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Office of the Press Secretary

For Immediate Release May 4, 1998
              The President's New Partnership for Housing:
      Helping Homeowners Cut Energy Costs and Fight Global Warming

May 4, 1998

Today, President Clinton launches a new partnership with America's building industry to dramatically improve the energy efficiency of our homes -- cutting consumers' energy bills by 30-50 percent, while reducing the greenhouse gases that cause global warming. At a Los Angeles construction site, where building will soon commence on 186 energy-efficient homes, the President will tour a model home with advanced energy-saving features that will cut homeowners' utility bills by $230 a year. By promoting the use of these and other advances in new and existing homes, the new Partnership for Advancing Technology in Housing (PATH) could save consumers $11 billion a year in energy costs by 2010 and reduce annual carbon emissions in 2010 by nearly 24 million tons -- the amount produced by some 20 million cars.

Advanced Housing for the 21st Century. PATH brings together federal agencies, state and local governments, and the building, finance and insurance industries to spur design and construction innovations for the next generation of American housing. The goal is homes that are stronger, more affordable, more comfortable and far more energy-efficient.

Over the next decade, PATH aims to cut energy use by 50 percent in new homes, and by 30 percent in 15 million existing homes, while reducing the monthly cost of new housing by 20%.

Meeting the Challenge of Climate Change. Rising emissions of greenhouse gases, primarily from the burning of fossil fuels, threaten to warm the planet 2-6 degrees over the next century. Likely results include rising sea levels, the spread of infectious disease, increased flooding and drought, and extreme weather like that caused by this winter's El Nino. Energy use at home accounts for about 20 percent of U.S. emissions of greenhouse gases. PATH is part of a comprehensive Administration strategy to fight climate change through cost-effective steps that cut emissions while creating opportunities for economic growth.

A Commitment to Work Together. PATH joins government and industry in a coordinated strategy to identify promising housing technologies and swiftly move them to market.

      Federal partners, led by the Department of Housing and Urban 
      Development and the Department of Energy, commit to support 
      research, facilitate removal of barriers to new technology, 
      and provide technical assistance.  Industry partners commit 
      to fund research, bring advanced products to market, share 
      information and work with government to demonstrate new 

        State and Local Government partners commit to streamline 
      approval processes so new technologies are rapidly deployed 
      and devote resources to local pilot projects.

PATH Projects Around the Country. The 186-home Village Green development in Los Angeles is one of several PATH pilot projects under way. Others include a Tucson project that is the largest "sustainable" master-planned development in the United States and a "new traditional" neighborhood being built on a decontaminated "brownfields" site in Pittsburgh.

Tax Incentives for Energy Efficiency. To further promote energy efficiency and clean energy technologies, the President's Fiscal Year 1999 budget proposes a five-year $6.3 billion package of tax incentives and research investments. Included are $200 million in tax credits for the purchase of ultra-energy-efficient homes and $1.4 billion in tax credits for the purchase of energy-saving systems and appliances for buildings and homes. The budget also proposes $200 million next year to accelerate R&D for appliances and construction. The President calls on Congress to approve this common-sense package of tax and research incentives to build a stronger economy and a stronger environment.