Presidential Executive Order “ REMOVING REGULATORY BARRIERS TO AFFORDABLE HOME CONSTRUCTION” Offers Opportunity to Remove Onerous Provisions in Building Energy Codes

On March 13, 2026, the White House announced a Presidential Executive Order “ REMOVING REGULATORY BARRIERS TO AFFORDABLE HOME CONSTRUCTION”that has 6 sections.   Section 1 states that the Purpose – The American dream of homeownership depends on a dynamic housing market in which a varied inventory of new homes is built and renovated each year.  Layers of unnecessary regulatory barriers, slow permitting processes, and onerous mandates at all levels of government have delayed construction, restricted development, and driven up the costs of new housing.  These constraints have made housing less affordable for many Americans. It is the policy of my Administration to reduce regulatory barriers to building homes and to steward taxpayer dollars in a manner that promotes housing affordability.”

In reviewing the provisions in the Presidential Executive Order (PEO), it appears that the direction that is put forth in Section 2c provides the opportunity for the DOE to propose deletion of a number of onerous provisions impacting the direct use of natural gas in the International Energy Conservation Code (IECC). Specifically,  AGA has argued against and been concerned with a number of provisions that we believe are beyond the Scope and Intent of the IECC, add cost to homes without any efficiency improvements and are biased against the direct use of natural gas. For example, we have been objecting to provisions such as non-mandatory provisions for electric ready, unfavorable bias on credits for natural gas homes, etc., in the IECC but have not been successful in having those provisions removed.   It should be noted that DOE is required to issue a determination on energy improvements on new editions of the IECC and elimination of these provisions would impact affordability.

There are other provisions in the PEO that require the Secretary of Housing and Urban Development (HUD) and DOE to “take appropriate action to reform and, where appropriate, eliminate unduly burdensome or costly energy-efficiency, water-use, or alternative-energy requirements regarding housing, including manufactured housing, to the maximum extent practicable and consistent with applicable law. Also in Section 4, there is a requirement that “ Within 60 days of the date of this order, the Secretary of Housing and Urban Development, in coordination with the Assistant to the President for Domestic Policy, shall develop and promulgate a series of regulatory best practices for State and local governments to promote housing construction and affordability, including: (ii)   curtailing mandates that increase housing construction costs, such as green-energy building requirements or other energy-choice restrictions, non-evidence-based building codes, and unreasonable building-code-adoption timelines”.

AGA staff continues to review the Presidential Executive Order and assemble a list of issues that we believe will assist the various federal agencies in developing actions to accomplish the goal of the PEO of reducing or eliminating constraints have made housing less affordable. BECS Committee members are requested to review the order and provide us with recommendations that can be taken to reduce or eliminate provisions in the IECC, etc. that help address the home affordability crises facing the country.   

State Codes Activity Update.

Attached is a weekly feature of the “Friday Update” covering state code calendar activities as presented by the online utility “Fiscal Note,” which is sponsored by APGA and AGA Code and Standards. Please review both update files and determine if there are state code activities that impact your service territory or organization.