low income energy efficiency challenges and opportunities · –measures installed have an sir...

Low Income Energy Efficiency

Challenges and Opportunities

For: meeting with Minneapolis Clean Energy

Partnership Board

September 16, 2016

SRC Executive Director: Jed Norgaarden

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The point of the story?

• What does this have to do with low income energy efficiency?

– Our thinking about energy has expanded in relation to the earth’s “health”.

– Our thinking about energy efficiency in the low income segment is evolving in relation to the occupant’s “health”

– An integrative approach of energy efficiency and environmental health of the home opens the door toward occupant resilience.

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Agenda

I. The point of the pictures/story

II. Low Income Energy Efficiency in Minneapolis Program landscape (Nick gave overview)

DOE’s Weatherization Assistance Program

A bit about SRC

III. Challenges and Opportunities “moving toward a more integrative approach”

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II.

Low Income Energy Efficiency in Minneapolis

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WAP Mission:

– To reduce energy costs for low-income families, particularly for the elderly, people with disabilities, and families with children, while ensuring their health and safety (H&S).

– Low-income households spend 14.4% of their annual income on energy, while other households only spend 3.3%.

II. Low Income Energy Efficiency in Minneapolis


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Organization: The Team Approach

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U.S. Department of

Energy Headquarters

and the Project

Management Centers

(NETL and Golden)

50 State Energy

Offices, the District

of Columbia, Native

American Tribal

Organizations, and

five Territories

Low-Income

Households

Over 900

Local Agencies

Operation • Program created in 1976 • Strictly serves low income segment • Oldest and largest residential energy efficiency program in America • Operates in all 50 States, D.C., and among Native American Tribes • Services to single-family, multi-family, and mobile homes • Over 7 million homes have been weatherized with DOE + leveraged funds • SRC’s average expenditure in home is $8,000 • Whole house retrofits • Building science guides the selection of energy efficient measures installed

– Measures installed have an SIR (savings-to-investment ratio) of 1.0 or greater, but also may include any necessary energy-related health and safety measures

– An SIR of 1 or higher means the savings earned over the lifetime of a given measure are greater than the full cost of installing that measure.

• Certified energy auditors perform audits • Post-installation inspection conducted by certified Quality Control

Inspectors • State monitors a percentage of the homes

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Benefits • Reduces energy costs and alleviates high energy burden for low-income

families • On average, a weatherized home realizes a 30%+ reduction in heating/cooling cost • Creates additional disposable income in low income communities

• Positive investment • For every $1 invested there is a $2.69 return in energy benefits (excludes

societal benefits) • For every $1 invested by DOE, the program leverages an additional $3.39

from other federal, state, local, and private sources • Improves health and safety of residence • Improves comfort of residence • Improves housing stock and neighborhood conditions • Decreases nation’s energy consumption and reduces GHG emissions • Creates approximately fifty jobs for every million dollars invested • Allows local weatherization agencies to partner with other government

and community organizations, public utilities, and the private sector to maximize efforts

• Utility arrearages are reduced

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Eligibility

• Households at or below 200% of federal poverty are eligible • Must not have been weatherized since September 30, 1994 (homes

weatherized prior to 1994 did not use advance audits) • Priority classes: Elderly; Persons with disabilities; Families with

children; High energy burden; High residential energy use • Multi-family Eligibility:

– 66% of units must be income eligible – 50% of units must be income eligible for duplex, 4-unit

• Rental Requirements: – Benefits accrue to low-income tenants – Rent will not be increased as a result of WX – Landlord contributions: required on 5 units or greater

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Technical Advancements

• The Weatherization program has pioneered, tested, and utilized sophisticated building science technology to provide cost-effective energy efficiency measures – Blower-door directed air-sealing is utilized to diagnose air leakage and

pressure differentials – Weatherization uses the blower door, a manometer, and pressure pans to

measure and identify duct leakage in all homes and mobile homes – Heating and cooling systems are tested for efficiency – Pressure differentials are measured to determine if combustion appliances are

back-drafting – Advanced energy audits are used to determine the most cost-effective

measures

• Several states are now pursuing the application of solar measures through pilot programs

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Health and Safety

• Weatherization providers uncover health and safety hazards during the work process and correct them. Through these efforts – illness and death are avoided.

• Unsafe heating systems can create life-threatening situations such as carbon monoxide poisoning, back-drafting, and fires

• Lead-based paint, the number one environmental health threat to children, is a serious problem that weatherization, in conjunction with other funding sources, addresses before work is completed

• Mold, moisture, and high humidity are all health and safety issues that weatherization crews address

• Dangerous electrical problems can also be addressed using weatherization funds

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Funding

• Core funding for the program is provided by the Department of Energy (DOE) and the Low Income Home Energy Assistance Program (LIHEAP) block grant making it the largest residential energy efficiency program in the nation.

• This funding allows states and local agencies to leverage additional funding from:

• Other housing programs

• Utilities

• State and local government

• Rental property owners

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SRC makes low income homes healthy, safe, and energy efficient • Started 1977 • Currently 27 employees • We conduct residential assessments, interventions, outreach, and training • Our primary territory is Hennepin County

Programs: • Low Income Weatherization

• SRC is the largest DOE WAP service provider in MN – WAP is the largest and oldest US DOE energy conservation program in the nation

• SRC administers CIP programs including ones with CenterPoint and Xcel Energy • SRC maintains the largest and most certified low income energy auditor and

inspector team in MN • SRC primarily conducts “Whole House” energy retrofits

– air sealing, wall and attic insulation, furnace replacement etc. – Latest technology/equipment – Held to strict health and safety standards including ASHRAE ventilation requirements

• To a lesser degree SRC conducts lighter energy efficiency visits via Home Energy Savings Program (HESP) CIP

II. Low Income EE in Minneapolis

Overview of SRC

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• Lead Testing & Remediation • SRC works with Hennepin County to administer HUD Lead grants which

protect children from lead-based paint hazards. • Licensed lead risk assessors conduct assessments using the HUD Paint

Inspection Risk Assessment (PIRA) • Work primarily results in replacement of lead painted windows in pre-

1978 homes

• Lead Education, Outreach and Screenings • Support from MDH, Hen. Co., City of Mpls, and medical providers • In-home visits conducted to educate families and take samples • Lead Screenings held to test hundreds of children each year for lead in their blood. SRC utilizes a mobile testing unit, nurses and a blood analyzer to bring testing opportunities to community events.


SRC

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• Healthy Homes – SRC has certified healthy homes risk assessors conducting assessments and

interventions in Hennepin County low income homes

– SRC conducts assessments via the HUD and NCHH (National Center for Healthy Housing) Rating System which evaluates homes on 29 risk attributes including: mold/moisture, pests, lead paint, radon, asbestos, carbon monoxide, VOC’s, slip-trip-fall potential, etc.

– Work sponsored by Hennepin County

• Aging in Place – Minnesota’s Department of Human Services supports SRC to expand the

ability of low income seniors to stay in their homes and communities of choice

– SRC utilizes this program to kick off integration of other programs to increase resilience of seniors

– More on this later in the presentation (Example on slide #35)


SRC

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III.

Challenges and Opportunities

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1st Challenge: “Barriers”

• Language barriers (SRC speaks 3)

• Landlord hesitancy (Code violations? Administrative effort to qualify?

Group ownership requires consensus)

• Possible deferral situations (30% of Minneapolis homes were deferrals last year)

• Inaccessible crawl spaces (26% of deferrals)

• Vermiculite/Asbestos (21%)

• Home is being remodeled (14%)

• Excessive mold/moisture (14%)

• Structural defect placing WX work at risk of failure • Pests • Cognitive disability • Hoarding • Lead paint is not a deferral

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III. Challenges and Opportunities

2nd Challenge: “Health & Safety" • “Whole house” energy efficiency upgrades (air sealing, insulation, heating &

cooling changes, etc.) in low income households should only be contemplated when health and safety hazards in the home are also properly considered.

– Low inc live in poorer housing stock due to lack of resources, lack of choices, deferred repairs – As a result, low income disproportionately live with home health hazards which place them at

risk for illnesses and injuries including asthma, respiratory illnesses, lead poisoning, and hospital visits from slips/falls.

– Some of those home health hazards are: Mold and excessive moisture, Pests that can carry disease or act as asthma triggers, Lead paint, Radon, Carbon monoxide, Tobacco smoke, etc.

– Whole house energy upgrades alter the building performance of the structure. – For example: Air-sealing without new ventilation likely exposes the occupants to

concentrated indoor pollutants – For example: Air-sealing reduces the available make-up air for combustion appliances

and exhaust fans (creating backdrafts)

– “Do no harm”. DOE’s WAP program requires proper H&S adjustments to the home so that any changes to building performance do not degrade the environmental health of the indoor environment.

– H&S measures do not save energy and are therefore thought of as a pure cost – Funders, program creators, energy nonprofits are often tasked with the narrower goal of

saving energy per $ vs. addressing the added dimension of the home as a system 20


WAP Response to Health & Safety challenge:

– Over the last 40 years, the WAP program has recognized the responsibility it has to low income clients. As a result:

• It has strongly evolved the science of building performance as it has been the first to create or implement many standard technologies used today.

• It enforces and pays for H&S standards such as ASHRAE ventilation requirements

• WAP protects the occupants with a final inspection by a QCI and then follows up with Dept of Commerce field monitoring visits and administration visits

• WAP supports strong educational certifications.

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Response to the H&S Challenge is a large Opportunity

• Opportunity #1: Pair up with WAP WAP encourages leveraging opportunities that take advantage of it’s strong H&S.

• Example: SRC’s CIP with CenterPoint Energy. Shared funding of a residence means CNP doesn’t pay for the majority of H&S!

• Opportunity #2: Thinking about the home as a “system” widens the conversation from energy efficiency to “Resilience”. A stronger home and a stronger occupant.

• Addressing the H&S while conducting energy improvements makes occupant stronger. • A partnering opportunity arises with those from the health field.

• Opportunity #3: Turn the model upside down! • Addressing the environmental health hazards in the home could positively (or negatively)

impact the energy efficiency of the home!

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Opportunity #3 – continued (Flip the model over)

Some new thinking

Eventually energy efficiency measures will be driven by the medical community – Mold growth on uninsulated bedroom walls trigger child’s asthma

episodes. Answer is to insulate the walls.

– Pest infestation triggers asthma episodes. Part of the answer can be to air seal the house.

– Flu-like symptoms continue to reoccur. Check for an inefficiently working furnace slowly leaking carbon monoxide.

– Lead poisoning in children already usually results in the replacement of old lead contaminated windows with new more energy efficient ones.

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No matter how many prescriptions the doctor writes, the child might not improve until the health hazard in the home is addressed. Doctors will write prescriptions not only for medication, but also for home assessments to uncover the health problems caused by the house! The cure can involve an energy efficiency measure. Health insurers will find it more economical to deal with the house one time than the repeat clinic visits by the resident.

The future:

Example: MRI

To more fully address the environmental determinants that center

on the low income residence, SRC recognizes that the health & safety of the home AND the building performance of the home are interrelated. Thus, SRC’s philosophy is to approach the home as a “system” – use and integrated approach.

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SRC Philosophy: the house is a “system”

Health hazards in the home

Safety hazards in the home

Energy performance of the home

Not only does one impact the other, but all are doorways for separate sources of funding to improve the other elements.

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SRC Philosophy

Health hazards in the home

Safety hazards in the home

Energy performance of the home

$

$

$

• Minnesotans should expect:

– Higher temperatures • Hot days, hot nights, more frequent heat waves

• Heat-island effect could contribute to local temperature increases in disadvantaged neighborhoods

– Increased periods of moisture • More frequent/severe precipitation events and resultant

flooding.

• Greater number of days of humidity and low air quality

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3rd Challenge: “Climate Change”


• The outdoor environment permeates the indoor environment, therefore, climate change has the potential to affect the indoor environment.

• Low income and vulnerable populations (elderly, young children, disabled, those with existing health issues, etc.) may be disproportionately impacted.

• They already occupy the weakened housing stock with higher indoor environmental health hazards

• Weakened housing stock is more permeable to changes in outdoor conditions

• Renters have less control over modifications made in their residences

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“Climate Change” - continued

• Climate change affects four indoor environment elements:

1. Air quality

2. Moisture and flooding

3. Pests

4. Occupant exposure to higher heat (“Thermal stress”)

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• Air Quality

– Air sealing a house (motivated by rising temperatures or by a desire to reduce energy usage) can lead to lower ventilation rates that cause higher concentrations and exposures to indoor pollutants such as:

– combustion gasses (CO), second hand smoke, VOC’s, airborne pest residue, radon. All of which can cause respiratory illness.

– Rising temperatures may also increase the use of air conditioning (which increases energy demand). Without increased ventilation, closing windows and using air conditioning exposes occupants to indoor pollutants mentioned above.

– Additional use of air conditioning through an HVAC duct system that contains contaminants can cause respiratory issues.

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• Moisture and Flooding – Increases in rain and moisture from extreme weather conditions may lead to

breakdowns in building envelopes followed by water infiltration. – Air sealing (as an energy efficiency measure) without increased ventilation could

raise indoor moisture content due to domestic water usage (cooking, bathing, etc.) – Poorly designed or maintained HVAC systems can introduce moisture and create

indoor condensation.

– Moisture in the house (on surfaces or in air) supports dust mite expansion, mold growth, cockroach and pest infestations (all are asthma triggers).

– Larger/longer exposures may cause emissions from the breakdown of building materials or furnishings. The breakdown of materials may lead to lead paint exposure.

– Independent of climate change, a poorly insulated wall or roof will create a cold interior surface where moisture will condensate in the winter months.

– Closing windows and using air conditioning as a means of removing humidity from the air can lead to lower ventilation rates that cause higher exposures to indoor pollutants previously identified as well as increase the demand for electricity. 31



• Pests – Pests may carry infectious diseases or be asthma triggers

– It isn’t clear how pest patterns may evolve due to climate change in Minnesota. It is possible that new pests are introduced or there is a seasonal change to existing pest activities due to warmer weather or a change in available water.

– Air sealing (as an energy efficiency measure or as a measure to keep out pests) without adequate ventilation could increase the health hazards as previously mentioned.

– Closing windows and using air conditioning as a means of controlling flying pests can lead to lower ventilation rates that cause higher exposures to indoor pollutants previously identified as well as increase the demand for electricity.

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• Occupant exposure to higher heat (“Thermal stress”)

– Climate change may increase indoor temperatures.

– People who do not have air conditioning will be exposed to higher heat situations more often. • Vulnerable populations (such as the elderly) may also be more

susceptible to the effects of heat exposure.

– Impact on building performance of higher indoor temperatures. • Homes that lack air conditioning may need to be retrofitted for a/c

• Homes that have air conditioning will need to use it more often

• Closing windows and using air conditioning can lead to lower ventilation rates that cause higher exposures to indoor pollutants previously identified as well as increase the demand for electricity.

• Extreme weather events may cause power failures which then expose occupants to weather conditions. Occupants can be exposed to combustion gasses from improperly used electric generators.

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• Conclusion

Climate change results in negative outcomes regarding the low income homes.

• It increases exposure to environmental health hazards inside the home. This outcome reinforces the importance of addressing health and safety in delivering energy efficiency services to the low income communities.

• It likely drives occupants to use more electricity by running air conditioners more often

• Homes that lack air conditioning may need to be retrofitted for a/c

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SRC installs energy efficiency improvements: air sealing, insulation, new furnace, ventilation. Effort makes home more affordable for low income senior and improves comfort and health (DOE via MN Dept of Commerce and CenterPoint’s CIP)

Integrative approach produces “RESILIENCE” Example: SRC addresses Housing, Health, Safety, Energy Efficiency and Climate

Lead Based Paint Hazard services become available for Seniors with children in the home (HUD via Hennepin County)

MDHS “Live Well at Home” grant supports use of HUD’s “Healthy Homes” assessment and intervention protocol. SRC installs grab bars, fixes railing and stairs, finds and patches hole in roof stopping energy loss, and removes rain-damaged insulation thereby removing a weatherization “deferral” barrier.

Home Energy Savings Program funded by Xcel Energy allows appliance replacement: refrigerators, freezers, & air conditioners

Sufficient affordable housing for senior citizens is a challenge in Minnesota. Minnesota’s Department of Human Services supports SRC to expand the ability of low income seniors to stay in their homes. This grant opens the door to other resources that together create “resilient” homes and occupants.

Multiple nonprofit partners and agencies might provide ramps and other home repairs, chore services, emergency assistance, etc.

Example: Medical clinic refers a senior to SRC after a fall at home.

Possible steps regarding low income challenges/opportunities

• Compare existing Climate/Energy plans against “house as a system” thinking to see if there are:

– additional opportunities that can be gained through partnerships with agencies that primarily address environmental health factors in low income homes

– any contemplated energy efficiency plans that might contribute to negative health outcomes in low income homes.

• EE for renters is underserved. Explore how City and SRC could work together to motivate more landlords to participate in SRC’s available Weatherization Assistance Program.

• Join forces in thinking about the 6,000 low income units owned by MPHA.

– Investigate possible coordination with HUD in combining energy efficiency measures with comprehensive rehabilitation opportunities

• Stir up generic Healthy Homes funds which can be used to knock down some of the weatherization deferral barriers.

• Etc.

Thoughts

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Thanks for your time!

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