DOE ENERGY RULE LITIGATION – REPORT AND UPDATE

MHARR was present in Austin, Texas on April 24, 2024 for a U.S. District Court hearing regarding the pending industry legal challenge to the U.S. Department of Energy’s (DOE) May 2022 manufactured housing energy standards rule.

The hearing, before Senior U.S. District Judge David A. Ezra, focused on a motion by DOE and the U.S. Department of Justice (DOJ) to dismiss the lawsuit, which presents challenges to the DOE standards on both procedural and substantive grounds, including DOE’s failure to fully and properly evaluate the standards’ impact on both the manufactured housing industry and the cost and availability of manufactured homes to consumers.

In seeking such a dismissal, DOE and DOJ maintained that the case, urged by MHARR and filed in February 2023, was not yet “ripe” for judicial review, insofar as a final rule regarding enforcement of the DOE standards has not yet been issued – even though the May 2022 manufactured housing energy standards themselves, according to DOE/DOJ’s own court filings, were admitted to be “final.”

The judge, following approximately 90 minutes of oral argument, did not issue a formal ruling, but did indicate from the bench that he would likely deny the government Motion to Dismiss as it pertains to the energy standards themselves – i.e., the main bulk of the case — as those standards are in fact, final, and properly poised for judicial review. Consequently, and assuming that the court’s final/formal decision is consistent with the judge’s statements in open court, the challenge to the DOE standards will move forward without interruption.

As to the enforcement rule, the judge indicated that he may grant the Motion to Dismiss, but that such a dismissal would be “without prejudice,” meaning that that particular portion of the challenge could be re-filed after DOE issues a final enforcement rule – an action that is currently pending following a notice and comment period which concluded in February 2024. While the government could not provide the court with a likely timeframe for the publication of a final enforcement rule, it is likely – as noted by the judge — that given the extremely heavy docket of the U.S. District Court for the Western District of Texas, the final enforcement rule will be published by DOE before the case is resolved, thus facilitating the reincorporation of that element back into the case via an amended complaint.

Overall, therefore, the court’s expected decision is mostly positive for the industry and consumers, and will allow the crucial challenge to the horrific and destructive DOE manufactured housing energy standards to move forward.

Further, when invited by the judge, MHARR President Mark Weiss stated that he was present in court on behalf of MHARR and its smaller and medium-sized manufacturer members to stress the importance of this case and the harmful impact that the DOE standards would have on those smaller businesses.

MHARR will continue to closely monitor developments regarding this litigation and will take further steps as warranted and necessary.

Manufactured Housing Association for Regulatory Reform (MHARR)
1331 Pennsylvania Ave N.W., Suite 512
Washington D.C. 20004
Phone: 202/783-4087
Fax: 202/783-4075
Email: MHARRDG@AOL.COM
Website: www.manufacturedhousingassociation.org