I 111th CONGRESS 2d Session H. R. 5154 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.

Short title

This Act may be cited as the Public Housing Energy Savings Act of 2010.

2.

Utility and waste management cost savings

Subparagraph (C) of section 9(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)(2)(C)) is amended— (1)by striking the subparagraph designation and heading and all that follows through Contracts described in clause (i) in clause (ii) and inserting the following: (C)

Treatment of utility and waste management cost savings

(i)

In general

The treatment of utility and waste management costs under the formula shall provide that a public housing agency shall receive the full financial benefit from any reduction in the cost of utilities or waste management resulting from energy conservation improvements in one or more of its public housing projects, subject to the following: (I)

Third party contracts

In the case of energy conservation improvements in public housing undertaken pursuant to a contract with a third party, such contracts ; (2)in clauses (iii) and (iv), by striking clause (i) each place such term appears and inserting subclause (I); (3)in clause (iv), by striking the date of the enactment of this clause and inserting December 26, 2007,; (4)by redesignating clauses (iii) and (iv) as subclauses (II) and (III), respectively, and realigning such subclauses, as so redesignated, so as to be indented 8 ems from the left margin; and (5)by adding at the end the following new clauses: (ii)

Financing of improvements

Energy conservation improvements may be undertaken pursuant to a contract for the improvements only, and the public housing agency may finance such improvements for a period of up to 20 years. A public housing agency may pledge operating assistance under this subsection as security for such financings in an amount not to exceed the lesser of— (I)the amount of the debt service, plus such appropriate debt service coverage factor as the Secretary may establish; and (II)the amount of the reasonably anticipated utility cost savings resulting from the improvements, as determined by the Secretary. The Secretary may also permit the pledging of the installed equipment related to such improvements.(iii)

Freeze of consumption levels

(I)

In general

A public housing agency may elect to be paid for its utility costs, including utility allowances, under the formula for a period, at the discretion of the agency, of not longer than 20 years based on the agency’s average annual consumption during the 3-year period preceding the year in which the election is made (in this clause referred to as the consumption base level). (II)

Initial adjustments in consumption base level

The Secretary shall make an initial one-time adjustment in the consumption base level to account for differences in the heating degree day average over the most recent 20-year period compared to the average in the consumption base level. (III)

Ongoing adjustments in consumption base level

The Secretary shall make adjustments in the consumption base level to account for an increase or reduction in units, a change in fuel source, a change in resident-controlled electricity consumption, or for such other reasons as the Secretary considers appropriate. (IV)

Third parties

A public housing agency making an election under subclause (I) may use, but shall not be required to use, the services of a third party in its energy conservation program. The agency shall have the sole discretion to determine the source, terms, and conditions of any financing used for its program. .