[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.
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