GREEN FUNDING OPPORTUNITIES FOR
ILLINOIS PUBLIC HOUSING AUTHORITIES
September 13, 2011
ENERGY PERFORMANCE CONTRACTS:
The Role of the HUD Field Office and the
HUD Energy Center
Joseph E. Nemedi, Financial Analyst
Illinois State Office of Public Housing
Tedd Taylor Termunde, Program Analyst
Illinois State Office of Public Housing
ENERGY PERFORMANCE CONTRACTS:
The Role of the HUD Field Office and the
HUD Energy Center

Statutory and Regulatory Compliance
Financial Compliance: Subsidy and Incentives
Contractual Compliance: Procurement Process
 Contract Review Approval and Monitoring Process
RFP for Energy Audit and EPC
The Energy Services Agreement (ESA)
ENERGY PERFORMANCE CONTRACTS:
The Role of the HUD Field Office and the
HUD Energy Center
•
Review and Approval of the RFP
HUD’s Model Form RFP
HUD Review Checklist
Field Office Approval Letter
HUD Field Office Point of Contact
• Review and Approval of the Energy Services Agreement (ESA)
Field Office Capacity
Energy Services Center
• EPC/ESA Tracking and Monitoring; HUD Forms 52722 and 52723
ENERGY PERFORMANCE CONTRACTS:
The Role of the HUD Field Office and the
HUD Energy Center
Energy Performance Contract
RFP - Technical Review
HUD Review Checklist
THE HUD ESA Review Process

PHA submits an ESA to the HUD Field Office for review (including

Field Office has available staff to perform review.

Field Office reviews ESA with support from HUD Energy Center

FO Director requests assistance from Energy Center

Energy Center has Staff to review ESA

HUD Energy Center assigns ESA review to contractor

HUD Contractor reviews ESA - HUD Energy Center reviews ESA

HUD Field Office Issues ESA Approval Letter
amendments or changes to an existing contract)
ENERGY PERFORMANCE CONTRACTS
The Role of the HUD Field Office and the
HUD Energy Center
Controlling Authority Regulatory Guidance
Policy and Procedures
EPC HUD Regulations / Notices / Procedures

24 CFR 990.185 – HUD’s Financial regulations including Energy Incentives
for EPC

Part 990 Final Rule/Part 990.185 Final Rule (01-16-2009)

24 CFR 965 – HUD regulations on utility allowances, utility metering and
EPC

24 CFR 85.36 – HUD Procurement regulations

HUD Procurement Chart

HUD Field Office Review Procedure for Energy Performance Contracting

PIH Notice 2009-16 – Guidance on Energy Performance Contracting

PIH Notice 2011-36 - Guidance on Energy Performance Contracts NEW
PIH Notice 2009-16 – Guidance on
Energy Performance Contracting
PIH Notice 2011-36 - Guidance on
Energy Performance Contracts
Additional Provisions and New
Requirements for EPC’s
Additional Provisions and New Requirements for EPC’s
ENERGY PERFORMANCE CONTRACTS
The Role of the HUD Field Office and the
HUD Energy Center
PIH Notice 2011-36
Annual Reporting Requirements
The PHA must report the following to HUD annually by April 30th of each
year:
Provide documentation that identifies energy conservation measures
installed with HUD funds (e.g. Capital Fund Program) while the RBCL is
frozen. HUD will adjust the frozen base, limiting the cost savings retained
by the PHA to that which is a result of the EPC-funded ECMs. The PHA is to
provide projected consumption reductions for all energy conservation
measures installed with HUD funds.
Provide a copy of the ESCo prepared M & V report for all ESCo developed
contracts.
PIH Notice 2011-36
Section 30 of the 1937 Housing Act

Where any financing transaction involves a security interest or other
encumbrance in public housing property, PHAs are required to obtain
written approval from HUD of the security interest or encumbrance
pursuant to Section 30 of the U.S. Housing Act of 1937 (1937 Act). HUD
approval of EPCs and associated ESAs do not constitute approval of the
security interest, and a separate approval must be obtained.

Under some lease-purchase agreements (otherwise known as municipal
leases, the typical financing structure for an EPC), ownership of the
equipment may reside with the third party, e.g., a bank, ESCo, etc. Under
this scenario, where the ownership resides with a third party, a Section 30
approval is not required. Where ownership of the equipment resides with
the PHA and a lien or other encumbrance exists on the equipment, a
section 30 approval is required.

HUD’s Section 30 review focuses narrowly upon the security interest or
encumbrance, and does not evaluate or approve the financing.
The Role of the HUD Field Office and the
HUD Energy Center
Measurement and Verification Reports
Guidelines are posted on HUD’s Public Housing Environmental
and Conservation Clearinghouse (PHECC) website
http://www.hud.gov/offices/pih/programs/ph/phecc/eperformance.cfm
Procurement Considerations - Energy Performance Contracts.
Conflicts of Interest
Future Effects from Legislation
ENERGY PERFORMANCE CONTRACTS
The Role of the HUD Field Office and the
HUD Energy Center
Questions
Additional Resources
http://www.hud.gov/offices/pih/programs/ph/phecc/eper
formance/faq.cfm

EPC Training Opportunities

The PHECC Web site