April 22, 2008

In commemorating Earth Day, today U.S. Rep. Ed Perlmutter (D-CO) delivered the keynote address at the Center for American Progress highlighting his new G.R.E.E.N. Act (Green Resources for Energy Efficient Neighborhoods) to be introduced later this week in the House of Representatives.

As economic growth in the U.S. slows, our country's global warming gas emissions continue to rise. Meanwhile, consumers are being hit hard by the twin burdens of a sagging housing market and rising energy prices at home and at the gas pump. It's time to invest wisely in protecting family budgets and revitalizing our built environment.

Perlmutter’s bill provides 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. This timely legislation reflects foresight and the considered input of a broad coalition of housing advocates, financial institutions, government leaders, developers, and the environmental community.



Perlmutter spoke at the forum titled, Giving Real Savings, Real Investment: Efficiency Begins at Home, about the current state of energy consumption in buildings and homes and how his bill will help provide more affordable mortgages to consumers, reduce energy consumption, and help spur economic growth.

“This legislation proves that it is easy to be green. This bill helps revitalize our economy by making energy efficiency practices more affordable, accessible and achievable by consumers, businesses and government entities. By prioritizing energy efficiency practices, we can ease the woes of homeowners, lenders, financial markets, builders and our environment,” said Congressman Ed Perlmutter.

Additionally, the forum featured speakers from the American Institute of Architects, Bank of America, Enterprise Community Partners and the Center for American Progress Action Fund, all of whom participated in crafting this legislation.

“Last year we advocated strongly for energy-efficiency requirements for federal buildings which became part of the Energy Bill,” said AIA President Marshall E. Purnell, FAIA. “This year we are working closely with House Financial Services Committee to seek legislation that will create federal incentives for residential projects, along with encouraging the use of energy efficient mortgages made available through Government Sponsored Enterprises. We commend Rep. Perlmutter for taking the lead on this issue that is another important step to continue making significant reductions in the amount of fossil-fuel generated energy our nation consumes through its homes and buildings.”

"Bank of America shares Congressman Perlmutter’s view that economic development and environmental protection can be compatible. As part of our landmark $20 billion environmental initiative, Bank of America finances green construction and makes loans to help homeowners make energy efficient improvements," said Gregory Melanson, senior vice president, Community Development Bank executive, Bank of America.



“Green affordable housing has clear benefits for low-income families and entire communities as well as our environment," said Stockton Williams, senior vice president and chief strategy officer, Enterprise Community Partners. “We commend Rep. Perlmutter for his commitment to ensuring the federal government plays a role in helping affordable housing become healthier, more efficient and more sustainable.”



“Solving global warming is one of the greatest economic -- not only environmental -- challenges that our nation faces today,” said Bracken Hendricks, Senior Fellow for the Center for American Progress. “Representative Perlmutter and the House Financial Services Committee are showing that smart policy is essential to transform real markets and change the way builds. We can have the same quality of life, but use less energy and dramatically cut our global warming pollution if we create real incentives to finance new clean energy and green building projects. This is an important step for our national and global economic security.”



Key Provisions in the Bill Include:

Fannie Mae / Freddie Mac:

• Will be required to finance energy efficient and location efficient mortgages as part of their goals to satisfy federal guidelines.
• Such as buildings near mass transit
• Building using established energy efficient standards, products and materials
• They will receive additional credit (125%) if they comply with the energy efficiency goals and support housing that complies with standards established in the legislation.

Urban Development:

• Similar to the CDBG (Community Development Block Grant) program the legislation creates a Residential Energy Efficient Block Grant Program.
• Grants shall be given to local communities and states to carry out energy efficiency improvements in new and existing single and multifamily housing units.

Insurance Component:


• Insurance companies are not allowed to deny insurance to homes in which power, heat or electricity is provided from renewable energy sources and is not connected to any power grid.
• This does not prevent insurance companies from charging necessary rates.

Financial & Banking Institutions:


• Create green banking centers to provide consumers information on obtaining a mortgage or loan which rewards energy efficient or “green” improvements.
• Alters the Community Reinvestment Act by allowing financial institutions to consider energy efficiency improvements made by low income, first time and other home buyers when appraising and assessing the home or building.