A year ago, as part of the American Recovery and Reinvestment Act, nearly $5 billion was set aside in state and tribal grants to weatherize 590,000 of the homes of low-income residents over a period of three years. As a means of saving energy and money, adding insulation, caulking, weatherstripping and other low-tech measures to a house is without rival for cost-effectiveness. The weatherization money - 10 times the annual budget of the federal Weatherization Assistance Program - had the advantage of not only being green, but also being directed at the most obviously shovel-ready projects, capable of generating jobs faster than just about any other part of the stimulus package. But it didn't.
In fact, thanks to foot-dragging at the state level, only 8% of that money had been spent by the middle of February, according to a special report from the Department of Energy's Inspector General. The DOE took the inspector general's advice last March to initiate steps ensuring rapid progress, but the grantees didn't get it together. Thus, by February 16 this year, Connecticut had weatherized 23 of the 7500 homes it was supposed to, Illinois had finished 331 of the 26,933 on its list, New York had done 280 of its 45,400, and Texas had done zero of its 33,908. Only Delaware, having weatherized a third of the 1526 homes it was supposed to met its first-year goal in the program that ends in 2012.
Originally, it was assumed that ramped-up weatherization would move swiftly because program infrastructure had already existed for years, weatherization techniques were well known, the needed skills were widely available, performance metrics were easy to establish and comprehend, and the conservation benefits were clear to everyone.
The one hang-up from the federal end of things was the Recovery Act's requirement that weatherizing be achieved under Davis-Bacon guidelines, that is, that laborers performing the work be paid prevailing wage rates. Because getting wage determinations for each geographical area was the Department of Labor's job, and because this could take time, Energy and Labor both told the states to avoid delays and move ahead with weatherizing and adjust wages retroactively if workers were paid less than appropriate rates. Many states chose to wait, however, and the guidelines didn't appear until October.
States and other grant recipients were supposed to present their required plans by May 2009. However, the inspector general stated:
Ironically, given the anticipated stimulus effect of the program, economic problems in many states adversely impacted their ability to ensure that weatherization activities were performed. State hiring freezes, problems with resolving significant local budget shortfalls, and state-wide planned furloughs delayed various aspects of the program and contributed to problems with meeting spending and home weatherization targets. ...
Officials in California, one of the largest recipients of weatherization funds, reported that furloughs created significant staffing challenges in implementing the Weatherization Program. Similarly, officials in Illinois indicated that their plan to hire staff necessary to implement their weatherization plans had been delayed because of a hiring freeze in the State.
The plans of mice and men, and all that.
The good news? Now that state plans are completed - although the tribes remain behind - an accelerated process may make it possible to spend the remaining weatherization money within the original time-frame despite the very slow start. That means thousands of desperately needed jobs could open up soon among the most heavily unemployed segments of the economy. DOE management says that it has put into place measures that will curtail wasteful spending that might otherwise occur under a speeded-up process.
Meanwhile, states who are still having trouble getting their act into gear might take a gander at how Delaware did it.
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h/t to TommyWonk.