Department of Community Services and Development

1. Department of Community Services and Development Energy & Environmental Services Division LIOB Meeting September 14, 2006

2. Presentation Outline • General Overview • Utility Assistance • Weatherization and Heating & Cooling Services • Energy Crisis Intervention Program

3. CSD Mission Statement The mission of CSD is to administer and enhance energy and community service programs that result in an improved quality of life for the poor. Overview

4. CSD Core Programs • Low-Income Home Energy Assistance Program (LIHEAP) • Weatherization Assistance Program (WAP) • Energy Crisis Intervention Program (ECIP) • Utility Assistance (HEAP, Fast Track, WPO) • Department of Energy Weatherization Assistance Program (DOE WAP) • Housing and Urban Development (HUD) Lead Hazard Control Program • Community Services Block Grant (CSBG) • Naturalization Services Program Overview

5. Funding Overview • Current funding levels • LIHEAP - $160,625,100 • Utility Assistance and ECIP - 75% • Weatherization – 25% • DOE WAP - $7,085,364 • HUD Lead Hazard Control Program - $3,000,000 • CSBG - $55,942,797 • Naturalization - $3,500,000 Overview

6. Program Delivery • Statewide service area • Service Providers • Individual agencies - 80 • Agencies providing weatherization services - 44 • Agencies providing utility assistance - 46 • Agencies providing lead abatement services – 5 • Agencies providing CSBG services - 63 • Agencies providing naturalization services - 29 Overview

7. Program Delivery • Network of Service Providers provides direct services statewide • Service Providers consist of community-based organizations and local governments • Provider network is static • Leveraging between CSD and non-CSD programs strongly encouraged Overview

8. Client Eligibility Overview • Applicable to weatherization, utility assistance, & crisis intervention services • Total gross household income must equal or less than 60% of State median income • Must provide supporting income & energy cost documentation Overview

9. Utility Assistance

10. Utility Assistance Program Overview • Non-Crisis Utility Assistance (HEAP) • Payment assistance services to offset heating & cooling costs • Gas & electric • Wood, propane & oil • Crisis Utility Assistance (ECIP Fast Track) • Intervention payment assistance services to prevent disruption of utility services • Gas & electric • Wood, propane & oil Utility Assistance

11. Program Delivery Model • Service Providers perform: • Outreach • Intake • Energy education • Payment guarantees/pledges • CSD • Issuance of non-crisis and crisis utility payments Utility Assistance

12. Utility Assistance Funding • 2005 Actuals Utility Assistance

13. Utility Assistance Funding • 2006 Projections Utility Assistance

14. Low-Income Households Served • Total eligible households in California • 3,072,625 based upon 60% of State median income • Eligible low-income population served for 2005 • 8% Utility Assistance

15. Eligibility Criteria • Must reside in California • Total gross household income must equal or be less than 60% of State median income • Must be responsible for energy costs • Federally mandated to: • Provide service priority to households with lowest income & highest energy costs • Consider households with members of vulnerable population Utility Assistance

16. Service Priority • Service Providers required to submit priority plan that takes into consideration: • Energy burden • Establishes priority for applicants that pay higher percentage of income for utilities • Vulnerable population • Elderly • Children 5 years old or under • Disabled • Agency-defined categories Utility Assistance

17. Non-Crisis Program Services - HEAP • Gas & electric payment assistance to offset heating and/or cooling costs • Assistance is generally provided year-round • Benefit is limited to one payment per household per program year Utility Assistance

18. Non-Crisis Program Services - HEAP • Benefits determined by formula • Factors include: • Household size • Household monthly income • Energy costs within residing county • Annual Utility Rate Survey conducted to obtain energy usage & cost data for 12-month period Utility Assistance

19. Non-Crisis Program Services - HEAP • 2006 non-crisis benefit level amounts • Statewide benefit level average • $255 • Statewide maximum benefit average • $440 • Statewide minimum benefit average • $159 Utility Assistance

20. Crisis Program Services – ECIP • Intervention services to prevent the disruption of heating/cooling services • Past due utility account • Utility shut-off notice • Energy termination • Insufficient funds to establish new energy account • Crisis assistance generally provided year-round Utility Assistance

21. Crisis Program Services – ECIP • Benefit is limited to one payment per household per program year • HEAP-Gas & electric base payment plus supplemental payment may be issued not to exceed $1,000 Utility Assistance

22. Crisis Program Services – ECIP • Payment guarantees with utility company are required for all clients • To ensure compliance with statutory requirements, Service Providers must: • Resolve crisis situation within 48 hours • Resolve life-threatening energy crisis within 18 hours Utility Assistance

23. Crisis Program Services – ECIP • 2006 non-crisis benefit level amounts • Statewide benefit level average • $376 • Statewide maximum benefit average • $1,000 • Statewide minimum benefit average • $159 Utility Assistance

24. Benefit Processing • Direct payment • Agreement between CSD and utility company to issue payment assistance to utility company • Directly credited to client’s utility account • Accounts for 92% of issued benefits • Ensures benefits are used for energy assistance Utility Assistance

25. Benefit Processing • Non-direct payment • Issued dual party warrant made payable to client & designated utility company • Mailed directly to client • Single-party warrant issued to clients with utility charges included in rent Utility Assistance

26. Program Services – WPO – Crisis/Non-Crisis • Directly administered by Service Providers • Non-crisis direct payment assistance to offset wood, propane, and/or oil heating/cooling costs • Assistance provided based on needs of service area • Service Providers generally coordinate bulk purchases with local vendors to extend buying power & services Utility Assistance

27. Intake Services • Applicants must contact local Service Provider to obtain information regarding services • Person-to-person • Mail • Home visits for homebound that are physically impaired Utility Assistance

28. Client Education • Service Providers required to provide clients with energy conservation information that includes: • Written information describing energy-saving behavioral adjustments that will decrease energy consumption of household • Information describing utility company budget payment plans • Budget counseling Utility Assistance

29. Client Education • Energy Education Workshop Pilot Model • Measures effectiveness & impact of energy education in reducing energy usage & cost • Interactive Energy Education Workshop model • Video-based Energy Education Workshop model Utility Assistance

30. Weatherization Heating & Cooling Services

31. Weatherization & HCS Funding • 2005 Actuals Weatherization & HCS

32. Weatherization & HCS Funding • 2006 Projections Weatherization & HCS

33. Low-Income Households Served • Total eligible households in California • 3,072,625 based upon 60% of State median income • Eligible low-income population served for 2005 • 1% Weatherization & HCS

34. Reimbursement Model • LIHEAP Weatherization • Statutorily mandated • Administration • Contractually limited • Intake • Outreach • Training & technical assistance • ECIP HCS • Determined by local assessment/planning efforts Weatherization & HCS

35. Reimbursement Model • DOE WAP • Statutorily mandated • Administration • Training & technical assistance • Contractually limited • Health & safety measures Weatherization & HCS

36. Reimbursement Model • Current maximum average of $2,826 per dwelling • Types of measure reimbursement • LIHEAP & ECIP HCS • Maximum limitations • Fixed fees • Fixed labor rate • Actual labor hours • DOE WAP • Actual costs • Actual labor hours Weatherization & HCS

37. Standards and Policies • Standards, policies and contracts developed to standardize and ensure quality services • Developed by Richard Heath & Associates • LIWAP Conventional & Mobile Home Weatherization Installation Standards (WIS) • LIWAP Weatherization Policies & Procedures • Health & Safety Plan • Weatherization Inspection Policies & Procedures Weatherization & HCS

38. Standards and Policies • Developed by CSD • Lead-Safe Weatherization Policy • Appliance Replacement Criteria Policy • DOE WAP Disaster Relief Plan • Energy Crisis Intervention Service Policy Weatherization & HCS

39. Program Delivery Model • Whole house approach • Primary emphasis on installation of energy efficient measures • Secondary emphasis on health & safety of occupants as it is related to weatherization services • Services are not fuel sensitive • Dwelling types • Single family & mobile homes • Multi-unit – occupied and unoccupied • Shelters – DOE only Weatherization & HCS

40. Program Delivery Model • Measures must be installed in specific order • Dwelling assessment & diagnostics • Lead-safe weatherization protocol • Health & safety measures • Mandatory priority and non-priority measures • Optional measures • Lead-safe weatherization protocol applied to all pre-1979 dwellings • Health & Safety Plan protocol applied to all units • Deferral of services Weatherization & HCS

41. Dwelling Assessments • Inspect dwellings for pre-existing hazards and structural soundness • All hazards are corrected if within scope of program otherwise dwelling deferred • Assess dwellings for need of energy efficiency measures • National Energy Audit Tool (NEAT) • Required only on DOE units • Performed prior to installation of optional measures Weatherization & HCS

42. Dwelling Diagnostics • Combustion appliance safety tests (CAS) • Performed on all combustion appliances prior to installation of infiltration reduction measures • Post-CAS test required after any repairs and adjustments to appliance • Blower door tests • Required on 20% of single-family units and mobile homes • Required on 5% of multi-unit dwellings Weatherization & HCS

43. Dwelling Diagnostics • Duct leakage tests • Performed on all dwellings with forced air units • Required to use Duct Blaster® Weatherization & HCS

44. Health & Safety Measures • Must be resolved if within scope of program • Health & safety measures • Gas range repair/replacement • Gas water heater repair/replacement • Heating source repair/replacement • CO alarms Weatherization & HCS

45. Mandatory Measures - Priority • Must be performed before non-priority or optional measures • Must be installed if feasible • DOE has an approved priority measure list based upon climate zones which differs from LIHEAP installation mandatory measure protocol • Insulation measures • Attic venting • Ceiling, wall, & duct insulation Weatherization & HCS

46. Mandatory Measures – Non-Priority • Must be performed before optional measures • Must be installed if feasible • No infiltration measures are installed until all identified CO problems are resolved • Infiltration reduction measures include: • Duct repairs • Glass & window replacements • Minor envelope repairs Weatherization & HCS

47. Mandatory Measures – Non-Priority • General heat waste measures include: • Low-flow showerheads • Water heater blankets & pipe wrap • Electric baseload measures include: • CFLs • Refrigerator replacements Weatherization & HCS

48. Optional Measures • Installed after health & safety and all feasible mandatory measures • Optional measures include: • Cooling source repairs/replacements • Floor & wall insulation • Microwave ovens • Shadescreens • Storm and tinted windows • Thermostats Weatherization & HCS

49. Training & Technical Assistance • Training requirements • Basic weatherization • Combustion appliance safety testing • Blower door and duct leakage testing • Lead-safe weatherization • Environmental hazards awareness Weatherization & HCS

50. Training & Technical Assistance • Provided by: • PG&E Energy Training Center at Stockton • Richard Heath & Assoc. • DOE-sponsored National and Regional Training Conferences • CSD Technical Support and Field Operations Staff Weatherization & HCS