"If Energy Performance Contracting Is So Good, Why Aren't More Agencies Using It?"

Finding ways to cut costs has become increasingly important to LHAs in an era when federal subsidy seems to dry up more and more each year. Energy performance contracting (EPC) is touted by many as a solution for housing authorities to use energy savings to generate additional HUD subsidy, thus freeing up their capital fund allocation for other needed agency improvements. The HUD energy conservation incentives were incorporated into the Performance Funding System regulations at 24 CFR 990 to implement provisions of the Housing and Community Development Act of 1987. EPC was one of the most important themes of the regulatory scheme on the consumption side. HUD has not vigorously promoted EPC, and there has been no training on EPC for LHA or field office staff for more than 10 years, even though a cooperative agreement with US Department of Energy has been available to assist in these efforts. Without strong involvement and guidance from HUD headquarters, new national housing policy directions frequently lead to inconsistent interpretations at the level of local HUD offices.