reference of certain publications listed in this rule is approved by the Director of the Federal Register on August 1, 2022.”
With those facts in mind, and the example of the gas industry swiftly filing suit against the DOE, literally the day after the rule was published per the Federal Register and Utility Dive, when did when did MHI and the TMHA file their suit? The next day after the DOE published their rule? Or did it take them until the next week?
For the answer to how long that litigation took before MHI-TMHA filed suit, per Justia: on “February 14, 2023” the “COMPLAINT Plaintiffs’ Original Complaint Seeking Temporary and Permanent Declaratory and Stay/Injunctive Relief Under the APA” was filed by “The Manufactured Housing Institute, The Texas Manufactured Housing Association” (MHI-TMHA) vs. the Secretary Jennifer Granholm, DOE, et al.”
Restated, MHI-TMHA waited some 8½ months. By contrast, Utility Dive reported that: “Gas trade groups and a furnace manufacturer sued the Department of Energy on Dec. 19, 2023,” which was the day after the DOE published their notice in the Federal Register, on 12.18.2023, or about 8½ months.
Bing AI was asked how long the delay was. Here is how that response began.
Therefore, the lawsuit was filed approximately 259 days after the final DOE energy rule was published in the Federal Register. …”
Part II
Why did MHI Delay?
MHI has declined to respond to questions like that and others asked by MHProNews. While it is unknown precisely how long it took the various gas associations to respond to Utility Dive, their report on the litigation filed on 12.19.2023 was published on Dec. 20, 2023, so it appears to have been relatively swift.
By way of contrast, what MHI did say in an email to MHProNews is…nothing.
Bing AI/Bing CoPilot was asked if MHI has provided an explanation for the delay. It could find none.
I found no direct explanation from the Manufactured Housing Institute or the Texas Manufactured Housing Association regarding the delay between the DOE publishing their rule and the lawsuit being filed. …”
Part III – Additional Information with More MHProNews Analysis and Commentary
Bing AI also linked the TMHA website, which has a post that said the following.
DOE ANNOUNCES DELAY IN MH ENERGY STANDARDS
Monday, May 22, 2023 1:15:00 PM
TMHA is pleased to announce that the Department of Energy released Friday, May 29th, a revised final rule pushing back the effective date of the new manufactured housing energy construction standards.
Tier 2 homes (i.e. multi-sections) were pushed back two additional years until July 2025. Tier 1 homes (i.e. single-sections) standards will begin 60-days following the publication of the enforcement provisions of the regulations. …”
For reader ease and clarity, note the distinctions between what the TMHA, what MHI calls a state affiliate, and what the gas industry’s responses were. Instead of merely reporting what the DOE said, the gas industry laid out some highlights and perhaps even provided that trade media with a copy of their litigation.
Utility Dive noted that the gas industry provided the following inputs to their inquiries.
“The new furnace standard will cut heating bills by about $50 annually for households that replace an old model with a new one, Andrew deLaski, executive director of the Appliance Standards Awareness Project, said in an email.”
American Gas Association (AGA) said: “AGA has attempted to work with the Department of Energy to address the rule’s profound impacts on consumers and homeowners with a solutions-oriented approach to energy conservation,” President and CEO Karen Harbert said in a statement. “Unfortunately, our 114 pages of comments have been summarily ignored.”
“The American Gas Association, American Public Gas Association, National Propane Gas Association and manufacturer Thermo Products filed the lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit. The groups say DOE data show that 30% of senior-only households, 26% of low-income households and 27% of small business consumers will face higher costs due to the new rules. For households with mobile home gas furnaces, 39% of consumers would see higher costs.”
It is apparent from what Walton wrote that Utility Dive received responses from their emailed inquires to the gas trade groups and that appliance maker. But by contrast, MHI declined to respond MHProNews several times. With those thoughts in mind, consider this Q&A with Bing AI on 12.28.2023 at about 12:21 AM ET.
> “Search the internet and see what manufactured housing industry trade publications, trade media, or bloggers reported on the lack of transparency by the Manufactured Housing Institute on issues alleged by the Manufactured Housing Association for Regulatory Reform (MHARR) with respect to the DOE energy rule process.”
I found several articles related to the lack of transparency by the Manufactured Housing Institute (MHI) on issues alleged by the Manufactured Housing Association for Regulatory Reform (MHARR) with respect to the DOE energy rule process. Here are some of the articles I found:
An article by Manufactured Housing states that MHI Vice Chairman called on Congress to pass H.R. 3327, the “Manufactured Housing Affordability and Energy Efficiency Act of 2023,” and highlighted the Department of Energy’s (DOE) Energy Conservation Standards for Manufactured Housing as an example of a federal agency implementing an environmental policy without fully understanding the broader consequences. The article also mentions that MHI has been accused of being secretive and opaque in its dealings with the DOE energy rule process 3.
MHLivingNews and MHProNews were cited by Bing AI. No other manufactured home specific trade media were mentioned by Bing AI; why not? MHI and MHARR were mentioned, TMHA in a prior response, as was the Lincoln Institute.
MHARR offered to team up with MHI in their suit, after months of MHARR, MHProNews, and MHLivingNews publicly urged MHI to sue.
When MHI-TMHA finally did sue, some 8.5 months later, i.e.: belatedly, MHARR said the lateness of their filing could cause “chaos” for some independent producers. To illustrate that is in the following exchanged between this writer for MHProNews and Bing AI.
> “Is it true that the Manufactured Housing Association for Regulatory Reform (MHARR) said that the belated filing of the Manufactured Housing Institute Texas manufactured Housing suit 23-cv-00174 could result in “chaos” for independent producers of HUD Code manufactured homes that need clarity on what standards they will be building homes to meet HUD and DOE policies? Isn’t it also true that MHARR more recently said that the belatedly proposed DOE standards are ‘stunning and unworkable?'”
It seems that Bing AI didn’t find evidence that other trade media were holding MHI accountable on the genesis of this DOE energy rule, and if not, why not?
Does that lack of reporting by other manufactured housing industry trade media other than MHProNews/MHLivingNews of MHI’s lack of transparency, as was exposed by MHProNews-MHARR in a Q&A linked here reflects, shed light on the state of trade publishing and trade associations in manufactured housing? For instance, why MHI has cozied up to those which give that association friendly coverage, while failing to respond to MHProNews/MHLivingNews which seeks the facts and evidence and whatever that evidence might reveal?
Utility Dive’s Walton noted that “The only parties that would benefit from keeping energy-wasting models on the market are gas utilities,” per Andrew deLaski, executive director of the Appliance Standards Awareness Project [ASAP]. That’s an interesting point. Recall the parallel notion suggested by MHI member Andy Gedo? “Tony, I agree with your [MHProNews/MHLivingNews] thesis that the MH industry needs devil’s advocates or contrarians. Any highly concentrated industry needs this. And you may have a point that since our industry lacks contrarians [i.e.: in trade media akin to what MHProNews/MHLivingNews does in reports with analysis], it may be worthwhile to look to other industries for example…”
To apply the insight from Gedo or Walton, who in the manufactured housing industry benefited from the 8.5 months of delays while the threat of costly and harmful manufactured housing energy regulations were pending and advancing toward implementation?
Or as the old investigator’s maxim goes, what happens when someone follows the money trail on this issue?
As the DOE manufactured housing energy rule process was moving ahead, significant mergers and strategic deals have occurred involving key Manufactured Housing Institute (MHI) members. Those MHI members happen to be on the MHI board of directors, now and previously.
Similarly, Skyline Champion (SKY) made a deal for Regional Homes and also made a deal with ECN Capital in the wake of the DOE energy rule being published in the Federal Register.
Is it possible that these deals and acquisitions by MHI members Cavco and Skyline Champion are merely coincidental? Yes, that is possible. But it is also possible that years of regulatory threats, harms, and uncertainty had worn down smaller firms who finally made the decision to sell out rather than continue the fight to stay independent.
Not only is it possible, given MHI’s long – roughly 8½ months in delays (compared to what the gas industry did in swiftly suing DOE) – it is entirely plausible that the pending regulatory regime which MHI’s own attorneys said could cause the industry “irreparable harm” was a factor. Perhaps it was among the likely explanations independents decided to sell out to larger, consolidating brands. To further illustrate that point, recall the insight from Carol Roth about regulators and bigger businesses.
With the board positions and parallel example of the gas industry and their battle with DOE regulators in mind, consider this Q&A with Bing AI.
> “Legally, when an association advertises that they represent “all segments” of the industry, and board members apparently act mainly on their own behalf, what possible legal violations or issues might be involved?”
Fiduciary duty, antitrust, market manipulation, and false advertising concerns have been raised by MHProNews/MHLivingNews for years with respect to MHI and its insiders. It is based not on mere speculation, but rather on specific remarks and hard evidence that routinely includes what MHI, their own member-brands, MHARR and others have said.
This recent suit against the DOE by the gas industry is arguably fresh indirect evidence of what a trade group should do when trade groups (like MHARR, or the gas associations) authentically wants to stop an energy rule would do. Recall that MHProNews revealed time and again ways that MHI worked behind the scenes to advance the DOE energy rule.
First, this report apparently demonstrates that MHARR was correct and MHI was posturing. But worse than posturing, the documents obtained by MHProNews via a DOE FOIA revealed that MHI was apparently working behind the scenes to advance the kind of regulatory effort that MHI claimed they wanted to stop. If DOE’s attorneys make that argument, several troubling developments might occur. FWIW, MHProNews notes that while MHARR essentially offered to help with the legal challenge launched by MHI-TMHA on 2.14.2023, they may be better off now that MHI has decided to go without MHARR involvement. Any failure on the part of MHI-TMHA and their attorneys wil be all ‘on them,’ not on MHARR. See this report, dated October 16, 2021, which once more reflects why MHProNews readers stay engaged and loyal. Since MHI’s purported duplicity was grasped, our reports with analysis in recent years have routinely stood the test of time. This report is still relevant today on several levels. https://www.manufacturedhomepronews.com/a-more-costly-re-boot-of-fatally-flawed-fundamentally-tainted-sham-doe-negotiated-rulemaking-process-smoking-gun-docu/
The report linked below was published on June 27, 2022. It predicted that a downturn was ‘less than a year away’ if MHI failed to stop the DOE rule. Once again, note that the DOE announcement in the Federal Register was published on 05/31/2022. In less than a month, a detailed Q&A took place which provided industry readers with facts not found at MHI, nor from MHI aligned trade media.
That prediction above of a downturn proved to be true. While other factors are arguably involved, it is entirely reasonable to imagine that publicity and other possible factors related to the DOE rule could be seen as influencing factors.
Notice, we are posting once again those MHI pleadings vs. DOE linked here. MHI arguably can’t continue to try to have it both ways. They can’t claim great harm, and then diddle around for 8.5 months. They can’t claim that they are trying a multipronged strategy, when the actual history of that multipronged strategy arguably reveals an inconsistent ‘hit and miss,’ start and stop pattern that seems different than what MHI alleges.
Given the number of times that MHI members have publicly said that their goal is industry consolidation, it seems that consolidation nudged along by regulatory hurdles and threats are just one of the tools in their M&A tool chest.
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The gas association’s swift lawsuit following the publication by DOE in the Federal Register detailed and documented herein above, vs. the snail’s pace suit by MHI-TMHA in the parallel explored herein are contrast enough for serious concerns about possible conflicts of interest and legal breaches by key MHI members and senior staff. That MHI litigation only occurred after months of public pressure by MHARR, MHLivingNews, and MHProNews. This well evidenced fact-patterns ought to speak volumes to industry pros who wonder why manufactured housing production seems to struggle so much for growth during a well-documented affordable housing crisis that the public is increasingly clamoring to fix. This vexing pattern of ineptitude and/or corruption costs the U.S. some $2 trillion dollars in lost GDP a year, ironically, per MHI member Cavco. To learn more, see the linked and related reports. ##
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Part IV – is our Daily Business News on MHProNews stock market recap which features our business-daily at-a-glance update of over 2 dozen manufactured housing industry stocks.
This segment of the Daily Business News on MHProNews is the recap of yesterday evening’s market report, so that investors can see at glance the type of topics may have influenced other investors. Thus, our format includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines.
The macro market move graphics below provide context and comparisons for those invested in or tracking manufactured housing connected equities. Meaning, you can see ‘at a glance’ how manufactured housing connected firms do compared to other segments of the broader equities market.
In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.
Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.
Headlines fromleft-of-center CNN Business – from the morning of 12.27.2023
Americans will spend $32 billion less on gas prices in 2024, GasBuddy predicts
Powerball lottery tickets are seen in San Gabriel, California, on July 19, 2023.
Powerball jackpot swells to $700 million for tonight’s drawing
Apple watches are seen on display at the Apple Store in Grand Central Station on December 18, 2023 in New York City. Apple announced that it will halt the sale of its Apple Watch Series 9 and Apple Watch Ultra 2 in the U.S. as early as this week. The decision comes from an ongoing dispute with medical technology company Masimo over its blood oxygen feature. The company has said that a review period is underway with the International Trade Commission related to Apple Watch devices containing a blood oxygen feature.
Federal court blocks Apple Watch ban pending appeal
Apple Watch Series 9 signage at the company’s World Trade Center store in New York, US, on Wednesday, Dec. 20, 2023. The International Trade Commission ruled earlier this year that the Apple Watch violates two Masimo patents related to blood-oxygen sensing and imposed an import ban on the Ultra 2 and Series 9 models that goes into effect Dec. 25.
Where you can still buy the latest Apple Watch
Apple Watch Ultra 2 smartwatches at the company’s Grand Central store in New York, US, on Wednesday, Dec. 20, 2023. The International Trade Commission ruled earlier this year that the Apple Watch violates two Masimo patents related to blood-oxygen sensing and imposed an import ban on the Ultra 2 and Series 9 models that goes into effect Dec. 25.
Apple is no longer selling the newest Apple Watch in America after the White House declines to overturn ban
Feb 25, 2022; Los Angeles, California, USA; Los Angeles Clippers owner Steve Ballmer looks on as players warm up before the game against the Los Angeles Lakers at Crypto.com Arena.
Steve Ballmer is set to make $1 billion a year for doing nothing
Prospective buyers attend an open house at a home in San Francisco, California, US, on Saturday, Nov. 4, 2023.
How 4.5 million people managed to buy a home this year amid the toughest market in a generation
New York Times newspaper office building is seen in Manhattan, New York, United States, on October 26, 2022.
The New York Times sues OpenAI and Microsoft for copyright infringement
The Maersk Sentosa container ship sails southbound to exit the Suez Canal in Suez, Egypt, on Thursday, Dec. 21, 2023. A steep decline in the number of tankers entering a vital Red Sea conduit suggests that attacks on ships in the area are further disrupting a key artery of global trade.
Shipping firms split on return to Red Sea as Houthi attacks continue
A view of Harvard campus on John F. Kennedy Street at Harvard University is pictured in Cambridge, Massachusetts, on December 7.
Austrian business school cuts ties with Harvard University ‘in solidarity with the Jewish student community’
Shawn Fain, CNN Business’ labor leader of the year, plans to keep automakers sweating
Inflation is nearly back to normal. But high prices have changed Americans’ lives
Toyota-owned automaker halts Japan production after admitting it tampered with safety tests for 30 years
Free returns are going away
Here are 7 of the well-known companies that went bankrupt in 2023
Microsoft’s Satya Nadella is CNN Business’ CEO of the Year
Intel will build $25 billion chip factory in Israel’s ‘largest investment ever’
US home prices hit another record high in October, rising for the ninth straight month
Today is the last day for Joe Biden to keep the Apple Watch on shelves
EV, hybrid and gas-powered: Some interesting cars coming in 2024
Taylor Swift had the best year for any business leader in recent memory
Harvard faculty appeal to the university’s board to address its growing number of crises
India joins the ranks of stock market superpowers
In instances such as Apollo, Berkshire Hathaway, Blackstone or others, manufactured housing may only be part of their corporate interests. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts.
Notice: MHProNews invites the firms named in these reports to respond to any concerns about possibly inaccurate information via email that identifies the concern and offers evidence that sheds a different light on the topic discussed. That said, neither publicly MHI nor by email have MHI and their ‘insider brands’ done so. They’ve been repeatedly invited to do so, including an outreach on Dec 7, 2o23.
