Energy Efficiency Modernization Act of 2009 - Directs the Secretary of Housing and Urban Development (HUD) to make: (1) payments (green dividends) to owners of assisted multifamily rental housing projects who undertake utility cost-saving measures; and (2) loans funded from residual receipts to owners of assisted multifamily rental housing projects for undertaking green retrofit measures for such projects.
Directs the Comptroller General to conduct a study and report to Congress on the benefits of a federal statutory exemption from compliance with state and local building codes to enable and encourage the construction and installation in assisted multifamily rental housing projects of distributive energy generation and water efficiency measures.
Requires owners of assisted multifamily rental housing projects to report to the Secretary on consumption of electricity, water, gas, and other utilities by such projects.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4099 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4099
To establish incentives to increase the energy efficiency of federally
assisted housing.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 18, 2009
Ms. Kilroy (for herself, Mr. Blumenauer, Mr. Al Green of Texas, Ms.
Hirono, Mr. Israel, Mr. Moore of Kansas, Mr. Perriello, Mr. Tonko, Mr.
Wu, and Mr. Sestak) introduced the following bill; which was referred
to the Committee on Financial Services
_______________________________________________________________________
A BILL
To establish incentives to increase the energy efficiency of federally
assisted housing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Energy Efficiency Modernization Act
of 2009''.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds that--
(1) federally assisted housing programs provide robust
opportunities for energy efficiency improvements and up-front
investments in such improvements would provide significant
long-term cost savings for taxpayers, provide stimulus to the
economy through creation of capital projects and jobs,
establish best practices for the industry and be consistent
with the mandate of the Department of Housing and Urban
Development (HUD);
(2) the Government Accountability Office reported in an
October 2008 study that HUD pays an estimated $5 billion
annually for energy costs for approximately 6 million dwelling
units of assisted housing, representing almost 17 percent of
the Nation's housing stock;
(3) according to the Harvard University Graduate School of
Design, more than 80 percent of federally assisted housing
stock is between 15 years to 30 years old;
(4) existing rules and regulations do not adequately
incentivize owners of HUD-assisted property to maximize efforts
to make energy efficiency improvements to such properties; and
(5) increasing the energy efficiency of federally assisted
housing by 25 percent to 40 percent would create near-term
savings for HUD of roughly $1 billion to $1.5 billion annually,
resulting in substantial long-term cost savings for the Federal
Government and for taxpayers.
SEC. 3. GREEN DIVIDEND PROGRAM FOR FEDERALLY ASSISTED RENTAL HOUSING.
(a) Authority.--The Secretary shall establish a program under this
section to provide green dividends to owners of covered federally
assisted housing projects who undertake utility cost-saving measures
that result in utility cost savings for such housing.
(b) Green Dividends.--
(1) In general.--A green dividend under this section with
respect to a covered federally assisted housing project shall
be an annual distribution, to the owner of the project, of an
amount of the surplus project funds that is equal to the sum
of--
(A) 50 percent of the annual utility cost savings
resulting from the utility cost-saving measures
conducted for the project; and
(B) any reasonable costs, as determined by the
Secretary pursuant to subsection (d)(4), incurred by
the owner in carrying out the utility cost-saving
measures, including financing costs incurred by the
owner or a third party, in compliance with guidelines
established pursuant to subsection (d)(3).
(2) Additional to standard distribution.--Notwithstanding
any other law or regulation relating to a limitation on
distributions for a covered federally assisted housing project,
a green dividend under this section shall be in addition to the
standard distribution that the owner of the project is
authorized to receive from the project pursuant to the
regulations of the Secretary.
(c) Standards for Measurement and Monitoring.--In carrying out the
program under this section, the Secretary shall establish and utilize
the following standardized methods:
(1) Methods that an owner of a covered federally assisted
housing project may use to accurately measure the baseline
utility use of the project before undertaking the utility cost-
saving measures for the project.
(2) Methods that an owner of a covered federally assisted
housing project may use to effectively monitor reductions in
the utility use of the project resulting from the completed
utility cost-saving measures for the project.
(3) Methods that an owner of a covered federally assisted
housing project may use to track, and that the Secretary may
use to verify, utility cost savings resulting from the utility
cost-saving measures for the project that account for the
effect of changes in utility costs and such other factors that
the Secretary considers necessary or appropriate.
(d) Other Requirements.--
(1) Application and selection.--The Secretary shall
establish requirements for owners of covered federally assisted
housing projects to apply for participation in the program
under this section and shall select among such applications
based upon selection criteria, which the Secretary shall
establish.
(2) Cost-effectiveness.--The Secretary shall establish
guidelines to ensure that any utility cost-saving measures
undertaken pursuant to the program under this section are cost-
effective in relation to the utility cost savings resulting
from the measures and the green dividend provided under this
section to the owner.
(3) Energy performance contracts.--The Secretary shall
establish guidelines for the use of energy performance
contracting in carrying out utility cost-saving measures
pursuant to the program under this section.
(4) Financing costs.--The Secretary shall establish
guidelines for the financing of the reasonable costs incurred
by an owner of a covered federally assisted housing project in
carrying out utility cost-saving measures under the program
under this section, and whether such costs, whether financed by
the limited dividend owner or a third party, shall be repayable
from project funds.
(5) Reporting.--
(A) To secretary.--The Secretary shall require each
owner of a covered federally assisted housing project
for which a green dividend is provided pursuant to the
program under this section to submit to the Secretary
such reports regarding the project, the utility cost-
saving measures undertaken for the project, and the
utility cost savings of the project in accordance with
such requirements as the Secretary shall establish.
(B) To congress.--The Secretary shall submit
reports to the Congress describing the implementation
and operation of the program under this section, as
follows:
(i) Initial report.--The Secretary shall
submit reports describing the initial
implementation and operation of the program not
later than the expiration of the 180-day period
beginning upon the date of the enactment of
this Act.
(ii) Annual reports.--Not later than the
expiration of the 12-month period that begins
upon the expiration of the period specified
clause (i), and upon the expiration of each
successive 12-month period thereafter, the
Secretary shall submit a report describing the
ongoing operation of the program.
(e) Preemption of Conflicting State Laws Limiting Distributions.--
(1) In general.--Except as provided in paragraph (2), no
State or political subdivision of a State may establish,
continue in effect, or enforce any law, regulation, or
administrative requirement that limits or restricts, to an
amount that is less than the sum of the amounts provided for
under paragraphs (1) and (2) of subsection (b), the amount of
surplus project funds accruing after the date of the enactment
of this section that may be distributed from any covered
federally assisted housing project.
(2) Exception and waiver.--Paragraph (1) shall not apply to
any law or regulation to the extent such law or regulation
applies to--
(A) a State-financed covered federally assisted
housing project; or
(B) a covered federally assisted housing project
for which the owner has elected to waive the
applicability of paragraph (1).
(f) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Covered federally assisted housing project.--The term
``covered federally assisted housing project'' means any
multifamily rental housing project that--
(A) is provided any rental assistance, mortgage
insurance, subsidy, or other financial assistance by
the Secretary; and
(B) that is subject to a limitation on
distributions, to the owner, of project funds under
section 200.106(a), 236.1(c), 880.205(b), 881.205(b),
or 883.306(b) of title 24 of the Code of Federal
Regulations, or any other statute or regulation
applicable to the project.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(3) Surplus project funds.--The term ``surplus project
funds'' means, with respect to a covered federally assisted
housing project, the net revenue of the project after all
project expenses have been paid, or funds have been set aside
for the payment thereof, and any reserve requirements
applicable to the project have been met.
(4) Utility cost savings.--The term ``utility cost
savings'' means, with respect to utility cost-saving measures
undertaken for a covered federally assisted housing project,
the difference between--
(A) the energy or water costs that would have been
incurred for the project if such utility cost-saving
measures were not completed; and
(B) the actual energy or water costs for the
project after completion of the utility cost-saving
measures.
(5) Utility cost-saving measures.--The term ``utility cost-
saving measures'' means, with respect to a covered federally
assisted housing project, any rehabilitation, renovation,
retrofit, improvement, or alteration for the project that
incorporates any technology, equipment, fixture, or material,
or promotes any practice, designed to reduce the energy or
water consumption of the project.
(g) Regulations.--Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act, the
Secretary shall issue any regulations necessary to carry out this
section.
SEC. 4. USE OF RESIDUAL RECEIPTS AND RESERVE FOR REPLACEMENTS FUNDS FOR
GREEN RETROFITS OF FEDERALLY ASSISTED RENTAL HOUSING.
(a) Authority.--The Secretary shall carry out a program under this
section to make loans funded from residual receipts to owners of
federally assisted housing projects for undertaking green retrofit
measures for such housing and to encourage the broader use of reserve
for replacements funds to pay for the costs of green retrofit measures
for such housing.
(b) Green Retrofit Measures.--For purposes of this section, a green
retrofit measure with respect to a federally assisted housing project
shall be any measure for rehabilitation, renovation, retrofit,
improvement, or alteration for the project that--
(1) is designed to reduce utility consumption, including
water, gas, and electricity, or increase energy efficiency, for
the project;
(2) provides a renewable energy system for the project that
generates energy from a naturally replenished energy source or
sources, such as sunlight, wind, rain, tides, which shall
include hydroelectricity, biomass, cogeneration, and new
renewable technologies that have yet to be developed; or
(3) is designed to improve indoor air quality or occupant
health and safety, which shall include measures reducing the
potential for mold and other allergens, measures improving
fresh air ventilation, and installation of carbon monoxide
sensors not required by local codes.
(c) Terms of Loans Funded From Residual Receipts and Withdrawals
From Reserve for Replacements Funds for Green Retrofit Measures.--Loans
under this section and withdrawals from reserve for replacements funds
under this section shall be subject to such terms and conditions as the
Secretary shall establish, which shall include the following:
(1) Use.--Any loan amounts received, or withdrawals from
reserve for replacements funds, may be used only for green
retrofit measures set forth in the application approved by the
Secretary pursuant to subsection (d)(1).
(2) Amount.--The amount of any loan, or withdrawal from
reserve for replacements funds, for any federally assisted
housing project may not exceed the amount necessary to carry
out the green retrofit measures set forth in the approved
application.
(3) Loan term and interest rate.--Each loan funded from
residual receipts shall have a term to maturity that is
satisfactory to the Secretary and shall bear interest at a rate
that is satisfactory to the Secretary.
(d) Other Requirements.--
(1) Application and selection.--The Secretary shall
establish requirements for owners of federally assisted housing
projects to apply for loans to be funded from residual receipts
and to apply for the use of reserve for replacements funds
under this section and shall select among such applications
based upon selection criteria, which the Secretary shall
establish.
(2) Reporting.--
(A) To secretary.--The Secretary shall require each
owner of a federally assisted housing project for which
a loan is provided under this section, or for which the
Secretary approves the use of reserve for replacements
funds for green retrofit measures pursuant to this
section, to submit to the Secretary such reports
regarding the green retrofit measures undertaken for
the project in accordance with such requirements as the
Secretary shall establish.
(B) To congress.--The Secretary shall submit
reports to the Congress describing the implementation
and operation of the loan program under this section,
as follows:
(i) Initial report.--The Secretary shall
submit a report describing the initial
implementation and operation of the program not
later than the expiration of the 180-day period
beginning upon the date of the enactment of
this Act.
(ii) Annual reports.--Not later than the
expiration of the 12-month period that begins
upon the expiration of the period specified
clause (i), and upon the expiration of each
successive 12-month period thereafter, the
Secretary shall submit a report describing the
ongoing operation of the program.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Federally assisted housing project.--The term
``federally assisted housing project'' means any multifamily
rental housing project for which any rental assistance,
mortgage insurance, subsidy, or other financial assistance is
provided by the Secretary.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(f) Funding.--
(1) Project residual receipts.--Notwithstanding any other
provision of law, regulation, or administrative requirement to
the contrary, the Secretary may authorize the withdrawal of
residual receipts in the residual receipts account of a
federally assisted housing project, in any amount that the
Secretary determines is not needed, and will not be needed,
during the term of the use restrictions applicable to the
project to ensure the project's affordability, for costs (as
such term is defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of a loan under this
section to the owner of such federally assisted housing
project, which loan may be for such federally assisted housing
project or for another federally assisted housing project also
owned by such owner.
(2) Residual receipts upon expiration of federal
assistance.--Notwithstanding any other provision of law,
regulation, or administrative requirement to the contrary, any
funds remaining in the residual receipts account of a federally
assisted housing project upon the expiration or termination of
the Federal assistance received by such project that are
returned, or are required to be returned, to the Secretary
under any under Federal law, regulation or administrative
requirement may be used by the Secretary for costs (as such
term is defined in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a)) of loans under this section to any
federally assisted housing project.
(3) Project reserve for replacements funds.--
Notwithstanding any other provision of law, regulation, or
administrative requirement to the contrary, the Secretary may
authorize the owner of a federally assisted housing project to
make withdrawals from the reserve for replacements fund of a
federally assisted housing project, in any amount that the
Secretary deems necessary or appropriate, to fund green
retrofit measures for such federally assisted housing project
or for another federally assisted housing project owned by such
owner.
(g) Regulations.--Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act, the
Secretary shall issue any regulations necessary to carry out this
section.
SEC. 5. STUDY ON EXEMPTION FROM BUILDING CODES TO ALLOW DISTRIBUTIVE
ENERGY GENERATION MEASURES AND WATER EFFICIENCY MEASURES.
(a) Study.--The Comptroller General of the United States shall
conduct a study to analyze and determine the benefits of establishing a
statutory exemption under Federal law from compliance with provisions
of State and local building codes that do not affect the health or
safety of residents of multifamily housing assisted by the Department
of Housing and Urban Development to enable and encourage the
construction and installation in such projects of distributive energy
generation measures and water efficiency measures.
(b) Provision of Information to Energy Information
Administration.--The Comptroller General shall provide any information
collected in conducting the study under this section to the Secretary
of Energy to supplement information collected and maintained by the
Energy Information Administration of the Department of Energy regarding
residential energy consumption.
(c) Report.--Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the Comptroller
General shall submit a report to the Congress and to the Secretary of
Energy setting forth the results and conclusions of the study under
this section.
SEC. 6. REPORTS ON UTILITY CONSUMPTION FOR HUD-ASSISTED MULTIFAMILY
PROJECTS.
(a) In General.--To assist the Secretary of Housing and Urban
Development in determining how and where to undertake energy and other
utility efficiency measures, the Secretary shall, by regulation,
require each owner of an assisted multifamily housing project to report
regularly to the Secretary regarding consumption by the project of
electricity, water, gas, and other utilities.
(b) Annual Report by Secretary.--The Secretary shall compile the
information received pursuant to subsection (a) and submit a report to
the Congress and the Energy Information Administration annually
regarding total utility consumption by assisted multifamily housing
projects. The report shall include all non-aggregated data submitted to
the Secretary pursuant to subsection (a).
(c) Assisted Multifamily Housing Project.--For purposes of this
section, the term ``assisted multifamily housing project'' means any
multifamily housing project that is--
(1) provided project-based assistance under section 8 of
the United States Housing Act of 1937, including new
construction and substantial rehabilitation projects;
(2) assisted under section 202 of the Housing Act of 1959
(as amended by section 801 of the Cranston-Gonzalez National
Affordable Housing Act);
(3) assisted under section 202 of the Housing Act of 1959,
as such section existed before the enactment of the Cranston-
Gonzalez National Affordable Housing Act;
(4) assisted under section 811 of the Cranston-Gonzalez
National Affordable Housing Act;
(5) financed by a loan or mortgage insured under section
221(d)(3) of the National Housing Act that bears interest at a
rate determined under the proviso of section 221(d)(5) of such
Act; or
(6) insured, assisted, or held by the Secretary or a State
or State agency under section 236 of the National Housing Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E2793)
Referred to the House Committee on Financial Services.
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