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119-s-1178119th CongressWALLET

GREEN Appraisals Act of 2025

Sponsored By: Senator Bennet, Michael F. [D-CO]

Introduced

Summary

Energy-informed home appraisals — this bill would require lenders in five federal mortgage programs to offer borrowers an energy report option and ensure appraisers consider energy efficiency and renewable features when valuing homes.

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  • Borrowers would get an energy disclosure with standard loan papers, can request a free portable energy report, and lenders must provide that report to appraisers with the borrower’s consent starting March 1, 2026. Appraiser consideration may raise, lower, or not change the appraised value and may not be used alone to reject an appraisal or loan.
  • Qualified appraisers would have to consider efficiency characteristics, renewable features, estimated energy savings, and energy use compared to similar homes after completing 7 or more hours of approved continuing education.
  • Creditors would have to use the appraised value from a qualified appraiser and update underwriting and verification systems to handle appraisals that include energy reports. Federal housing agencies must issue joint guidance and establish a stakeholder advisory committee to advise on implementation.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Agency guidance and advisory committee

This bill would require the heads of the covered agencies to issue joint guidance on how creditors should disclose, prepare, and share energy reports and what appraisal approaches are acceptable. They would consult an advisory committee that includes housing, energy, builder, lender, appraiser, and consumer groups. The guidance would say agencies accept all applicable valuation approaches that show market reaction to energy features and would not tell appraisers how to weigh energy information.

Appraisers must consider energy reports

This bill would require a qualified appraiser who is given an energy report to consider it when developing the appraised value. The appraiser would consider efficiency features, renewable-energy features, estimated energy savings, and how the home's energy use compares to similar homes. To be a qualified appraiser you would need a state license and to complete a 7+ hour approved continuing education course with case studies and an exam. The course requirement would add time and training costs for appraisers while the appraisal result could move up or down depending on the report.

New lender rules for energy reports

This bill would require lenders taking applications for covered mortgages to give borrowers a written notice the same day they give standard loan disclosures. The notice would say borrowers can request or provide an energy report and that an appraiser may consider it and the appraised value could go up, down, or stay the same. If you ask, the lender would give you a copy of an energy report for free. Starting March 1, 2026, with your consent, lenders would provide any available energy report to the appraiser at assignment. Lenders would have to use the appraised value produced by a qualified appraiser and may not reject an appraisal or application just because the appraiser considered an energy report. The rule would apply to residential mortgages made, insured, purchased, guaranteed, or securitized by major federal housing agencies (FHA, FHFA/Fannie Mae and Freddie Mac, Ginnie Mae, USDA Rural Housing Service, and the VA). Lenders would need to update origination and underwriting systems within two years of enactment to handle appraisals that consider energy reports.

What counts as an energy report

This bill would define an energy report as a study of a home's energy features, estimated energy costs or savings, and estimated energy produced by renewables. Reports would have to follow agency guidance or approved methods such as HERS or the Department of Energy's Home Energy Score and include quality-assurance steps. That would make energy reports more consistent and easier for appraisers and lenders to use.

Sponsors & CoSponsors

Sponsor

Bennet, Michael F. [D-CO]

CO • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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