Stimulus Funding for Energy: Where Is It Now?

by Kirsten Nelson-Johnson

Where has stimulus funding been spent? Emphasis in the green building community focuses on the Weatherization Assistance Program (WAP). The Department of Energy Inspector General found only 8 percent of WAP funds disbursed as of December, leaving 92 percent to be used for retrofitting homes, increasing energy efficiency and creating jobs. It is expected that more negative media reports will follow the report.

Government officials are asking the public, media and lawmakers to remember that jobs and energy savings are the goal, which cannot be achieved if the public gives up just as stimulus funds get flowing.

Lane Burt of Greener Buildings blog writes: “You can’t attach a garden hose to a fire hydrant.”

Skilled people must be available to do the work; government infrastructure must exist to pay them, and enough people throughout the supply chain to keep the process moving.

The WAP is fairly straightforward.  Through the program, an average investment of up to $6,500 per home in energy-efficiency upgrades will be available for families making up to 200 percent of the federal poverty level - or about $44,000 a year for a family of four.

Even with a large portion of funding, approximately $5 billion, it will be difficult to carry that amount of weatherization work nationwide over the next two years. This figure is especially surprising considering an April 2009 report from the Government Accountability Office (GAO) which estimated that only 1 percent of Recovery Act spending in FY 2009 would be on energy and retrofits.

Weatherization makes an especially good investment by the federal government: Low-income homeowners on average spend a larger percentage of their total income on energy. In addition, many of their home energy bills are paid via a federal program called LIHEAP (the Low Income Home Energy Assistance Program).

Separate and distinct from the president’s proposed Home Star program, WAP provides a rebate to homeowners who invest in energy-efficiency retrofits that include similar weatherization measures. Home Star incentives cover a portion of the cost based on how much energy is saved by the retrofit. Conversely, WAP provides a particular dollar amount per home.

To learn more about WAP and other federal, state, and local incentive programs, look into EIA’s Stimulus Incentives for Your Business workshop available statewide.