Numerous programs help fund residential weatherization and energy efficiency.
In the 2009 American Recovery and Reinvestment Act (ARRA) weatherization/energy funding went to following housing-related programs:
- Weatherization Assistance Program (WAP)
- State Energy Program (SEP)
- Public Housing
- Native American Housing block grants
- Energy Efficiency and Conservation Block Grants (EECBG)
- Appliance rebates and tax credits for homeowners
- Green Retrofit Program for Multifamily Housing
Some of the above programs also receive annual appropriations.
Federal:
- A memorandum of understanding signed by HUD and DOE (5/6/09) linked programs with a goal of weatherizing a million homes annually. The final rule was published January 25, 2010.
- Read the final rule: HTML or PDF.
- The National Housing Trust created a summary of the final rule.
- HUD has identified properties that meet the income eligible requirements for the Weatherization Assistance Program and eliminate further income verification process.
- Under ARRA, WAP eligibility increased to 200% of poverty level and $6,500 per home.
- Green Retrofit applications are no longer accepted. Awards have been made.
State:
- MHFA is working with community action agencies to encourage weatherization of multi-family programs with WAP funds.
- The MN legislature dedicated $7.9 million for residential energy efficiency from the ARRA funded State Energy Program for homeowner incentives to improve energy efficiency for homeowners. The program includes $250,000 for residential outreach and $7.65 million for grants, loans or rebates to improve residential energy efficiency. Two programs were created, Project ReEnergize and Energy Saver Rebate.
- All funds have been committed through Project ReEnergize.
- Energy Saver Rebate, administered through Minnesota Housing Fix Up Fund, provides rebates for eligible energy efficiency improvements for households with incomes at or below $96,500. Fix-up Fund borrowers who complete eligible energy saving home improvements with their loan proceeds may be eligible for a rebate equal to 35% of the cost of the eligible improvements that were financed with a Fix-up Fund loan, up to a maximum of $10,000.
WAP resources increased by a factor of 10 with ARRA legislation. The stimulus funds are predicted to weatherize nearly 16,900 units statewide; regular Department of Energy funding will reach an additional 3,100 units.
Challenges include:
- Need to increase capacity of agencies administering WAP (mostly community action agencies).
- Agencies face ARRA program deadlines. There is concern over sustainability of program and rampind down of staff after ARRA.
- Training and quality control for contractors doing insulation and air sealing to ensure energy savings and proper ventilation.
- ARRA requires compliance with Davis Bacon Wage Act. WAP has not traditionally been been subject to Davis-Bacon. A new category has to be created by Department of Labor (updates can be found here).
- Community action agencies (CAPs) have tradition of focusing primarily on single family units. Multifamily weatherization may be new to some CAPs.
- Rental property owners may need assistance in accessing funding.
- Weatherization subject to State Historic Preservation Office (SHPO) requirements. See US DOE for more information. The Office of Energy Security is actively working with the Minnesota State Historic Preservation Office to address requirements and streamline applications.
- Increased transparency and accountability emphasis of ARRA results in increased reporting responsibilities and administrative tasks for service providers.
- Waiver was requested from Department of Energy to allow use of WAP funds on properties acquired under the Neighborhood Stabilization Program that agree to meet the income eligibility requirements, but a determination has not been issued.
Weatherization expected to remain priority of Obama administration.
American Recovery and Reinvestment Act (ARRA) funding to Minnesota:
- $132 million for Weatherization Assistance Program (WAP).
- $7.9 million ARRA earmarked by MN legislature for residential energy efficiency through State Energy Program (SEP).
- Public Housing capital funds by formula and competition; some can go for weatherization (see public housing).
- $37 million for EECBG, some by formula to cities. $10.6 million goes to MN Office of Energy Security to award by competition, with 60% for small cities/counties. OES has reissued RFP for small cities/counties.
- Green Retrofit for multifamily by competition ($250 million nationally) for Section 8, 202, 811 properties.
Annual appropriations:
The President’s proposed FY 2011 budget increases WAP funding to $300 million, from $210 million in FY 2010. By contrast supplemental stimulus (ARRA) funding for WAP totaled $5 billion in 2009.
Contact the MN Office of Energy Security.
Administration:
- Department of Energy administers most national weatherization funds; HUD and DOE are cooperating.
- In MN the Office of Energy Security (through Commerce Department) administers most state programs; MHFA has key role.
Karen Moe, Minnesota Community Action Partnership, Carl Nelson, Center for Energy and Environment, and Jeanette Blankenship, Minnesota Housing are contributors to MHP's coverage of this issue.
Updated October 9, 2009.