DOE offers $18.6M to assist state, local and tribal governments expand Weatherization Assistance Program

Published on December 17, 2021 by Chris Galford

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The U.S. Department of Energy (DOE) recently announced an $18 million funding opportunity for state, local and tribal governments to help them improve their Weatherization Assistance Program (WAP) and lower energy costs to promote energy efficiency retrofits.

WAP has been in operation since 1976, during which time it has saved some 7 million households approximately $283 in annual energy savings. However, eligibility has its restrictions. The DOE wants to expand the types of residential buildings eligible for energy efficiency retrofits and prepare more homes for electrification while aiding local, clean energy job opportunities. Done successfully, the department noted that such an expansion could save Americans billions in energy costs.

“Weatherization retrofits and home energy upgrades – like heat pumps, LED lighting, insulation and sealing up leaks — cuts monthly energy bills for families by up to 30%, and makes our air healthier,” Secretary of Energy Jennifer Granholm said. “Thanks to the investments in the Bipartisan Infrastructure Law, DOE will be able to help even more communities, cut more air pollution, and generate good-paying local jobs.”

Additionally, the DOE noted the extra funding could promote targeted benefits for communities disproportionately hit by high energy burdens. Approximately two-thirds of low-income households bear high energy burdens, costing them more than 6 percent of their income. Certain minorities pay a heavier price than others. According to the DOE, Black households spend 43 percent more of their income on energy costs, Hispanic households spend 20 percent, and Native American households spend 45 percent.

Funding awards of up to $2 million each will improve traditional weatherization services, assist home repairs and upgrades for electrification, and deploy new technologies and practices. Up to $18.6 million will be made available this year and up to $25 million each year through 2025. Each award will be scrutinized under a three-year performance period.

Aiding WAP at large will be $3.5 billion in additional funding from the Bipartisan Infrastructure law, passed earlier this year.