Monday, April 13, 2009

NLBMDA ALERT: Department of Energy Releases Details on $8 Billion in Stimulus Weatherization Grants


An Alert from NLBMDA

DOE recently announced it will invest nearly $8 billion in state and local weatherization and energy efficiency efforts as part of the recent stimulus legislation (The American Recovery and Reinvestment Act). The funds will be divided between the Weatherization Assistance Program, which will receive nearly $5 billion, and the State Energy Program, which will receive up to $3 billion. DOE says this will help families save hundreds of dollars every year on their energy bills, while creating approximately 87,000 jobs. To jump-start the job creation and weatherization work, DOE is releasing $780 million in the next few days, and will release more as the states demonstrate that they are using the funding effectively.

The State Energy Program funding will be used to provide rebates to consumers for home energy audits or other energy-saving improvements; to develop renewable energy and alternative fuel projects; to promote Energy Star products; to upgrade the energy efficiency of state and local government buildings; and other innovative state efforts to help families save money on their energy bills. The weatherization funding will improve the energy efficiency of the homes of low-income families by adding more insulation, sealing leaks, or modernizing heating and air conditioning equipment, at a cost of up to $6,500 per home. The energy efficiency upgrades will be available for families making up to 200% of the federal poverty level. For a family of four, this translates to about $44,000 per year in the lower 48 states, $55,140 per year in Alaska, and $50,720 per year in Hawaii. See the Weatherization Assistance Program Web site and the State Energy Program Web site.

It is important to note that all assistance is disbursed through the states and local governments. This is not a direct grant program from the federal government to consumers. The best guidance for consumers that want to apply for weatherization assistance can be found on this site.

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