Weatherization + Economic Stimulus = JOBS & Energy Security

Weatherization technicians, construction workers, HVAC (heating, ventilation, & air conditioning) contractors, and anyone else who knows how to weatherize houses will see a huge boost in demand for their services as a result of the Obama economic stimulus package recently approved by Congress. Texas, historically short-changed by weatherization fund allocation formulas, finally will receive very close to its proper allocation to provide energy efficiency services to its low-income households.

The economic recession has idled a significant number of workers in the construction and building trades (unemployment rate, January 2008 – 11.4%, January 2009 – 19.2%). Unemployed subcontractors in housing construction trades will find ample opportunities to bid on weatherization work all across Texas over the next 18 months at least.

If you do this kind of work, don’t bother calling the Texas Department of Housing and Community Affairs, but do visit the TDHCA web site, Energy Assistance Program, to obtain a list of local “subrecipient” agencies which actually hire weatherization workers. TDHCA receives weatherization grant money from the federal government, which makes TDHCA the grant “recipient.” TDHCA then disburses the grant money to a network of 34 “subrecipient” agencies – mostly non-profit “community action” organizations. Look under “Programs” and then “Energy Assistance,” you will find links to lists of subrecipient agencies that provide utility assistance and weatherization services to low-income households in all 254 counties in Texas. The lists appear in “pdf” documents and display organizations in alphabetical order both by agency name and by county served.

Contractors willing to travel a bit will find community action agencies in rural counties chronically short of weatherization subcontractors willing and able to bid on jobs. These counties do not lack for low-income houses in need of weatherization and energy efficiency services. Subrecipient agencies whose weatherization budgets never exceeded a few hundred thousand dollars in the past will find their 2009 budgets well in excess of a million dollars. Their existing contractors simply cannot do all the work required.

If you think you can’t travel 200 miles to the work site and still make a profitable winning bid in these rural counties, think again. The local boys can outbid the out-of-towners on the low volume they did in the past; however, the volume of work has increased so much that they cannot possibly do acceptable quality work on a much larger number of dwelling units in the time allotted.

Let me give you some idea of the magnitude involved here. The U.S. Department of Energy (USDOE) gave Texas about $6 million in 2008 to weatherize low-income houses and apartments. They also limited the cost per house to about $3,000. The 2009 stimulus package (ARRA) will increase the Texas DOE weatherization program grant to well over $200 million. The feds also increased the per-house allowance to $6,500. So that means less travel and more work per house than before. Any weatherization or energy efficiency work must achieve a savings-to-investment ratio (SIR) of one on the Texas home energy audit. Every “energy efficiency measure” – whether insulation, caulking, duct repair, or equipment replacement – must save more energy over its expected lifetime than it costs to install.

The TDHCA Energy Assistance web site contains links to the DOE State plan (WAP: Weatherization Assistance Program). The State Weatherization Plan cites state regulations in the Texas Administrative Code (TAC, which will update on March 12, 2009) and DOE guidelines (10 CFR 440) that govern the WAP (see also WAP Technical Assistance Center) and define standards.

Energy efficiency services companies contemplating hiring additional crews will find, besides thousands of unemployed tradesmen, a statewide network of community college systems willing to provide trained workers. The administrators of the community colleges might not always know where to direct you. Don’t get discouraged. The teachers in construction trades, building technology, and HVAC will gladly talk to you and do all they can to find placements for their program graduates.

This sounds like a crazy lot of money, and it is, compared to past years. The national recession, deep concerns about energy conservation and energy security, and climate change have motivated the President and Congress to act. They want to put people to work, reduce wasted energy, and reduce greenhouse gas emissions. Energy saved at home means fuel saved at the power plant. Weatherization programs help not only the low-income households but the utility companies. If a household cannot afford to install weather stripping, insulation, or an efficient air conditioner, they probably cannot afford to pay their $600-$800 electric bill either. The utility company gets stuck with that delinquent bill. Weatherization helps make home energy more affordable.

If the Texas Legislature, through the Public Utility Commission, decides to compel rural electric cooperatives to provide demand side management (DSM) programs to their customers, demand for home and commercial energy efficiency services could grow enormously – even after the “Stimulus Package” money runs out. Energy efficiency services represent an industry with jobs that no one can outsource overseas. If utility-based incentive programs go mainstream, Austin Energy probably represents the wave of the future.
As Van Jones told conferees at the Texas Energy Future Conference (Green Jobs) on Wednesday, February 18th, 2009 at the Texas Capitol, the immediate future does not involve high-tech gadgets and “ray guns,” but insulation and caulk guns. Existing technology will buy us time while we build bridges to a “greener” future. Making homes and other buildings more energy efficient will improve our economy and our ecology at the same time.

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