MEANING OF THE WEATHERIZATION ASSISTANCE PROGRAM AND ITS PURPOSES ENERGY PRICES, ENERGY BURDENS, AND THE ROLE OF THE PROGRAM FEBRUARY 22, 2010

The Statutory Purpose: …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. Title 42 of the U.S. Code, Chapter 81, Subchapter III, Part A, 6861

AGGREGATE RESIDENTIAL ENERGY EXPENDITURES BY LOW-INCOME HOUSEHOLDS Federally Eligible Millions of Dollars SOURCE: ORNL TABULATION BASED ON EIA STEO AND RECS

EXPECTED ENERGY EXPENDITURES FOR 2009-2010 Low-Income Households Source: ORNL Tabulation from EIA November 2009 STEO & 2005 RECS

ENERGY BURDEN BY INCOME GROUP 2005-2006 Source: Economic Opportunity Studies

PRIMARY HEATING FUEL FOR LOW-INCOME HOUSEHOLDS Source: DOE/EIA Residential Energy Consumption Survey for 2001

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 PRE-PUBLICATION ‘FACTS’ ESTIMATED PRIMARY HEAT/COOLING SAVINGS- 30 MBtu P.A. ESTIMATED BASE LOAD SAVINGS- 870 KwH ESTIMATED CURRENT ANNUAL SAVINGS-$411 in 2010 BENEFIT/COST RATIO- 1.54 TO 1 VALUE OF NON-ENERGY BENEFITS- $4,082 over the life of the measures. SOCIETAL B/C RATIO- 2.51 TO 1

SHORT-TERM MARKET CONDITIONS SUPPLY DEMAND Inventories levels high for fuel, ample for natural gas Imports of fuel oil, natural gas and LNG have provided a safety valve supply source Domestic natural gas resources have exploded- Marcellus Shale Fairly typical winter so far ‘on average’. Slow economy dampens demand Natural gas demand is highly dependent on industrial and power generation growth

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 6703 Eisenbergjf@ornl.gov BRUCE TONN- 865 574 4041 Tonn.bruce@gmail.com MIKE GETTINGS- 865 574 4506 g5f@ornl.gov MARK TERNES- 865 574 0749 tmp@ornl.gov http://weatherization.ornl.gov