Bulk Purchasing Benefits
Lower energy use/lower utility costs:
The total annual energy costs for public housing are approximately $1.1 billion. While $278 million is paid by residents, the remaining $822 million is paid by PHAs. $295 million is spent annually on water costs. More information about public housing energy costs.
There is a potential for significant reductions in energy use, which will lower the utility costs of your agency's properties. For example, ENERGY STAR qualified refrigerators use at least 15% less energy than required by current federal standards and 40% less energy than conventional models sold in 2001.
With the ENERGY STAR Online Bulk Purchasing Tool your agency can negotiate a custom bulk-purchasing plan for energy-saving products at a reduced up-front cost. Your agency will be able to contact suppliers to negotiate a plan that best fits your individual needs and you can save money on products that will help lower the utility bills of your properties.
Financing
HUD offers specific incentives for energy efficiency improvements so that federal capital funds can be applied to other needed repairs. Housing authorities should consider the Frozen Base Incentive and the Additional Subsidy Incentive for financing ENERGY STAR qualified products or practices. Upon HUD approval, the capital leveraged through these incentives can be used to implement any approved cost-effective energy or water saving measures. Energy auditing can also be funded with these incentives.
Is Bulk Purchasing Right for Your Agency?
The U.S. Department of Housing and Urban Development (HUD) Bulk Purchase Program is designed to help your agency purchase ENERGY STAR qualified products.
The following quick list of questions will help you determine whether this bulk purchase program is appropriate for your agency. If you answer yes to any of these questions, then bulk purchasing may be right for you.
| 1. |
My agency purchases products in bulk quantities every year. |
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| 2. |
My agency does not have an established method for purchasing products in bulk. |
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| 3. |
My agency buys products in bulk at standard retail value. |
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| 4. |
My agency buys some standard products, rather than energy-efficient products, because they are less expensive. |
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| 5. |
My agency spends a lot of time finding the best product at the lowest cost. |
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| 6. |
My agency is interested in reducing our energy bills. |
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| 7. |
My agency is interested in reducing energy use. |
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| 8. |
My agency is interested in improving resident comfort. |
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My agency is interested in outreach to residents about energy efficiency and environmental benefits. |
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| 10. |
My agency is interested in buying ENERGY STAR products. |
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