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Energy Efficiency and Renewable Energy Solutions for Low-to-Moderate-Income Communities
A STAKEHOLDER OVERVIEW
15 MAY 2017
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Table of Contents
Introduction ..................................................................................................................................................... 1
Benefits………………………………….. .......................................................................................................................................... 2
Key Stakeholders ............................................................................................................................................ 3
Housing and Community Development .......................................................................................................... 4
Health and Human Services ........................................................................................................................... 4
Utilities ........................................................................................................................................................... 5
Energy and Environmental ............................................................................................................................. 6
Community Advocacy and Faith-Based .......................................................................................................... 7
Public Financing ............................................................................................................................................. 8
Private Financing ........................................................................................................................................... 9
Workforce Development ............................................................................................................................... 10
Private Contractors ...................................................................................................................................... 11
Conclusion ..................................................................................................................................................... 12
Appendix A .................................................................................................................................................. 13
Appendix B .................................................................................................................................................. 15
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Introduction
Stakeholder engagement is critical to developing inclusive programs and policies for energy efficiency and
renewable energy in low-to-moderate-income (LMI) communities. By engaging a diverse set of
stakeholders, program managers can reduce administrative costs, facilitate participation, and leverage a
wide range of resources that can help increase the feasibility and sustainability of programs delivering
clean and efficient energy to underserved communities. LMI stakeholders can be any party working on a
diverse set of issues relating to LMI communities, such as promoting healthy homes, helping families
become financially self-sufficient, creating economic opportunities and jobs, and/or achieving energy
savings and renewable production targets for low-income customers set by regulations.
Strong engagement of LMI communities is essential for realizing the full
economic potential of energy efficiency and renewable energy. Forty-percent
of the U.S. population1, or 49.1 million households, is considered low-to-
moderate income. The U.S. Department of Energy launched the Clean
Energy for Low Income Communities Accelerator (CELICA) in May 2016 to
demonstrate a wide range of promising models for delivering integrated
energy efficiency and renewable energy programs for LMI communities.
This stakeholder overview can help local governments, utilities, nonprofit
organizations, and private entities identify key stakeholders to engage in the
development of clean energy programs for LMI communities. It is based on
the experience of CELICA partners, including states, cities, community action
agencies, nonprofit housing and community organizations, and utilities. It identifies stakeholder groups
working to address the needs of LMI households and it describes the key interests and potential roles of
each group.
1 https://energy.gov/eere/articles/new-analysis-shows-national-potential-solar-power-low-income-communities
The median low-income household’s energy burden in the US’s 50 largest cities is 7.2%--more than twice as high as the burden, and three times greater than average non-low-
income households’ burden. (ACEEE)
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The Benefits of Low-to-Moderate-Income Community Solutions
A wide variety of stakeholders can achieve common and/or multiple goals by integrating energy efficiency
and renewable energy initiatives targeting LMI communities. Some of the many benefits of these initiatives
are noted in the following diagram:
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Key Stakeholders
Identifying the right stakeholders for clean energy programs in the LMI community is critical. Most successful LMI energy efficiency and renewable energy efforts to date have involved a broad engagement of diverse stakeholders, however being over-inclusive can lead to delays and introduce competing priorities to the process. CELICA partners have found that the audiences most concerned with low-to-moderate income community energy needs and access are likely to include the key stakeholder groups detailed in the following diagram:
In each of the key stakeholder groups there are typically federal and national level agencies and
associations—often with state and local level affiliates—that can be a resource. A partial list of these is
included in Appendix A. Many of the organizations listed may have expansive roles that intersect with
multiple categories.
Figure 2 above and the following sections can help clarify the unique interests and contributions by sector
as you develop your stakeholder engagement process and decide with whom to form strategic
partnerships. In addition, the Energy Department developed a Guide to Community Energy Strategic
Planning that may be a resource to your stakeholder planning efforts. The Better Buildings Residential
Network Partnerships Toolkit is a great resource for stakeholder engagement. It includes sample
partnership agreement forms, should program developers determine that a formal partnership agreement
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with stakeholders is needed.
Housing and Community Development Organizations
Who are they?
State Housing Development
Public Housing Authorities
Community Development Corporations (and associations thereof)
Nonprofit Affordable Housing Developers
What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
Housing providers have an interest in lowering costs in order to make housing more affordable for tenants,
reduce turnover and improve community assets, and increase the number of people they are able to serve
with available resources. They typically utilize tax credit financing and public grants to subsidize affordable
housing for LMI households.
What can they potentially contribute to your initiative?
State housing agencies can provide incentives for affordable housing
developers that incorporate energy efficiency and renewable energy
into building renovation projects. Public Housing Authorities and
Community Development Corporations and their property
management companies are where the rubber hits the road for
affordable housing, and they can offer a ready set of income-
qualified program participants, as well as a housing stock that is ripe
for upgrades that improve comfort, reduce operating expenses, and
lower tenant bills
Health and Human Services Organizations
Who Are They?
State agencies and local sub-grantees that administer Community Service Block Grants and the Low Income
Home Energy Assistance Program (LIHEAP)
Local Community Action Agencies and Human Service providers
Local Healthcare Providers (healthcare systems, hospitals, and community health centers)
San Antonio Housing Authority in Texas recently committed to install solar and other types of renewable energy on their facilities to meet a 300 MW goal of on-site or community-based renewable energy capacity serving federal subsidized housing projects. (HUD Blog)
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What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
These agencies serve many basic needs of low-income residents and act as
the social safety net for people seeking to build a stable life in the face of
challenging life circumstances. The integration of energy efficiency and
renewable energy technologies into the homes of these residents can help
reduce and stabilize the cost of energy for these households—though energy
is often only one of several areas of need, and is often not the most urgent
one. Integrated energy efficiency and renewable technologies often have non-
energy benefits; for example, certain energy efficiency upgrades can improve
indoor air quality and reduce asthma rates. Healthcare providers in particular
are interested in the non-energy benefit aspect of these solutions.
What can they potentially contribute to your initiative?
Local-level agencies have a direct line of communication with LMI residents
and communities. They understand the challenges LMI community members
face and can help design solutions that fit the unique needs of residents. They can be a trusted community
partner for recruiting income-qualified program participants. They provide wraparound supportive services
that help people who may face multiple barriers to remain financially stable and maintain participation in
state and local energy programs. Some agencies bring funding for energy services. For example, low
income home energy assistance program (LIHEAP) agencies can transfer up to 15% of LIHEAP funds for
residential weatherization or other energy-related home repair for LMI households, or receive a waiver to
transfer up to 25%. State-level agencies have a less direct connection with communities, but are integral in
directing state funding and other resources to specific communities for specific purposes. Through healthy
homes intiatives, state Medicaid and healthcare providers might reimburse for addressing home health and
safety issues that may be causing health issues, allowing more homes to receive energy efficiency and
renewable energy services.
Utilities
Who are they?
Utility and Public Service Commissions (Regulators)
Investor Owned Utilities (IOUs)
Publicly Owned Utilities (Municipal and Cooperative)
Consumer/Ratepayer Advocate Offices
Like a handful of other states, the State of Washington has received a waiver from the US Department of Health and Human Services to transfer 25% of its LIHEAP funding in order to weatherize a greater number of low income homes than if the state used up to the standard cap of 15% for weatherization.
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What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
The utility sector is diverse but all utilities share some common goals. Utilities are typically required to
provide energy supply to customers at a reasonable and affordable rate, while meeting other goals (e.g.,
Energy Efficiency Resource Standards and Renewable Portfolio Standards). Utilities are interested in
making it easier for low-to-moderate-income customers to pay their utility bills and avoid shut-offs and
other interruptions of service. But utilities are often seeking ways to reduce costs associated with LMI
programs to ensure fair return on investment to ratepayers; LMI programs typically require greater
incentives than market-rate programs in order to be effective.
Utilities may deploy renewable energy and energy efficiency for
different reasons. Many utilities acknowledge that energy efficiency
programs help reduce demand on their facilities and delay the need
for costly capital improvement projects. Utilities are increasingly
motivated by shareholders, regulators, and local policymakers to
utilize energy efficiency (including demand response) and renewable
energy as a resource and a means to reduce peak power costs and
customer satisfaction. Publicly owned utilities and co-ops are likely to
be interested in responding to customer and community needs as a
part of their business model. Regulated utilities may be deploying
energy efficiency and renewable energy in order to fulfill their
regulatory requirements.
What can they potentially contribute to your initiative?
Regulators often require utilities to provide equitable access to energy
services and benefits, where all ratepayers contribute to the cost of services and programs. As LMI
households are typically unable to benefit from market-rate energy efficiency incentives like product
rebates, utilities often create special energy efficiency and renewable energy programs in a region.
Whereas utility commissions have rate setting and regulatory oversight authority, utility companies (in
particular, IOUs) are often directly involved in policy and regulatory process design where it pertains to
electricity reliability, and have a direct line of communication to relevant elected officials and decision-
makers. Utilities that administer energy efficiency and renewable energy programs may be able to provide
insights, program strategies, and data relevant to their customer base to improve program design and
measurement of impact.
Energy and Environmental Organizations
Who are they?
Ouachita Electric Cooperative operates in southern Arkansas and provides its members the opportunity to save energy through the Pay As You Save (PAYS) model. Using PAYS, the utility invests in energy efficiency improvements for a specific property and recoups its investment through an opt-in utility tariff which adds a charge on the bill for that location.
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State weatherization agencies and state energy offices and their local sub-grantees that administer the
Weatherization Assistance Program (WAP)
Municipal sustainability, energy, and environmental offices
State environment and air quality offices
Nonprofit energy and environmental service organizations
What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
The state-level energy, environment, and air quality agencies are often driven by federal and state air and
water pollution reduction goals, including those directly associated with electricity production. Agencies
promoting triple-bottom-line sustainability seek systems improvements that draw less electricity and water
for commercial and residential uses. Nonprofit organizations often work to educate community members
and offer energy-saving programs to LMI households, nonprofit organizations, and small businesses.
What can they potentially contribute to your initiative?
State and local energy and environmental agencies are often in
a position to help shape energy policy and administer LMI
programs and funding. They can help navigate the regulatory
and permitting process of technology deployment, and estimate
project costs and ROIs. They are often in an ideal position to
convene stakeholders and develop a comprehensive energy
plan that includes a focus on LMI communities. State and local
weatherization agencies bring funding for projects, promote high
industry quality standards, and, as a proven channel for
delivering energy services to low-income households, they can
help leverage additional funds from utility and other sources.
Nonprofit energy service organizations often have proven
innovative models for engaging the community around energy
issues. They know what works when it comes to program
implementation.
Community Advocacy and Faith-Based Organizations
Who are they?
Environmental Justice Organizations
Faith-Based Organizations
Community Advocacy Organizations/Associations
The State of Massachusetts convened a working group in 2016 to identify key barriers and make recommendations to increase access to clean energy for LMI residents. The working group is comprised of public and private stakeholders focused on a spectrum of issues that included economic development, energy, and housing. Among other program opportunities, the group announced a grant. For examples of working group
participants, see Appendix B.
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What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
Generally, these organizations promote healthier environmental conditions and equitable access to
resources at the state or regional level. Where their work intersects with energy issues, these groups may
focus on ensuring that power production and delivery systems—which have a higher tendency to be
located in low-to-moderate-income communities—are adhering to all applicable pollution and wildlife
protection regulations. Generally, they work to ensure access to jobs, a clean environment, and community
health and safety programs.
What can they potentially contribute to your initiative?
Environmental justice, faith-based, advocacy organizations frequently
advocate for disadvantaged communities. These organizations play an
integral role in providing access to LMI communities and partnering
with developers to implement clean energy projects in communities that
would benefit from lower energy bills. They often have relationships
with local community leaders, lawmakers, regulators, and media that
cover these areas. These groups are often effective community
organizers and they can help identify communities in need and
effectively convene stakeholders around those needs. They can also
help identify where to target available resources and projects to
maximize economic and environmental impact in LMI communities.
They may be a powerful ally for energy efficiency and renewable
energy program managers seeking to build trust around project
development and strengthen participant engagement.
Public Financing Organizations
Who are they?
Housing Finance Agencies
Economic Development Agencies
Public Finance Authorities
Rural Development Agencies
What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
Public finance agencies are state and local entities vested with the ability to issue tax-exempt and taxable
Energy equity nonprofit Groundswell recently announced a partnership with Template of Praise, a 15,000+ member interdenominational church, to develop a community solar array on the church’s property that will provide clean, affordable energy for 150+ households in Washington D.C.’s Wards 7 and 8.
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bonds that benefit the residents of the community through job creation,
economic development, and/or housing opportunities. Energy efficiency
and renewable energy deployment aligns with the critical interests of
public finance agencies insofar as it results in public benefits. Many
successful state-based energy efficiency and renewable energy
financing programs are created by, housed at, or otherwise partner with
public finance agencies. For example, green banks are often public-
private partnerships emanating from a state’s economic development
authority.
What can they potentially contribute to your initiative?
An energy efficiency and renewable energy deployment program can
look to public finance agencies to provide capitalization funds and/or a
specific skill set needed to create an energy efficiency and renewable
energy lending program or other financing mechanism. Public financing
providers may offer infrastructure for program operations, underwriting
expertise, and/or safeguards to protect borrowers. A public finance entity
may provide insight about lending to different market sectors as well as
access to federal or other resources for energy efficiency and renewable energy deployment.
Private Financing Organizations
Who are they?
Foundations (National and Local)
Lending Institutions
o Community Development Financial Institutions (CDFIs)
o Private Banks
o Credit Unions
What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
The interests of private sector financing stakeholders, such as foundations, vary widely. They include
affordable housing, environmental objectives, and economic development. Banks and other lending
institutions may be looking to diversify their portfolios, expand their lending offerings, or provide a benefit to
the communities they serve (e.g., in compliance with Community Reinvestment Act).
What can they potentially contribute to your initiative?
Public finance authorities may have access to Qualified Energy Conservation Bonds (QECB). QECBs are bonds that enable qualified state, tribal, and local government issuers to borrow money at attractive rates to fund energy conservation projects. A QECB is among the lowest-cost public financing tools because the U.S. Department of the Treasury subsidizes the
issuer's borrowing costs.
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Like the public finance entities, private financing entities can bring
capital to fund energy efficiency and renewable energy finance
programs as well as specialized expertise and market data.
Foundations may provide grants or below-market loans to support
programs that advance their mission. Getting early support from
local foundations and philanthropic organizations can help attract
other types of investment – financial and otherwise. These groups
are often well-respected in their communities and can help bring
other key stakeholders into the process. Funding sources can be
blended together to create additional value. For example,
foundation funds may provide grant dollars that can reduce the
administration costs of a lending program or mitigate some of the
risks inherent to lending (e.g., creating a loan loss reserve). These
capital cost reductions or reductions to investment risk may
increase the interest and participation of a private bank in an
energy efficiency and renewable energy financing program. In
addition, private institutions often have large and sustainable pools
of capital. Their resources often exceed public entities’.
Workforce Development Organizations
Who are they?
State and Regional/Local Economic Development Entities
State and Local Workforce Boards and Agencies
Community Colleges
Skilled Trades and Apprenticeship Programs
Nonprofit Community-Based Job Training Organizations
What is their interest in deploying energy efficiency and
renewable energy in low-to-moderate-income communities?
Workforce development organizations can be comprised of and
directed by boards of employers, job training and labor
organizations, university representatives, public officials, and
others. These organizations focus on identifying education needs
and job opportunities for employers and workers in a region. They
possess funding and job training resources as well as a strong
desire to develop pathways to employment and careers for
Operating in Florida, the Solar Energy Loan Fund (SELF) is a certified CDFI that targets clean energy investment by providing energy expertise and favorable financing to underserved residents, small businesses and communities. SELF helps LMI residents face the steadily rising cost of utilities, addresses a need for greater energy independence, and increases access to capital and clean energy solutions.
As a national collaborative with projects in several cities across the US, the Emerald Cities Collaborative focuses on building pathways to skilled, high-paying green collar jobs within disadvantaged communities through broad-based coalitions and specialized strategies. For example, their E-Contractor Academy in Los Angeles prepares small and minority contractors for opportunities created by millions of dollars invested by the state and local municipality in energy efficiency projects. (Emerald Cities Collaborative).
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individuals who work or live in an economically disadvantaged areas, and are eager to partner with projects
that have employment opportunities. Programs that engage a growth sector like energy efficiency and
renewable energy are very compelling to workforce development organizations. The sector can put many
people to work at good-paying jobs.
What can they potentially contribute to your initiative?
Workforce development organizations can often develop customized job training based on employer and
employee needs. They can also support entrepreneurship and development of new contractors that are
skilled and well-suited to serve their community. These organizations can also be a conduit for general
community awareness and education about energy efficiency and renewable energy benefits and
opportunities.
Private Contractors
Who are they?
Program Implementers (i.e., firms that design and manage programs for public and nonprofit sector agencies
and utilities)
Project Developers
Renewable Energy Providers such as Solar Installers
Large-scale Project Developers
Weatherization and Home Performance Contractors
Contractor Associations (e.g., minority or woman-owned businesses, neighborhood business associations,
statewide contractor associations)
Energy Service Companies (ESCOs)
What is their interest in deploying energy efficiency and renewable energy in low-to-moderate-
income communities?
Program implementers are often engaged by public sector agencies and utilities to design and manage the
implementation of programs, including those targeting LMI communities. Implementers are often interested
in partnering on the development of new pilot programs using practical approaches. Low-to-moderate-
income communities can represent an untapped market for local contractors and solar project developers.
These businesses are often interested in hiring local workers for these jobs, particularly if their business is
based in the LMI communities being served or they have another connection to these commmunities.
Project contractors are often required to hire locally if they receive public funding.
What can they potentially contribute to your initiative?
These providers can give you feedback on feasibility of proposed program approaches, as well as reliable
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estimates on costs, ROI, payback timeframe, and technical and economic feasibility. These entities are
also likely experts in local siting and permitting requirements. They may have expertise in marketing to
local communities and relationships with local capital suppliers and investors. They also may be good
conduits for identifying commercial entities with a high likelihood of participating, such as multifamily
building owners. However, given the profit motive and procurement best practices, it is important to
consider conflicts of interest and engage input through an open process where diverse private contractors
can submit comments. At the appropriate time in the project process, private contractors should bid on
work to ensure best use of public resources.
Conclusion
Engaging organizations in a variety of sectors with a shared interest and resources to contribute to your
goals is essential to developing a successful and sustainable LMI energy program. Whether you are
looking to secure new partners and resources for existing programs, or launch new programs, engaging a
variety of stakeholders can help develop a clearer picture of needs and gaps and build buy-in to your LMI
energy program and help ensure available programs and resources are put to good use. For additional
information on how to use this guide in development of an LMI program, contact members of the DOE
Weatherization and Intergovernmental Programs team at stateandlocal@ee.doe.gov.
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APPENDIX A – FEDERAL AND NATIONAL AGENCIES
Federal Agencies Recommended for Stakeholder Engagement
U.S. Department of Energy
U.S. Department of Treasury
U.S. Department of Housing and Urban Development
U.S. Environmental Protection Agency
U.S. Department of Agriculture
U.S. Department of Health and Human Services
U.S. Department of Labor
National Non-Governmental Organizations Recommended for Stakeholder Engagement
Note: given limited space, all organizations have been identified with a primary category even if they may in fact be involved in activities that cross multiple categories.
National Policy Associations
National Council on State & Local Legislators (NCSL)
Vote Solar
Housing & Community Development Organizations
National Low Income Housing Coalition
National Housing Trust
Enterprise Community Partners
Stewards of Affordable Housing for the Future (SAHF)
Energy Efficiency for All (EEFA)
Health & Human Services Organizations
National Community Action Fund
Community Action Partnership
Green and Healthy Homes Initiative
Utilities
National Energy and Utility Affordability Coalition (NEUAC)
National Association of Regulatory Utility Commissioners (NARUC)
National Rural Electric Cooperative Association (NRECA)
American Public Power Association
EEtility
Energy & Environmental Organizations
National Association of State Energy Officials (NASEO)
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Urban Sustainability Directors Network (USDN)
National Association of State Community Service Providers (NASCSP)
National Energy Assistance Directors' Association (NEADA)
Rocky Mountain Institute
American Council for an Energy-Efficient Economy (ACEEE)
Vermont Energy Investment Corporation (VEIC)
BlocPower
Groundswell
GRID Alternatives
Community Advocacy & Faith-Based Organizations
National Consumer Law Center (NCLC)
National Association for the Advancement of Colored People (NAACP)
Interfaith Power and Light
National Urban League
Financing
Low Income Investment Fund (LIIF)
Council of Development Finance Agencies (CDFA)
Workforce Development Organizations
Green For All
Emerald Cities
American Association of Community Colleges (AACC)
North American Board of Certified Energy Practitioners (NABCEP)
Building Performance Institute (BPI)
Laborers’ International Union of North America (LiUNA)
International Brotherhood of Electrical Workers (IBEW)
Solar Training Network
Private Developers & Contractors
Home Performance Coalition (HPC)
Efficiency First
Air Conditioning Contractors of America (ACCA)
National Association of Home Builders (NAHB)
American Association of Blacks in Energy (AABE)
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APPENDIX B – Examples of a Stakeholder Engagement Convening
Massachusetts’ Affordable Access to Clean and Efficient Energy Initiative (AACEE)
State Agencies
Massachusetts Department of Energy Resources
Massachusetts Department of Housing and Community
Public and Quasi-Public State Organizations
Community Economic Development Assistance Corporation (CEDAC)
Massachusetts Clean Energy Center (MassCEC)
MassHousing
Mass Housing Partnership
Metropolitan Area Planning Council (MAPC)
Private Stakeholders
Boston Community Capital (BCC)
Center for Sustainable Energy (CSE)
Co-Op Power
Energy Efficiency Program Administrators (PAs)
Habitat for Humanity: Cape Cod
Homeowner’s Rehab, Inc. (HRI)
Local Initiatives Support Corporation (LISC)
Low Income Energy Assistance Network (LEAN)
New Ecology (NEI)
Preservation of Affordable Housing (POAH)
Worcester Green Low Income Housing
Colorado Commission on Low-Income Energy Assistance Commission Members (CCLIEAC)
Energy Outreach Colorado – Private Energy
Colorado Department of Human Services – LEAP
Summit Utilities, Inc. – Private Energy
Xcel Energy – Private Energy
Atmos Energy – Private Energy
Energy Resource Center – Private Energy
Colorado Energy Office – State of Colorado
Members of the Public / Consumers
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