[Federal Register Volume 87, Number 132 (Tuesday, July 12, 2022)]
[Notices]
[Pages 41344-41346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14821]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7061-N-08]


60-Day Notice of Proposed Information Collection: Operating Fund 
Energy Incentives: Energy Performance Contracting Program, Rate 
Reduction Incentive

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, PIH, HUD.

ACTION: Notice.

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SUMMARY: HUD is seeking approval from the Office of Management and 
Budget (OMB) for the information collection described below. In 
accordance with the Paperwork Reduction Act, HUD is requesting comment 
from all interested parties on the proposed collection of information. 
The purpose of this notice is to allow for 60 days of public comment.

DATES: Comments Due Date: September 12, 2022.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposal. Comments should refer to the proposal by name and/or OMB 
Control Number and should be sent to: Colette Pollard, Reports 
Management Officer, Department of Housing and Urban Development, 451 
7th Street SW, Room 4176, Washington, DC 20410-5000; telephone 202-402-
3400 (this is not a toll-free number) or email at 
<a href="/cdn-cgi/l/email-protection#22614d4e475656470c724d4e4e435046624a57460c454d54"><span class="__cf_email__" data-cfemail="24674b48415050410a744b4848455640644c51400a434b52">[email protected]</span></a> for a copy of the proposed forms or other 
available information. Persons with hearing or speech impairments may 
access this number through TTY by calling the Federal Relay Service at 
800-877-8339 (this is a toll-free number).

[[Page 41345]]


FOR FURTHER INFORMATION CONTACT: Dawn Smith, Office of Policy, Programs 
and Legislative Initiatives, Office of Public and Indian Housing, 
Department of Housing and Urban Development, 451 7th Street SW, 
Washington, DC 20410; telephone 202-708-3000, extension 3374 (this is 
not a toll-free number). Persons with hearing or speech impairments may 
access this number via TTY by calling the Federal Relay Service at 800-
877-8339 (this is a toll-free number). Copies of available documents 
submitted to OMB may be obtained from Ms. Smith.

SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is 
seeking approval from OMB for the information collection described in 
Section A.

A. Overview of Information Collection

    Title of Information Collection: Operating Fund Energy Incentives: 
Energy Performance Contracting Program, Rate Reduction Incentive.
    OMB Approval Number: Pending.
    Type of Request: New Collection.
    Form Number: HUD-52722, HUD-52723, EPC Savings Calculator, Resident 
Paid Utility Worksheet.
    Description of the need for the information and proposed use: 
Section 9(e)(2)(C) of the United States Housing Act of 1937 (1937 Act) 
authorizes Public Housing Agencies (PHAs) to ``receive the full 
financial benefit from any reduction in the cost of utilities or waste 
management resulting from any contract with a third party to undertake 
energy conservation improvements in one or more of its public housing 
projects.'' Energy Conservation Improvements or often referred to as 
Energy Conservation Measures (ECMs) include improvements to other 
utilities such as water and gas. Under 24 CFR 990.185, PHAs may qualify 
for conservation incentives when undertaking ECMs that are financed by 
an entity other than HUD.
    This third-party financing of energy consumption measures is termed 
an Energy Performance Contract (EPC). A PHA uses a loan from a third-
party to finance initial improvements in PHA infrastructure that will 
reduce a PHA's energy and/or water consumption through implementation 
of ECMs and/or renewable energy. HUD will continue to provide the PHA 
operating subsidy based on a PHA's energy consumption before the 
improvements were made. The PHA will then use the energy savings to pay 
for the debt service on the loan.
    There are three energy consumption incentives that are available to 
a PHA:
    1. The Frozen Rolling Base (24 CFR 990.185(a)(1))--where HUD 
freezes the PHA's pre-EPC Rolling Base Consumption Level (RBCL) 
following the installation of ECMs so that the PHA can retain the 
savings from the decreased energy and/or water consumption for the term 
of the contract.
    2. The Add-on Subsidy--an Additional Operating Subsidy (or ``add-
on'') is an increase in total operating subsidy eligibility provided by 
HUD as a conservation incentive, as described in 24 CFR 990.185(a)(3). 
The additional subsidy is for amortization of the loan of the EPC and 
other direct costs related to the conservation project during the term 
of the contract.
    3. The Resident-Paid Utility incentive (24 CFR 990.185(a)(2)). PHAs 
undertaking energy and/or water conservation measures that are financed 
by an entity other than HUD may include resident-paid utilities under 
the consumption reduction incentive. This incentive provides for PHAs 
to review and update all utility allowances to ascertain that residents 
are receiving the proper allowances before energy savings measures are 
begun; the PHA makes future calculations of rental income for purposes 
of the calculation of operating subsidy eligibility based on these 
baseline allowances. In effect, HUD will freeze the baseline allowances 
for the duration of the contract. This approach allows a PHA to exclude 
from its Operating Fund rental income calculations any rents received 
that are a result of decreased utility allowances resulting from 
decreased consumption.
    In addition to consumption incentives, PHAs are also eligible for a 
Rate Reduction Incentive. 24 CFR 990.185(b) also allows PHAs to retain 
50% of any savings attributable to taking specific actions to reduce 
the cost of their energy consumption, such as well-head purchase of 
natural gas, administrative appeals, or contract negotiation with a 
utility company. RRIs executed at the same time as an EPC are eligible 
to retain up to 100 percent of the savings (rather than 50 percent of 
the savings with the RRI alone) during the EPC repayment period when 
the EPC and RRI impact the same AMP and utility.
    The lower rate cannot be a result of factors that do not require 
the PHA to take an action and/or are beyond a PHA's control including, 
but not limited to, market changes, legislative changes, rate changes 
for all customers, or consuming energy at a different time of day. 
Applicants for an EPC program submit the following documents at the 
time of submission:
    <bullet> A letter applying for an EPC incentive, identifying the 
project location, any PHA units that would fall under the EPC contract, 
the type of incentive that a PHA is applying for and whether the 
project will be managed by the PHA, or using an Energy Services Company 
(ESCO) to manage the EPC on their behalf;
    <bullet> Completed Investment Grade Energy Audit to the ASHRAE 
(American Society of Heating, Refrigerating and Air-Conditioning 
Engineers) standard that supports the proposal;
    <bullet> The Request for Proposals (RFP) used to solicit proposals 
from third-party lenders or ESCOs;
    <bullet> A Cost Summary Sheet showing ECMs by project, funding type 
and Measurement and Verification (M&V) type;
    <bullet> Detailed Utility Baseline Data summary sheet showing the 
RBCL and any adjustments to the data;
    <bullet> Copies of the HUD 52722 and 52723 forms \1\ by Asset 
Management Project (AMP) for each year of the required rolling base 
years;
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    \1\ The burden for these forms has been approved under OMB 
Control No. 2577-0029. As a result, the burden from these forms is 
not included in the current collection.
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    <bullet> Copy of the most recent HUD 52722 and 52723 forms by AMP; 
and
    <bullet> A detailed Cash Flow Summary, showing:
    [cir] That the energy savings are sufficient to cover the project 
costs including replacement costs;
    [cir] That 75% of the annual energy savings are utilized for 
payment of the debt for the contract; and
    [cir] Any Bureau of Labor and Statistics historical documentation 
supporting any utility rate escalations.
    Applicants for Resident Paid Utility Allowances submit the 
following:
    <bullet> Copies of existing utility allowances with supportive 
documentation;
    <bullet> Copies of the Pre-EPC utility allowances with supportive 
documentation;
    <bullet> Copies of projected post-EPC utility allowances will be 
with supportive documentation;
    <bullet> A copy of the Energy Services Agreement contract between 
the PHA and their third-party lender/ESCO Energy Services Agreement 
(ESA);
    <bullet> A certification that the PHA has performed a cost analysis 
per 2 CFR part 200, and that the costs associated with the EPC are 
reasonable;
    <bullet> A repayment certification that the PHA will pay for any 
debt using cost savings from implementing ECMs; and
    <bullet> A letter from the PHA's legal counsel that states that the 
ESA complies with State and Local laws and that the legal interests of 
the Authority are fairly represented in the ESA.

[[Page 41346]]

    Applications for the Rate Reduction Incentive (RRI) must include 
the following information:
    <bullet> PHA Name and PHA code;
    <bullet> Asset Management Project (AMP) number for each AMP 
included in the proposed RRI;
    <bullet> A brief description of the action the PHA undertook to 
reduce the utility rate and supporting documentation;
    <bullet> An explanation of how the PHA will calculate savings and 
anticipated savings; and
    <bullet> Identification of the incentive the PHA will claim, 
whether it is 50 percent or 100 percent of the actual savings.
    HUD uses collected information to determine whether applications 
meet eligibility requirements and application submission requirements. 
Applicants provide information about the proposed contract to enable 
HUD to evaluate the applicant's response to the criteria for rating the 
application and approving or disproving the contract.
    Annual EPC Measurement and Verification and savings calculation 
information collected allows HUD to audit program performance 
accurately. The quality of reported data is critical for ensuring an 
accurate distribution of the Operating Fund subsidy appropriation. The 
information collected will allow HUD to accurately audit the program. 
For the EPC program, Measurement and Verification data will be 
submitted by the PHA annually in a format of their choice. The report 
must contain the actual usage amount of each utility under the EPC, the 
actual unit of measure, the consumption savings, and the cost savings. 
The PHAs will also be required to submit their consumption data using a 
standardized Excel Spreadsheet through the Operating Fund Web Portal, 
the Energy Savings Calculator. This Calculator is used to ensure the 
accuracy of the EPC incentives being claimed by the PHA in their annual 
Operating Subsidy submission.
    For the RRI program, PHAs must annually submit documentation on 
energy cost savings attributed to the reduction in the rate. This data 
is submitted on an Asset Management Project (AMP basis). For the RRI 
program, PHAs will submit their data via email using the format of 
their choice.
    Respondents: Public Housing Agencies (PHAs).

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                                                                                             Estimate        Estimate
     Type of submission/information          Number of     Frequency of        Total       average time    annual burden    Hourly cost    Total annual
               collection                   respondents     submissions      responses        (hours)         (hours)                          cost
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EPC Application and supporting                        10               1              10             560           5,600            $125        $700,000
 documentation..........................
EPC Measurement and Verification Report              200               1             200              20           4,000             125         500,000
 and Energy Savings Calculator..........
RRI Application and supporting                        30               1              30               2              60             125           7,500
 documentation..........................
RRI savings calculation.................              60               1              60              10             600             125          75,000
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    Totals..............................             300  ..............             300  ..............          10,260  ..............       1,282,500
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B. Solicitation of Public Comment

    This notice is soliciting comments from members of the public and 
affected parties concerning the collection of information described in 
Section A regarding the following:
    (1) Whether the proposed collection of information is necessary for 
the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (2) The accuracy of the agency's estimate of the burden of the 
proposed collection of information;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
those who respond; including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    HUD encourages interested parties to submit comment in response to 
these questions.

C. Authority

    Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C. 
3507.

Laura Miller-Pittman,
Director, Office of Policy, Programs and Legislative Initiatives.
[FR Doc. 2022-14821 Filed 7-11-22; 8:45 am]
BILLING CODE 4210-67-P


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