by Tom Bergan
Manager, AIA Federal Legislative Relations

Summary: Commemorating Earth Day, Rep. Ed Perlmutter (D-Colo.) on April 22 outlined details of the comprehensive legislation aimed at promoting energy efficiency in residential buildings that he plans to introduce shortly. Delivering the keynote address at the Center for American Progress forum in Washington, D.C., Perlmutter explained how the bill—on which the AIA’s federal relations department consulted extensively—would provide incentives to lenders and financial institutions to provide lower interest loans and other benefits to consumers who build, buy, or remodel their homes and businesses to improve their energy efficiency.

AIA President Marshall E. Purnell, FAIA, also spoke at the forum, addressing the current state of energy consumption in buildings and how Perlmutter's bill will provide greater tools for homeowners, lenders, and government-sponsored enterprises (such as Freddie Mac and Fannie Mae) to improve energy efficiency. "Last year we advocated strongly for energy-efficiency requirements for federal buildings," noted Purnell. "This year we are working with the Financial Services Committee to craft legislation that will create federal incentives for energy-efficient residential projects. This is a necessary step to ensure that we continue making significant reductions in the amount of fossil-fuel generated energy our nation consumes through its homes and buildings."

Perlmutter, who sits on the House Financial Services Committee, was asked by Committee Chair Barney Frank (D-Mass.) to craft legislation aimed at promoting energy efficiency in the residential sector. The legislation will likely be introduced in the coming weeks, and Frank has indicated that the committee will take swift action to advance the bill.

The legislation would provide incentives, grants, and educational opportunities to encourage the construction and renovation of energy-efficient homes and buildings and the development of sustainable communities. Specifically, the bill would require residential single-family or multifamily structures constructed using federal monies (such as housing built under Section 8, Hope VI, or the Federal Housing Administration) to meet more stringent energy-efficiency standards.

The bill would also encourage the use of energy-efficient and location-efficient mortgages (EEMs and LEMs). Under the legislation, Fannie Mae and Freddie Mac are required to promote and facilitate the use of EEMs and LEMs. The bill would mandate that Fannie and Freddie purchase a certain percentage (in comparison to total mortgages purchased) of EEMs and LEMs every year.