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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)
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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
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Low-Income Home Energy Assistance Program
$94,388 =
State Median Income in 2017
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LIHEAP Eligible Households
• 47,197
• 18,626
• 7,959
• 498,000
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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
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American Community Survey on Poverty in Minnesota
•10.8
•34
•31.4
•22.2
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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
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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
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Low Income Energy Programs
• Low-Income Home Energy Assistance Program (LIHEAP)
• Weatherization Assistance Program (WAP)
• Low-Income Utility Conservation Improvement Programs (CIP)
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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
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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
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Building a Program in your Community
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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
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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
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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
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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
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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
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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
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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
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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
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Break
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Building a Program in your Community
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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?
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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?
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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?
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Building a Program in your Community
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Think – Pair - Share
1. What is one insight or learning from today?
2. What would you like to explore or learn more about?
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