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Affordable housing, energy efficiency, and the role of utilities

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Presentation on theme: "Affordable housing, energy efficiency, and the role of utilities"— Presentation transcript:

1 Affordable housing, energy efficiency, and the role of utilities
Lauren Ross, Senior Manager, Local Policy American Council for an Energy-Efficient Economy

2 The American Council for an Energy-Efficient Economy is a nonprofit 501(c)(3) founded in We act as a catalyst to advance energy efficiency policies, programs, technologies, investments, & behaviors. Our research explores economic impacts, financing options, behavior changes, program design, and utility planning, as well as US national, state, & local policy. Our work is made possible by foundation funding, contracts, government grants, and conference revenue. aceee.org @ACEEEdc

3 Energy affordability and access to energy efficiency services remain a problem for low- and moderate-income households Higher energy costs as a share of income than more affluent households Older and less efficient appliances, equipment, and homes Lack of discretionary capital to invest in energy efficiency measures For renters, the “split incentive” problem and lack of authority to make property modifications Utility programs have historically overlooked this sector

4 Low-income households*: 7.2%
Median energy burden across major metro areas: 3.5% Low-income households*: 7.2% Multifamily low-income residents: 5% *households with income at or below 80% of area median income

5 Energy efficiency and community development (HOME and CDBG)
ENERGY STAR/Green Building Weatherization Solar Financing Rehabilitation Energy audits Insulation Direct install Energy efficiency measures District heating systems Local energy planning Energy conservation Job creation Economic development

6 Multiple benefits of energy efficiency for low-income households
Lower monthly bills (residents) – more disposable income, reduced stress, more money spent in local economy Improved housing (residents) – better health and safety, increased property value and housing satisfaction, lower maintenance costs Local economic development (community) – more local jobs, improved quality of life, increased property values Less power used (utilities and community) – reduced environmental pollutants, improved public health, avoided excess costs of increased generation, capacity, and transmission investments

7 Low-income program funding breakdown
Data on ratepayer-funded bill assistance, ratepayer-funded energy efficiency, WAP, and LIHEAP assistance from LHEAP spending on efficiency is approximately based on 6% LIHEAP funds spent on efficiency in Data on state and local contributions and private donations are from Source: LIHEAP Clearinghouse 2016.

8 Multifamily Program Models
Direct install Equipment and product rebates Comprehensive energy retrofits for existing building retrofits Comprehensive energy measures for new construction

9 Current utility spending on multifamily energy efficiency programs

10 Addressing building owners’ needs
What we know Challenges Solutions Often don’t pay for all utility costs Difficulty prioritizing efficiency upgrades Unpredictable payoff Financing needed Alignment with capital improvement timelines Need guidance to apply No or low cost efficiency upgrades and incentives/rebates Performance-based incentive structure Provide building use data Low interest financing Target specific multifamily market sectors One-stop shop for applicants

11 3 Major Takeaways Utilities can help integrate energy-efficient measures into affordable housing projects. At the state or local level, community development/housing efforts can leverage existing utility energy efficiency programs. Work closer with utilities to align affordable housing incentives and utility incentives for energy efficiency (also inform MF program design and delivery!).

12 ACEEE research/resources
Multifamily and Low-Income Utility Working Groups Published reports More Savings for More Residents: Progress in Multifamily Housing Energy Efficiency, February 2017, Reaching More Residents: Opportunities for Increasing Participation in Multifamily Energy Efficiency Programs, May 2016, aceee.org/research- report/u1603 Best Practices in Developing Energy Efficiency Programs for Low-Income Communities and Considerations for Clean Power Plan Compliance, April 2016, aceee.org/white-paper/cpp-low-income Lifting the High Energy Burden in America’s Largest Cities: How Energy Efficiency Can Improve Low-Income and Underserved Communities, April 2016, aceee.org/research-report/u1602 Building Better Energy Efficiency Programs for Low-Income Households, March 2016, aceee.org/research-report/a1601

13 Lross@aceee.org Upcoming ACEEE Conferences
For more on ACEEE’s work on low-income and multifamily energy efficiency visit Upcoming ACEEE Conferences National Symposium on Market Transformation April 2 Arlington, VA Energy Efficiency Finance Forum May 21 Chicago The top convener in energy efficiency aceee.org/conferences


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