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Energy Efficiency and Renewable Energy Solutions for Low-to-Moderate-Income Communities

A STAKEHOLDER OVERVIEW

15 MAY 2017


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Table of Contents

Introduction ..................................................................................................................................................... 1

Benefits………………………………….. .......................................................................................................................................... 2

Key Stakeholders ............................................................................................................................................ 3

Housing and Community Development .......................................................................................................... 4

Health and Human Services ........................................................................................................................... 4

Utilities ........................................................................................................................................................... 5

Energy and Environmental ............................................................................................................................. 6

Community Advocacy and Faith-Based .......................................................................................................... 7

Public Financing ............................................................................................................................................. 8

Private Financing ........................................................................................................................................... 9

Workforce Development ............................................................................................................................... 10

Private Contractors ...................................................................................................................................... 11

Conclusion ..................................................................................................................................................... 12

Appendix A .................................................................................................................................................. 13

Appendix B .................................................................................................................................................. 15


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Introduction

Stakeholder engagement is critical to developing inclusive programs and policies for energy efficiency and

renewable energy in low-to-moderate-income (LMI) communities. By engaging a diverse set of

stakeholders, program managers can reduce administrative costs, facilitate participation, and leverage a

wide range of resources that can help increase the feasibility and sustainability of programs delivering

clean and efficient energy to underserved communities. LMI stakeholders can be any party working on a

diverse set of issues relating to LMI communities, such as promoting healthy homes, helping families

become financially self-sufficient, creating economic opportunities and jobs, and/or achieving energy

savings and renewable production targets for low-income customers set by regulations.

Strong engagement of LMI communities is essential for realizing the full

economic potential of energy efficiency and renewable energy. Forty-percent

of the U.S. population1, or 49.1 million households, is considered low-to-

moderate income. The U.S. Department of Energy launched the Clean

Energy for Low Income Communities Accelerator (CELICA) in May 2016 to

demonstrate a wide range of promising models for delivering integrated

energy efficiency and renewable energy programs for LMI communities.

This stakeholder overview can help local governments, utilities, nonprofit

organizations, and private entities identify key stakeholders to engage in the

development of clean energy programs for LMI communities. It is based on

the experience of CELICA partners, including states, cities, community action

agencies, nonprofit housing and community organizations, and utilities. It identifies stakeholder groups

working to address the needs of LMI households and it describes the key interests and potential roles of

each group.

1 https://energy.gov/eere/articles/new-analysis-shows-national-potential-solar-power-low-income-communities

The median low-income household’s energy burden in the US’s 50 largest cities is 7.2%--more than twice as high as the burden, and three times greater than average non-low-

income households’ burden. (ACEEE)

https://energy.gov/eere/articles/new-analysis-shows-national-potential-solar-power-low-income-communities

http://aceee.org/sites/default/files/publications/researchreports/u1602.pdf


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The Benefits of Low-to-Moderate-Income Community Solutions

A wide variety of stakeholders can achieve common and/or multiple goals by integrating energy efficiency

and renewable energy initiatives targeting LMI communities. Some of the many benefits of these initiatives

are noted in the following diagram:


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Key Stakeholders

Identifying the right stakeholders for clean energy programs in the LMI community is critical. Most successful LMI energy efficiency and renewable energy efforts to date have involved a broad engagement of diverse stakeholders, however being over-inclusive can lead to delays and introduce competing priorities to the process. CELICA partners have found that the audiences most concerned with low-to-moderate income community energy needs and access are likely to include the key stakeholder groups detailed in the following diagram:

In each of the key stakeholder groups there are typically federal and national level agencies and

associations—often with state and local level affiliates—that can be a resource. A partial list of these is

included in Appendix A. Many of the organizations listed may have expansive roles that intersect with

multiple categories.

Figure 2 above and the following sections can help clarify the unique interests and contributions by sector

as you develop your stakeholder engagement process and decide with whom to form strategic

partnerships. In addition, the Energy Department developed a Guide to Community Energy Strategic

Planning that may be a resource to your stakeholder planning efforts. The Better Buildings Residential

Network Partnerships Toolkit is a great resource for stakeholder engagement. It includes sample

partnership agreement forms, should program developers determine that a formal partnership agreement

https://energy.gov/sites/prod/files/2014/05/f15/cesp_guide.pdf

https://energy.gov/sites/prod/files/2014/05/f15/cesp_guide.pdf

https://energy.gov/sites/prod/files/2016/05/f31/residential_network_partnerships_toolkit_051616.pdf

https://energy.gov/sites/prod/files/2016/05/f31/residential_network_partnerships_toolkit_051616.pdf


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with stakeholders is needed.

Housing and Community Development Organizations

Who are they?

State Housing Development

Public Housing Authorities

Community Development Corporations (and associations thereof)

Nonprofit Affordable Housing Developers

What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-

income communities?

Housing providers have an interest in lowering costs in order to make housing more affordable for tenants,

reduce turnover and improve community assets, and increase the number of people they are able to serve

with available resources. They typically utilize tax credit financing and public grants to subsidize affordable

housing for LMI households.

What can they potentially contribute to your initiative?

State housing agencies can provide incentives for affordable housing

developers that incorporate energy efficiency and renewable energy

into building renovation projects. Public Housing Authorities and

Community Development Corporations and their property

management companies are where the rubber hits the road for

affordable housing, and they can offer a ready set of income-

qualified program participants, as well as a housing stock that is ripe

for upgrades that improve comfort, reduce operating expenses, and

lower tenant bills

Health and Human Services Organizations

Who Are They?

State agencies and local sub-grantees that administer Community Service Block Grants and the Low Income

Home Energy Assistance Program (LIHEAP)

Local Community Action Agencies and Human Service providers

Local Healthcare Providers (healthcare systems, hospitals, and community health centers)

San Antonio Housing Authority in Texas recently committed to install solar and other types of renewable energy on their facilities to meet a 300 MW goal of on-site or community-based renewable energy capacity serving federal subsidized housing projects. (HUD Blog)

http://blog.hud.gov/index.php/2015/07/20/powering-a-brighter-future-in-public-housing/


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income communities?

These agencies serve many basic needs of low-income residents and act as

the social safety net for people seeking to build a stable life in the face of

challenging life circumstances. The integration of energy efficiency and

renewable energy technologies into the homes of these residents can help

reduce and stabilize the cost of energy for these households—though energy

is often only one of several areas of need, and is often not the most urgent

one. Integrated energy efficiency and renewable technologies often have non-

energy benefits; for example, certain energy efficiency upgrades can improve

indoor air quality and reduce asthma rates. Healthcare providers in particular

are interested in the non-energy benefit aspect of these solutions.


Local-level agencies have a direct line of communication with LMI residents

and communities. They understand the challenges LMI community members

face and can help design solutions that fit the unique needs of residents. They can be a trusted community

partner for recruiting income-qualified program participants. They provide wraparound supportive services

that help people who may face multiple barriers to remain financially stable and maintain participation in

state and local energy programs. Some agencies bring funding for energy services. For example, low

income home energy assistance program (LIHEAP) agencies can transfer up to 15% of LIHEAP funds for

residential weatherization or other energy-related home repair for LMI households, or receive a waiver to

transfer up to 25%. State-level agencies have a less direct connection with communities, but are integral in

directing state funding and other resources to specific communities for specific purposes. Through healthy

homes intiatives, state Medicaid and healthcare providers might reimburse for addressing home health and

safety issues that may be causing health issues, allowing more homes to receive energy efficiency and

renewable energy services.

Utilities

Who are they?

Utility and Public Service Commissions (Regulators)

Investor Owned Utilities (IOUs)

Publicly Owned Utilities (Municipal and Cooperative)

Consumer/Ratepayer Advocate Offices

Like a handful of other states, the State of Washington has received a waiver from the US Department of Health and Human Services to transfer 25% of its LIHEAP funding in order to weatherize a greater number of low income homes than if the state used up to the standard cap of 15% for weatherization.


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income communities?

The utility sector is diverse but all utilities share some common goals. Utilities are typically required to

provide energy supply to customers at a reasonable and affordable rate, while meeting other goals (e.g.,

Energy Efficiency Resource Standards and Renewable Portfolio Standards). Utilities are interested in

making it easier for low-to-moderate-income customers to pay their utility bills and avoid shut-offs and

other interruptions of service. But utilities are often seeking ways to reduce costs associated with LMI

programs to ensure fair return on investment to ratepayers; LMI programs typically require greater

incentives than market-rate programs in order to be effective.

Utilities may deploy renewable energy and energy efficiency for

different reasons. Many utilities acknowledge that energy efficiency

programs help reduce demand on their facilities and delay the need

for costly capital improvement projects. Utilities are increasingly

motivated by shareholders, regulators, and local policymakers to

utilize energy efficiency (including demand response) and renewable

energy as a resource and a means to reduce peak power costs and

customer satisfaction. Publicly owned utilities and co-ops are likely to

be interested in responding to customer and community needs as a

part of their business model. Regulated utilities may be deploying

energy efficiency and renewable energy in order to fulfill their

regulatory requirements.


Regulators often require utilities to provide equitable access to energy

services and benefits, where all ratepayers contribute to the cost of services and programs. As LMI

households are typically unable to benefit from market-rate energy efficiency incentives like product

rebates, utilities often create special energy efficiency and renewable energy programs in a region.

Whereas utility commissions have rate setting and regulatory oversight authority, utility companies (in

particular, IOUs) are often directly involved in policy and regulatory process design where it pertains to

electricity reliability, and have a direct line of communication to relevant elected officials and decision-

makers. Utilities that administer energy efficiency and renewable energy programs may be able to provide

insights, program strategies, and data relevant to their customer base to improve program design and

measurement of impact.

Energy and Environmental Organizations

Who are they?

Ouachita Electric Cooperative operates in southern Arkansas and provides its members the opportunity to save energy through the Pay As You Save (PAYS) model. Using PAYS, the utility invests in energy efficiency improvements for a specific property and recoups its investment through an opt-in utility tariff which adds a charge on the bill for that location.


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State weatherization agencies and state energy offices and their local sub-grantees that administer the

Weatherization Assistance Program (WAP)

Municipal sustainability, energy, and environmental offices

State environment and air quality offices

Nonprofit energy and environmental service organizations


income communities?

The state-level energy, environment, and air quality agencies are often driven by federal and state air and

water pollution reduction goals, including those directly associated with electricity production. Agencies

promoting triple-bottom-line sustainability seek systems improvements that draw less electricity and water

for commercial and residential uses. Nonprofit organizations often work to educate community members

and offer energy-saving programs to LMI households, nonprofit organizations, and small businesses.


State and local energy and environmental agencies are often in

a position to help shape energy policy and administer LMI

programs and funding. They can help navigate the regulatory

and permitting process of technology deployment, and estimate

project costs and ROIs. They are often in an ideal position to

convene stakeholders and develop a comprehensive energy

plan that includes a focus on LMI communities. State and local

weatherization agencies bring funding for projects, promote high

industry quality standards, and, as a proven channel for

delivering energy services to low-income households, they can

help leverage additional funds from utility and other sources.

Nonprofit energy service organizations often have proven

innovative models for engaging the community around energy

issues. They know what works when it comes to program

implementation.

Community Advocacy and Faith-Based Organizations

Who are they?

Environmental Justice Organizations

Faith-Based Organizations

Community Advocacy Organizations/Associations

The State of Massachusetts convened a working group in 2016 to identify key barriers and make recommendations to increase access to clean energy for LMI residents. The working group is comprised of public and private stakeholders focused on a spectrum of issues that included economic development, energy, and housing. Among other program opportunities, the group announced a grant. For examples of working group

participants, see Appendix B.


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income communities?

Generally, these organizations promote healthier environmental conditions and equitable access to

resources at the state or regional level. Where their work intersects with energy issues, these groups may

focus on ensuring that power production and delivery systems—which have a higher tendency to be

located in low-to-moderate-income communities—are adhering to all applicable pollution and wildlife

protection regulations. Generally, they work to ensure access to jobs, a clean environment, and community

health and safety programs.


Environmental justice, faith-based, advocacy organizations frequently

advocate for disadvantaged communities. These organizations play an

integral role in providing access to LMI communities and partnering

with developers to implement clean energy projects in communities that

would benefit from lower energy bills. They often have relationships

with local community leaders, lawmakers, regulators, and media that

cover these areas. These groups are often effective community

organizers and they can help identify communities in need and

effectively convene stakeholders around those needs. They can also

help identify where to target available resources and projects to

maximize economic and environmental impact in LMI communities.

They may be a powerful ally for energy efficiency and renewable

energy program managers seeking to build trust around project

development and strengthen participant engagement.

Public Financing Organizations

Who are they?

Housing Finance Agencies

Economic Development Agencies

Public Finance Authorities

Rural Development Agencies


income communities?

Public finance agencies are state and local entities vested with the ability to issue tax-exempt and taxable

Energy equity nonprofit Groundswell recently announced a partnership with Template of Praise, a 15,000+ member interdenominational church, to develop a community solar array on the church’s property that will provide clean, affordable energy for 150+ households in Washington D.C.’s Wards 7 and 8.


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bonds that benefit the residents of the community through job creation,

economic development, and/or housing opportunities. Energy efficiency

and renewable energy deployment aligns with the critical interests of

public finance agencies insofar as it results in public benefits. Many

successful state-based energy efficiency and renewable energy

financing programs are created by, housed at, or otherwise partner with

public finance agencies. For example, green banks are often public-

private partnerships emanating from a state’s economic development

authority.


An energy efficiency and renewable energy deployment program can

look to public finance agencies to provide capitalization funds and/or a

specific skill set needed to create an energy efficiency and renewable

energy lending program or other financing mechanism. Public financing

providers may offer infrastructure for program operations, underwriting

expertise, and/or safeguards to protect borrowers. A public finance entity

may provide insight about lending to different market sectors as well as

access to federal or other resources for energy efficiency and renewable energy deployment.

Private Financing Organizations

Who are they?

Foundations (National and Local)

Lending Institutions

o Community Development Financial Institutions (CDFIs)

o Private Banks

o Credit Unions


income communities?

The interests of private sector financing stakeholders, such as foundations, vary widely. They include

affordable housing, environmental objectives, and economic development. Banks and other lending

institutions may be looking to diversify their portfolios, expand their lending offerings, or provide a benefit to

the communities they serve (e.g., in compliance with Community Reinvestment Act).


Public finance authorities may have access to Qualified Energy Conservation Bonds (QECB). QECBs are bonds that enable qualified state, tribal, and local government issuers to borrow money at attractive rates to fund energy conservation projects. A QECB is among the lowest-cost public financing tools because the U.S. Department of the Treasury subsidizes the

issuer's borrowing costs.


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Like the public finance entities, private financing entities can bring

capital to fund energy efficiency and renewable energy finance

programs as well as specialized expertise and market data.

Foundations may provide grants or below-market loans to support

programs that advance their mission. Getting early support from

local foundations and philanthropic organizations can help attract

other types of investment – financial and otherwise. These groups

are often well-respected in their communities and can help bring

other key stakeholders into the process. Funding sources can be

blended together to create additional value. For example,

foundation funds may provide grant dollars that can reduce the

administration costs of a lending program or mitigate some of the

risks inherent to lending (e.g., creating a loan loss reserve). These

capital cost reductions or reductions to investment risk may

increase the interest and participation of a private bank in an

energy efficiency and renewable energy financing program. In

addition, private institutions often have large and sustainable pools

of capital. Their resources often exceed public entities’.

Workforce Development Organizations

Who are they?

State and Regional/Local Economic Development Entities

State and Local Workforce Boards and Agencies

Community Colleges

Skilled Trades and Apprenticeship Programs

Nonprofit Community-Based Job Training Organizations

What is their interest in deploying energy efficiency and

renewable energy in low-to-moderate-income communities?

Workforce development organizations can be comprised of and

directed by boards of employers, job training and labor

organizations, university representatives, public officials, and

others. These organizations focus on identifying education needs

and job opportunities for employers and workers in a region. They

possess funding and job training resources as well as a strong

desire to develop pathways to employment and careers for

Operating in Florida, the Solar Energy Loan Fund (SELF) is a certified CDFI that targets clean energy investment by providing energy expertise and favorable financing to underserved residents, small businesses and communities. SELF helps LMI residents face the steadily rising cost of utilities, addresses a need for greater energy independence, and increases access to capital and clean energy solutions.

As a national collaborative with projects in several cities across the US, the Emerald Cities Collaborative focuses on building pathways to skilled, high-paying green collar jobs within disadvantaged communities through broad-based coalitions and specialized strategies. For example, their E-Contractor Academy in Los Angeles prepares small and minority contractors for opportunities created by millions of dollars invested by the state and local municipality in energy efficiency projects. (Emerald Cities Collaborative).

http://emeraldcities.org/

http://emeraldcities.org/


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individuals who work or live in an economically disadvantaged areas, and are eager to partner with projects

that have employment opportunities. Programs that engage a growth sector like energy efficiency and

renewable energy are very compelling to workforce development organizations. The sector can put many

people to work at good-paying jobs.


Workforce development organizations can often develop customized job training based on employer and

employee needs. They can also support entrepreneurship and development of new contractors that are

skilled and well-suited to serve their community. These organizations can also be a conduit for general

community awareness and education about energy efficiency and renewable energy benefits and

opportunities.

Private Contractors

Who are they?

Program Implementers (i.e., firms that design and manage programs for public and nonprofit sector agencies

and utilities)

Project Developers

Renewable Energy Providers such as Solar Installers

Large-scale Project Developers

Weatherization and Home Performance Contractors

Contractor Associations (e.g., minority or woman-owned businesses, neighborhood business associations,

statewide contractor associations)

Energy Service Companies (ESCOs)


income communities?

Program implementers are often engaged by public sector agencies and utilities to design and manage the

implementation of programs, including those targeting LMI communities. Implementers are often interested

in partnering on the development of new pilot programs using practical approaches. Low-to-moderate-

income communities can represent an untapped market for local contractors and solar project developers.

These businesses are often interested in hiring local workers for these jobs, particularly if their business is

based in the LMI communities being served or they have another connection to these commmunities.

Project contractors are often required to hire locally if they receive public funding.


These providers can give you feedback on feasibility of proposed program approaches, as well as reliable


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estimates on costs, ROI, payback timeframe, and technical and economic feasibility. These entities are

also likely experts in local siting and permitting requirements. They may have expertise in marketing to

local communities and relationships with local capital suppliers and investors. They also may be good

conduits for identifying commercial entities with a high likelihood of participating, such as multifamily

building owners. However, given the profit motive and procurement best practices, it is important to

consider conflicts of interest and engage input through an open process where diverse private contractors

can submit comments. At the appropriate time in the project process, private contractors should bid on

work to ensure best use of public resources.

Conclusion

Engaging organizations in a variety of sectors with a shared interest and resources to contribute to your

goals is essential to developing a successful and sustainable LMI energy program. Whether you are

looking to secure new partners and resources for existing programs, or launch new programs, engaging a

variety of stakeholders can help develop a clearer picture of needs and gaps and build buy-in to your LMI

energy program and help ensure available programs and resources are put to good use. For additional

information on how to use this guide in development of an LMI program, contact members of the DOE

Weatherization and Intergovernmental Programs team at [email protected].


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APPENDIX A – FEDERAL AND NATIONAL AGENCIES

Federal Agencies Recommended for Stakeholder Engagement

U.S. Department of Energy

U.S. Department of Treasury

U.S. Department of Housing and Urban Development

U.S. Environmental Protection Agency

U.S. Department of Agriculture

U.S. Department of Health and Human Services

U.S. Department of Labor

National Non-Governmental Organizations Recommended for Stakeholder Engagement

Note: given limited space, all organizations have been identified with a primary category even if they may in fact be involved in activities that cross multiple categories.

National Policy Associations

National Council on State & Local Legislators (NCSL)

Vote Solar

Housing & Community Development Organizations

National Low Income Housing Coalition

National Housing Trust

Enterprise Community Partners

Stewards of Affordable Housing for the Future (SAHF)

Energy Efficiency for All (EEFA)

Health & Human Services Organizations

National Community Action Fund

Community Action Partnership

Green and Healthy Homes Initiative

Utilities

National Energy and Utility Affordability Coalition (NEUAC)

National Association of Regulatory Utility Commissioners (NARUC)

National Rural Electric Cooperative Association (NRECA)

American Public Power Association

EEtility

Energy & Environmental Organizations

National Association of State Energy Officials (NASEO)


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Urban Sustainability Directors Network (USDN)

National Association of State Community Service Providers (NASCSP)

National Energy Assistance Directors' Association (NEADA)

Rocky Mountain Institute

American Council for an Energy-Efficient Economy (ACEEE)

Vermont Energy Investment Corporation (VEIC)

BlocPower

Groundswell

GRID Alternatives

Community Advocacy & Faith-Based Organizations

National Consumer Law Center (NCLC)

National Association for the Advancement of Colored People (NAACP)

Interfaith Power and Light

National Urban League

Financing

Low Income Investment Fund (LIIF)

Council of Development Finance Agencies (CDFA)

Workforce Development Organizations

Green For All

Emerald Cities

American Association of Community Colleges (AACC)

North American Board of Certified Energy Practitioners (NABCEP)

Building Performance Institute (BPI)

Laborers’ International Union of North America (LiUNA)

International Brotherhood of Electrical Workers (IBEW)

Solar Training Network

Private Developers & Contractors

Home Performance Coalition (HPC)

Efficiency First

Air Conditioning Contractors of America (ACCA)

National Association of Home Builders (NAHB)

American Association of Blacks in Energy (AABE)


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APPENDIX B – Examples of a Stakeholder Engagement Convening

Massachusetts’ Affordable Access to Clean and Efficient Energy Initiative (AACEE)

State Agencies

Massachusetts Department of Energy Resources

Massachusetts Department of Housing and Community

Public and Quasi-Public State Organizations

Community Economic Development Assistance Corporation (CEDAC)

Massachusetts Clean Energy Center (MassCEC)

MassHousing

Mass Housing Partnership

Metropolitan Area Planning Council (MAPC)

Private Stakeholders

Boston Community Capital (BCC)

Center for Sustainable Energy (CSE)

Co-Op Power

Energy Efficiency Program Administrators (PAs)

Habitat for Humanity: Cape Cod

Homeowner’s Rehab, Inc. (HRI)

Local Initiatives Support Corporation (LISC)

Low Income Energy Assistance Network (LEAN)

New Ecology (NEI)

Preservation of Affordable Housing (POAH)

Worcester Green Low Income Housing

Colorado Commission on Low-Income Energy Assistance Commission Members (CCLIEAC)

Energy Outreach Colorado – Private Energy

Colorado Department of Human Services – LEAP

Summit Utilities, Inc. – Private Energy

Xcel Energy – Private Energy

Atmos Energy – Private Energy

Energy Resource Center – Private Energy

Colorado Energy Office – State of Colorado

Members of the Public / Consumers


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Documents

Energy Efficiency and Renewable Energy Solutions for Low ... › sites › default › files... · Energy Efficiency Resource Standards and Renewable Portfolio Standards). Utilities