Strategies for Reducing Low-Income Energy Burden

CERTs Community Drive Clean Energy Conference

March 29, 2018

mn.gov/commerce3/29/2018 1

Kim HaveyPROGRAM

CONNECTIONSCOORDINATOR

Michelle GranseeSEO CLEAN ENERGY

& PROGRAMS MANAGER

Viewing the Forest (not the trees)

3/29/2018 mn.gov/commerce 2

3/29/2018 mn.gov/commerce 3

1)TWO WAYS TO DECREASE ENERGY BURDEN

2)MULTIPLE FACTORS INFLUENCE

3)PROGRAM MODELS & DATA SUPPORT YOUR EFFORTS

Key Take-Aways

Overview of Session

I. Definitions & Poverty Statistics

II. Commerce - LI Energy Programs

III. Factors influencing energy burden

IV. Barriers and Solutions Identified through CLICERs

V. Building a Program in your Community

VI. Small Group Discussions on How to Take Action

3/29/2018 mn.gov/commerce 4

Definitions

Energy Burden

Energy Poverty

Low-Income

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy” ...

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy”

Definitions

Energy Burden =Household Energy Costs

Household Income

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy” ...

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy”

Definitions

Energy Burden = $ 2,102$18,626

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy” ...

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy”

= 11.3%

Definitions

Energy Burden = $2,600$7,959

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy” ...

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy”

= 32.7%

Definitions

Energy Poverty = Energy Burden > 6%

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy” ...

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy”

Definitions

Low-Income = 50% of SMI (LIHEAP) =

~ $47,197/Family of four

or 200% FPL (WAP)

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy” ...

Specifically, energy poverty is “defined as households that spend more than 10 percent of their income on home energy”

Low-Income Home Energy Assistance Program

94,388

3/29/2018 mn.gov/commerce 11

Low-Income Home Energy Assistance Program

$94,388 =

State Median Income in 2017

3/29/2018 mn.gov/commerce 12

LIHEAP Eligible Households

• 47,197

• 18,626

• 7,959

• 498,000

3/29/2018 mn.gov/commerce 13

LIHEAP Eligible Households

• 50% SMI = $47,197 / family of four

• Average household receiving energy assistance = $18,626

• High Burden households (25th percentile) = $7,959

• 498,000 income eligible households in Minnesota/year

3/29/2018 mn.gov/commerce 14

American Community Survey on Poverty in Minnesota

•10.8

•34

•31.4

•22.2

3/29/2018 mn.gov/commerce 15

Experiencing Poverty in Minnesota

• 10.8% = Average

• 8.2% = White, non-Hispanic

• 34-39% = Black

• 28-31% = American Indian

• 22-26% = Hispanic

American Community Survey on Poverty in Minnesota and

Low income Home Energy Assistance Program in Minnesota

3/29/2018 mn.gov/commerce 16

Methods to reduce energy burden

Income

Energy Costs

Overview of Session

I. Definitions

II. LI Energy Programs

III. Factors influencing energy burden

IV. Barriers and Solutions Identified through CLICERs

V. Building a Program in your Community

VI. Small Group Discussions on How to Take Action

3/29/2018 mn.gov/commerce 18

Low Income Energy Programs

• Low-Income Home Energy Assistance Program (LIHEAP)

• Weatherization Assistance Program (WAP)

• Low-Income Utility Conservation Improvement Programs (CIP)

3/29/2018 mn.gov/commerce 19

Who is being served?

• 498,000 income eligible households in MN

• 125,000-133,000 households served by MN LIHEAP/annually

• 1,700-2,000 households receive weatherization (Wx) services

• Many, but not all, LI CIP programs partner with Wx

• Combined = > $125M/annually

3/29/2018 mn.gov/commerce 20

Who else is serving low-income MN’s?

Today…

• Data Sources, tools, and initiatives

• Rebate Programs

• Programs single family and multifamily

• Solar + efficiency programs

• Financing models

• New construction

• Efficiency programs

• Solar / Community solar gardens

• Education / training

3/29/2018 mn.gov/commerce 21

Building a Program in your Community

3/29/2018 mn.gov/commerce 22

Questions for Discussion

• How does the program reduce energy burden of participants?

• What factors does the program address?

• What would be needed to replicate this program in my community?

Overview of Session

I. Definitions

II. LI Energy Programs

III. Factors influencing Energy Burden

IV. Barriers and Solutions Identified through CLICERs

V. Building a Program in your Community

VI. Small Group Discussions on How to Take Action

3/29/2018 mn.gov/commerce 23

High burden households have even less income…

Increase Income

…and higher energy bills

Decrease Energy Costs

FACTORS IMPACTING ENERGY BURDEN

Barriers to Access

Age of Housing

Fuel Type

Billing Structure

Ownership Structure

Income level% Energy Burden

Geography

Dwelling type

Income type

FACTORS IMPACTING ENERGY BURDEN

% Energy Burden

Under 10%

10-20%

20+%

FACTORS IMPACTING ENERGY BURDEN

Income level

Low Income

200% FPL

150% FPL

100% FPL

FACTORS IMPACTING ENERGY BURDEN

Income type

Fixed

Variable

Potential to increase

FACTORS IMPACTING ENERGY BURDEN

Geography

Urban

Rural

Suburban

FACTORS IMPACTING ENERGY BURDEN

Dwelling type

Single family

Multi-family

Manufactured

FACTORS IMPACTING ENERGY BURDEN

Ownership Structure

Owner-occupied

Renter + utility customer

Renter – non-utility customer

FACTORS IMPACTING ENERGY BURDEN

Age of Housing

Pre 1940

1940-1959

1960-1979

1980-1995

1996 to current106303.893

231311.589

315123.567

304943.016

382599.312

243149.439

249305.121

122640.126

412193.937

0 50000 100000 150000 200000 250000 300000 350000 400000 450000

2005 or Later

2000 to 2004

1990 to 1999

1980 to 1989

1970 to 1979

1960 to 1969

1950 to 1959

1940 to 1949

1939 or Earlier

Age of Minnesota Housing Stock

FACTORS IMPACTING ENERGY BURDEN

Billing Structure

Direct Residential Rates

Included in Rent

Subsidized rates

Time of Use

CSG Subscriptions

FACTORS IMPACTING ENERGY BURDEN

Fuel Type

Propane

Natural Gas

Electric

Fuel Oil

Other

17,908

89,372

16,638

6,128

2740

Households Served

FACTORS IMPACTING ENERGY BURDEN

Fuel Type

Propane

Natural Gas

Electric

Fuel Oil

Other

FACTORS IMPACTING ENERGY BURDEN

Barriers to Access

Financial

Language

Transportation or Location

Transiency

Knowledge of resources

From Xcel RENEWS Pilot Proposal Jun 30, 2017 – Barriers to CSGs

FACTORS IMPACTING ENERGY BURDEN

Comprehensive Energy Measures

Efficiency measures

Conservation measures

Health & Safety Measures

Behavioral Change

Renewable Energy

FACTORS IMPACTING ENERGY BURDEN

Comprehensive Energy Measures

Efficiency measures

Conservation measures

Health & Safety Measures

Behavioral Change

Renewable Energy

Overview of Session

I. Definitions

II. LI Energy Programs

III. Factors Influencing Energy Burden

IV. Barriers and Solutions Identified through CLICERs

V. Building a Program in your Community

VI. Small Group Discussions on How to Take Action

3/29/2018 mn.gov/commerce 40

Low Income Energy Initiative

Connecting Low-Income Communities through Efficiency and Renewable Sources (CLICERS)

Goals:

• Develop an effective pathway out of energy poverty for high-burden, low-income individuals, through coordinated alignment of programs, leveraging resources, and client education.

• Make solar power more accessible for low and moderate income Minnesotans; and

3/29/2018 mn.gov/commerce 41

CLICERS Task ForcesCore Advisory Committee

• Arnie Anderson, MN Community

Action Partnership

• Timothy DenHerder-Thomas,

Cooperative Energy Futures

• Jason Edens, Rural Renewable Energy

Alliance

• Lynette Engelhardt Stott, Three Rivers

Community Action

• Katie Frye, MN Power

• Nick Mark, CenterPoint Energy

• Pam Marshall, Energy CENTS Coalition

• Rebecca Olson, Center for Energy and

Environment

• Ben Passer, Fresh Energy

• Jessie Peterson, Xcel Energy

• Jodi Slick, Ecolibrium3

• Jamez Staples, Renewable Energy

Partners

• Janet Streff, Streff Consulting

• Katherine Teiken, MN Housing Finance

Agency

• Brandy Toft, Leech Lake Band

Program Evaluation Task Force• BJ Allen, Rural Renewable Energy

Alliance• Deb Flannery, Greater MN Housing

Fund• Katie Frye, MN Power• Jason Grenier, Otter Tail Power• Ralph Jacobson, Innovative Power

Systems• Nick Mark, CenterPoint Energy• Rebecca Olson, Center for Energy and

Environment• Ben Passer, Fresh Energy• Yvonne Pfeifer, Xcel Energy• Katherine Teiken, MN Housing Finance

Agency

• Luke Tessum, SEMAC

• Scott Zahorik, Arrowhead Economic

Opportunity Agency

42

Reducing Energy Poverty Task Force

• Arnie Anderson, MN Community Action

Partnership• Melissa Birch, CERTs• Anna Carlson, Bemidji State University• Victoria Clark, North Country Foundation• Courtney Overby, North Country

Foundation• Lisa Daniels, Windustry

• Lynette Engelhardt Stott, Three Rivers

Community Action• Julia Frost Nerbonne, MN Interfaith

Power and Light• Pam Mahling, Honor the Earth• Chris Meyer, SE Regional CERTs• Vicki O’Day, Rural Renewable Energy

Alliance• Pam Schmidt, MN Power• Ryan Zemek, Headwaters Regional

Development Commission

Major BARRIERS Identified

1. Integration of services is inconsistent

2. Needs greatly exceeds funding

3. Current solar incentives are not designed to serve LI Families

4. Accessing CSGs is challenging

5. Poor housing stock limits access to programs

43

mn.gov/commerce – Not for Public Distribution

Solutions to Leverage

Resources

1. One-Stop Shop

2. Energy Burden Leverage Tool

3. Rebates for LI funding

4. Combined assessments

5. Job Training

44

mn.gov/commerce – Not for Public Distribution

Solutions to Connect LI

to Solar

1. CSG Market Development

2. Alternative Financing

3. Low-Income Solar Programs

4. Promotion of Innovative Solar Models

45

mn.gov/commerce – Not for Public Distribution

Solutions for

Healthier Housing

1. Expand Healthy AIR

2. Develop a deferred homes Opportunity Fund

3. Promote HUD Healthy Homes

4. Organize and Educate

5. Develop a “Cash for Clunkers” Initiative for manufactured housing

46

mn.gov/commerce – Not for Public Distribution

PRIORITIZED SOLUTIONS: Solar Action Plan

1. Expand the Community Solar Garden Low-Income Market

2. Develop a model low-income solar incentive program

3. Identify opportunities to leverage resources for low-income solar opportunities

4. Pursue longer term opportunities

• Explore Alternative Financing

• Organize & Educate: One-Stop Shop

3/29/2018 mn.gov/commerce 47

Overview of Session

I. Definitions

II. LI Energy Programs

III. MN Characteristics and Demographics

IV. Barriers and Solutions Identified through CLICERs

V. Building a Program in your Community

VI. Small Group Discussions on How to Take Action

3/29/2018 mn.gov/commerce 50

Current Program Landscape (some)

PACE Pay as You Save On Bill Financing

Green Banks MHFA Loans PPAs/Leases

LI Carve Out for CSGs, RPS Solar Sense

Solar*Rewards Just Community Solar

Community Action for Community Solar

CEF DC Solar for All Tax Credits

Solar in Your Community SolSmart WAP

LIHEAP Host Credit SASH MASH

Grid Alternatives Green for All REEGP

Weatherization + Health REAP RDF

Renewable Energy Partners Job Training LCCMR

North Green Homes Solar along the Greenway

CSGs for manufacturing homes MassCEC

White Earth and Leech Lake Solar Training

AEOA Business Energy Retrofit Power On

CPE/Xcel Multi family for LI properties

3/29/2018 mn.gov/commerce 51

Programs Highlighted Today

1. Emma Ingebretsen, CenterPoint Energy: Rebate Programs for single family and multifamily

2. Jack Kluempke, Commerce: Data Sources and low-income energy burden leverage tool

3. Kim Havey, Commerce: CLICERS Listening Session

4. Tami Gunderzik, Xcel Energy: Railroad Island CSG

5. Tori Clark, Northcountry Cooperative Foundation: Modular ENERGY STAR housing

6. Timothy DenHerder-Thomas, Cooperative Energy Futures: Subscription back-up model for community solar gardens

7. Jodi Slick, Ecolibrium3:Giving Comfort at Home program

8. Katie Frye, Minnesota Power: Low-Income Solar Grant

9. Jamez Staples, Renewable Energy Partners: North High School Solar

3/29/2018 mn.gov/commerce 52

Overview of Session

I. Definitions

II. LI Energy Programs

III. MN Characteristics and Demographics

IV. Barriers and Solutions Identified through CLICERs

V. Building a Program in your Community

VI. Small Group Discussions on How to Take Action

3/29/2018 mn.gov/commerce 53

Break

3/29/2018 mn.gov/commerce 54

Building a Program in your Community

3/29/2018 mn.gov/commerce 55

Questions for Discussion

• What factors does the program address?

• How does the program reduce energy burden of participants?

• What would be needed to replicate this program in my community?

Building a Program in your Community: ROUND 1

Questions for Discussion

• What factors does the program address?

• How does the program reduce energy burden of participants?

• What would be needed to replicate this program in my community?

3/29/2018 mn.gov/commerce 56

Building a Program in your Community: ROUND 2

Questions for Discussion

• What factors does the program address?

• How does the program reduce energy burden of participants?

• What would be needed to replicate this program in my community?

3/29/2018 mn.gov/commerce 57

Building a Program in your Community: ROUND 3

Questions for Discussion

• What factors does the program address?

• How does the program reduce energy burden of participants?

• What would be needed to replicate this program in my community?

3/29/2018 mn.gov/commerce 58

Building a Program in your Community

3/29/2018 mn.gov/commerce 59

Think – Pair - Share

1. What is one insight or learning from today?

2. What would you like to explore or learn more about?