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September 10, 2008
AUGUSTA – A Task Force of Maine Legislative leaders and policy experts working to develop a plan for the state to help Mainers keep their homes warm this winter and beyond met all-day on Wednesday. The Task Force finished their information-gathering stage, hearing from representatives from the Maine State Housing Authority, the Attorney General’s Office, The Maine Municipal Association, spokespeople from banks and credit unions, a specialist who reported on programs available in other states and forecasts from Maine oil and wood dealers.
Senate President Beth Edmonds and Speaker of the House Glenn Cummings created the Task Force in August to review the state’s resources and needs, as Maine homeowners and renters head toward what is expected to be a challenging and expensive winter with oil prices reaching historic levels. Senate Majority Leader Libby Mitchell, D-Vassalboro and House Majority Leader Hannah Pingree, D-North Haven serve as the group’s chairwomen, and the rest of the committee is made up of the other House and Senate Democratic and Republican floor leaders and policy experts from other legislative committees.
At Wednesday’s meeting, Task Force Committee members generally agreed that whatever they end up recommending to the new legislature in December will be largely dependent on what Congress dedicates for federal fuel assistance through the Low Income Home Energy Assistance Program (LIHEAP), expected to come later this month or early in October. The Task Force heard in its initial meeting that even if Congress only passes a continuing resolution delivering the same amount of funding as Maine received in 2007, the money would not run dry before the end of the year – making a special session strictly to allocate more state funds for LIHEAP before the next legislature is elected in November unnecessary.
The local CAP agencies don’t start issuing LIHEAP checks until the middle of October, and the Housing Authority does not expect the funds to run out in the six weeks between then and when the new legislature convenes - even if the state gets the minimum allocation from Congress. But Pingree said that if it looks like the state is going to need more money at any point, the legislature will be ready to act.
Dale McCormick, Director of the Maine State Housing Authority, said that the New England Governors have requested from Congress an increase to $1 billion in LIHEAP funds for the region, netting Maine around $150 million in additional aid. At those levels, the program would be able to offer an $800-$900 average benefit – buying the same amount of fuel the program provided in 2005-06. She said that if this extra federal allocation is not approved, the governor will likely ask the Legislature to dedicate state funds for LIHEAP to raise the benefit.
McCormick focused her remarks on a problem facing many Maine homeowners of all income levels – inefficient homes and apartments. Maine has among the oldest housing stock in the country, and many Maine homes are especially inefficient at producing and holding heat. Homeowners can save hundreds or even thousands of dollars by having their home audited to determine what needs to be sealed or replaced, and then performing the work – often with the help of a low interest loan.
Committee members expressed interest in expanding weatherization aid, particularly for low and middle income homeowners, but resources and contractors to do the work are thin. McCormick said the current limiter to dramatically expanding weatherization in Maine is not necessarily money, but training. There are not enough certified energy auditors across the state to help homeowners determine where they need to invest in order to improve home efficiency. State training programs for auditors are currently booked through Thanksgiving, according to a MSHA representative who spoke at the Task Force’s first meeting in August.
The Task Force also heard from representatives from the Attorney General’s Office, who briefed members on consumer protection laws and legal issues that may arise for municipalities dealing with emergency heating situations, particularly involving intervening on landlord-tenant disputes.
“The concern on the part of the municipalities is ‘what kind of help can we provide without being told that we also will have these other landlord responsibilities,’” said Linda Pistner, of the Attorney General’s Office. She said that when a municipality opens a public building - such as a school or city hall - to house people if their building is not able to provide heat, they become responsible for public housing codes and liabilities that those buildings are not equipped to provide. She advocated for the Legislature to consider adjusting state laws to take such situations into account and relieve pressure on towns and cities that are trying to help by opening up buildings that were not intended to be used as housing.
Linda Conti, also of the Attorney General’s Office, addressed the consumer protection laws overseeing oil dealers to ensure that they are operating fairly. Conti said that high prices do not constitute broken laws – she said that as long as the price is disclosed openly, it is not illegal to be especially high. The only special consumer law concerning oil delivery that she could recall was one requiring oil dealers to deliver as little as 20 gallons to a person paying with cash, starting in October. She said that oil dealers have generally operated within the laws and there was no record of substantial abuse or manipulation.
The Task Force ended their morning session with representatives of private financial institutions across the state that offer assistance, particularly through loan programs, to help homeowners improve efficiency. Banks are administering the Housing Authority’s “HELP” loans, which offer low interest rates for home efficiency updates, and Mark Walker of the Maine Bankers Association said that some banks are considering new green loans for energy efficient cars, investments in home efficiency and home audits, and solar and wind energy developments. John Paradise, Spokesman for the Maine Credit Union League, said that state credit unions offer similar programs.
In the afternoon, the Task Force heard from Glen Anderson from the National Conference of State Legislatures, who tracks state energy policy. He presented an overview of how the LIHEAP program is used for weatherization, and how states add to what he said is an under-funded federal program. He mentioned that the federal government is considering increasing funding through LIHEAP, but predicted that it would not make a big impact because the cost of oil has increased so much.
Anderson described specific programs that other New England states have developed to help supplement LIHEAP funds. Some states offer a low-interest loan for energy efficiency upgrades worked directly into a household's utility bill, which is then paid off by the savings that the upgrades generate. A homeowner’s bill would not change, they would have no separate loan payment and their loan would still be paid off over time.
He pointed to Massachusetts, which offers a grant program and free insulation and weather stripping for LIHEAP eligible homeowners. Connecticut runs the Connecticut Clean Energy Fund, which dedicates a 0.3 cents per kWh rate charge – amounting to around $5 per month for most ratepayers – toward weatherization, energy audits and efficient appliances. New Hampshire also assesses a system benefits fund, from which the money pays for LIHEAP eligible and slightly higher income households for energy audits and weatherization upgrades. The Granite State also implements the efficiency loan program that is paid off through savings on an energy bill.
Vermont’s program is managed by a third party, and it provides similar weatherization benefits through public benefits funding. Anderson said the program saves Vermonters $2 for every $1 spent.
Rep. Jon Hinck, D-Portland, serves on the Task Force and also the Utilities and Energy Committee. He expressed interest in the weatherization programs in neighboring states, but pointed out Maine's lack of weatherization contractors, and asked if other states had plans to fill in their blanks. Anderson said that some states are working to implement efficiency and energy training into their community college programs, an idea that some committee members including Hinck and Rep. Bruce MacDonald, D-Boothbay, have been considering since early summer.
Representatives for Maine oil dealers, the Department of Conservation and the Maine Forest Service presented before the Task Force next. Maine Oil Dealer Spokesman Jamie Py said that their organization is distributing their seven tips for efficiency, and are working to make oil technicians who service boilers into overall efficiency auditors. Alec Giffin of the Department of Conservation summarized points from the governor’s Wood-to-Energy Task Force. He said that the Task Force spent a lot of time focusing on the issue of how to get the abundance of wood supplies available in Maine out to those who need it, saying there are sources of wood like limbs and branches that can be harvested at a reasonable price once they figure out how.
Finally, Governor Baldacci’s spokesman, David Farmer, addressed the Task Force. He said that the Governor’s office is sponsoring a broadcast and DVD training program to help homeowners perform do-it-yourself weatherization upgrades, which they hope to deliver to every home in Maine starting later in September. Farmer also said that the governor’s $12.585 million short-term emergency plan, which he rolled out in August, would be sufficient to get the state through the fall - and the governor and his staff expect to work with the Legislature on next steps in January. The governor’s plan includes new investments in weatherization, low-income heating assistance, alternative modes of transportation, voluntary alternative work schedules for state employees, business development, training and education.
Mitchell and Pingree said that the next meeting will be scheduled shortly after Congress agrees on its LIHEAP allocation, so the state knows what resources it has to deal with. That meeting will be a work session, during which Task Force members will begin to develop a plan to present to the new legislature on Dec. 3, the day it is sworn in.
“I see our goal as to figure out what the emergency need is and put together a piece of legislation that needs to pass before January,” Pingree said while wrapping up the meeting. “Whether it is appropriating LIHEAP funding, or putting money into the community colleges to get training going quickly,” she said that the Task Force should be focusing on what they see as emergency needs, and then potentially discuss longer term goals.
Contact:
Travis Kennedy, Communications Director, 287-1433