I 

111TH CONGRESS 

2D SESSION H. R. 5154 

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. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 27, 2010 

Mr. HIMES introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Public Housing Energy 

5 Savings Act of 2010’’. 


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1 SEC. 2. UTILITY AND WASTE MANAGEMENT COST SAVINGS. 

2 Subparagraph (C) of section 9(e)(2) of the United 

3 States Housing Act of 1937 (42 U.S.C. 1437g(e)(2)(C)) 

4 is amended— 

5 (1) by striking the subparagraph designation 

6 and heading and all that follows through ‘‘Contracts 

7 described in clause (i)’’ in clause (ii) and inserting 

8 the following: 

9 ‘‘(C) TREATMENT OF UTILITY AND WASTE

10 MANAGEMENT COST SAVINGS.— 

11 ‘‘(i) IN GENERAL.—The treatment of 

12 utility and waste management costs under 

13 the formula shall provide that a public 

14 housing agency shall receive the full finan15 cial benefit from any reduction in the cost 

16 of utilities or waste management resulting 

17 from energy conservation improvements in 

18 one or more of its public housing projects, 

19 subject to the following: 

20 ‘‘(I) THIRD PARTY CON21 TRACTS.—In the case of energy con22 servation improvements in public 

23 housing undertaken pursuant to a 

24 contract with a third party, such con25 tracts’’; 


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1 (2) in clauses (iii) and (iv), by striking ‘‘clause 

2 (i)’’ each place such term appears and inserting 

3 ‘‘subclause (I)’’; 

4 (3) in clause (iv), by striking ‘‘the date of the 

5 enactment of this clause’’ and inserting ‘‘December 

6 26, 2007,’’; 

7 (4) by redesignating clauses (iii) and (iv) as 

8 subclauses (II) and (III), respectively, and realigning 

9 such subclauses, as so redesignated, so as to be in10 dented 8 ems from the left margin; and 

11 (5) by adding at the end the following new 

12 clauses: 

13 ‘‘(ii) FINANCING OF IMPROVE14 MENTS.—Energy conservation improve15 ments may be undertaken pursuant to a 

16 contract for the improvements only, and 

17 the public housing agency may finance 

18 such improvements for a period of up to 

19 20 years. A public housing agency may 

20 pledge operating assistance under this sub21 section as security for such financings in 

22 an amount not to exceed the lesser of— 

23 ‘‘(I) the amount of the debt serv24 ice, plus such appropriate debt service 


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1 coverage factor as the Secretary may 

2 establish; and 

3 ‘‘(II) the amount of the reason4 ably anticipated utility cost savings 

5 resulting from the improvements, as 

6 determined by the Secretary. 

7 The Secretary may also permit the pledg8 ing of the installed equipment related to 

9 such improvements. 

10 ‘‘(iii) FREEZE OF CONSUMPTION LEV11 ELS.— 

12 ‘‘(I) IN GENERAL.—A public 

13 housing agency may elect to be paid 

14 for its utility costs, including utility 

15 allowances, under the formula for a 

16 period, at the discretion of the agency, 

17 of not longer than 20 years based on 

18 the agency’s average annual consump19 tion during the 3-year period pre20 ceding the year in which the election 

21 is made (in this clause referred to as 

22 the ‘consumption base level’). 

23 ‘‘(II) INITIAL ADJUSTMENTS IN

24 CONSUMPTION BASE LEVEL.—The 

25 Secretary shall make an initial oneVerDate Mar 15 2010 01:20 Apr 28, 2010 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5154.IH H5154

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1 time adjustment in the consumption 

2 base level to account for differences in 

3 the heating degree day average over 

4 the most recent 20-year period com5 pared to the average in the consump6 tion base level. 

7 ‘‘(III) ONGOING ADJUSTMENTS

8 IN CONSUMPTION BASE LEVEL.—The 

9 Secretary shall make adjustments in 

10 the consumption base level to account 

11 for an increase or reduction in units, 

12 a change in fuel source, a change in 

13 resident-controlled electricity con14 sumption, or for such other reasons as 

15 the Secretary considers appropriate. 

16 ‘‘(IV) THIRD PARTIES.—A public 

17 housing agency making an election 

18 under subclause (I) may use, but shall 

19 not be required to use, the services of 

20 a third party in its energy conserva21 tion program. The agency shall have 

22 the sole discretion to determine the 

23 source, terms, and conditions of any 

24 financing used for its program.’’. 

Æ 


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