WASHINGTON -- You're probably familiar with some of the federal government's 2009 incentives for home energy efficiency -- heftier tax credits for solar panels, solar water heaters, geothermal heat pumps, heavy-duty insulation, windows, air conditioning and the like.

But these come-ons are just the beginning of an unprecedented, federal government-wide push getting under way for energy conservation in housing -- and even "locational efficiency" benefits.

At the Department of Housing and Urban Development, a new generation of energy-efficient mortgages is being rolled out, starting with FHA loans that offer 5 percent larger mortgage amounts to people who plan to undertake energy-efficiency improvements.

For example, if you qualify for a $300,000 FHA mortgage to purchase a standard house, under recent guidance to lenders FHA might now be able offer you $15,000 more upfront -- a $315,000 loan amount -- if the extra money is used to substantially lower the property's annual energy consumption.

HUD Secretary Shaun Donovan wants FHA to offer additional incentives. One of the possibilities: Give applicants credit on their qualifying incomes for a home loan in exchange for documentable savings in annual energy expenditures.

Meanwhile, the House of Representatives has passed a massive energy-conservation and emissions-control bill. Though the American Clean Energy and Security Act is better known for its more controversial "cap-and-trade" carbon emissions program, the bill also contains an entire subsection devoted to creating incentives for consumers and federal agencies to build and finance more energy-efficient dwellings.

Among the key housing-related provisions in the bill:

-- The FHA is directed to insure a minimum of 50,000 new energy-efficient mortgages during the coming three years. An energy-efficient house is defined as one in which energy consumption is reduced by 20 percent following renovations.

-- Fannie Mae and Freddie Mac are directed to develop new mortgage products and more flexible underwriting guidelines to reward energy-conscious borrowers and builders.

The two companies -- currently operating under federal conservatorship -- also are required to help establish a secondary market for energy-efficient and location-efficient mortgages for moderate- and lower-income homebuyers. The new generation of loans would increase the qualifying incomes of applicants by at least one dollar for every dollar of projected energy savings from renovations, green construction or efficient design. Continued...