Leveraging the Stimulus:Retrofitting Communities to Build

Equity & Sustainability

May 11th, 2009

Community Innovators Lab

Maximizing the Impact

• Leverage different funding sources & build partnerships

• Invest in “deep retrofits” to maximize gains & to prevent lost opportunities

• Infuse equity into allocation of funds and design of programs

• Ensure that short-term gains are investments into long-term “triple bottom lines”

Only Top 20% With Significant Income Increases from 1998-2006

3

ENERGY BURDEN

4

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Gas Oil

Energy Burdens 2008

Low-income

Average

8.3%

12.0%

2.6%

3.4%

Sources: US Census, US DOE EIA, Mass. DHCD, US DOL

Strategies for Mitigating Effects on Low-Income & Capacity-Building

• Utilize Stimulus Funds• Increase Energy Efficiency • Manage demand through education & Smart Grid• Create economic development opportunities for

shared wealth generation through green jobs, green businesses, etc.

• Ensure equitable access to educational and communications technologies such as broadband

Jerrold Oppenheim www.DemocracyAndRegulation.com 5

Example of Demand management

Source: www.gridpoint.com/curve/overview/ 6

Total in energy efficiency alone: $12.35 billion• 3.1B State Energy Programs• 3.2B Energy Efficiency Conservation Block Grants• 5B Weatherization Assistance Programs (WAP)• Up to 1B Training & TA $ from WAP• .5B Green Jobs• .3B ENERGY STAR Rebates• .25B HUD Section 8 Housing• 6B Innovative Technology Loan Guarantee• 4.5B Smart Grid Investment Program• .1B Jobs Training for Smart Grid• 7.2B Broadband

Some “Green” Funds in the Stimulus

ExamplesLow Income Weatherization (WAP) $5 billion, expanded from $400 million (est.)• Includes up to 20% for Training and Technical Assitance• Increase per-house expenditure from $2,500 to $6,500• Increase eligibility from 150% to 200% of poverty level

Energy Efficiency & Conservation Block Grant• Opportunity for funds to be used for comprehensive planning • Includes both formula & competitive grants• Up to 15% can be used for revolving loans• Up to 20% can be allocated to non-profits

Section 8 Energy Retrofit• $250 million directed to project based section 8 housing for energy retrofits• HUD is responsible for implementation. No more details yet

Green Jobs Training• $500 million• Dept. of Labor, Office of Employment and Training Administration• Includes research, job exchange and training

Table of Contents INTRODUCTION ...................................................................................................................... 2

Maximizing the Impact of the Stimulus................................................................... 2 Components of the Plan Model ................................................................................... 2

I. FRAMEWORK FOR DEEP RETROFITS & INFUSING EQUITY ........................... 4

Defining Retrofits as a Process ................................................................................... 4 Need for Equity ................................................................................................................... 5

II. MISSION ................................................................................................................................. 7

Broad Mission Goals ......................................................................................................... 7 Specific Mission Goals ...................................................................................................... 7

III. COMPONENTS OF DEEP RETROFITS ...................................................................... 9 IV. COMPREHENSIVE ROADMAP TO THE STIMULUS .......................................... 10 V. ASSESSMENT QUESTIONS & PROGRAMS THAT FIT ........................................ 11 VI. DESCRIPTION OF BEST PRACTICES ...................................................................... 12

1. Infrastructure .............................................................................................................. 12 2. Employment ................................................................................................................. 18 3. Business Model ........................................................................................................... 21 4. Financial Models ........................................................................................................ 26 5. Community Planning ................................................................................................ 28 6. Coordination ................................................................................................................ 28

VII. CIVIC ACTION & ADVOCACY ................................................................................... 29

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Plan Model

General Proposal

Comprehensive Roadmap

Policy Argument

Civic Action & Advocacy

Diagram

Matrix

Mission

Technical Assistance Resources

Assessment Questions & Programs That Fit

Best Practices at Scale

Community Role

Specific Proposal

Mission

Analysis & Coordination

Technical Assistance Sources

Community Role

DUSP Stimulus Project - Work Plan Coordination

- Encourage comprehensive community-based planningo Why: Communities are more likely to participate if they are involved in

decision-making. Innovations require a high amount of community education and input

- Build community capacity & improve community resilienceo Why: Improving the capacity of low-income communities to act on their

own behalf will help to blunt the negative effects of economic downturns and will also support communities in seizing positive opportunities.

- Leverage existing funding sources with each other and with private investmento Why: Leveraging sources will increase multiplier effects, create

synergies, and help to capitalize on the short-term stimulus to provide infrastructure for long-term projects and programs.

- Perform “Deep” Retrofit buildings in low-income communities of coloro Why: These communities tend to reside in areas with the worst building

stock, deep retrofits deliver the greatest “bang for the buck” and helps to increase savings for communities

- Reduce global warming pollutiono Why: Cutting carbon emissions and other types of pollution will improve

health conditions for all people and reduce negative environmental impacts.

Broad Mission Goals

Specific Mission GoalsIncrease Equitable Access to Resources & Opportunities

– Conserve resources (ie. Materials, waste water, energy, etc)• Why: Taking action on conservation is a built-in income generating

program with multiple spin-off effects– Ensure convenient access to healthy foods

• Why: Low income people are experiencing spike in diabetes and other nutrition related diseases and access to healthy foods is critical

– Green public facilities (schools, hospitals, public housing, waste stations)• Why: They tend to be located in low-income areas and greening them

could produce opportunities for improving facilities, creating local businesses (cooperatives, private, non-profits) and maintaining community level systems (energy, food, water)

– Increase broadband access• Why: The poor have least access to broadband and are most in need of

21st century education and economic development opportunities– Prioritize the needs of disabled and impoverished elderly and children

• Why: Poor communities have high concentrations of these vulnerable populations, which need additional help during the retrofitting process and other “greening” processes.

Specific Mission GoalsCreate & Train for Well-Paying Jobs & Local Economic Development

– Create jobs, training opportunities, and career ladders for communities with high unemployment and poverty

• Why: Self help system reduces spin-off costs from unemployment and poverty

– Build sustainable economic development by supporting and investing in minority and women-owned businesses

• Why: Such businesses tend to encourage entrepreneurship in and capacity-building for under-resourced communities and can be “next steps” on green jobs career pathways.

Invest in Measures to Aid Communities in Addressing Prohibitive Costs of Adaptation

– Retrofit homes in neighborhoods with high foreclosure problems

• Why: Such retrofits will help to reduce cost to homeowners and prevent further foreclosures

– Prevent displacement of low-income residents by maintaining housing and cost-of-living affordability

• Why: Saving energy and transportation costs is increasingly critical in ensuring low-income communities are not displaced from their neighborhoods

•

6 Components of “Deep” RetrofitsA coherent vision for maximizing the benefits of green retrofits must jointly

address six critical and interrelated elements:

• 1. Infrastructure: Retrofits require an informed and context-sensitive choice of technology and materials at the building level.

• 2. Employment: Equitable retrofits can contribute to the economy through credentialed training programs, broad labor-community-business consensus on job access and performance, and the design of inclusive labor standards.

• 3. Business model: Small business development requires new, sustainable business models that ensure high quality work.

• 4. Financing: Leveraging existing funding sources with each other and private investment will create programmatic synergy while increasing the multiplier effect of the stimulus plan

• 5. Community planning: Thus, an optimal retrofit plan will include high community involvement in project design; advanced leadership training for key local actors; and additional support through public policy and regulations.

• 6. Coordination: These scaled urban retrofits are both extremely attractive social projects and enormously complex. Thus, their execution requires extensive coordination.

Community Assessment & Programs That Fit

• Excel tool that allows cities/coalitions/organizations to answer assessment questions and link those answers to stimulus programs that are a good “fit”– Evaluate current context of organization/groups of actors– Evaluate goals & capacity of specific orgnization– Evaluate capacity and goals of potential partners– Identify the most pressing needs of the communities

• What synergies that might exist between stimulus programs?• How to coordinate multiple programs to achieve specific

goals?• What are strategies for partnering with the public and private

sector to maximize funds? • What capacity is needed by base-building organizations to

leverage the stimulus?

Step 1 - Community AssessmentC1. What are the demographics of your community?

This section helps in determining eligibility for formula grants and in general planning assessment

Population:  

Median age:  

Median income:  

Poverty rate:  

Racial makeup:  

Immigration rate:  

Language makeup:  

C2. What are the most pressing needs in your community? (select all that apply)

A Housing retrofit, including all energy efficiency measures

B Housing construction

C Public facilities retrofit, including all energy efficiency measures (includes public schools)

D Public facilities construction (includes public schools)

E Energy production

F Energy distribution

G Transportation

H Smart Grid

I  Broadband & other IT upgrades

J  Job training                                                        

K Job placement

L Youth development

Step 2 - Community Assessment Answers

1Use - and/or -Eligibille Entity/Sub-Entity - and/or -Mission -Type -

2

3 Sort Further (optional)You can sort further by selecting another category (ie use), if you want to narrow your results further.

In the Programs That Fit worksheet..

Identifying the Programs That Fit:

So you've completed a quick assessment of your community and organization. (Your answer have automatically populated below.) How can you now customize the "Programs That Fit" spreadsheet so that you know which stimulus programs best fit the capacity and

Choose a category by which to sort the Programs That Fit:

Click on the arrow button for the first category you want to sort by. (Let's say you are a CBO exploring partnerships with private firms.) Click on the Eligible Entity arrow and select (Custom...). Replace equal with contains from the drop down menu an

Step 3 – Identifying Programs that FitFederal

Department ProgramAmount

(Federal) Mission Use Type Eligible Entities Eligible Subentities

DOE State Energy Program (SEP)

$3.1 billion, formula grants to states 4,13 C, G, N, Q, SAA , GG, State Investigate

DOE

Energy Efficiency and Conservation Block Grants (EECBG)

$3.2 billion, Formula grant to state and local governments over 35,000 in population 3, 4, 6, 7, 8, 10, 13, 11

A, C, F, G, M, N, Q, S AA, FF, GG State, City, County Investigate

DOE

Weatherization Assistance Program (WAP)

$5 billion, formula grants to states to be distributed for use by community action agencies 3, 4, 6, 7, 8, 13, 12 A, J, R AA , GG State Person

DOE

Energy Efficient Appliance Rebate Program and ENERGY STAR $300 million 4,8,13 A HH State Person

DOE

Alternative Fueled Vehicles Pilot Grant Program $300 million 4,13 G, O

II State, Local, Agency

Agency, Coalition, CBO, Private, Person

DOE Transportation Electrification $400 million 13, 8 G, O AA, FF

State, Local, Agency

Private, Coalition, CBO

DOE

Fossil Energy Research and Development Program $3.4 billion 13 E, O AA, FF, JJ

Private, Researcher Coalition

DOE Biomass Program $800 million 4 E, O AA, FFPrivate, Researcher Coalition

DOE Geothermal Technologies Program $400 million 4 E, O AA, FF

Private, Researcher Coalition

Best Practices for 6 Components (In Progress)

1. Infrastructure– “Whole House” Weatherization– Retrofitting Public Facilities– Energy Generation– Smart Grid & Broadband

2. Employment– Career Bridges & Pathways– Coupling job training with ACTUAL jobs– Creating community/training/private sector partnerships

3. Business model– Emphasis on minority & women-owned enterprises– Procurement of contracts– Scaling up– Financing

Best Practices for 6 Components (In Progress)

4. Financing– Tax breaks– On-bill financing– Selling energy to the Forward Capacity Market

5. Community planning– Comprehensive neighborhood planning– Popular education & decision-making– Building capacity for implementation

6. Coordination– Models for coordination between key stakeholders– Leveraging partnerships to gain power to implement

Civic Action & Advocacy• No guarantee that funds will be spent in a manner that promotes jobs, job

training, and community organization in underserved communities• Civic action & advocacy is the key to properly investing these funds. • National organizations released toolkits to assist local actors organize for

green jobs.

• Link for Green For All Recovery Toolkit: http://www.greenforall.org/resources/recoverytoolkit

• Link for Sierra Club Cool Cities Activist Toolkit: http://newjersey.sierraclub.org/ConCom/CoolCities/Cool_Cities_Activist_Toolkit_4-4-0623.PDF

• Community Innovators Lab (CoLab), in conjunction with the Emerald Cities Initiative, is also seeking to catalyze civic action.

Leveraging the Stimulus:Retrofitting Communities to Build

Equity & Sustainability

May 11th, 2009

Community Innovators Lab