To authorize public housing agencies to use public housing operating funds as collateral for financing energy conservation improvements and to freeze utility consumption levels for purposes of determining Operating Fund assistance, and for other purposes.

Summary: Public Housing Energy Savings Act of 2010 - Amends the United States Housing Act of 1937 to authorize: (1) energy conservation improvements in public housing projects to be undertaken pursuant to a contract for the improvements only; (2) a public housing agency to finance such improvements for a period of up to 20 years; (3) a public housing agency to pledge operating assistance as security for such financing in an amount not to exceed the lesser of the amount of the debt service plus such appropriate debt service coverage factor as the Secretary of Housing and Urban Development (HUD) may establish and the amount of the reasonably anticipated utility cost savings resulting from the improvement; (4) the Secretary to permit the pledging of the installed equipment related to such improvements; and (5) a public housing agency to elect to be paid for its utility costs under the formula for determining the amount of assistance provided to public housing agencies from the Capital Fund for a period of no longer than 20 years based on the agency's average annual consumption during the three-year period preceding the year in which the election is made (consumption base level).

Requires the Secretary to make: (1) an initial one time adjustment in the consumption base level to account for differences in the heating degree day average over the most recent 20-year period compared to the average in the consumption base level; and (2) adjustments in the consumption base level to account for an increase or reduction in units, a change in fuel source, or a change in resident-controlled electricity consumption.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Housing Energy Savings Act of 
2010''.

SEC. 2. UTILITY AND WASTE MANAGEMENT COST SAVINGS.

    Subparagraph (C) of section 9(e)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(e)(2)(C)) is amended--
            (1) by striking the subparagraph designation and heading 
        and all that follows through ``Contracts described in clause 
        (i)'' in clause (ii) and inserting the following:
                    ``(C) Treatment of utility and waste management 
                cost savings.--
                            ``(i) In general.--The treatment of utility 
                        and waste management costs under the formula 
                        shall provide that a public housing agency 
                        shall receive the full financial benefit from 
                        any reduction in the cost of utilities or waste 
                        management resulting from energy conservation 
                        improvements in one or more of its public 
                        housing projects, subject to the following:
                                    ``(I) Third party contracts.--In 
                                the case of energy conservation 
                                improvements in public housing 
                                undertaken pursuant to a contract with 
                                a third party, such contracts'';
            (2) in clauses (iii) and (iv), by striking ``clause (i)'' 
        each place such term appears and inserting ``subclause (I)'';
            (3) in clause (iv), by striking ``the date of the enactment 
        of this clause'' and inserting ``December 26, 2007,'';
            (4) by redesignating clauses (iii) and (iv) as subclauses 
        (II) and (III), respectively, and realigning such subclauses, 
        as so redesignated, so as to be indented 8 ems from the left 
        margin; and
            (5) by adding at the end the following new clauses:
                            ``(ii) Financing of improvements.--Energy 
                        conservation improvements may be undertaken 
                        pursuant to a contract for the improvements 
                        only, and the public housing agency may finance 
                        such improvements for a period of up to 20 
                        years. A public housing agency may pledge 
                        operating assistance under this subsection as 
                        security for such financings in an amount not 
                        to exceed the lesser of--
                                    ``(I) the amount of the debt 
                                service, plus such appropriate debt 
                                service coverage factor as the 
                                Secretary may establish; and
                                    ``(II) the amount of the reasonably 
                                anticipated utility cost savings 
                                resulting from the improvements, as 
                                determined by the Secretary.
                        The Secretary may also permit the pledging of 
                        the installed equipment related to such 
                        improvements.
                            ``(iii) Freeze of consumption levels.--
                                    ``(I) In general.--A public housing 
                                agency may elect to be paid for its 
                                utility costs, including utility 
                                allowances, under the formula for a 
                                period, at the discretion of the 
                                agency, of not longer than 20 years 
                                based on the agency's average annual 
                                consumption during the 3-year period 
                                preceding the year in which the 
                                election is made (in this clause 
                                referred to as the `consumption base 
                                level').
                                    ``(II) Initial adjustments in 
                                consumption base level.--The Secretary 
                                shall make an initial one-time 
                                adjustment in the consumption base 
                                level to account for differences in the 
                                heating degree day average over the 
                                most recent 20-year period compared to 
                                the average in the consumption base 
                                level.
                                    ``(III) Ongoing adjustments in 
                                consumption base level.--The Secretary 
                                shall make adjustments in the 
                                consumption base level to account for 
                                an increase or reduction in units, a 
                                change in fuel source, a change in 
                                resident-controlled electricity 
                                consumption, or for such other reasons 
                                as the Secretary considers appropriate.
                                    ``(IV) Third parties.--A public 
                                housing agency making an election under 
                                subclause (I) may use, but shall not be 
                                required to use, the services of a 
                                third party in its energy conservation 
                                program. The agency shall have the sole 
                                discretion to determine the source, 
                                terms, and conditions of any financing 
                                used for its program.''.