![]() LIHEAP Clearinghouse National Center for Appropriate Technology |
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Number 62
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May 2007 |
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Weatherization Budget Cut by 16 Percent |
June 3-4, 2007: NFFN 23rd annual conference, Nashville Airport Marriott, Nashville, TN. June 3-4, 2007: NEADA meeting, Nashville Airport Marriott, Nashville, TN. June 4-7, 2007: NLIEC 21st annual conference, Nashville Airport Marriott, Nashville, TN. More information about the joint low-income energy conferences and online registration is available on the NLIEC website. November 13-15, 2007: National Community Action Foundation (NCAF) 2007 Energy Programs Leveraging Conference, Renaissance Vinoy Hotel, St. Petersburg, Florida. Visit the NCAF website for more information.
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Revised REACH Announcement Issued The application period for FY 2007 Residential Energy Assistance Challenge Option (REACH) grants is now open, with proposals due June 1. Significant changes have been made to the structure and requirements for REACH this year, according to the administering office, the federal Office of Community Services (OCS). As a result, grant amounts will be smaller, the program period will be shorter (one year), and the application process is simpler. Also new this year, OCS has decided to focus FY 2007 REACH grants on promoting innovative LIHEAP initiatives that address energy-related health and safety issues and "home energy vulnerability" (i.e., the risk to personal health and safety that is associated with home energy affordability.) Examples of these initiatives include partnerships with health departments, utilities or organizations that serve frail elderly, disabled and/or households with young children. Strong preference will be given to applicants that are not current REACH grantees (i.e., grantees in receipt of FY 2004, 2005 and 2006 REACH funds). OCS expects to award no more than $1.5 million for grants to two states and four tribes or territories. The maximum basic REACH grant will be $300,000 for states and $50,000 for tribes and territories; for those proposals that have an integrated energy efficiency education component an additional $35,000 is available for states and $10,000 for tribes and territories. Grantees must submit a project evaluation within six months of their project's completion, but they no longer need an independent third party evaluator. REACH is a competitive grant program funded through LIHEAP since 1996 under which grantees can develop and test new and innovative approaches to helping low-income families achieve self-sufficiency The REACH announcement and the required application forms are available on the Department of Health and Human Services website. Return to Contents Thirty-eight states, 26 tribes and one territory reported almost $2.7 billion in leveraging activities during FY 2006 and they will share $25.7 million in leveraging incentive awards, according to the Division of Energy Assistance. Reflecting an annual trend of increasing leveraged resources, the FY 2006 reported amount exceeds FY 2005's by more than $657 million, or about 24 percent. This is mostly due to record levels of state legislative, regulatory and charitable funding for low-income energy assistance and energy efficiency during the winter of 2005-06 in response to escalating home energy costs. (See LIHEAPnetworker # 57 and LIHEAP Clearinghouse tables.) The increase in reported leveraging funds comes from various resources—state and local funds increased about 19 percent over last year's leveraging, fuel funds and community donations increased 31 percent and utility- and ratepayer-funded resources increased about 28 percent. Utility- and ratepayer-funded resources, which totaled nearly $1.8 billion, comprised 66 percent of all leveraged resources. These include several states' system benefit charges, also known as public benefit or universal service charges, that were acquired through utility restructuring legislation to fund rate assistance and weatherization programs. Rate discounts and credits of $1.6 billion, mostly mandated by state legislatures or utility commissions, accounted for almost 92 percent of utility resources. Governors and legislatures in 26 states and the District of Columbia provided unprecedented supplemental state funding for low-income energy programs in FY 2006. State and local funds made up 27 percent of the total leveraged resources compared to 9 percent of the 2005 total. Fuel funds and community donations also increased in 2006 and represented 5.5 percent of all leveraged resources. The remaining 1.5 percent of leveraged resources came from bulk fuel discounts, landlord contributions to weatherization and miscellaneous donations. Seven states reported over $100 million in leveraged resources. As in recent years, California , Pennsylvania and Ohio had the largest totals. California 's resources exceeded $847 million, a 31 percent increase over 2005. Pennsylvania reported nearly $373 million, the second largest amount, and Ohio had the third largest amount of leveraged resources this year, $260 million, followed by New Jersey and New York with $234 million and $190 million respectively. These states also received the largest incentive awards: California, $3,087,000; Pennsylvania, $2,892,674; Ohio, $2,170,574; New Jersey, $2,077,714, and New York, $1,345,217. California 's major resource is its ratepayer-funded California Alternate Rates for Energy (CARE), a mandated electric and natural gas rate discount of 20 percent. CARE discounts, which have increased each year, totaled $793 million and accounted for over 93 percent of California 's reported resources. The total amount leveraged by the tribes and the Northern Mariana Islands was almost $3.7 million, a 13 percent increase over FY 2005 leveraged amount. The Rosebud Sioux of South Dakota again reported the highest tribal leveraging, $546,800, followed by Oklahoma's Cherokee Nation at $438,950 and Choctaw Nation at $385,293. Their awards were $203,857, $141,997, and $325,738, respectively. Choctaw's was higher because the leveraging award formula in part takes into account a grantee's total leveraging activities as a percentage of the grantee's regular LIHEAP grant, and Choctaw's percentage was higher than that of the other two tribes. Twelve tribes reported over $100,000 in leveraged resources. Six tribes and the Northern Mariana Islands reported leveraging amounts that were larger than their regular LIHEAP allotments. More information will be available on the Division of Energy Assistance website.
In two of the nation's largest states—Illinois and Texas—attempts to mitigate higher electric rates, especially for lower income consumers, have resulted in much political wrangling, but little relief so far. As of press time, legislative and consumer activism continues in both states in an attempt to get a better deal for the low income. Electric rate freezes imposed as part of the electric deregulation process nearly a decade ago expired in January for both states. Illinois Rate hikes average 30 percent in Illinois , but some users, especially those with all-electric homes served by Ameren, have complained of 300 percent increases. Public outcry over the rate hikes led to rate freeze proposals that passed the Illinois legislature, but have been held up by political maneuvers. The largest utility, Commonwealth Edison, has pledged to provide $44 million in programs for the low income, some to start this summer, but only if the rate freezes are off the table. Earlier in the year, ComEd allocated $1 million to the Illinois LIHEAP and $1.5 million to a partnership with the City of Chicago to help low-income customers who were disconnected. At the same time, advocacy organizations such the Citizens Utility Board and the state Community Action Association back the rate freeze and have participated in protests. They've received support from the lieutenant governor and the attorney general; the latter filed a complaint with the Federal Energy Regulatory Commission alleging that electricity suppliers engaged in price manipulation in an auction that Commonwealth Edison and the Ameren Companies held last year that ultimately determined the amount of the rate hikes. The complaint seeks modification of the utility companies' contracts with the energy suppliers in order to reduce prices to a more reasonable level. Ameren, the other major Illinois utility, has proposed spending $6 million on low-income rate relief along with another $9 million on several low-income energy efficiency initiatives; however, it emphasized this rate relief wouldn't be available if rate freeze legislation passes. Both utilities said a rate freeze could lead their companies to financial insolvency or bankruptcy. Texas The four big power companies that serve 70 percent of the Texas residential market have increased their rates an average of 83.7 percent since deregulation. Electricity price manipulation is also an issue; the Texas Public Utilities Commission reported that the state's largest power provider, TXU, inflated prices by $70 million during the summer of 2005. The Texas Senate has approved bills giving regulators more power to curb electricity rates and encourage competition. The Texas AARP office has made electricity prices its top issue during the current legislative session. Some legislators have been working for over a year to reinstate a low-income electric discount that was funded by a system benefit charge until September of 2005 after the legislature shifted the low-income funds to the general fund. Advocates also tried unsuccessfully for a constitutional amendment that would dedicate the fund for low-income bill payment assistance and keep the state from ever raiding it again. Consumer advocates organized a protest last month and were joined by Houston 's mayor who said that deregulation has unfairly burdened the state's lower-income residents. Advocates called for a 15 percent rate cut and reestablishment of the low-income discount. Bills providing for discounts are pending in both the House and Senate. Return to Contents As part of a rate case for CenterPoint Energy, the Minnesota Public Utilities Commission (MPUC) has approved a new Gas Affordability Program to help income-eligible customers pay their natural gas bills. The MPUC approved an annual revenue increase of approximately $26 million for the utility, of which $5 million per year will fund the program, which will be a four-year pilot. A program evaluation and annual reports are also required and the MPUC will decide whether to continue funding based on the evaluation results. The program is designed so that participants will pay no more than six percent of their income for their gas bill. It includes an arrearage forgiveness component that can help participants to pay off their pre-program arrears within two years. It will be targeted to LIHEAP recipients who have a poor payment history and a high level of arrears. The Energy CENTS Coalition, a St. Paul nonprofit which intervened in the rate case, will administer the program. About 6,000 households are expected to be enrolled. CenterPoint was authorized to begin assessing all customers a charge for the program effective May 1. More information is available on the MPUC website; enter the year 2005 and docket number 1380. According to Pam Marshall, Energy CENTS executive director, many LIHEAP-eligible CenterPoint customers who receive their electricity from Xcel Energy are enrolled in, or may be eligible for, an electric affordability program from Xcel called POWER On. These program participants pay no more than three percent of household income for their electric bill and if they make the required monthly payments, plus an arrearage payment, a portion of their arrears is forgiven. About 4,500 low-income households participate in POWER On, which is also administered by Energy CENTS. Return to Contents On March 30, the Vermont Public Service Board approved a pilot program that will provide a discount to low-income customers of Green Mountain Power, an electric utility that serves about one quarter of the state. The approval came as part of negotiations over the Board's approval of the acquisition of Green Mountain Power by Northern New England Energy Corporation, a subsidiary of Gaz Metro Limited Partnership, a Canadian company. The low-income program details were worked out by AARP of Vermont and Green Mountain, with the Board giving the final approval. The pilot project will receive $1 million, part of a $9.3 million efficiency fund that Green Mountain was required to establish as a condition of the sale. Philene Taormina, director of advocacy for the AARP's Vermont office, said the program is an important first step in addressing a critical affordability problem facing thousands of Vermonters. She added any Green Mountain Power customer with an income up to 200 percent of the federal poverty level will be eligible for the program, which will provide a 10 percent discount to participating customers and also protect them from disconnection when the weather is expected to be below freezing. She said the program is expected to begin once the sale is final, likely by the end of June, and eligible customers can sign up at local community action agencies. It will operate until funding is gone. In the meantime, legislation is pending in the state legislature to provide funding and design for a statewide low-income electric affordability program; this is a result of a bill passed last year requiring the Public Service Board to draft legislation that would establish such a program. AARP and other advocates point out that Vermont is the only New England state that offers no state- or utility-funded utility payment assistance, and that its electric rates (averaging 13.06 cents per kWh in 2005) are among the highest in the country. For more information, see the Vermont Public Service Board's website for the order approving the GMP sale and other related documents. Indiana Governor Mitch Daniels has signed HEA 1037, extending the LIHEAP sales tax exemption, which was set to expire in June, until July 2009. The law takes effect June 30, and it exempts low-income households' purchases of "home energy" with federal LIHEAP funds from the 6 percent state gross retail tax. Home energy is defined as electricity, oil, gas, coal, propane, or any other fuel used as the principal source of heating or cooling in residences. A similar measure was passed last year and was in effect for purchases after June 30, 2006 and before July 1, 2007. The exemption makes an additional $2.5 million in LIHEAP funds available for low-income heating and cooling bills, according to an estimate from Citizens Action Coalition of Indiana.
Low-income households in Oregon are benefiting from $10.8 million in utility settlement funds that are providing energy assistance, weatherization and case management services. About $5.5 million has been allocated to help low-income households pay energy bills for the past two winters, along with $4.5 million to weatherize 1,000 low-income dwelling units, and for construction or rehabilitation of affordable multi-family rental housing. Settlement funds also provided $800,000 to support a statewide case management system and energy education through an Oregon Housing and Community Service (OHCS) project called Energy Efficiency and Consumer Competency (E2C2). (OHCS is the LIHEAP and weatherization grantee.) The grants result from settlements with El Paso Corp., Duke Energy and Williams Energy Marketing and Trading Co. that concluded an investigation into allegations of price manipulation and antitrust violations in the Western power market. The investigation was initiated in January 2001 by the attorneys general of Oregon, California and Washington and settlement funds were announced in November, 2005. The funds, collectively called the Williams Settlement Funds, allowed OHCS to fund three programs: bill payment assistance, its Housing Division's low-income weatherization for multi-family rental housing and its Community Resource Division's low-income weatherization. Funds are delivered through the state's community action agencies network. Funds for payment assistance were divided between OHCS and Oregon HEAT, a fuel fund, for distribution to local agencies. Oregon HEAT allocated roughly 75 percent of the total to local agencies for distribution to low-income customers of Oregon's investor-owned utilities. OHCS allocated the remaining portion to local agencies for distribution to low-income customers of customer-owned utilities. Income eligibility for bill payments is the same as Oregon 's LIHEAP—60 percent of state median income. Households with incomes below100 percent of federal poverty guidelines receive higher payments. Assistance is for any fuel type, although about 94 percent has gone towards electric bills. Prior to October 1, 2006, agencies had utilized over 80 percent of these funds to provide energy assistance to over 15,000 households. At the start of the 2006-2007 heating season, agencies had about $870,000 remaining, enough to serve 3,000 to 5,000 households. The OHCS Housing Division's weatherization program received $1.8 million of the settlement funds, which are providing grants for construction or rehabilitation of affordable multi-family rental housing. They can be used anywhere in the state for any fuel type. As of December 2006, almost $1.2 million had been committed to fifteen projects. The Community Resource Division's $850,000 funds a program for rural low-income households that emphasizes lowering the long-term cost of energy and improving health and safety for participants. Settlement funds for the E2C2 case management project are helping expand pilot projects that are part of Oregon's 2004 REACH grant. Clients are screened at intake for energy assistance or weatherization and, depending on need, they may be referred to case management. In case management, a comprehensive assessment is conducted to determine the family's specific barriers to achieving self-sufficiency. A case manager will then assist the family in determining goals and setting up an action plan. Clients meet each month with their case manager to monitor progress and modify the plan if needed. Upon completion, an exit assessment will determine if the client has moved towards self-sufficiency. E2C2 clients may receive bill assistance, weatherization, energy education and additional services they may need to gain self-sufficiency. Nine community action agencies that received training in late 2006 are participating in case management services with startup funding of about $468,000 and 18 agencies are delivering energy education to low-income households. For more information, see the project reports at : www.oregon.gov/OHCS/CRD/SOS/docs/Williams SettlementReport06.pdf and http://egov.oregon.gov/OHCS/CRD/SOS/ docs/ DEPEAAnnualReportCurrent.pdf
Washington State's Department of Community, Trade and Economic Development, Housing Division, has started a new project to increase the number of low-income Native American families receiving weatherization services through available programs. The Housing Division, the state weatherization grantee, contracts with 26 community agencies statewide that provide weatherization services to low-income households, including the members of the 29 tribes. Project funding comes from the Department of Energy Weatherization Assistance Program. The Division's Housing Improvements and Preservation (HIP) Unit implemented the Tribal Weatherization Project in December, 2006. Eunice Herren has been with the HIP Unit for several years and fills the newly established position of Tribal Liaison for the project. Herren plans to explore and identify ideas and proposals for unique weatherization service delivery, weatherization training for tribal housing staff, partnerships with local weatherization service providers, client energy conservation education and forming a tribal weatherization advisory group. Tribal lands in Washington can be remote and some cover large service areas, especially in the eastern part of the state, which has contributed to lower participation in the weatherization program. A lack of trained providers has also been a barrier to obtaining services. Each approach will be designed to increase tribal participation in weatherization services and will be unique to each tribe, Herren explained. Herren will meet with each tribe to identify specific barriers to weatherization services. "Meeting face to face is crucial in building relationships and working with issues," she said, adding, "a known, friendly face provides a needed contact for questions and concerns," Tribal outreach began in December when CTED co-sponsored the Tribal Energy Conference. Herren, who participates in various associations and committees focusing on tribal housing issues and service delivery, is currently visiting tribes that have requested meetings. She has visited several tribes in western Washington, and will be visiting the tribes in eastern Washington during May and June. She is also meeting with the community agencies that provide weatherization services. Another goal of the Tribal Weatherization Project is to increase tribal nations' weatherization technical and program capacity. For example, an agency is partnering with a tribe to provide technical training and experience so the tribe can develop the capacity to provide weatherization service. Tribal members are training to become certified in weatherization applications. The relationship benefits both the agency and the tribe. The HIP Unit recently issued contracts funding four projects with tribes and local agencies to increase weatherization services to tribal members through training and a variety of measures, including refrigerator replacement and energy conservation education. Another Request For Proposals will be announced this year. Herren attends tribal housing fairs to offer energy conservation information to tribal attendees. The housing fairs are a great community resource for home owners and renters and provide a wide source of information such as first time home buyers information, help with loan applications, home repairs and home safety issues. Herren distributes information on energy conservation and other issues such as lead-based paint hazards. In December CTED co-sponsored the first annual Tribal Energy Conference, a training conference for tribal energy coordinators. It focused on unique tribal service issues and was attended predominantly by tribes from Washington, Oregon, and Idaho. The conference was coordinated and presented by The Confederated Tribes of the Coos, Lower Umpqua and Siuslaw Indians in Oregon.
Last year the state of Wisconsin undertook a study of staffing levels, employee characteristics, wages and fringe benefits among the 21 agencies that implement the Wisconsin Weatherization Assistance Program for the purposes of state policy making and training activities. The "Wisconsin Weatherization Provider Survey," prepared by the Energy Center of Wisconsin for the Wisconsin Department of Administration, the LIHEAP and weatherization grantee, was published in June of 2006. Findings include the following:
The study is available at: ftp://doaftp04.doa.state.wi.us/homeenergy/2006WIWXDemographicStudy.pdf Return to Contents This year's joint low-income energy conference is meeting June 3-7 in Nashville, Tennessee at the Airport Marriott Hotel. "Building Bridges: Working in Harmony for Affordable Energy" is this year's conference theme. The National Fuel Funds Network's (NFFN) conference and the National Energy Assistance Directors' Association (NEADA) annual meeting both convene on Sunday and Monday June 3-4, followed by the National Low Income Energy Consortium (NLIEC) conference. NFFN's 23 rd conference will feature two days of informative workshops and panel discussions that address the hottest topics in the charitable energy assistance world: successes in fundraising, the value of utility programs for low-income customers, state-of-the-art media work and breakthroughs in organizing support for both fuel funds and LIHEAP. Dr. John T. Cook, a member of the Department of Pediatrics at the Boston Medical Center is NFFN's featured general session speaker. Dr. Cook is co-author of "Heat or Eat: The Low Income Home Energy Assistance Program and Nutritional and Health Risks Among Children Less Than 3 Years of Age," a study on the relationship between receipt of LIHEAP and the health of small children. NFFN luncheon speaker Juan Gonzalez is a newspaper columnist and co-host of Pacifica's Democracy Now, an award-winning radio program covering war and peace, government policies and struggles for justice. He is also author of the book Harvest of Empire: A History of Latinos in America. NLIEC's 21st conference opens with a reception Monday evening for all joint conference attendees followed by two- and one-half days of workshops and general sessions. Keynote speaker for Tuesday's opening session is Jean Ann Fox, Director of Consumer Protection at the Consumer Federation of America. Fox is the author or co-author of numerous reports on check cashing and payday lending, refund anticipation loans, car title loans and bank overdraft loans and has conducted research on the practices and products offered through the many payday lending stores and the impact they have on low-income consumers. Title of speech not known yet. John Young, Chief Operating Officer at America Water will deliver the keynote luncheon speech on Tuesday. Addressing the increasingly important issue of water affordability for low-income consumers, Young will review discount programs for water service, private water funds and steps consumers can take to help reduce the cost of water. David Carroll and Jackie Berger, of the consulting firm APPRISE, and Roger D. Colton, of Fisher, Sheehan & Colton, will present results of a national study of ratepayer funded low-income programs at a Wednesday morning forum. The study is intended to furnish guidance on the legal and regulatory framework needed to support such programs and documents the most effective practices in program design and implementation. One of this year's NLIEC workshops, titled "Step Inside Poverty: Feel It, See It, Live It, Understand It," is a double session Thursday morning presented by Jessica Long and Brenda Stegeman of the Missouri Association for Community Action, Inc. Participants will get a chance to understand the day-to-day reality of poverty using Missouri's Community Action Poverty Simulation (CAPS). During a simulation, participants will role-play the lives of low-income families, enabling them to view poverty from different angles and then discuss the potential for change within local communities. Visit the NFFN and NLIEC websites for more information and conference registration.
Using 2002 energy prices, FSC found in its initial Home Energy Affordability Gap analysis that the annual "affordability gap" reached roughly $18.2 billion and that energy assistance provided through LIHEAP covered just a fraction of that gap. Using 2005 energy prices in its 2006 Home Energy Affordability Gap analysis, FSC found that the shortfall between actual home energy bills and affordable home energy bills had risen to $23.2 billion, an increase of 27 percent in just four years. The 2006 series is available on the FSC website. The website also contains prior year series in order to provide historical perspective. |
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