COBI 2015 - Weatherization Assistance

Overview
Issues
Background
Financials

Sources Uses

FY 2016 Appropriation

The Weatherization Assistance program helps reduce energy consumption and utility bills for low-income households. Priority is given to the elderly, disabled, families with pre-school age children, those with very high heating bills, and other at-risk households. Utah residents who are below 200 percent of the Federal Poverty Level are eligible for a one-time non-cash grant to make energy efficient improvements to their homes. In addition to energy efficiency, the program seeks to increase health and safety through heating system improvements and to increase the overall comfort of the occupants. Rental property owners must contribute 30 to 60 percent of the weatherization upgrades.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $9,696,600 from all sources for Weatherization Assistance. This is a 22.2 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $14,900 from the General/Education Funds, a change of 0 percent from revised Fiscal Year 2015 estimates.

The Division administers the program through local government and non-profit agencies. Primary funding is made available through the U.S. Department of Energy. Additional funding may come from the HEAT program (Home Energy Assistance Target) if all the money does not go to direct utility benefit payments. Local agencies conduct a computerized energy audit on each home to identify the most cost effective improvements to make. Only improvements that save more money than they cost are undertaken. They then implement a wide variety of improvements including: insulation air leakage testing and sealing, comprehensive heating system evaluations and tune-ups, client education, and electrical base load reduction measures. As a result of weatherization, participating households realize an average annual savings in excess of 30 percent. The Utah Weatherization Program has been very successful in leveraging its appropriation of State funding to gain large amounts of federal, private, and utility funding. Rocky Mountain Power and Questar Gas are contributing financial partners in funding the Weatherization Program.

To meet the demand for energy auditors and weatherization contractors, the program has developed a permanent training center in Clearfield, Utah and has expanded its role as a trainer in weatherization activity.

Intent Language

HB0003: Item 87

Under Section 63J-1-603 of the Utah Code, the Legislature intends that General Fund appropriations provided by Item 33 Chapter 13 Laws of Utah 2014 for the Department of Workforce Services' Housing and Community Development line item not lapse at the close of Fiscal Year 2015. The amount of any nonlapsing funds shall not exceed $1,000,000. The use of any nonlapsing authority is limited to general funds appropriated by the Legislature for building projects.

SB0002: Item 79

The Legislature intends that the Department of Workforce Services report on the following performance measures for the Housing and Community Development line item: (1) Ending Chronic Homelessness - offer housing to all chronically homeless individuals who want to be housed (Target = 9% reduction per year), (2) Utilities Assistance for Low-income Households - Number of eligible households assisted with home energy costs (Target = 35,000 households), and (3) Weatherization Assistance - Number of low income households assisted by installing permanent energy conservation measures in their homes (Target = 800 homes) by January 1, 2016 to the Social Services Appropriations Subcommittee.

Most of the funding for Weatherization is allocated from federal funds and dedicated credit revenues, including significant funding from local utilities. The appropriation is passed through to eligible entities.

The Weatherization Program received a substantial increase in one-time funding through the American Recovery and Reinvestment Act (ARRA), which was spent by the end of FY 2012.

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Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	14,900	14,900	14,900	14,900	14,900	0	14,900	0	14,900
Federal Funds	18,931,700	14,523,200	8,306,200	6,694,700	5,371,900	448,300	5,820,200	1,759,500	7,579,700
American Recovery and Reinvestment Act	0	0	99,200	28,000	0	0	0	0	0
Dedicated Credits Revenue	1,055,000	633,500	773,700	1,080,100	2,104,300	(2,800)	2,101,500	500	2,102,000
Total	$20,001,600	$15,171,600	$9,194,000	$7,817,700	$7,491,100	$445,500	$7,936,600	$1,760,000	$9,696,600

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	695,400	669,800	456,200	352,600	220,500	108,800	329,300	13,000	342,300
In-state Travel	7,600	13,300	6,800	20,700	6,300	16,100	22,400	0	22,400
Out-of-state Travel	12,800	8,700	5,000	12,500	3,900	9,400	13,300	0	13,300
Current Expense	198,400	83,600	68,800	22,500	68,000	(14,900)	53,100	200	53,300
DP Current Expense	34,300	34,300	40,100	49,700	10,400	41,600	52,000	2,000	54,000
DP Capital Outlay	0	0	0	67,900	0	30,000	30,000	(10,000)	20,000
Other Charges/Pass Thru	19,053,100	14,361,900	8,617,100	7,291,800	7,182,000	254,500	7,436,500	1,754,800	9,191,300
Total	$20,001,600	$15,171,600	$9,194,000	$7,817,700	$7,491,100	$445,500	$7,936,600	$1,760,000	$9,696,600

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Approp
Budgeted FTE	7.55	6	6	2.80	4.10	0.05	4.15	4.15
Actual FTE	7.55	8.10	6.50	4	0	0	0	0
Vehicles	4	4	4	4	4	0	4	4

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.