CLEAN POWER PLAN: Opportunities for Energy Efficiency

in Affordable Housing

Todd NedwickHousing and Energy Efficiency Policy DirectorNational Housing Trust

2015 Virginia Governor’s Housing Conference

NHT protects and improves existing affordable rental homes so that low-income individuals and families can live in quality neighborhoods with

access to opportunities

About Energy Efficiency For All Expand and improve

energy efficiency programs for the affordable multifamily sector.

Support building owners and operators of affordable multifamily buildings looking for opportunities for energy efficiency upgrades.

EEFA Mission: Make

multifamily homes healthy

andaffordable

through energy efficiency

What is the Clean Power Plan? U.S. Environmental Protection Agency released new

clean air standards in August. Each state given a target for reducing CO2 emissions

from power plants by 2030. VA must reduce emissions by 32% Each state decides how to meet the target-by

switching to clean power resources, reducing demand, or both.

The state’s decisions is set forth in its Clean Power Plan

RI VTWA CT IA IL NJ CO NH AZ NV NY MT

NM WIMO FL OH TN SD WY GA MS ND KS AK

-1%

0%

1%

2%

3%

4%

5%

6%

7%

ener

gy e

ffici

ency

spen

ding

as %

of

stat

ewid

e el

ectr

ic re

venu

e sa

les

Source: ACEEE’s The 2015 State Energy Efficiency Scorecard; based on 2014 data

VA can improve on energy efficiency

Energy Efficiency Spending by State

Opportunities for Energy Upgrades in Affordable Housing

Reducing demand through energy efficiency will help the state meet its CO2 goal while saving money for owners and residents.

Energy Efficiency is a more cost effective approach than finding new sources to generate energy.

Without special programs, owners of affordable housing cannot afford to make upgrades.

How funding might flow to affordable housing

State auction of allowances to polluters results in $ to be invested in EE programs

Utilities choose to invest directly in EE programs to reduce carbon output

Opportunities for Energy Upgrades in Low-Income Communities

EPA is very interested in environmental justice, a special concern for low income communities and communities of color.

DEQ is seeking input from impacted communities and looking for ways to reach out to vulnerable populations.

EPA is offering a Clean Energy Incentive Program for (1) renewable energy and (2) energy efficiency upgrades in low-income communities.

Clean Energy Incentive Program

Clean Energy Incentive Program (CEIP) will incentivize investments that reduce energy demand in low-income communities.

The CEIP is a “matching fund” program. EPA will provide extra matching allowances or Emission Rate Credits (ERCs) for low-income EE projects

Participation is voluntary. States will need to be encouraged to participate.

The program operator sells the allowances to the emitting power plant

How the CEIP results in $ for low-income EE

Virginia’s Allowance

Budget

EPA’s CEIP Allowance

Budget

2

4

5

$VA and EPA award allowances to the program operator

3

EE program results in verified MWh saved

1

The sale generates revenue to offset the costs of the EE program

CEIP Design and Implementation: Next Steps EPA is soliciting input from stakeholders to finalize

implementation details of the CEIP, including: The definition of low‐income community Criteria states may use to evaluate an eligible low‐

income EE project The EPA is taking comment through January 21,

2016, and is conducting a series of public hearings on the proposal in November 2015.

Opportunities to Engage VA Dept. of Environmental Quality (DEQ) preparing plan Initial plan must be submitted to EPA by Sept. 2016 Advisory stakeholder group established; 1st meeting

was Nov. 12 (http://www.deq.state.va.us/Programs/Air/GreenhouseGasPlan.aspx)

Ask DEQ to:Prioritize investments in energy efficiencyTarget energy efficiency investments to affordable

housingChoose to participate in the CEIP

Additional Resources

www.prezcat.orgPrezCat is a comprehensive source of information on state policies and programs that promote the preservation of existing affordable housing.

http://www.energyefficiencyforall.org/issues/clean-power-plan

Thank you!

Todd NedwickNational Housing Trusttnedwick@nhtinc.org202-333-8931 x128