You asked for a description of weatherization programs available to Connecticut residents. This memo also discusses programs that provide funding for public and publicly-assisted housing and municipalities that can be used for weatherization. This memo summarizes these programs in chart form (attached).

As used in this memo, weatherization refers to measures that improve the energy efficiency of homes and apartments through such means as increased insulation and more efficient doors and windows. Some of these programs also provide other measures to increase residential energy efficiency, such as rebates or low interest loans for energy efficient heating and cooling systems.

SUMMARY

The electric and gas companies offer the Home Energy Solutions program to all of their customers. The program provides low-cost efficiency measures and, for customers who heat with gas or electricity, incentives for insulation upgrades. The utilities also offer weatherization programs targeted at households with incomes up to 60% of the state median (e. g. , up to $ 47,286 for a three-person household). They operate the latter program in conjunction with the Department of Social Services (DSS), which has a similar Weatherization Assistance Program that serves the same population.

Funding for the DSS program was increased dramatically with the passage of the American Recovery and Reinvestment Act. That act also provides funding for (1) public and publicly-assisted housing and (2) municipalities under the Energy Efficiency and Conservation Block Grant. Funding under both of these programs can be used for weatherization.

The Connecticut Housing Investment Fund, Inc. (CHIF) offers low-interest loans to single family and multi-family residential property owners to buy and install cost-saving energy conservation improvements. The program is available to households with incomes up to twice the area median income.

The U. S. Department of Agriculture has a program that provides low-interest loans to help very low-income owners of single-family homes repair their homes. Loans can be used for insulation and heating system replacement, among other things. This program is available in rural parts of the state.

In addition to these programs, federal law provides a 30% income tax credit for owners of existing homes who upgrade the efficiency of the building's envelope. Installation (labor) costs are not included. The credit applies to the cost of insulation materials, systems that reduce a home's heat loss or gain, and exterior doors and windows, among other things. Further information about the credit is available at

www. dsireusa. org/incentives/incentive. cfm?Incentive_Code=US43F&re=1&ee=1.

UTILITY PROGRAMS

Home Energy Solutions

This program is operated by the state's electric and gas companies and is open to all of their customers. It includes a blower-door test to identify drafts and air leaks. After they are found, a technician will professionally seal them during the visit. The technician also conducts a duct test to assess air leaks in the ductwork system, and seals significant leaks. For customers who heat with gas or electricity, the program provides incentives for insulation upgrades recommended by the technician. The incentive is 50 cents to $ 1 per square foot of insulation. There is a $ 75 fee for this program, which is collected at the time of service.

In addition to the weatherization measures, the program also provides rebates up to $ 500 for qualifying central air conditioning systems and up to $ 300 to replace certain inefficient appliances with qualifying energy-efficient models. Further information about this program is available at www. cl-p. com/Home/SaveEnergy/Rebates/HomeEnergySolutions. aspx.

Weatherization Assistance

The electric and gas companies offer weatherization assistance programs targeted at low- and moderate-income customers. The program is called the Weatherization Residential Assistance Partnership (WRAP) in Connecticut Light & Power's service territory and UI Helps in United Illuminating's territory. During a home visit, the technician will find and seal drafts, cracks, and leaks in windows and doors and evaluate the home's insulation.

The program is available to households with incomes up to 60% of the state median (e. g. , up to $ 47,286 for a three-person household). Renters as well as owners are eligible. Renters must have their landlord complete the owner's permission statement, which is included with the application. Landlords must grant permission for tenants in their buildings. Further information about this program is available at www. cl-p. com/home/saveenergy/rebates/wrap. aspx.

The utilities work in partnership on this program with DSS, as described below.

DEPARTMENT OF SOCIAL SERVICES

The department's Weatherization Assistance Program helps improve the energy efficiency of the homes of low and moderate-income households. As noted in OLR memo 2009-R-0206, the American Recovery and Reinvestment Act dramatically increases funding for the program. Historically DSS, which administers the program in Connecticut, has received approximately $ 2. 5 million annually for the program. The act provides an additional $ 64. 3 million to be spent over the next three years. The act also (1) makes more households eligible for assistance by increasing income eligibility limits from 200% of the federal poverty level to 60% of the state median income, (2) increases the average assistance that can be provided per dwelling unit from $ 2,500 to $ 6,500 and (3) broadens the eligibility of units that have already been weatherized for additional efficiency measures.

Participants receive an energy audit to determine the most cost-effective weatherization activities. Some of the most common measures include attic insulation, sidewall insulation, and air-sealing methods such as caulking or weather-stripping. In limited cases the program will pay for the repair or replacement of windows and doors. Priority is given to particularly vulnerable clients, such as the elderly, persons with disabilities, families with children under six years old, and high energy users.

In the case of renters, landlords must agree to the weatherization work and pay for 20% of the material cost or $ 500 per unit, whichever is less. DSS can waive this requirement for units where the household has an elderly or disabled member or a child under six years old. Landlords who participate in the program cannot raise the rents for two years from the date of weatherization for the affected units unless they demonstrate that the increase is not related to the weatherization funded by the program.

Under federal law, the funding must flow through local weatherization service providers. In Connecticut, the basic program is administered by five Community Action Agencies (CAAs) that provide the weatherization services statewide in collaboration with the other CAAs in the state. The five CAAs are:

1. Action for Bridgeport Community Development, 1070 Park Avenue, Bridgeport, 203-384-6904;

2. the Access Community Action Agency, 1315 Main Street, Willimantic, 860-450-7423;

3. Community Action Agency of New Haven, 781 Whalley Avenue, New Haven, 203-387-7700;

4. Community Renewal Team, 395 Wethersfield Avenue, Hartford, 860-560-5800 or 1-800-798-3805; and

5. New Opportunities, 232 North Elm Street, Waterbury, 203-756-8151.

The additional funds provided under the American Recovery and Reinvestment Act are being administered by the same agencies, other than the Community Action Agency of New Haven.

The department and the CAAs operate this program in partnership with the utility WRAP and UI Helps programs described above. The utilities pay for the audits while federal funds pay for such things as insulation. Eligible households can contact either the utilities or the relevant CAA to apply for the programs. Further information about the DSS program is available at www. ct. gov/dss/cwp/view. asp?a=2353&q=305196.

ARRA FUNDING

Public and Assisted Housing

In addition to the funding provided for the Weatherization Assistance Program, the American Recovery and Reinvestment Act provides $ 4 billion for the Public Housing Capital Fund. Of this amount, the Department of Housing and Urban Development (HUD) must allocate $ 3 billion to housing authorities (other than those designated as troubled) under its formula grant. Eligible housing authorities can use this funding for a variety of purposes, including increasing energy efficiency in federally-supported units for the elderly and disabled. HUD must allocate the remaining $ 1 billion by September 30, 2009 for priority investments, including investments that leverage private sector funding or financing for renovations and energy conservation retrofit investments. Under both provisions, the funding must supplement and not supplant state and local funds.

The act provides an additional $ 2. 25 billion for project-based Section 8 units (units in privately-owned buildings that are subsidized by rental subsidies) that are tied to the building. Of this amount, $ 2 billion can be used for a variety of purposes, including improving energy efficiency. The remaining $ 250 million must be used for grants or loans for energy retrofit and green investments in such housing. HUD can enter into agreements with the building owners in which they and the department share the savings produced by energy efficiency measures.

In addition to funding provided to HUD under the act, DSS has allocated $ 20 million of the funding it has received under the act to the Department of Economic and Community Development to weatherize public housing units. The first priority will be weatherizing housing units for the elderly where heat is not included in the rent. Any additional funds will be used for units with tenants who are disabled or have children under six years old.

Energy Efficiency and Conservation Block Grant

The act provides $ 3. 2 billion for grants to local governments and states to develop and implement energy efficiency and conservation strategies. Of these funds, $ 2. 8 billion will be distributed by a statutory formula. The bulk (68%) of the formula funding will go directly to medium and large municipal and county governments. The direct grants are provided to municipalities with a population of 35,000 or more according to the most recent U. S. Census data. Most of the remainder of the formula funding goes to state energy offices (in Connecticut, the Office of Policy and Management). The state energy office must allocate 60% of its funding to those local governments that are ineligible for direct grants.

Among other things, these funds can be used for:

1. financial incentive programs for energy efficiency improvements;

2. grants to nonprofit organizations and governmental agencies to perform energy efficiency retrofits; and

3. energy efficiency and conservation programs for buildings;

CHIF

The Energy Conservation Loan and the Multifamily Energy Conservation Loan programs provide financing at below market rates to single-family and multi-family residential property owners to buy and install cost-saving energy conservation improvements. The program is administered by CHIF with funding from the Connecticut Department of Economic and Community Development).

In addition to insulation, caulking, and replacement windows, program participants can obtain loans for replacement heating systems and heat pumps. Owners of one to four unit buildings may borrow up to $ 25,000, and owners of larger buildings may borrow up to $ 2,000 per unit (up to a maximum of $ 60,000 per building) for a period of 10 years for eligible improvements.

The income limit for the program is 200% of area median household income, adjusted for household size. In the greater New Haven area (Bethany, Branford, Cheshire, East Haven, Guilford, Hamden, Madison, Meriden, New Haven, North Branford, North Haven, Orange, Wallingford,

West Haven, and Woodbridge), the limit for a three-person household is $ 140,940. For Windham County, the limit for such households is $ 119,160. In the Stamford area (Darien, Greenwich, New Canaan, Norwalk, Stamford, Weston, Westport, Wilton), the limit is $ 212,040.

Further information about these programs is available at http: //www. chif. org/owner_borrowers/index. shtml#energy.

U. S. DEPARTMENT OF AGRICULTURE

Low-interest loans are available from the USDA Rural Development 504 Program to help very low-income owners of single-family homes repair those homes. Loans can be used for insulation and heating system replacement, among other things. The applicant must (1) be a U. S. citizen or a noncitizen who qualifies as a legal alien as defined by USDA regulation, (2) have legal capacity to borrow the money, and (3) have a good credit history and be able to repay the loan but be unable to obtain financing from conventional lenders or from his or her own resources.

To qualify, homeowners must have incomes at or below 50% of area median income. The interest rate is fixed at 1% for the life of the loan with a payback period of up to 20 years. There are minimal or no application and closing costs. Grants may be available to persons who are at least 62 years of age and cannot afford a loan.

The program is open to residents of rural parts of the state, including Windham County, most of the towns in Litchfield, Middlesex, New London, and Tolland counties, and some towns in the rest of the state. A map showing these towns is attached and is available at http: //www. chif. org/owner_borrowers/usadruralmap. pdf

RESIDENTIAL WEATHERIZATION PROGRAMS

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