Hybrid Distributed Video Coding (HDVC) has emerged as an attractive solution for energy and resource constrained video processing systems in different domains like distributed video sensors, mobile devices with dynamically varying energy levels, or hybrid paradigms where mobile devices are communicating with high-end servers. In this paper, we present a hierarchical control scheme for determining and distributing the energy quota in HDVC encoder and decoder under scenarios of dynamically varying energy levels and user constraints. The energy quotas are computed and con-trolled online at various hierarchical levels (like group of frames, frames, and macroblocks), while jointly accounting for the computation and transmission energy. For energy reduction, the processing of selective regions is intelligently distributed at both encoder and decoder sides, considering the texture and motion properties of different video regions and available spatial/temporal correlations. Experimental results demonstrate that our scheme provides on average 20%-25% reduced energy consumption com-pared to state-of-the-art HDVC schemes. The key to high energy efficiency is to leverage the video content properties.