Meaning of The Weatherization Assistance Program and Its Purposes:

1 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov

2011 Orientation for State WAP Directors and Staff

February 28, 2011Meaning of The Weatherization Assistance Program and Its Purposes:

Energy Prices, Energy Burdens, and The Role of the Program Joel Eisenberg


…to develop and implement a weatherization assistance program to increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential

energy expenditures, and improve their health and safety, especially low-income persons who are particularly vulnerable

such as the elderly, the handicapped, and children.

Statutory Purpose

Title 42 of the U.S. Code, Chapter 81, Subchapter III, Part A, 6861


R A T E O F IN C R E A S E IN R E S ID E N T IA L E N E R G Y P R IC E S B Y F U E L T Y P E

S in ce 1 9 9 2(N o m ina l d o lla r s)

$0.00$5 .00

$10 .00$15 .00$20 .00$25 .00$30 .00$35 .00

N a tu r a l G a s (m c f) F u e l O i l (1 0 ga llo n s)E le c tr ic i ty (1 0 0 k W h ) In fla tion ($ 5)In c om e (low e st q u in ti le )

S ources : D O E /E IA S hort T erm E ne rg y O ut lo ok , S ep tem b er 2 0 1 0 , B ur ea u of L ab or S ta tis tics , B urea u of th e C ensus


AGGREGATE RESIDENTIAL ENERGY EXPENDITURES

BY LOW-INCOME HOUSEHOLDS

Federally Eligible

By Primary Heating Fuel

$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000

2001 2004-5 2005-6 2006-7 2007-8 20010-11

Fuel OilNautral GasPropaneElectricity

SOURCE: ORNL TABULATION BASED ON EIA STEO AND RECS

Millions of Dollars


EXPECTED ENERGY EXPENDITURES FOR 2010-2011Low-Income Households

$724

$1,720

$1,307

$2,712

$1,932

$3,361

$565

$1,609

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

NaturalGas

Propane Fuel Oil Electricity

By Primary Heating Fuel

Heating/CoolingTotal Bill

Source: ORNL Tabulation from EIA September 2010 STEO & 2005 RECS


Energy Burden by Income Group 2010-2011

0%

5%

10%

15%

20%

25%

POVERTY ELIGIBLE NOTELIGIBLE

% of Income

Source: ORNL tabulation based on EIA STEO September 2010, 2005 RECS, Census for 2008


Primary Heating Fuel for Low-Income Households

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Percent Of Households At Or Below 150% of Poverty By Region

Natural Gas 53.4% 59.1% 79.6% 42.2% 56.7%

Propane 5.4% 0.4% 11.4% 6.4% 3.7%Fuel Oil 6.0% 26.2% 6.5% 1.3% 0.0%Electricity 35.2% 14.4% 2.4% 50.1% 39.6%

U.S. Northeast Midwest South West

Source: DOE/EIA Residential Energy Consumption Survey for 2001


VARIATIONS IN SAVINGSSelected States

Sources: ORNL Weatherization Assistant Tabulations, EIA Annual Energy Outlook 2010


Eligible For LIHEAP With Bills Under $5,500

Distribution Of Low-Income Energy Bills

Estimated for FY 2008

Num

ber

Of

Hou

seho

lds

4,000,000

3,000,000

2,000,000

1,000,000

0

Std. Dev = 970.18

Mean = 1791

N = 33513408.0


Drop in the Bucket?

Steady Wins The Race- Approximately 6.2 Million Served

Estimated Savings- $1.684 Billion P.A.

Focus On ‘Productive’ Households

Inflation Insurance

Non-energy Benefits


A Few Quick ‘Facts’

Estimated Primary Heat/Cooling Savings - 29 MBtu P.A.

Estimated Current Annual Savings - $437 in 2010

Benefit/Cost Ratio - 1.8 TO 1

Value Of Non-Energy Benefits - $4,082 over the life of the measures.

Societal B/C Ratio - 2.5 TO 1


Title 42 Chapter 81, Subchapter III Part A 6863U.S. Code

“Standards…shall include a set of procedures to be applied to each dwelling unit to determine the optimum set of cost-effective measures, within the cost guidelines set for the

program….Such standards shall…take into consideration the following factors-

The cost of the weatherization material; Variation in climate; and

The value of energy saved by the application the weatherization material.


HISTORY OF MIDWINTER NATURAL GAS COMMODITY PRICE

Price Trend For March, 2010 Futures Contract

Source: Wall Street Journal, February 17, 2010


Things to Remember

The Difference Between an Authorization and an Appropriation

The Difference Between a Budget Proposal and a Budget

The Difference Between a Block Grant and a Categorical Program


The Law

Prioritizes Reduced Shelter Costs and Health and Safety

Emphasizes the Role of States and Locals

Provides Secretarial Mandate for Standards in Materials and Techniques

Provides Secretarial Mandate for Optimizing Cost-Effectiveness


A Little More Law

Standards to Achieve Uniformity Within Climate Zones

Authority for Leveraging

Limits Administrative Uses to 10%

Mandates Audit Procedures, Techniques

Establishes a Cost Ceiling

Mandates Monitoring and Evaluation


ORNL Contacts

JOEL EISENBERG- 703 992 [email protected]

BRUCE TONN- 865 574 [email protected]

MIKE GETTINGS- 865 574 [email protected]

MARK TERNES- 865 574 [email protected]

http://weatherization.ornl.gov

mailto:[email protected]




http://weatherization.ornl.gov/

Documents

Meaning of The Weatherization Assistance Program and Its Purposes: