Weatherization funding accused of being political: State has changed method of disbursing federal dollars

Aug. 29--Local agencies and businesses slated to help low-income residents reduce energy bills by weatherizing households were pleased this week to get allocations approved from $132 million in federal stimulus funding.

Not all are happy about just how the state is disbursing the money, however.

Nonprofit community action agencies have traditionally done this sort of work since the federal government began establishing such programs in 1964. But the state's plan, now substantively approved by the U.S. Department of Energy, brings new players into the mix.

South Central Community Action Program officials reported they will receive $899,232, but it is designated for use only in Monroe County, where it is expected to benefit 144 households.

The other counties served by SCCAP -- Brown, Morgan and Owen -- will have programs administered by other entities, such as Bloomington-based electric generation and transmission cooperative Hoosier Energy.

"We're very pleased to finally get started doing the work but remain disappointed in the way the state handled the proposal," SCCAP executive director Todd Lare said.

Lare has contended that organizations such as the Indiana Builders Association and Hoosier Energy might lack the requisite experience and overall capacity for the work. He had hoped the Department of Energy would reject the state's plan as not complying with the American Recovery and Reinvestment Act that authorized the stimulus.

Hoosier Energy, which will partner with Sherlock Homes' Bloomington office for the weatherization work, will get $5,094,541 to address 8,198 homes in 13 counties -- Brown, Morgan, Lawrence, Dubois, Gibson, Harrison, Jennings, Rush, Scott, Union, Martin, Pike and Spencer.

Tom Van Paris, Hoosier Energy's manager of marketing and member services, said Thursday evening Sherlock Homes has been involved with weatherization projects for 30 years. Van Paris said his firm would act as the administrator of the grants, while Sherlock Homes would be responsible for implementing the work.

That work will included caulking, weather stripping, insulation and door, window and furnace repair or replacement. Eligible households must be at or below 150 percent of the federal poverty level, with priority given to elderly and disabled residents and families with children.

Van Paris said Hoosier Energy's contract with the state establishes milestone dates and metrics for the completion of the work.

"It calls for 25 percent of the work to be completed by the end of November, this year, and the next 25 percent by the end of February," he said. "The remaining 50 percent of the work is to be completed by May 2010."

Officials at the Indiana Housing and Community Development Authority said rapid implementation was one goal behind broadening the range of entities it considered when allocating the new funding, which amounts to 11 times the total of all current weatherization programs, according to a news release issued by the office of Gov. Mitch Daniels. Lare has characterized the choices made as "political."

The state's news release said the IHCDA sought bids and from nonprofit agencies throughout the state and selected 30 service providers that will be held to performance-based goals, including how much energy conservation is obtained per dollar spent. Expenditures of up to $5,000 per household involved can be made. Lare noted that neighboring states are allowing up to $6,500 per household.

Lare and Van Paris both said they were unsure whether the Department of Energy had approved the state's proposal in its entirety but said the funding levels they'd been led to expect are the levels their agencies will in fact receive.

"We haven't been told by the DOE what exactly the approved plan was," Lare said. "I know the DOE had problems with some aspects of the plan, but don't know if that was reflected in what was finally approved.

"Our award amount wasn't changed. That was one of the pieces we were upset about."

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