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
2 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
…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
3 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
4 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
5 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
6 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
7 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
8 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
VARIATIONS IN SAVINGSSelected States
Sources: ORNL Weatherization Assistant Tabulations, EIA Annual Energy Outlook 2010
9 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
10 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
11 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
12 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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.
13 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
HISTORY OF MIDWINTER NATURAL GAS COMMODITY PRICE
Price Trend For March, 2010 Futures Contract
Source: Wall Street Journal, February 17, 2010
14 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
15 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
16 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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
17 | Weatherization Assistance Program: Meaning and Its Purposes: Energy Prices, Energy Burdens, and the Role of the Program eere.energy.gov
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