Energy Efficiency and Conservation at HUD Implementing HUD

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Energy Efficiency and Conservation at
HUDImplementing HUDs Energy Action Plan
Energy Training Workshop Departmental
Headquarters - May 10, 2005
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Energy Action Plan Created to Support Presidents
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 nations energy security

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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
  consumption
• Homes 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 homes
• Residential energy use expected to grow by 20 by
  2020
• Average family spends 1,338/year on energy
• Electricity accounts for 61 of energy use
• Significant reductions 1987-87, but little since
  average home uses 101 million Btus
• Homes getting bigger, more appliances

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Some Efficiency Gains

• New home refrigerators use one third less energy
  than in 1972
• New commercial lighting systems use less than
  half of the energy they did in the 1980s
• Federal buildings now use about 20 percent less
  energy per square foot since 1985
• Industrial energy use per unit of output declined
  by 25 from 1980 to 1999
• Amount of energy required to generate 1 kilowatt
  hour of electricity has declined by 10 percent
  since 1980
• While 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 defaults
• Multifamily building abandonment
• Low-moderate income families at risk
• High oil, natural gas prices

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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 Presidents
  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 Research
• Community Planning and Development
• Housing
• Public and Indian Housing
• Healthy Homes and Lead Hazard Control
• Field Policy and Management
• Departmental 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

• Interagency partnerships with DOE and EPA
• Leverage resources of sister agencies
• Information, training and technical assistance
• Rewards and incentives for energy efficiency
• Energy standards and program requirements
• Management and monitoring or HUDs energy
  programs
• 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 HUDs 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 Contract
• Combined Heat and Power
• Electricity reduced from 1.25 million to 200,000
  kWh
• Energy cost reduced by 40,000 annually
• No 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 framing
• High efficiency boilers/DHW combinations
• Controlled ventilation
• 30 percent more energy efficient than standard
  construction

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The PlanFHA 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 grantees
• Promote Combined Heat and Power (CHP)

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HOME ExampleFolsom Dore Apts San Francisco

• 1.9 million in HOME-funds
• Currently under construction
• High-efficiency HVAC system
• Energy Star Appliances
• High-performing windows

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The PlanPolicy Development and Research

• Conduct energy-related policy analysis and
  research
• Research, 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 fixtures
• Geothermal heat pumps
• High efficiency water heaters

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The PlanOffice 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, DOE
• September 2002
• Expands 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 housingare encouraged to promote
  energy efficiency in their design and operations
• They are urgedto purchase and use Energy
  Star-labeled products
• Applicants are encouraged to undertake program
  activities that includeoutreach to low-moderate
  income renters and buyers.
• Communities and developersencouraged to promote
  designation of homes as ES-compliant

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Policy Priority in FY 2005 SuperNOFA

• FHA Multifamily
• Section 202/811 1 point for Energy Star
• Assisted Living Conversion 2 points
• FHA Single Family
• Housing Counseling - 1 point for Energy Star
• CPD
• Rural Housing and Economic Development 1 point
• HOPWA 1 point
• Youthbuild 1 point
• Continuum of Care checklist

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Policy Priority in FY 2005 SuperNOFA (2)

• Healthy Homes
• Healthy Homes Demonstration 1 point
• PIH
• ROSS encourages use of Energy Star
• PDR
• 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 week
• Borrower can finance into an already approved FHA
  loan
• 5 of property value maximum 8,000
• EEM vs. EEH
• EEH is new home built to 2000 Model Energy Code
  stretch ratios
• EEM adds additional dollars to loan amount
• Requires pre- and post-construction inspection
• Savings must exceed cost

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Public Housing

• Energy performance contracting
• Developing standardized operating procedures
• Allow smaller PHAs to do their own performance
  contracting
• Consolidate, streamline review of proposals
• Energy Star
• Benchmarking energy use
• Information 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 Commission
• Two multifamily projects identified in Stockton,
  two in Sacramento
• Missouri Energy Office
• DOE 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 staff
• Low-cost OM techniques, improved energy
  management
• Lighting retrofits
• Domestic Hot Water servicing
• Proper 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 2005
• Energy efficiency training for multifamily
  property managers, maintenance staff
• E-Newsletter for staff, grant recipients
• Informational materials briefing papers and
  research reports
• Many workshops and outreach events through Field
  Offices

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Opportunities for Collaboration

• Weatherization partnerships
• Rebates and incentives
• State, local, utility programs
• Outreach and education
• Participate in/co-sponsor workshops
• Multifamily energy training
• Adopt Energy Star label for new construction,
  rehab
• CDBG and HOME
• Marketing and promotion of Energy Efficient
  Mortgages
• State HFAs, Housing Counseling Agencies

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Regional Energy Coordinators

• Located in each Regional Office
• Responsible for coordinating field office
  activities
• Identify training and information needs
• Liaison with DOE, EPA and state energy offices
• Identify local opportunities for joint actions
• Will work with you - contact information on HUD
  web site

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Phase II Plan

• Initiating development of Phase II plan for FY
  2006-2007
• Focus on quantifying results documenting energy
  savings
• Limit reporting requirements

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For Further Informationwww.hud.gov/energy

• General - Michael Freedberg
• 202-708-0614 Ext. 4366
• Comm. Planning and Development - Robert Groberg
• 202-708-0614 Ext. 4642
• Public Housing John Miller
• 202-708-0614 Ext. 4237
• FHA Single Family Susan Cooper
• 202-708-2121 Ext. 7204
• FHA Multifamily Reba Cook
• 202-708-0614 Ext. 2471
• Regional Energy Coordinators
• Jim Chaplin 813-228-2026 Ext 2118
• www.hud.gov/energy