Biden Administration Releases Decarbonization Plan for Homes and Buildings
The U.S. Department of Energy (DOE) recently released an ambitious blueprint for decarbonizing buildings in the country, including homes. The stated goal of the plan is to reduce carbon emissions from buildings 90% by 2050 compared with the 2005 baseline, with an interim goal of a 65% reduction by 2035.
Although the blueprint was created in consultation with other federal agencies and includes many state, local and federal policy ideas, it is a non-binding document that does not make specific regulatory or policy proposals.
NAHB is supportive of finding ways to reduce carbon emissions and increase energy efficiency in homes. But the plan laid out by the administration relies heavily on building code changes and a shift to electrification in homes, which would decrease choice for home buyers and owners and increase construction costs for new homes.
The plan does note that existing buildings and homes, especially in disadvantaged communities, are a major source of carbon emissions and most buildings that exist today will still exist in 2050, necessitating an extensive retrofit effort. The document, however, does not offer any new funding solutions for what it notes is the main driver of heating and cooling loads in buildings: The envelope in residential buildings and ventilation in commercial buildings.
In discussing retrofitting or remodeling, DOE noted that it may need to develop contractor standards to “increase the likelihood of quality work performance,” and offered its Energy Skilled certification as an example.
NAHB has consistently argued that the only way to meaningfully reduce carbon emissions from homes is to address existing homes. And many of the required updates will be expensive and should be voluntary for owners.
DOE’s blueprint leans heavily on required changes through standards, codes and regulatory actions. For example, when discussing what actions can be taken at the federal level to “lock in cost-effective performance gains,” the options given are:
- Appliance efficiency standards
- Support building energy code development and adoption
- Support other state/local regulatory actions
As climate risks become more widespread, governments will need to take bold action. But huge leaps in standards, rules, codes and other regulations will disrupt a housing market that is already in an affordability crisis. We must remind policymakers that homes aren’t just units of carbon production; they are where people live, and everyone needs one.
Latest from NAHBNow
Mar 31, 2025
Total Property Tax Collections Hit Record High in 2024Property tax revenue collected by state and local governments reached a new high in 2024 and continued as the largest single contributor to state and local revenue.
Mar 28, 2025
Have a Strong Plan for Chemical Safety and Hazard CommunicationHazardous chemicals are found everywhere on a home building site and in many commonly used products, such as paints, cleaners, and adhesives. Providing easy-to-read information about their identity and hazards can keep everyone on the job site safe.
Latest Economic News
Mar 27, 2025
Mortgage Rates Hold Steady After Early March DropMortgage rates dropped significantly at the start of March before stabilizing, with the average 30-year fixed-rate mortgage settling at 6.65%, according to Freddie Mac. This marks a 19-basis-point (bps) decline from February. Meanwhile, the 15-year fixed-rate mortgage fell by 20 bps to 5.83%.
Mar 26, 2025
Property Tax Revenue Outpaces Other Sources in 2024Property tax revenue collected by state and local governments reached a new high in 2024 and continued to make up a bulk of tax revenue. Total tax revenue for state and local governments also reached a high after falling in 2023, driven by higher revenue across all sources. In 2024, tax revenue totaled $2.095 trillion, up 4.6% from $2.004 trillion in 2023.
Mar 25, 2025
Consumer Expectations Fall AgainConsumer confidence fell for the fourth straight month amid growing concerns about the economic outlook and policy uncertainties, especially potential tariffs. Uncertainties continue to weigh on consumer sentiment as consumer confidence dropped to a 4-year low and expectations for the future economy fell to a 12-year low.