FFY2012 EAP Annual Training Section 1

1. FFY2012 EAP Annual Training Section 1 Includes State of the Program, Training Approach and WAP

2. Amanuel Asghedom Ken Benson Jynell Boulka Doug Burns Kathy Hochreiter Mark Kaszynski Sue Lenarz Jeff Mitchell Sandy Seemann Pam Tienter-Laird Special guests Marilou Cheple, DOC David Miller, DOC Tracy Smetana, PUC DOC Staff Staff

3. Thank You! • Thank you • Another record year • Three record years in a row • EAP helped 736,000 households in the past five years • EAP received $662 million in the past five years • WOW!!! Fist

4. State of The Program

5. 10-27-10 CR $64,806,111 • 12-13-10 Award $21,602,037 • 01-18-11 Award $56,340,398 • 01-28-11 Award $230,561 • 04-08-11 CR $1,548,425 • 05-20-11 Award $713,423 Total $145,240,955 • 01-28-11 Emergency Contingency $7,318,258 Grand Total $152,559,213 MN’s LIHEAP funding FFY2011N’s LIHEAP funding FFY2010

6. Services to Households • FFY2011 was a record year- AGAIN • 172,169 households served (4.81% over last year) • Average grant $506 (planned $500; $634 last year) Services to Households

7. FFY2011Weekly Comparison As of August 1 2011

8. By the Numbers (in the thousands) • ERR • 096,860 $8,227 • 10 7,140 $8,841 • 11 7,505 $8,429 • ROFW • 09 3,235 $1,252 • 10 5,794 $2,145 • 11 3,097 $1,141 • Households Served • 09 153,721 $ 75,268 • 10 164,783 $104,524 • 11 172,169 $87,200 • Crisis • 09 73,046 $33,219 • 10 71,588 $30,901 • 11 75,905 $35,753

9. State Shutdown Impact • Payments • Planning • Project • Vendor Monitoring • SSN • Training • Mailing • Its not over yet

10. FFY2012 • More uncertain than ever before • President’s budget proposed a 50% cut • Recent budget deficit agreements cut government spending- sounds like everything will be cut • LIHEAP has strong support from many interest groups • Governor and Commissioner strongly support LIHEAP

11. Training Approach

12. EAP Annual Training Overview • To promote compliance with state standards and program consistency • To build skills and understanding • To influence attitudes • To identify and address program changes • To enable coordinators to train their staff Training Intentions

13. EAP Annual Training Overview • An informed and well-trained service provider system • An advocacy orientation • Compliance with program rules and consistent application • Service provider sharing of best practices Values

14. EAP Annual Training Overview • Training for program implementation • EAP Management Approach • Coordinated Responsible Model • Internal Controls Framework (ICF) • Business Strategy Model • Quality & Performance Control • Promising Practices Focus

15. EAP Annual Training Overview • Training on changes and selected topics as needed • Review applications • Program improvements • Addressing compliance issues from last year • Identifying and preparing trainers • Debriefing • Follow up • TAD • Train-the-trainer materials Focus, continued

16. EAP Annual Training Overview • Audience: Coordinators plus 1 • Assumptions • The Local Program Experts • The Local Program Trainers: Train-the-Trainer • Excludes • EAP 101 • Making EAP policy • Designing eHEAT enhancements Focus, continued

17. EAP Annual Training Overview • Stakeholders • Program Implementation • Program Improvement • Training at local level • Communication • Vendor Management • More on this later in the training Coordinator’s Role

18. Q & A Coordinator’s Role

19. MN Weatherization Assistance Program Update Marilou Cheple DOE 2010 in Review American Recovery and Reinvestment Act – ARRA

20. Total Dwellings Weatherized: • 670 dwelling units received DOE funds • Low number due to emphasis on ARRA units • 2502 dwelling units received EAP/WX funds • 1854 dwelling units received CIP funds Note: all numbers are approximate 2010 in Review

21. Reporting improvements and expansion • Many new reports are available in WA (Weatherization Assistant) • They contain an excellent summary of data by individual conservation measures and aggregate information, including: • Health and Safety • Conservation • Mechanical • These reports are accessible to all SP coordinators. • May be shared with Directors • May be shared with others with data privacy considerations 2010 in Review

22. Increased State monitoring • Field • Fiscal • Increased Federal monitoring • From biennially to quarterly • Increased amount of reporting and scrutiny Changes in Monitoring

23. The Tribal governments have taken steps toward self-sufficiency in the Weatherization Assistance Program (WAP) • Four tribes have hired auditors, are learning the software, and are working with contractors or their own housing units to complete production work Tribal government changes

24. “The American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, was enacted to preserve and create jobs and economic recovery.” • Financial Assistance Funding Opportunity Announcement DE-FOA-0000051, March 12, 2009. ARRA

25. As of June 30, we met and exceeded our ARRA goal of weatherizing 16,856 dwellings • Actual number on June 30 was 17,153 units • Minnesota WAP has spent 84.4% of the $132 million of ARRA funding (July 24 report) • In the top five for the country ARRA Update

26. Minnesota received a grant of $6.2 million for Sustainable Energy Resources for Consumers (SERC) • Provided input in a National WAP Evaluation Survey • Designed to show energy savings of WAP ARRA Update

27. The eligibility income level was increased to 200% • The average expenditure per dwelling is now $6500 • The date for re-weatherization is now September 30,1994 • Visibility, energy savings and structure of the program dramatically increased ARRA Changed WAP

28. Strengthened the mechanical replacement option, increased energy savings from program changes, expanded HVAC contractor work • Further enhanced the EAPWX partnership, the funding combinations and cost savings calculations • Leveraged gas and electric utility conservation funds to serve more low income families • Strengthened the relationship between MHFA and WAP regarding multifamily production ARRA Partnerships

29. ARRA created 550 new WX jobs in Minnesota each quarter during the contract period • Funded a pilot study which will evaluate the effect of intensive client energy education and energy savings • Funded an U of M Extension WAP economic analysis research project ARRA Jobs and Research

30. Are in the process of executing a $250,000 grant to create curriculum development for • WX Administration • WX Program Management • Client Education • WX Project Management • Strengthened our Training Program Training

31. Department of Labor enforced strict reporting requirements for local wages of weatherization workers based on prevailing wages by county • Created an administrative burden for Service Providers, the State office and for local contractors • Davis Bacon rules and wages applied only to the ARRA funding and will not be required of future regular DOE grants. ARRA – Davis Bacon

32. HUD and DOE entered into a Memorandum of Understanding regarding eligibility in multifamily rental buildings • Residents of a particular group of buildings will become automatically eligible for WAP services • State Historical Preservation Office (SHPO) • New reporting requirement are now in effect Other Changes at the Federal Level

33. Increases have been made in • The General Repair limit - $1000 per dwelling • Health & Safety average per home - $1000 average per dwelling • Much greater documentation and reporting WAP Changes at the State Level

34. WAP - Unchanged DOE priorities remain: Elderly Disabled Families with children under 19 High consumption households (determined by eHEAT) High energy burden

35. Regular DOE funding – 2011-2012 • $14,000,000 (includes carryover) • ARRA Funding (Three year grant) • $131,937,411 • Approximately $20 million unspent • EAPWX Transfer – 2010-2011 • $7,262,047 DOE and ARRA – Numbers and Dollars and Contract Years

36. Units to be completed – DOE Regular • 2011 – Approximately 1540 • Units to be completed – Remaining ARRA • Approximately 2500 • Units estimated to be completed using EAPWX funds • Approximately 2000 Production Projection

37. Commitment by DOE for market transformations that encourage residential energy savings • Development of a national standardized energy audit for middle class households • Minnesota is one of states evaluating a pilot study • Some uncertainty regarding robust federal funding for low income weatherization What lies ahead?

38. David Miller WAP

39. DOE and ARRA averages remain at $6500 • All ARRA funding ends March, 2012 • WAP income eligibility remains at 200% of the Federal Poverty Income Guidelines • The 200% “GAP” households have eHEAT data and search options • DOE funding for 2011-2012 year will weatherize 1550 homes Overview of WAP

40. On-site monitoring continues on 10% of all job completions and in-progress energy audits. • Extensive DOE program and fiscal monitoring. • Ongoing training continues to be provided to: • Local energy auditors and final inspectors • Weatherization insulation contractors • HVAC contractors • Program managers WAP Monitoring and Training

41. The ‘re-weatherization’ date remains the same, September 30, 1994. A home which was weatherized after that date cannot be served again. WAP Re-Weatherization

42. The DOE and ARRA Health and Safety expenditure amount remains the same, $1000. • This is a cost average, for each job. • The $1000 average also applies to the ‘Mechanical Health and Safety’ line-item for EAP/WX funds. EAP/WX Partnership Details

43. As weatherization tightens homes, indoor air quality and moisture issues must be addressed and installation costs factored for: • Carbon monoxide • Air ventilation and air-exchange rates • Mechanical and furnace systems • Client education EAP/WX Partnership

44. WAP replaces older furnaces dependent on natural draft with new high efficiency models. • This achieves 10% to 20% higher energy savings • However, changing out furnaces poses CO and back-drafting problems for orphaned water heaters. • EAP/WX Health and Safety funds are necessary to replace unsafe water heaters and replace them with power vented units. EAP/WX Partnership

45. Replacing unsafe furnaces cannot be considered a ‘conservation’ measure unless they achieve an SIR of one or greater. • EAP/WX Health and Safety funds are then used to replace furnaces that are not working properly, are red-tagged, or are non-functioning. EAP/WX Partnership

46. Indoor air quality measures such as kitchen venting, dryer ducts, bathroom fans, and installations of CO and smoke alarms are all part of the Healthand Safety partnership. EAP/WX Partnership

47. Almost 50% of all EAP/WX funds are spent on Health and Safety measures. EAP/WX Partnership

48. The Energy Conservation option of EAP/WX funding provides a necessary supplement to DOE (and ARRA) conservation measures, especially with larger homes and those with boiler systems that are used for heating. EAP/WX Partnership

49. Over 40% of all EAP/WX funding is spent on EnergyConservation measures. • Each measure must have a Savings-To-Investment Ratio (SIR) calculation of one or greater to ensure cost effectiveness. • And, ‘total job’ SIR calculations must also have an SIR of one or greater. • Both DOE and state office staff monitor the measures for all the WAP Service Providers’ jobs. EAP/WX Partnership

50. Each weatherization job specifies the exact amount of EAP/WX funding used by each individual measure and by the cost. • Detailed summary reports are available using the Weatherization Assistant (WA) software for expenditures and the types of measures. EAP/WX Partnership