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Energy Efficiency and Conservation at HUD

Implementing HUD’s Energy Action Plan

Energy Training Workshop

Departmental Headquarters - May 10, 2005

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Energy Action Plan Created to Support President’s National Energy Policy

“Conservation and energy efficiency are crucial components of a national energy plan. Greater energy efficiency helps the United States reduce the likelihood of energy shortages, emissions and the volatility of energy prices.”

May 2001

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Growing Gap Between Domestic Production and Consumption

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Premise

Improvements in the energy efficiency of homes and apartments in the United States have the potential to significantly reduce U.S. dependence on foreign oil, increase housing affordability, and contribute to the nation’s energy security

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Buildings account for over one third (36%) of all energy used in the U.S.

Trans-portation

28%

Industry36%

Commercial Buildings

16%

Residential Buildings

20%

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Energy Use in Buildings

Buildings use more than one third of all energy in the U.S., and two-thirds of all electricity consumptionHomes and apartments use more than one half of the energy used in all buildings in the U.S.

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Residential Sector Uses 20% of Total U.S. Energy

Americans spend $138 billion in homesResidential energy use expected to grow by 20% by 2020Average family spends $1,338/year on energyElectricity accounts for 61% of energy useSignificant reductions 1987-87, but little since: average home uses 101 million BtusHomes getting bigger, more appliances

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Some Efficiency Gains

New home refrigerators use one third less energy than in 1972New commercial lighting systems use less than half of the energy they did in the 1980sFederal buildings now use about 20 percent less energy per square foot since 1985Industrial energy use per unit of output declined by 25% from 1980 to 1999Amount of energy required to generate 1 kilowatt hour of electricity has declined by 10 percent since 1980While energy consumption has increased, emissions have declined

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Utilities and Housing Affordability

Energy costs often second-largest shelter expense

Second only to mortgage payments, rent

Can be a factor in mortgage defaultsMultifamily building abandonmentLow-moderate income families at riskHigh oil, natural gas prices

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Percent of income for energy expenditure 1997

32.5

14.9

11.7

8.5

6.75.5

4.33.3

2.61.7

0

5

10

15

20

25

30

35

less than5,000

5,000-7499 7,500-9,999 10,000-14,999 15,000-19,999 20,000-24,999 25,000-34,999 35,000-49,999 50,000-74,999 75,000 ormore

Income range (1997$)

Pe

rce

nt

Energy Burden Highest on Low-Income Households

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HUD Spends An Estimated $4 Billion Each Year on Utilities

More than 10% of entire budget

Estimated $1.1 billion directly through public housing operating subsidies

Remainder though utility allowances (Housing Choice Vouchers) or Section 8 multifamily contracts

Also impacts new construction through HOME, CDBG, HOPE VI, and elderly housing

Approximately 5 million units nation-wide

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Secretary Alphonso Jackson Creates Energy Task Force

“With the announcement of the President’s National Energy Policy we now have the necessary framework for promoting increased energy efficiency in housing. HUD is committed to giving this issue the priority it deserves to make sure we make significant progress in conserving energy in housing.”

June 20, 2001

Testimony to House Financial Services Committee

                                  

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Broad-Based Energy Task Force

Policy Development and ResearchCommunity Planning and DevelopmentHousingPublic and Indian HousingHealthy Homes and Lead Hazard ControlField Policy and ManagementDepartmental Operations and Coordination

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21-Point Action Plan Posted on HUD Web Site

www.hud.gov/offices/cpd

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21 Actions in Six Key Areas

I. Interagency partnerships with DOE and EPALeverage resources of sister agencies

II. Information, training and technical assistanceIII. Rewards and incentives for energy efficiencyIV. Energy standards and program requirementsV. Management and monitoring or HUD’s energy

programsVI. Policy analysis and technology research

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The Plan: Department-Wide

Work with EPA to distribute Energy Star information to HUD customers (Action 1)Formalize partnerships with DOE and EPA (Action 2)Coordinate department-wide workshops and information (Action 4)Assist non-profits and faith-based organizations (Action 7)

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The Plan: Department-Wide

Assign agency-wide responsibility for coordinating HUD’s energy programs (Action 14)Include energy efficiency performance measures in Annual Performance Plan and Management Plan (Action 15)Award priority rating points in competitive grant programs (Action 11)

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The Plan: Public and Indian Housing

Streamline Energy Performance Contracting - guaranteed/shared savings (Action 8)Purchase Energy Star products where cost effective (Action 12)Establish HOPE VI as a leader in cost-effective energy-efficient construction - Energy Star (Action 13)Improve tracking and monitoring of energy use in public housing (Action 17)

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Public Housing ExampleDanbury Housing Authority  

Energy Performance ContractCombined Heat and PowerElectricity reduced from 1.25 million to 200,000 kWhEnergy cost reduced by $40,000 annuallyNo initial costs to the Housing Authority or HUD

 

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HOPE VI ExampleChurchill Homes - Holyoke MA

50 new wood-framed, 3-story buildings Achieved Energy Star

Advanced framingHigh efficiency boilers/DHW combinationsControlled ventilation

30 percent more energy efficient than standard construction

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The Plan:FHA – Single Family Homeownership

Feature Energy Efficient Mortgages (EEMs) for up to $8K higher loan amount (Action 9)Simplify regulatory requirements for EEMs (Action 10)Improve tracking and evaluate performance of EEMs (Action 17)

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The Plan: FHA-Multifamily Housing

Initiate HUD-DOE multifamily weatherization partnerships (Action 2)Support energy efficiency training for assisted multifamily managers and staff (Action 5)

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The Plan: Community Planning and Development

Provide technical assistance and information to HOME and CDBG granteesPromote Combined Heat and Power (CHP)

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HOME ExampleFolsom Dore Apts – San Francisco

$1.9 million in HOME-fundsCurrently under construction High-efficiency HVAC system Energy Star AppliancesHigh-performing windows

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The Plan:Policy Development and Research

Conduct energy-related policy analysis and researchResearch, test and demonstrate innovative technologies (as needed)

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PATH DemonstrationCo-Housing - Washington DC

HVAC equipment and ducts in conditioned spaces Low-flow plumbing fixturesGeothermal heat pumpsHigh efficiency water heaters

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The Plan:Office of Healthy Homes and Lead

Hazard Control

Develop integrated approaches to energy and environmental retrofits

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Energy Star Partnership with EPA and DOE

Memorandum of Understanding between HUD, EPA, DOESeptember 2002Expands purchasing of Energy Star in all HUD-assisted, financed, insured buildings

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FY 2005 SuperNOFA – General Section

Applicants constructing, rehabilitating, or maintaining housing…are encouraged to promote energy efficiency in their design and operationsThey are urged…to purchase and use Energy Star-labeled productsApplicants are encouraged to undertake program activities that include…outreach to low-moderate income renters and buyers.Communities and developers…encouraged to promote designation of homes as ES-compliant

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Policy Priority in FY 2005 SuperNOFAFHA Multifamily

Section 202/811 – 1 point for Energy StarAssisted Living Conversion – 2 points

FHA Single FamilyHousing Counseling - 1 point for Energy Star

CPDRural Housing and Economic Development – 1 point HOPWA – 1 pointYouthbuild – 1 pointContinuum of Care – checklist

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Policy Priority in FY 2005 SuperNOFA (2)

Healthy HomesHealthy Homes Demonstration – 1 point

PIHROSS – encourages use of Energy Star

PD&R University Partnerships – up to 1 point

– Historically Black Colleges– Hispanic Serving Institutions– Alaskan/Native Hawaiian

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Energy Efficient Rehab Advisor

www.rehabadvisor.net

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FHA - Energy Efficient Mortgages

New mortgagee letter issued this weekBorrower can finance into an already approved FHA loan 5% of property value – maximum $8,000

EEM vs. EEHEEH is new home built to 2000 Model Energy Code – stretch ratiosEEM – adds additional dollars to loan amount

Requires pre- and post-construction inspectionSavings must exceed cost

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Public Housing

Energy performance contractingDeveloping standardized operating proceduresAllow smaller PHAs to do their “own” performance contracting Consolidate, streamline review of proposals

Energy StarBenchmarking energy useInformation and technical support

Public Housing Clearinghouse

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Multifamily Weatherization Partnerships

NYSERDA (New York)Assisted Multifamily Program (AMP) - successful initiative in HUD-assisted multifamily buildings Collaboration on Combined Heat Power

California Energy CommissionTwo multifamily projects identified in Stockton, two in Sacramento

Missouri Energy OfficeDOE provided grant to Department of Energy and Natural Resources for St. Louis pilot

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Multifamily: Emphasize Low-Hanging Fruit

Training of multifamily building managers and maintenance staffLow-cost O&M techniques, improved energy management Lighting retrofitsDomestic Hot Water servicingProper boiler and pipe insulation

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CDBG and HOME

New web-based training module (HOME)Energy Star adopted as guideline for substantial rehab, new construction

New England – 39 entitlement communities

Some localities included energy in Consolidated Plan

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Upcoming Activities

Training workshops scheduled during FY 2005Energy efficiency training for multifamily property managers, maintenance staffE-Newsletter for staff, grant recipientsInformational materials – briefing papers and research reportsMany workshops and outreach events through Field Offices

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Opportunities for Collaboration

Weatherization partnershipsRebates and incentives

State, local, utility programsOutreach and education

Participate in/co-sponsor workshopsMultifamily energy training

Adopt Energy Star label for new construction, rehabCDBG and HOME

Marketing and promotion of Energy Efficient MortgagesState HFAs, Housing Counseling Agencies

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Regional Energy Coordinators

Located in each Regional OfficeResponsible for coordinating field office activities Identify training and information needsLiaison with DOE, EPA and state energy officesIdentify local opportunities for joint actionsWill work with you - contact information on HUD web site

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Phase II Plan

Initiating development of Phase II plan for FY 2006-2007Focus on quantifying results – documenting energy savingsLimit reporting requirements

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For Further Informationwww.hud.gov/energy

General - Michael Freedberg202-708-0614 Ext. 4366

Comm. Planning and Development - Robert Groberg202-708-0614 Ext. 4642

Public Housing – John Miller202-708-0614 Ext. 4237

FHA Single Family – Susan Cooper202-708-2121 Ext. 7204

FHA Multifamily – Reba Cook202-708-0614 Ext. 2471

Regional Energy CoordinatorsJim Chaplin – 813-228-2026 Ext 2118

www.hud.gov/energy