As a follow-up to MHARR’s June 4, 2014 report on this matter (“DOE Meeting to Address MH Energy Standard”), attached is a Department of Energy (DOE) notice from the June 13, 2014 Federal Register announcing DOE’s intent to proceed with a “negotiated rulemaking” for development of the manufactured housing energy conservation standards mandated by the Energy Independence and Security Act of 2007 (EISA). As proposed by DOE, the negotiated rule would be developed by a new Federal Advisory Committee functioning as a “working group” under the auspices of DOE’s Appliance Standards and Rulemaking Federal Advisory Committee (ASRAC).
The DOE announcement follows a June 6, 2014 ASRAC meeting on this matter, where MHARR raised specific questions regarding the basis for such a committee and negotiated rulemaking given the already-existing Manufactured Housing Consensus Committee (MHCC), with its statutorily-balanced composition and fully transparent and accountable procedures. Among other things, MHARR questioned whether such a “working group” would ensure proper representation of all program stakeholders and made it clear to DOE officials and other participants that: (1) any “working group” that does not include proper representation of smaller HUD Code industry businesses and consumers would be unacceptable; and (2) that any DOE rulemaking process – “negotiated” or otherwise — must include consultation with, and the full involvement of, both HUD and the MHCC, at a meaningful stage in the proceedings.
DOE’s notice of intent to proceed with a negotiated rulemaking is just the latest twist in a seven-year process, which has already seen, among other things — DOE develop a “draft” proposed manufactured home energy conservation rule; selectively leak that draft proposed rule to certain interested parties; the utilization of that leaked “draft” proposed rule as the basis for a still undisclosed energy proposal that may yet be brought to the MHCC by those parties in interest; the DOE “draft” proposed rule being withdrawn after its submission to the Office of Management and Budget (and after objections and a request for an investigation by MHARR); and now this shift, in midstream, from the “standard” DOE rulemaking process to a “negotiated” rulemaking. Thus, seven years after EISA, DOE’s activities concerning this extremely important matter for both the HUD Code industry and consumers is in a state of chaos and confusion, which, needless to say, is unacceptable to the manufactured housing industry and consumers (particularly new and potential homebuyers who are just beginning to enter the housing market).
Based on all of the above, MHARR will meet with DOE officials to sort out these issues and fully participate in this next-new DOE approach going forward, in order to fully protect the rights and interests of HUD Code industry small businesses and consumers of affordable housing.
