1. Expanding the Tool Kit: Affordable Energy beyond Energy Assistance Roger D. Colton Fisher, Sheehan & Colton Belmont, MA National Community Action Foundation (NCAF) November 2005

2. The Need for a Toolkit Approach “When your only tool is a hammer, you tend to see every problem as a nail.”

3. Three “new” tools: Sources of “energy-based” supplemental income w Food Stamp “excess shelter deduction” w Earned Income Tax Credit (EITC) w Public Housing Authority (PHA) utility allowances

4. Tool #1: The Excess Shelter Deduction w Food Stamp eligibility based on “countable income.” Shelter expenses above 50% an income deduction. Shelter = rent/mortgage + utilities (include telephone) w Actual shelter costs/Standard Utility Allowance (SUA)

5. FS Excess Shelter Deduction: Reason to Pay Attention w If household income is lowered: Some qualify for Food Stamps when they otherwise would not Some qualify for more Food Stamps w Every $3 reduction in income yields $2 in benefits. Implications for spike in fuel prices! w Customers indifferent as to source of dollars.

6. Excess Shelter Deduction: Why do it? w $30 - $40/month for low-income HHs w Dollar-for-dollar passthrough to feds w USDA supports and encourages w Elderly/disabled have no maximum on excess shelter deduction.

7. Excess Shelter Deduction: What should I look for? w Take increased energy prices into account. w Take load curves into account (not simply average) w Take water and wastewater into account w Take all components of telephone bills into account.

8. The Excess Shelter Deduction: What needs to be done? w Update the Standard Utility Allowance (SUA) annually w Ensure HHs are reassessed in light of increased energy bills.

9. Tool #2: The Earned Income Tax Credit w Country’s primary anti-poverty program. w Refundable tax credit (cash back). w Average refund: around $2,000. w 3-year retroactive refund application.

10. Earned Income Tax Credit: Reason to Pay Attention w 1/3 used to pay for past-due utility bills. w Only 50 - 80% of eligible claim. w Potential for innovative CAA/fuel fund role. w Receipt at time of winter heating bills

11. How Families Use the EITC

12. Earned Income Tax Credit: What need to be done w Mass utility outreach campaigns (NJ) w “Gap filler” outreach campaign Part-time workers Women-workers Hispanic workers w VITA campaign (Illinois--Ameritech) w Targeted outreach w Call center recorded message

13. Tool #3: PHA Utility Allowances w Tenant-paid utilities: Public housing Assisted housing w Covers: Electricity Heating/Cooling Water/Sewer

14. PHA Utility Allowances: Reason to Pay Attention w Covers (theoretically) 100% of bill w Year-round -- not seasonal w Regular update (if enforced)

15. PHA Utility Allowance What to look for w Annual review of utility allowances. w Adjust when “rates” change by 10% or more. Retroactive to date of rate increase

16. PHA Utility Allowances: What Needs to be Done w Review utility allowances to ensure annual update. w Provide notice to PHAs whenever rates change by 10% or more. w Review whether utility allowance pays for cooling. w Review reasonableness of utility allowances: Call for help!

17. For more information: http://www.fsconline.com News Library

18. For more information: roger@fsconline.com