WAP Resources Increase by 10 Percent, Network to Weatherize 186,779 Homes

The National Association for State Community Services Programs (NASCSP) has released its second funding survey for the Weatherization Assistance Program (WAP). The Weatherization Assistance Program PY 2002 Funding Survey,"  traces WAP funding from PY 1987 through PY 2002. The latter year's estimated funding level of $555.6 million is an increase of 9.8 percent, or $49.4 million, over the PY 2001 total of $506.2 million. Funding levels for the WAP have risen steadily over the past six years and are now at the highest level since NASCSP began tracking them.

As in prior years, WAP funds are derived from four major sources: the U.S. Department of Energy, LIHEAP, Petroleum Violation Escrow (PVE) funds, and "other," which means funds from utilities, states and property owners.

DOE funds are about $225.4 million, or 40.6 percent of the total, an increase of 45 percent from PY 2001's $155.7 million. This increase is attributed to the President's establishment of WAP as a priority during his administration and his commitment to increase WAP funding by $1.4 billion over 10 years.

LIHEAP contributions totaled nearly $201 million, or 36 percent, of funds available for WAP, a decrease of 12 percent from PY 2001. The amount of LIHEAP funds dedicated to the WAP tends to be in direct proportion to the LIHEAP appropriation; thus, the decrease is a result of reduced LIHEAP funding for FY 2002 compared to FY 2001.

PVE funds totaled about $6.9 million, about one percent of the total, and the "other" funding category was estimated at nearly $122 million, about 22 percent of the total. The "other" funding level is about $5.4 million more than last year – the smallest increase in six years – and an increase of five percent over PY 2001.

As in prior years, utility funds were the primary source of "other" funds followed by state general fund revenues, property owner contributions and rehabilitation grants. Most of the utility funds were attained through intervention in electric and gas restructuring proceedings by state and local entities, which led to the creation of system benefit programs, including WAP-related initiatives.

The survey predicts that "other" funds may rise slightly over the next few years, as utility restructuring policies or laws are enacted in states where this activity has already been initiated. However, the survey noted: "There is some concern that states already engaged in restructuring and service benefits programming may begin to lessen requirements for low-income program funding to be paid by ratepayers. Additionally, in some states like MD and CA, these programs must be renewed periodically and always run the risk of being discontinued due to political pressure or unexpected program outcomes. Equitable distribution of these funds is unlikely and some states will not receive any benefits from restructuring activities."

The survey also reports that states estimate that approximately 186,779 homes will be weatherized during PY 2002 using the various funding streams. The survey includes state-by-state resource tables for the years1987 through 2002.

Page Last Updated: December 7, 2005