1. MEANING OF THE WEATHERIZATION ASSISTANCE PROGRAM AND ITS PURPOSES
ENERGY PRICES, ENERGY BURDENS, AND THE ROLE OF THE PROGRAM
FEBRUARY 22, 2010

2. The Statutory Purpose: …to develop and implement a weatherization assistance program to increase the energy efficiency of dwellings owned or occupied by low-income persons, reduce their total residential energy expenditures, and improve their health and safety, especially low-income persons who are particularly vulnerable such as the elderly, the handicapped, and children. Title 42 of the U.S. Code, Chapter 81, Subchapter III, Part A, 6861

4. AGGREGATE RESIDENTIAL ENERGY EXPENDITURES BY LOW-INCOME HOUSEHOLDS Federally Eligible
Millions of Dollars
SOURCE: ORNL TABULATION BASED ON EIA STEO AND RECS

5. EXPECTED ENERGY EXPENDITURES FOR 2009-2010 Low-Income Households
Source: ORNL Tabulation from EIA November 2009 STEO & 2005 RECS

6. ENERGY BURDEN BY INCOME GROUP 2005-2006
Source: Economic Opportunity Studies

7. PRIMARY HEATING FUEL FOR LOW-INCOME HOUSEHOLDS
Source: DOE/EIA Residential Energy Consumption Survey for 2001

9. DROP IN THE BUCKET?
STEADY WINS THE RACE- APPROXIMATELY 6.2 MILLION SERVED
ESTIMATED SAVINGS- $1.684 BILLION P.A.
FOCUS ON ‘PRODUCTIVE’ HOUSEHOLDS
INFLATION INSURANCE
NON-ENERGY BENEFITS

10. A FEW QUICK PRE-PUBLICATION ‘FACTS’
ESTIMATED PRIMARY HEAT/COOLING SAVINGS- 30 MBtu P.A.
ESTIMATED BASE LOAD SAVINGS- 870 KwH
ESTIMATED CURRENT ANNUAL SAVINGS-$411 in 2010
BENEFIT/COST RATIO TO 1
VALUE OF NON-ENERGY BENEFITS- $4,082 over the life of the measures.
SOCIETAL B/C RATIO TO 1

11. SHORT-TERM MARKET CONDITIONS
SUPPLY
DEMAND
Inventories levels high for fuel, ample for natural gas
Imports of fuel oil, natural gas and LNG have provided a safety valve supply source
Domestic natural gas resources have exploded- Marcellus Shale
Fairly typical winter so far ‘on average’.
Slow economy dampens demand
Natural gas demand is highly dependent on industrial and power generation growth

12. HISTORY OF MIDWINTER NATURAL GAS COMMODITY PRICE Price Trend For March, 2010 Futures Contract
Source: Wall Street Journal, February 17, 2010

17. THINGS TO REMEMBER
THE DIFFERENCE BETWEEN AN AUTHORIZATION AND AN APPROPRIATION
THE DIFFERENCE BETWEEN A BUDGET PROPOSAL AND A BUDGET
THE DIFFERENCE BETWEEN A BLOCK GRANT AND A CATEGORICAL PROGRAM

18. THE LAW PRIORITIZES REDUCED SHELTER COSTS AND HEALTH AND SAFETY
EMPHASIZES THE ROLE OF STATES AND LOCALS
PROVIDES SECRETARIAL MANDATE FOR STANDARDS IN MATERIALS AND TECHNIQUES
PROVIDES SECRETARIAL MANDATE FOR OPTIMIZING COST-EFFECTIVENESS

19. A LITTLE MORE LAW STANDARDS TO ACHIEVE UNIFORMITY WITHIN CLIMATE ZONES
AUTHORITY FOR LEVERAGING
LIMITS ADMINISTRATIVE USES TO 10%
MANDATES AUDIT PROCEDURES, TECHNIQUES
ESTABLISHES A COST CEILING
MANDATES MONITORING AND EVALUATION

20. ORNL CONTACTS JOEL EISENBERG- 703 992 6703 Eisenbergjf@ornl.gov
BRUCE TONN
MIKE GETTINGS
MARK TERNES