Mou

MEMORANDUM OF UNDERSTANDING
Between the
U.S. ENVIRONMENTAL PROTECTION AGENCY
And the
U.S. DEPARTMENT OF ENERGY
And the
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

I. Purpose
The purpose of this Memorandum of Understanding (MOU) is to establish a general
working agreement among the U.S. Environmental Protection Agency (EPA), the U.S.
Department of Housing and Urban Development (HUD), and the U.S. Department of
Energy (DOE) to coordinate policies and activities aimed at improving the energy
efficiency of HUD’s inventory of public, assisted, and insured housing, as well as housing
financed through HUD’s formula or competitive grant programs. This MOU is intended to
support the President’s National Energy Policy, announced in May 2001, with specific
reference to those recommendations related to the increased use of Energy Star-labeled
products in housing.
This MOU represents a non-binding expression of intent for HUD, EPA, and DOE to work
together, each within its own policies, to further the goals of the President’s National
Energy Policy by supporting the construction of Energy Star-labeled homes and the
purchase of Energy Star-labeled products in HUD-assisted, insured, or financed homes
(“HUD-financed housing”) when determined to be cost effective.
II. Background
Energy Star was introduced by the EPA in 1992 as a voluntary labeling program designed
to identify and promote energy-efficient products, in order to reduce carbon dioxide
emissions. EPA partnered with the U.S. Department of Energy in 1996 to promote the
Energy Star label, with each agency taking responsibility for particular product categories.
It has become the widely-recognized government-backed symbol for energy efficiency. It
identifies new homes, buildings, and over 30 types of products that are energy efficient.
Energy Star has also expanded to cover improvements that make existing homes more
energy efficient.

Memorandum of Understanding
Each year, HUD assists approximately five million renters and homeowners—almost five
percent of all households in the Nation—through its various programs. The Department
spends as much as $4 billion each year on energy, through utility allowances to renters,
housing assistance (HAP) payments to private building owners, and operating grants to
public housing authorities. In public housing alone, HUD spends approximately $1 billion
each year, a third of its total operating fund, on energy and water. Increasing the energy
efficiency in this housing stock could yield significant cost savings to the Federal
Government, to property owners, and to building residents.
In accordance with the President’s National Energy Policy, this MOU identifies areas
where EPA, DOE, and HUD will coordinate resources and approaches to expand the use of
Energy Star-labeled products in HUD-financed housing, or expand the number of Energy
Star-labeled new homes financed by HUD, and generally promote energy efficiency
improvements in both new and existing HUD-financed housing.
III. Agreement
EPA, DOE, and HUD agree to work together to address the obstacles and opportunities for
building Energy Star-labeled new homes, improving the energy efficiency of existing
homes, and purchasing Energy Star-labeled products through HUD’s programs. This may
include, to the extent authorized by law:
A.

Developing Energy Star informational and promotional materials, which can be
distributed to field staff, public housing authorities, and formula and competitive
grant recipients, as well as to property owners and managers of privately-owned
assisted housing. The materials may also be provided to FHA home buyers or
buyers of FHA-foreclosed homes, when appropriate or where feasible. These
materials will help educate home buyers and homeowners on the benefits of
purchasing Energy Star products or building energy-efficient new homes.

B.

Developing and implementing strategies that assist public housing authorities and
assisted housing owners to purchase Energy Star-labeled products when this
results in savings sufficient to repay initial higher costs over the expected life of
the products, when the products are cost effective to maintain, when they promote
public health, and when such purchases do not hinder the housing authorities’
ability to address emergency, accessibility, or lead paint mitigation measures.

C.

Implementing strategies to achieve an Energy Star rating in new housing financed
through HUD’s HOPE VI program, unless a sponsoring housing authority
demonstrates the higher standard cannot be achieved within Total Development
Cost limits. These homes will be independently rated by certified raters or another
agreed upon system to ensure the value of the Energy Star label is maintained.
Use of the Energy Star label will promote energy efficiency as a desirable option
for providing affordable housing, protecting the environment, and saving on
energy bills.

D.

Promoting the use of Web-based screening tools for home owners, including the
Home Energy Yard Stick that allows homeowners to see how their homes compare

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Memorandum of Understanding
in energy use to other similar households, and the Home Energy Adviser, which
provides homeowners with the top five most cost-effective improvements that
could be undertaken to reduce home energy use.
E. Building and maintaining Energy Star as a trustworthy government symbol for
energy efficiency for homes, products, and services by adhering to the Energy Star
Logo Use Guidelines.
F. Providing training and support to EPA, DOE, and HUD staff on relevant issues
pertaining to policy development, technical updates, program strategies, and
cooperative implementation efforts.
G. Identifying, developing, and implementing additional actions, to the extent
determined feasible by the relevant agencies, that link energy efficiency with
developing affordable, healthy housing through Energy Star. These actions may
include:
− support for States, political subdivisions of States, Indian tribes, local
development districts, and nonprofit organizations to integrate energy efficiency
into the development of affordable housing;
− coordination of agency activities in order to help implement the development of
affordable, energy-efficient, healthy housing;
− collaboration on pilot projects and, when successful, on regional and national
expansion of those projects, using partnerships among DOE, EPA, HUD, and
local organizations to develop energy-efficient, healthy housing that meets local
needs and Energy Star and HUD objectives.
IV. Programming, Budgeting, Funding, and Reimbursement Arrangements
A. This MOU is neither a fiscal nor a funds obligation document. Any endeavor
involving reimbursement or contribution of funds among or between parties to this
MOU will be handled in accordance with applicable laws, regulations, and
procedures, and will be subject to separate agreements hereunder that shall be
effected in writing by representatives of the parties.
B. This MOU in no way restricts EPA, DOE, or HUD from participating in similar
activities or arrangements with other entities or Federal agencies.
C. Nothing in this MOU shall obligate EPA, DOE, or HUD to expend appropriations
or to enter into any contract or other obligations.
D. Should EPA, DOE, and/or HUD decide to collaborate on a specific project or
projects, one agency will be selected to serve as the lead agency. The lead agency
will be responsible for all grant management, financial, and accounting services
involved in awarding funds to a recipient. The other agency or agencies will be
responsible for transferring their share of funds to support the project to the lead

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Memorandum of Understanding
agency and any other duties as may be specified in separate Interagency
Agreements under this MOU.
E. Projects funded pursuant to this MOU shall be determined annually on a case-bycase basis in accordance with this agreement and as put forth in specific Interagency
Agreements hereunder. Any awards shall be made pursuant to the agencies’
governing authorities and will be administered in accordance with applicable laws,
regulations, and procedures.
V. Authorities
This MOU is entered into consistent with the following authorities:
EPA:
− Sections 102, 103, 104, 108 of the Clean Air Act, 42 U.S.C. 7401 et seq.
− Sections 6602, 6603, 6604, 6605 of the Pollution Prevention Act of 1990, 42
U.S.C. 13101 et seq.
− Section 1103 of the Global Climate Protection Act of 1987, 15 U.S.C. 2901
DOE:
− DOE Authorization Act of 1977
− Section 127 of the Energy Policy Act of 1992
HUD:
− National Housing Act, 12 U.S.C. 1701 et seq.
− United States Housing Act of 1937, 42 U.S.C. 1437 et seq.
− Section 105, Title I, of the Housing and Community Development Act of 1974,
42 U.S.C. 5305
− Section 109 and 945 of the Cranston-Gonzalez National Affordable Housing
Act, 42 U.S.C. 12709 and 12712
− Section 513 of the Housing and Community Development Act of 1992, and
Section 106 of the Energy Policy Act of 1992, 42 U.S.C. 12712 note

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