CLEAN POWER PLAN: Opportunities for Energy Efficiency in Affordable Housing Todd Nedwick Housing and Energy Efficiency Policy Director National 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 and affordable 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 CO 2 emissions from power plants by  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

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 CO 2 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 $ 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  Advisory stakeholder group established; 1 st meeting was Nov. 12 (  Ask DEQ to:  Prioritize investments in energy efficiency  Target energy efficiency investments to affordable housing  Choose to participate in the CEIP

Additional Resources PrezCat is a comprehensive source of information on state policies and programs that promote the preservation of existing affordable housing. issues/clean-power-plan

Thank you! Todd Nedwick National Housing Trust x128