Low Income Needs Assessment Update - Revised Draft Report

2 Study Background Objectives –Characterize and assess the energy-related needs of California’s low income population, including: Identifying needs that are being met by existing programs, Identifying service gaps not being addressed by existing programs, and Identifying barriers that cause service gaps. –Make recommendations on appropriate and effective methods for meeting energy-related needs in light of these potential barriers. –Develop baseline estimates of the potential for CARE and LIEE, as well as methods for tracking changes over time. Approach –Onsite survey of 1,500 households –Program eligibility and penetration analysis –Energy savings potential analysis

3 Revisions Updated (2006) estimates of CARE and LIEE Program Eligibility Updated (2006) estimates of CARE penetration Updated estimates of LIEE penetration by household (2006) and by measure (2004) Similar updates for SMJUs Updated recommendations based on revised penetration estimates Recommendations for scope and schedule of future needs assessment activities Incorporated comments from reviewers (CPUC, IOUs, SMJUs)

CARE Eligibility Overall, 4 million households are eligible for CARE.

CARE Penetration IOUHouseholds Eligible for CARE Annual CARE Penetration PG&E1,601,23871% SCE1,351,84578% SCG1,762,56972% SDG&E335,01566%

6 CARE Potential There is significant remaining potential to enroll eligible households. These five counties represent >50% of all eligible households not enrolled in CARE.

LIEE Eligibility Overall, 4 million households are eligible for LIEE.

Annual LIEE Penetration (by household)

LIEE Measure Penetration “Penetration” is the percentage of income- eligible dwellings where: the measure is technically feasible/ applicable, and the measure is already installed, or the measure is not needed. * Based on 1,500 onsite surveys conducted in late 2003/early 2004.

LIEE Measure Potential Measures needed by the most households: CFLs Faucet aerators Water heater pipe wrap and blankets Weatherstripping Measures needed least often: Central AC replacement Water heater replacement Duct test & sealing Furnace replacement

11 Recommendations Continue and aggressively expand efforts to recruit/enroll households in previously targeted areas using similar outreach efforts. –Many eligible households not currently enrolled exhibit the same (or similar) characteristics as those households who have already or are currently participating (e.g., Hispanic households, larger families, and households with limited educational backgrounds). These households represent those with the greatest need and interest in participating going forward. –Efforts to increase penetration within these demographic groups will require little modification to the existing outreach and delivery channels. Continue to use bill inserts and other direct mail efforts to encourage participation in the program. Continue to promote the programs via non-English media sources (e.g., TV, radio and/or newspapers written in non-English languages). Continue to work with local, community-based organizations and government agencies to cost-effectively generate qualified and quality leads for the programs.

12 Recommendations More aggressive strategies are needed to achieve higher penetration in areas where there do not appear to any unique challenges to expanding participation. San Diego County, Climate Zone 7 (Coast) Central Valley, Climate Zone 12 (North to Yolo County down to Merced, West to Contra Costa over to Amador County) –Eligible households from these areas exhibit many of the same characteristics, have the same level of need, are willing to participate, and are easily accessible through existing outreach and delivery channels. –Yet, penetration levels are not as high as they appear they could be. –The needs assessment did not reveal any obvious reasons or explanations for why participation appears to be lagging in these areas. –Therefore, more aggressive strategies to target these areas should be employed and should yield higher levels of penetration.

13 Recommendations Coordination among IOUs, SMJUs and municipal utilities in all areas where there is overlap is essential to ensure the needs of low income households living these areas are being met. –Needs assessment indicated that participation is lagging from areas served by more than one utility. Sacramento County – represents an area with significant need for the program and households are willing to participate, yet penetration is relatively low. Kings and Kern Counties – these counties are served by PG&E, SCE and SCG, yet penetration among SCE and SCG customers is not has high as PG&E. –The IOUs and SMJUs should be required to: Document how they work with adjacent utilities (regulated or otherwise) to provide coordinated services to low income households in the overlap areas. Develop recommendations for how they plan to overcome difficulties (if any) they have experienced. Regularly report on efforts and progress.

14 Recommendations Use annual energy consumption metrics, as well as seasonal and above-baseline benchmarks, to develop targeted marketing lists for CARE and LIEE recruitment efforts. –Needs assessment indicates that there is considerable remaining potential among eligible households who use relatively higher amounts of energy (both electricity and natural gas) and/or exhibit high seasonal (winter and summer) and above-baseline consumption patterns. –Utilities should: Develop recruitment lists to proactively target non-participating households who meet these criteria. Report how many households are participating that meet or exceed these criteria.

15 Recommendations Continue to target housing characteristics for which the LIEE Program can provide the greatest benefit. –Needs assessment indicated features of low income housing that represent the most substantial opportunity for energy savings through the LIEE Program. Older dwelling units (but not the oldest), built between 1970 and 1994 Natural gas usage for space heating, water heating and other major appliances High annual natural gas consumption (>500 therms per year) High above-baseline natural gas consumption during the winter months Old heating systems (over 20 years) Evaporative coolers Configurations that would allow for foundation and/or ceiling improvement measures (e.g., basement or crawl space foundations, vaulted or sloped ceilings with attic space)

16 Recommendations Expand efforts to target households with special needs (e.g., disabilities) and African-American households. –These households demonstrate significant need for the program, and would be willing and relatively straightforward to recruit. –However, participation from these segments appears to be lagging behind need. –More aggressive efforts to target these important groups should be pursued. Recognize and encourage increased participation from large- sized families. –These households have limited household resources (which are stretched across many household members) and other important burdens and responsibilities (e.g., caring for elderly family members, raising children). –As such, the programs should be credited for the efforts to assist these families and continue to find new and innovative ways to serve these important members of the low income population.

17 Recommendations Develop creative efforts to increase participation in remote areas and “needle in the haystack” areas. –“Needle in the haystack” areas are moderate to heavily populated areas where the incidence of low income households is relatively low. –Other than where they live and how difficult (expensive) it would be to find them, we do not see any unique characteristics in these households that would indicate they are not interested in participating or would not benefit from the programs’ services. –However, the existing outreach and delivery efforts do not appear to have been effective in locating and enrolling these areas. –Creative and coordinated efforts among utilities, local governments, and the relevant community-based organizations are needed to identify effective channels through which locate and recruit eligible households from these areas.

18 Recommendations The programs should encourage participation from all eligible households, but some households do not need and/or have significant barriers to participate. White, Asian households Young adult households Highly educated households Newer/larger homes Multi-family dwellings Do not pay for hot water (central system) Above-ground dwelling units (no foundation/attic space) –Still, the programs should make every effort to make sure all households eligible for these programs are aware of them, that they clearly understand what is and is not required of them to qualify, and they understand how and why they are being asked to participate. –If a household is still unwilling to comply with the requirements and/or are otherwise not interested in participating, then the program outreach specialist should move on as it is likely that there are others who would be better served.

19 Recommendations Improved program application processes may be required to encourage increased participation. –Many eligible households are already aware that the program exists and they have expressed real (not just perceived) barriers to participate that have to do with the application process. Applications are confusing Difficult to apply Takes too long to get services –Utilities have implemented recent changes to simplify/streamline the enrollment process that should be evaluated.