Notice2023-12341
30-Day Notice of Proposed Information Collection: Operating Fund Energy Incentives: Energy Performance Contracting Program, Rate Reduction Incentive, OMB Control Number 2577-New
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 9, 2023
Issuing agencies
Housing and Urban Development Department
Abstract
HUD is seeking approval from the Office of Management and Budget (OMB) for the information collection described below. In accordance with comments paperwork Reduction Act, HUD is requesting comment from all interested parties on the proposed collection of information. The purpose of this notice is to allow for an additional 30 days of public comment.
Full Text
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<title>Federal Register, Volume 88 Issue 111 (Friday, June 9, 2023)</title>
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[Federal Register Volume 88, Number 111 (Friday, June 9, 2023)]
[Notices]
[Pages 37897-37899]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-12341]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-7070-N-29]
30-Day Notice of Proposed Information Collection: Operating Fund
Energy Incentives: Energy Performance Contracting Program, Rate
Reduction Incentive, OMB Control Number 2577-New
AGENCY: Office of Policy Development and Research, Chief Data Officer,
HUD.
ACTION: Notice.
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SUMMARY: HUD is seeking approval from the Office of Management and
Budget (OMB) for the information collection described below. In
accordance with comments paperwork Reduction Act, HUD is requesting
comment from all interested parties on the proposed collection of
information. The purpose of this notice is to allow for an additional
30 days of public comment.
DATES: Comments Due Date: July 10, 2023.
ADDRESSES: Interested persons are invited to submit comments regarding
this proposal. Written comments and recommendations for the proposed
information collection should be sent within 30 days of publication of
this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function. Interested
persons are also invited to submit comments regarding this proposal by
name and/or OMB Control Number and can be sent to: Colette Pollard,
Reports Management Officer, REE, Department of Housing and Urban
Development, 451 7th Street SW, Room 8210, Washington, DC 20410-5000 or
email at <a href="/cdn-cgi/l/email-protection#6e3e0f1e0b1c19011c053c0b0a1b0d1a0701002f0d1a210808070d0b2e061b0a40090118"><span class="__cf_email__" data-cfemail="c898a9b8adbabfa7baa39aadacbdabbca1a7a689abbc87aeaea1abad88a0bdace6afa7be">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management
Officer, REE, Department of Housing and Urban Development, 7th Street
SW, Room 8210, Washington, DC 20410; email Colette Pollard at
<a href="/cdn-cgi/l/email-protection#590938293c2b2e362b320b3c3d2c3a2d303637183a2d163f3f303a3c19312c3d773e362f"><span class="__cf_email__" data-cfemail="eaba8b9a8f989d859881b88f8e9f899e838584ab899ea58c8c83898faa829f8ec48d859c">[email protected]</span></a> or telephone 202-402-3400. This is
not a toll-free number. HUD welcomes and is prepared to receive calls
from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
Copies of available documents
[[Page 37898]]
submitted to OMB may be obtained from Ms. Pollard.
SUPPLEMENTARY INFORMATION: This notice informs the public that HUD is
seeking approval from OMB for the information collection described in
Section A.
The Federal Register notice that solicited public comment on the
information collection for a period of 60 days was published on July
12, 2022 at 87 FR 41344.
A. Overview of Information Collection
Title of Information Collection: Operating Fund Energy Incentives:
Energy Performance Contracting Program, Rate Reduction Incentive.
OMB Approval Number: Pending.
Type of Request: New Collection.
Form Number: HUD-52722, HUD-52723, EPC Savings Calculator, Resident
Paid Utility Worksheet.
Description of the need for the information and proposed use:
Section 9(e)(2)(C) of the United States Housing Act of 1937 (1937 Act)
authorizes Public Housing Agencies (PHAs) to ``receive the full
financial benefit from any reduction in the cost of utilities or waste
management resulting from any contract with a third party to undertake
energy conservation improvements in one or more of its public housing
projects.'' Energy Conservation Improvements or often referred to as
Energy Conservation Measures (ECMs) include improvements to other
utilities such as water and gas. Under 24 CFR 990.185, PHAs may qualify
for conservation incentives when undertaking ECMs that are financed by
an entity other than HUD.
This third-party financing of energy consumption measures is termed
an Energy Performance Contract (EPC). A PHA uses a loan from a third-
party to finance initial improvements in PHA infrastructure that will
reduce a PHA's energy and/or water consumption through implementation
of ECMs and/or renewable energy. HUD will continue to provide the PHA
operating subsidy based on a PHA's energy consumption before the
improvements were made. The PHA will then use the energy savings to pay
for the debt service on the loan.
There are three energy consumption incentives that are available to
a PHA:
1. The Frozen Rolling Base (24 CFR 990.185(a)(1))--where HUD
freezes the PHA's pre-EPC Rolling Base Consumption Level (RBCL)
following the installation of ECMs so that the PHA can retain the
savings from the decreased energy and/or water consumption for the term
of the contract.
2. The Add-on Subsidy--an Additional Operating Subsidy (or ``add-
on'') is an increase in total operating subsidy eligibility provided by
HUD as a conservation incentive, as described in 24 CFR 990.185(a)(3).
The additional subsidy is for amortization of the loan of the EPC and
other direct costs related to the conservation project during the term
of the contract.
3. The Resident-Paid Utility incentive (24 CFR 990.185(a)(2)). PHAs
undertaking energy and/or water conservation measures that are financed
by an entity other than HUD may include resident-paid utilities under
the consumption reduction incentive. This incentive provides for PHAs
to review and update all utility allowances to ascertain that residents
are receiving the proper allowances before energy savings measures are
begun; the PHA makes future calculations of rental income for purposes
of the calculation of operating subsidy eligibility based on these
baseline allowances. In effect, HUD will freeze the baseline allowances
for the duration of the contract. This approach allows a PHA to exclude
from its Operating Fund rental income calculations any rents received
that are a result of decreased utility allowances resulting from
decreased consumption.
In addition to consumption incentives, PHAs are also eligible for a
Rate Reduction Incentive. 24 CFR 990.185(b) also allows PHAs to retain
50% of any savings attributable to taking specific actions to reduce
the cost of their energy consumption, such as well-head purchase of
natural gas, administrative appeals, or contract negotiation with a
utility company. RRIs executed at the same time as an EPC are eligible
to retain up to 100 percent of the savings (rather than 50 percent of
the savings with the RRI alone) during the EPC repayment period when
the EPC and RRI impact the same AMP and utility.
The lower rate cannot be a result of factors that do not require
the PHA to take an action and/or are beyond a PHA's control including,
but not limited to, market changes, legislative changes, rate changes
for all customers, or consuming energy at a different time of day.
Applicants for an EPC program submit the following documents at the
time of submission:
<bullet> A letter applying for an EPC incentive, identifying the
project location, any PHA units that would fall under the EPC contract,
the type of incentive that a PHA is applying for and whether the
project will be managed by the PHA, or using an Energy Services Company
(ESCO) to manage the EPC on their behalf;
<bullet> Completed Investment Grade Energy Audit to the ASHRAE
(American Society of Heating, Refrigerating and Air-Conditioning
Engineers) standard that supports the proposal;
<bullet> The Request for Proposals (RFP) used to solicit proposals
from third-party lenders or ESCOs;
<bullet> A Cost Summary Sheet showing ECMs by project, funding type
and Measurement and Verification (M&V) type;
<bullet> Detailed Utility Baseline Data summary sheet showing the
RBCL and any adjustments to the data;
<bullet> Copies of the HUD 52722 and 52723 forms \1\ by Asset
Management Project (AMP) for each year of the required rolling base
years;
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\1\ The burden for these forms has been approved under OMB
Control No. 2577-0029. As a result, the burden from these forms is
not included in the current collection.
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<bullet> Copy of the most recent HUD 52722 and 52723 forms by AMP;
and
<bullet> A detailed Cash Flow Summary, showing:
[cir] That the energy savings are sufficient to cover the project
costs including replacement costs;
[cir] That 75% of the annual energy savings are utilized for
payment of the debt for the contract; and
[cir] Any Bureau of Labor and Statistics historical documentation
supporting any utility rate escalations.
Applicants for Resident Paid Utility Allowances submit the
following:
<bullet> Copies of existing utility allowances with supportive
documentation;
<bullet> Copies of the Pre-EPC utility allowances with supportive
documentation;
<bullet> Copies of projected post-EPC utility allowances will be
with supportive documentation;
<bullet> A copy of the Energy Services Agreement contract between
the PHA and their third-party lender/ESCO Energy Services Agreement
(ESA);
<bullet> A certification that the PHA has performed a cost analysis
per 2 CFR part 200, and that the costs associated with the EPC are
reasonable;
<bullet> A repayment certification that the PHA will pay for any
debt using cost savings from implementing ECMs; and
<bullet> A letter from the PHA's legal counsel that states that the
ESA complies with State and Local laws and that the legal interests of
the Authority are fairly represented in the ESA.
Applications for the Rate Reduction Incentive (RRI) must include
the following information:
<bullet> PHA Name and PHA code;
<bullet> Asset Management Project (AMP) number for each AMP
included in the proposed RRI;
[[Page 37899]]
<bullet> A brief description of the action the PHA undertook to
reduce the utility rate and supporting documentation;
<bullet> An explanation of how the PHA will calculate savings and
anticipated savings; and
<bullet> Identification of the incentive the PHA will claim,
whether it is 50 percent or 100 percent of the actual savings.
HUD uses collected information to determine whether applications
meet eligibility requirements and application submission requirements.
Applicants provide information about the proposed contract to enable
HUD to evaluate the applicant's response to the criteria for rating the
application and approving or disproving the contract.
Annual EPC Measurement and Verification and savings calculation
information collected allows HUD to audit program performance
accurately. The quality of reported data is critical for ensuring an
accurate distribution of the Operating Fund subsidy appropriation. The
information collected will allow HUD to accurately audit the program.
For the EPC program, Measurement and Verification data will be
submitted by the PHA annually in a format of their choice. The report
must contain the actual usage amount of each utility under the EPC, the
actual unit of measure, the consumption savings, and the cost savings.
The PHAs will also be required to submit their consumption data using a
standardized Excel Spreadsheet through the Operating Fund Web Portal,
the Energy Savings Calculator. This Calculator is used to ensure the
accuracy of the EPC incentives being claimed by the PHA in their annual
Operating Subsidy submission.
For the RRI program, PHAs must annually submit documentation on
energy cost savings attributed to the reduction in the rate. This data
is submitted on an Asset Management Project (AMP basis). For the RRI
program, PHAs will submit their data via email using the format of
their choice.
Respondents: Public Housing Agencies (PHAs).
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Estimate Estimate
Type of submission/information Number of Frequency of Total average time annual burden Hourly cost Total annual
collection respondents submissions responses (hours) (hours) cost
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EPC Application and supporting 10 1 10 560 5,600 $125 $700,000
documentation..........................
EPC Measurement and Verification Report 200 1 200 20 4,000 125 500,000
and Energy Savings Calculator..........
RRI Application and supporting 30 1 30 2 60 125 7,500
documentation..........................
RRI savings calculation................. 60 1 60 10 600 125 75,000
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Totals.............................. 300 .............. 300 .............. 10,260 .............. 1,282,500
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B. Solicitation of Public Comment
This notice is soliciting comments from members of the public and
affected parties concerning the collection of information described in
Section A regarding the following:
(1) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
(2) The accuracy of the agency's estimate of the burden of the
proposed collection of information;
(3) Ways to enhance the quality, utility, and clarity of the
information to be collected; and
(4) Ways to minimize the burden of the collection of information on
those who respond; including through the use of appropriate automated
collection techniques or other forms of information technology, e.g.,
permitting electronic submission of responses.
(5) ways to minimize the burden of the collection of information on
those who are to respond, including the use of automated collection
techniques or other forms of information technology.
HUD encourages interested parties to submit comment in response to
these questions.
C. Authority
Section 3507 of the Paperwork Reduction Act of 1995, 44 U.S.C.
3507.
Colette Pollard,
Department Record Management Officer, Officer of Policy Development and
Research, Chief Data Officer.
[FR Doc. 2023-12341 Filed 6-8-23; 8:45 am]
BILLING CODE 4210-67-P
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