Sources of Funding for the Weatherization Assistance Program

Funding for low-income weatherization has historically come from several sources and represents a partnership of both public and private organizations. By far the largest contribution has come from the U.S. Department of Energy (DOE), totaling more than $6 billion since 1978.

Other sources of funding include other federal programs that serve low-income families such as the Low-Income Home Energy Assistance Program (LIHEAP), state agencies, utilities, settlements from lawsuits, and other private-sector interests such as landlords of buildings receiving weatherization services.

LIHEAP Contributions to Weatherization

After DOE, the second source is from the LIHEAP, a program administered by the U.S. Department of Housing and Human Services (HHS) . Although LIHEAP's mission is to provide direct assistance to the poor-to make sure their heating bills are paid, its rules are flexible and allow as much as 25% of funding to the states to go toward weatherization.

Historically, LIHEAP funding for weatherization is proportional to its total funding, which you can see on a chart published by the LIHEAP Clearinghouse titled LIHEAP funding history.

Utility Low-Income Programs and Weatherization

Another significant source of funding is from electric and gas utilities. By far the largest private investment has come from utilities located in states where their regulatory commissions have supported low-income weatherization. In these states, where utility programs complement and add to services provided by weatherization, energy services to low-income families are the most comprehensive.

In its Progress Report of the National Weatherization Assistance Program (PDF 4.8 MB) Download Adobe Reader. DOE researchers at Oak Ridge National Laboratory (ORNL) found that utilities were responsible for 22% of all weatherization projects between 1978 and 1989 (see page 17). They also found that the presence of utility programs correlated with the most effective service to low-income clients because the utility programs and DOE-sponsored weatherization could complement each other.

Settlements and Private-Sector Investment

A third major source beginning the 1980s was the Petroleum Violation Escrow (PVE) Fund. These funds came from legal penalties assessed against oil companies for violating price controls.

Finally, numerous small and other private organizations contribute funding or in-kind services. For example, landlords of multi-family housing units with low-income clients often contribute their own funds and in-kind services when their buildings are weatherized. Regardless of its source, most funding for low-income weatherization has been spent according to DOE's Weatherization Assistance Program rules and guidelines.