Published: November 02, 2011
Slashing Weatherization Funding Saves $1, But Pulls $2 Out of The Economy
West Warwick woman's story shows why program is critical as cold months approach
Featuring the example of a West Warwick woman, unemployed through no fault of her own and experiencing significant savings through the program, Congressman Jim Langevin (D-RI) rebuked opponents of weatherization assistance who have proposed cutting the initiative by more than 80 percent, effective this winter. Langevin announced an effort with Congressman Paul Tonko (D-NY) to rally support for the funding, which represents the antithesis of government waste by consistently providing a positive return on taxpayer dollars. The text of a letter drafted by Langevin and Tonko and addressed to the top-ranking Appropriations Committee members follows this release.
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"While we're fighting in Washington to get our fiscal house in order, I'm afraid many of my colleagues are making decisions that are penny wise and pound foolish by looking for reductions anywhere they can find them in order to send out a press release with the word 'cut' in it, regardless of how the elimination of a program will reverberate through the economy," said Langevin. "But I can almost assure you that any announcement about a bill cutting weatherization funding won't include the fact that it generates two dollars in economic activity for every dollar invested."
Anna Golderese, who is benefiting tremendously from the Weatherization Assistance Program (WAP) during a difficult time in her life, hosted Langevin and Derek DeCosta, the Westbay Community Action Weatherization Auditor who assisted her, at her West Warwick home to discuss the importance of preserving the program and to raise awareness among those who have access to the assistance.
Golderese was forced to leave a job she held for many years because of a car accident. This situation made it challenging to keep up with the expenses of the house she has lived in since moving to Rhode Island in the mid-1980s. After qualifying for the Low Income Home Energy Assistance Program (LIHEAP), she received a call from Westbay asking if she would accept free weatherization to make her home more energy efficient.
DeCosta explained that most people do not realize the amount of air flowing in and out of their homes. After performing a test on Golderese's house, he coordinated insulation and boiler repairs with area businesses. According to Golderese, all the work was completed quickly and she felt the results immediately. She was stunned to learn from DeCosta that many people in tough financial circumstances declined his offer out of concern for having dramatic renovations, without realizing the full benefits and relatively simple process.
"I want people to know that this program not only exists but is so worthwhile," wrote Golderese, in a letter to Langevin detailing her experience, praising the work done for her and expressing hope that more people will take advantage of the program. "I will use a lot less oil this winter. There will be no more heating the atmosphere from my home."
Langevin also emphasized the overall economic impact of WAP. He noted that a small investment in energy efficiency lowered Golderese's bills, freeing up her budget for other necessities, such as food and housing, while helping two local companies.
"The number one issue I think about when I wake up in the morning and when I go to bed at night is jobs," said Langevin. "And here we have a program where we're supporting jobs and providing efficiencies and cost savings to consumers."
Despite the lifeline WAP provides, while also boosting the economy, the appropriations bill passed by House Republicans earlier this year included only $33 million for weatherization assistance, $141 million below last year's level. The services are especially important to low-income households, which have an energy burden nearly five times that of other households and spend about $1,800 yearly on energy costs. They save as much as 35 percent through weatherization.
The House and Senate have not yet reached an agreement on funding for the program as part of the overall 2012 budget. Current legislation to fund the government expires November 18.
To further support cost-saving energy programs, the letter co-signed by Langevin and Tonko additionally backs the State Energy Program (SEP), which provides resources to States for energy efficiency, clean energy innovation, development and demonstration activities. A study by Oak Ridge National Laboratory (ORNL) found that $7.22 in energy costs were saved annually for each dollar of SEP funds.
Text of letter drafted by Congressmen Langevin and Tonko to the Appropriations Committee Chairs and Ranking Members:
As you work to develop an omnibus appropriations bill for FY2012 prior to the expiration of the current continuing resolution on November 18, 2011, we respectfully request that you fund the State Energy Program (SEP) and the Weatherization Assistance Program (WAP) at least at FY2011 levels.
The State Energy Program (SEP) is the only program administered by the U.S. Department of Energy (DOE) that provides cost-shared resources directly to the States. This funding is used for energy efficiency, clean energy innovation, development and demonstration activities. SEP received $50 million in FY2011 appropriations, despite being authorized at $125 million. A study by Oak Ridge National Laboratory (ORNL) found that $7.22 in energy costs were saved annually for each dollar of SEP funds. Additionally, each dollar of SEP federal funds are typically leveraged by $10.71 of state and private funds. We respectfully request you keep flat level funding for this program, all in base formula appropriations.
The Weatherization Assistance Program (WAP) helps low-income families, the elderly and the disabled by improving energy efficiency in their housing. It does so by working with local contractors and small businesses to do blower-door tests, better insulate houses, improve air flow, check for unsafe conditions and much more. This is especially important to low-income homes, whose energy burden is nearly five times that of non-low income homes. Low-income homes spend about $1,800 yearly on energy costs and can save as much as 35 percent after being weatherized. This is a win for the homeowner, the contractor, the environment and the economy - freeing up resources to be used elsewhere.
We recognize the difficult position facing the federal budget. But we also recognize the difficult position facing the record 38.6 million eligible WAP households and state budgets. As such, we respectfully request you maintain at least FY2011 funding levels for these two programs as we continue to progress in crafting a budget for FY2012.
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