Environmental and Energy Study Institute

State Energy Activities – The Stimulus Package, Energy Legislation and State Actions

On February 2, the Environmental and Energy Study Institute (EESI), Northeast-Midwest Congressional Coalition, and Northeast-Midwest Senate Coalition held a briefing on state energy activities and federal economic recovery legislation. State officials discussed the possible expansion of the Weatherization Assistance Program, the State Energy Program and the Low-Income Home Energy Assistance Program (LIHEAP) in the context of the stimulus package. These officials also discussed existing state efforts to implement expanded energy efficiency and renewable energy programs, aid to low-income Americans and the critical role of these programs in developing a “Green Economy”.

Speakers for this event included:

• Philip Giudice, Commissioner, Massachusetts Department of Energy Resources (Representing the National Association of State Energy Officials)
  Presentation (pdf format)
• Steve Payne, Managing Director, Washington Department of Community, Trade and Economic Development (Representing the National Association for State Community Services Programs)
  Presentation (pdf format)
• Jo Ann Choate, Low-Income Home Energy Assistance Program (LIHEAP) Coordinator, Maine State Housing Authority (Representing the National Energy Assistance Directors Association)
  Presentation (pdf format)

Audio Recording of the Briefing and Q&A (mp3)

Briefing Highlights

• The State Energy Program (SEP), Weatherization Assistance Program (WAP), Low-Income Home Energy Assistance Program (LIHEAP) have been “under-funded” for many years.
• Historically, every federal dollar invested in the State Energy Program has provided over $7 in energy savings and leveraged almost $11 in non-federal investment.
• A NASEO survey of states on energy projects identified over $8 billion of "shovel ready" projects nationwide.
• The Weatherization Assistance Program currently employs 13,000 people directly and another 8,000 indirectly. The House version of the stimulus package is expected to create an additional 30,000 jobs.
• Weatherization produces average energy cost savings of 19 percent for electricity, and 33 percent for natural gas.
• LIHEAP is expected to serve about 7.3 million households in 2009, a 25 percent increase over last year, due to rising unemployment and high energy prices. The FY 2009 Continuing Resolution increased federal funding for LIHEAP from $2.57 billion to $5.1 billion, but many state governments are still concerned that it will not be enough to meet the need for additional assistance.
• National Association of State Energy Officials (NASEO) is seeking the House version of the proposed American Recovery and Reinvestment Act of 2009 for the three programs: $3.4 billion for SEP; $6.2 billion for WAP; and $1 billion for LIHEAP. The Senate version included allocations of $500 million for SEP and $2.9 billion for WAP, and no additional funds for LIHEAP.
• Consumer education is important for creating awareness and success for these programs.