First ARRA Weatherization, Energy Efficiency Funding Released

Over the next few days, the Department of Energy will be releasing the first installment of $8 billion in funding for weatherization, Energy Secretary Steven Chu said Thursday.

With an investment of about $5 billion through the Weatherization Assistance Program and about $3 billion for the State Energy Program, the Energy Department will partner with state and local governments to put 87,000 Americans to work and save low-income families hundreds of dollars a year on their energy bills.

The first installment amounts to about $780 million, and the department will release additional funding over time as states "demonstrate that they are using the funding effectively and responsibly to create jobs and cut energy use," the secretary said.

This homeowner is insulating his house with a product made from recycled blue jeans. (Photo by John Barrie)

The funding will support weatherization of homes by adding more insulation, sealing leaks and modernizing heating and air conditioning equipment, which Chu says will pay for itself many times over.

"Even as we seize the enormous potential of clean energy sources like wind and solar, the American Recovery and Reinvestment Act makes a major investment in energy efficiency, which is the most cost effective route to energy independence," Chu said.

The Weatherization Assistance Program will allow an average investment of up to $6,500 per home in energy efficiency upgrades and will be available for families making up to 200 percent of the federal poverty level - about $44,000 a year for a family of four.

That level rises to $55,140 for Alaska and $50,720 for Hawaii.

The improvements are estimated to reduce home heating bills by an average of 32 percent.

"This energy efficiency funding for states is an important investment in making America more energy independent, creating a cleaner economy and creating more jobs for the 21st century that can’t be outsourced," said Vice President Joe Biden.

The State Energy Program funding will be available for efficiency upgrades for state and local government buildings, and individuals will also benefit from these funds.

State Energy Program funding will pay for rebates to consumers for home energy audits or other energy saving improvements; development of renewable energy projects for clean electricity generation and alternative fuels; promotion of Energy Star products; and other innovative state efforts to help save families money on their energy bills.

In addition to the $5 billion in the ARRA to weatherize the homes of low-income families, there is also a $1,500 tax credit to help homeowners invest in efficiency upgrades; $6.3 billion to implement state and local efficiency and renewable programs and $4.5 billion to "green" federal buildings, including reducing their energy consumption.

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