# Presentation: 316852

## Energy Efficient Homes for the 21st CenturyHUD’s Energy Action Workshop 

***May 10, 2005***
***Richard D. Santangelo, PE***
***John H. Miller, II, PE***
***Office of Public and Indian Housing***

**Notes:**
Good morning. Thank you for this opportunity to brief you on HUD’s Energy Action Plan. If fully implemented, the plan could generate significant cost savings for the Department, as well as for homeowners and renters who use HUD programs. 

Last month, Nelson Bregon, Frank Davis, Pam Patenaude and I briefed both the Secretary and the Deputy Secretary on the Plan and they continue to be fully committed to its implementation. 

## Environmental Scan

- Rising cost and demand for energy (DOE/EIA 2006)
- Natural gas demand projected up 3.2 percent
- Electricity projected up 2.2 percent
- Oil demand is projected to increase by 1.5 percent
- Of approximately $5.7B in operating subsidy
- Maintenance is approximately 35 percent
- Administrative expenses approximately 28 percent
- Utilities approximately 23 percent($1.3B)
- Transition PHAs to asset/project based management
- Property specific performance; reduce operating costs

## Public Housing Incentives

- Energy performance contract (EPC) is an agreement between an energy services company (ESCO) and PHA
- PHA uses energy cost savings to reimburse the ESCO; pay off loan that financed energy projects
- Under EPC, PHA can derive savings from two incentives
- Frozen rolling base
- Add-on subsidy
- Other incentives – energy rate savings

## PIH Energy Action Plan Activities

- Streamline Energy Performance Contracting
- Develop standard operating procedures
- Train Field Offices to expand capacity to provide PHA technical assistance and reduce turnaround time
- Make available PHA training to expand knowledge base
- Promote EPC through self-financed energy projects
- Encourage Energy Star products wherever cost effective
- Energy Star outreach (e-newsletters, web site)
- Energy Star PIH Notice (draft)

**Notes:**
 PIH actions focus on strengthening energy performance contracts, and expanding the use of Energy Star labeled products in public housing, doing more of what Holyoke was able to do with their HOPE VI grant, and improving tracking and monitoring of energy use.  

## PIH Energy Action Plan Activities

- Establish Energy Star as standard for HOPE VI new construction
- NOFA promotes Energy Star use; PIH Notice (draft)
- Improve tracking and monitoring of energy use in public housing
- Prototype Utility Benchmarking
- Establishes consumption standards
- Enables PHAs to conduct comparative analyses
- Prototype utility data capture
- Compliance (energy audit)
- Enhances capital planning process

## Public Housing FY05Management Plan Goals

- A.1.11.m1 Field office will streamline EPC procedures
- A.1.11.m2 Promote benefits of Energy Star equipment to HAs and residents
- Hold two Energy Star “events” (e.g., promotion, meeting, mailing, etc.) annually
- A.1.11.m3 Monitor 10% of national inventory of HOPE VI construction projects to ensure implementation of energy conservation measures as part of construction phase
- A.1.11.m4 For each onsite and remote Field Office review determine that a current energy audit exists

## Public Housing Energy Resources

- Public Housing Energy Conservation Clearinghouse
- _http://www.hud.gov/offices/pih/programs/ph/phecc/_
- Monthly PHECC Newsletter
- _http://www.hud.gov/offices/pih/programs/ph/phecc/newsletter/mar05.pdf_
- Energy Performance Contracting
- _http://www.hud.gov/offices/pih/programs/ph/phecc/eperformance.cfm_
- Energy Star
- _http://www.hud.gov/offices/pih/programs/ph/phecc/federal.cfm_