Release: September 23, 2024

Alliance to Save Energy Supports Stronger Energy Efficiency Standards for Federally-Backed Homes

The Alliance to Save Energy (ASE) is proud to support the initiative led by U.S. Senators Chris Van Hollen, Jeanne Shaheen, and their colleagues to urge the Federal Housing Finance Agency (FHFA) to implement minimum energy efficiency standards for new homes backed by federally-sponsored enterprises, such as Fannie Mae, Freddie Mac, and Ginnie Mae.

This action is critical to advancing energy efficiency across the housing sector, benefiting homeowners, renters, and the environment. Energy efficiency plays a pivotal role in reducing energy costs, enhancing resilience against extreme weather, and improving air quality. These standards align with the principles of the Energy 2040 initiative, a cornerstone of ASE’s policy priorities to ensure a sustainable and equitable energy future.

Why This Matters for Energy Efficiency

Implementing modern energy efficiency standards for newly constructed, federally-backed homes will have a transformative effect on the housing market. It will:

• Lower Energy Costs: Homeowners and renters will save money through reduced energy bills, benefiting low- and middle-income households the most.
• Enhance Resilience: Energy-efficient homes are better equipped to handle extreme weather, reducing risks from utility outages and improving overall safety.
• Improve Health Outcomes: More efficient homes lead to better indoor air quality, reducing exposure to pollutants and lowering the risk of respiratory and cardiovascular diseases.
• Drive Energy Efficiency Innovation: Establishing a baseline for energy efficiency encourages innovation and helps builders and developers adopt best practices, such as ENERGY STAR® and Zero Energy Ready Homes (ZERH), to create homes that use up to 40% less energy than typical buildings.

Alignment with ASE’s Policy Priorities

This initiative is a clear step forward in addressing ASE’s core objectives to promote energy efficiency, particularly in the built environment. By implementing robust energy standards, the FHFA will:

• Support the goals of the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), which together have allocated over $1.2 billion to help states and localities update their building codes.
• Strengthen the economic and environmental resilience of American communities by reducing energy waste and promoting healthier living conditions.
• Encourage developers to adopt forward-thinking standards that align with ASE’s vision of an equitable and efficient housing market.

This is a crucial step to ensure the housing market evolves in tandem with our national energy and climate goals. The Alliance to Save Energy remains committed to advocating for policies that improve the lives of Americans through energy efficiency, and we fully support this timely call to action.

View the Senate letter here.

About the Alliance to Save Energy
The Alliance to Save Energy is a coalition that promotes energy efficiency across all sectors of the economy. Through research, policy advocacy, education, and outreach, ASE works to ensure a clean, sustainable energy future.