Community Perspective
Let’s get energy assistance right the first time
Published Sunday, June 1, 2008
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Stumble It!Ah, fuel oil and energy costs. What an amazing change has happened during the past year. Hold on to the handrails! I am pretty sure more is in store for us in the Interior. It was a great idea to put $300 million dollars into making our homes our best defense and refuge from the oil price explosion (just today soaring to $134 a barrel.)
This was one of the best ideas to come out of the Legislature in a long time. Then the governor, with good intentions, added a plan to provide huge subsidies to help those in need and who can’t get their homes insulated and weather-proofed in time for next winter’s looming costs. It is a good concept to help those who will definitely need it. But alas, it does have some problems.
First, not everyone is in need of the same help, and second, certainly any benefit should not be awarded on a per capita basis. Not everyone who gets a Permanent Fund Dividend pays for heating a home. That concept is wasteful and inherently unfair. So what to do? Well, I suggest a fair solution, which will probably cost less and can honestly identify who needs the help. It is a simple needs test, or perhaps a better description is “find out who hurt most this past winter first.”
Let me give you some idea what I have in mind.
This past winter, my friend Todd Hoener, Golden Valley Electric Association’s customer service guy, told me many more electric customers than usual had to be disconnected because they were unable to pay their bills. This is one of the first places to look for those who need help. GVEA certainly knows who they are. Any help should go to those we already know have had to do without the basics.
Second, there are those already on Low Income Heating Assistance, a federal program with the acronym LIHEAP, which helps low income people with their heating bills. Fortify and expand that program first as well, and widen the limits of those who qualify. Some of these people can get their homes weatherized, but all who have need can’t. It is just physically impossible because we just don’t have enough people ready to do the work. I don’t know right now how much money it would take to deal with these two groups who clearly are in need, but it wouldn’t be difficult for a conscientious government to find out. I would wager one month of my own salary that it is way less than the $745 million that the governor wants to throw at everyone for subsidizing energy costs.
The other side of this problem-solving coin is education. The $300 million for energy conservation and weatherization of our homes is great, but the way it is being thrown at the public, with no explanation, no information clearinghouse, no clear path to applying for help, not enough capacity in skills and energy ratings to actually make the money serve its best possibilities, results in huge confusion and frustration all around.
It looks all too overwhelming right now. And what makes it all the more frustrating to us old hacks of the energy-efficiency world is that we’ve seen much of this before. We could help if those in power (Alaska Housing Finance Corporation) would just wake up and recognize that we just need some time and money to really educate both the public and the skilled people we need to do energy rating, audits, and the actual work of re-insulating and retrofitting our houses with the best practices available.
And we certainly know what those practices are, and have the texts and knowledge to educate our craftspeople. We need just a bit of time to educate those who actually can help: the information-rich nonprofits, the Cooperative Extension Service, the shelter industry, vocational schools and the trades and unions. But in the desperation to get money on the street with mindboggling speed, but no plan or order, well, my confidence that this whole effort is going to meet its potential is badly shaken.
We can’t let this happen. We have the money and the intent, and we may never get another chance to re-build our housing to prepare for the world which seems to be bearing down on us so heavily.
We have got to get it right this time. Let’s not screw it up. Take some time, educate people, prepare us all well and put people to work like its their last chance to survive the oil crunch. Because it very well may be.
Rich Seifert is an Energy and Housing Specialist for the University of Alaska Fairbanks Cooperative Extension Service.
Community Discussion
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I agree that there has to be a better solution than what is currently proposed. I do not like another welfare type program as a lot of people who use it would not need it if they spent their money on their bills and cut back on unnesasary things. I know someone who qualifies under the old rules that gets energy assistance and food stamp type help. His electricity is always at the cut off point and he ends up buying heating oil at the gas station because he is so broke. He spends $17 dollars a day on cigarettes and beer. If it is going to be needs based there should be some sort of financial/credit counseling required of anyone who applies. I would like to see the money go to those who really need it instead of people who are just having a hard time making payments on their boats and 4 wheelers. $100 per month is not going to do much to help out that retired widow who for 50 years is still living in the same 3 bedroom house alone because her children grew up and moved out. Another family living in the same size house with 3 kids will get $500 per month even though it cost them the same to heat their home. We need a better plan.
Interesting the criticism and the comment "We need a better plan" but no suggestion as to what that might be.
First, Rich Seifert wrongly assumes the crisis is an energy crisis. Second, AHFC has about the simplest and best free education for builders. Finally, UAF is wasting a lot more energy and time that will not impact the average pocketbook. An energy crisis would be one where not enough energy is available to meet demand. I have seen energy crisis in Iraq up close and personal. Gas lines three days long, electricity on for two hours a day sometimes, no wood to burn to build a fire to cook your food with, and black market gas and propane stands on every street. We are not in an energy crisis yet.
We are in an inflationary fuel cost crisis. This is an economic not an environmental or building efficiency crisis. There is enough fuel and energy to go around, but the cost went up so fast that it is fiscally destroying household budgets. We have so much fuel that we are able to export over 90%. Some will argue that it is a world market and world demand is driving the price. We live in Alaska, we don't have to pay the world premium for fuel. There is enough money being made by big business, special interest, and government already.
We could put a code on our drivers licenses that works like a credit card and charges all our fuel expenses to the State Budget office. It's time to give some of the profit back to the hard working average sourdoughs that own the resources, call this place home, and know how to use their resources to survive.
Rich, ... should've read my post yesterday. Your wonderful programs would discriminate against families such as my own, we barely made it last winter and yet still don't qualify for current weatherization expansions because we "make too much money."
Also, the need is now and is not a theoritical to be debated in higher learning. You come off preachy when you say the masses need to be educated. Fine, educate, ... I'm sure every Alaskan would rather spend the surplus money on educational campaigns than unnecessary things like fuel and warmth.
The reason that fuel prices are going up so high and so fast is because the American dollar is declining so much, so quickly. The redneck president is destroying the American economy. He can't take all of the credit unfortunately because the government in general has been heading us in this direction for a long time - deregulation of the banking industry and other government entities has a lot to do with it and that started with Reagan. Allowing American CEOs to take their corporations overseas so that they can increase their profits while taking jobs away from Americans and exchanging good American jobs for jobs in the service industry is part of the destruction of our economy as well. German CEOs make about 15 times more than German workers. American CEOs make 600 times more than American workers. This destruction of the American economy finally has resulted in the decline of the American dollar, which is leading to the precipitously high cost of fuel. It doesn't help that we're blowing trillions of dollars in a unnecessary "preemptive" war.
Let's reward unemployment by giving those without the means or desire to pay their bills a free ride. Great plan Mr. Seifert. The Alaska Constitution gives ownership of the resources to all Alaskans. Should the State only give fishing and hunting licenses to those that can't afford to buy beef and fish at Fred Meyer? Oh wait, those that can't afford it get free food stamps already.
The price of heating oil has doubled in the last year. If everyone could miraculously cut their energy use in half we would still be spending more than we did a year ago. At this point a long-term energy reduction plan to cut 20-30% off our consumption is going to fall drastically short of what is needed.
The University of Alaska, our so-called leader in educating the public, has been way behind the energy eight ball for over 50 years. AND IF they do any research, it is sequestered in the halls of ivy, not universally publicized through out the state of Alaska.
We need Energy Research Centers at all of our campuses, including the Rural Campuses, so that we all can have access to all of the alternatives we need to be considering to lower our cost of energy. These Energy Centers could transfer technology to our schools across the state and introduce our children to the amazing range of alternative technology that is available for our consideration.
The University of Alaska Board of Regents needs to take their heads out of the ivory towers and get to our level by providing the leadership in energy development needed, that is equally accessible to all Alaskans, and become the paramount energy innovator that the world can look to for solutions to our very serious energy challenges.
Until the University of Alaska begins to address our energy needs in a meaningful manner with a program of practicle application, they should not get a dime.
Have you ever wondered why the University of Alaska is not energy self-sufficient with all of the brains that are supposed to be there?
We don't have a state-wide energy policy and plan and the University of Alaska is not leading the way to energy self-sufficiency. Things have to change.
I would like to see a plan that offers help for things like non-profit programs in our community - these buildings and agencies need help with weatherization and paying for fuel - and many of our lower income residents depend on these programs. Although I'm not lower income, I do depend on a non-profit daycare.
So Palin's plan and Mr. Seifert's plan both leave out non-profit agencies. At least Sarah's plan would include my household (my home is already 5-star+, and I'm not on LIHEAP), and make it easier for us to pay our heating oil bill *and* the higher costs that I'm sure are coming from my daughter's daycare.
Although Sarah is very firm that this is a one-year deal, and long-term solutions are coming - I've yet to hear about anything that could be in place by winter 2009. 2020 is a long time to wait for natural gas.
Sure is, salmon, but I imagine that if the 2020 plan gets put in place, there'll be a whole raft of other, smaller plans (on the order of the debit card thing) to tide people over until then.
I also make 'too much money'- which means I won't be donating to the Food Bank and other charities I typically like to help in order to keep my home in order this winter.
I also don't like the idea of a GI who collects a PFD would get a debit card while living in base housing in Florida. You get the picture.
This can be done better; the weatherization programs are a place to start. I'd rather use a debit card for buying more insulation, rather than fuel.
This rates a good discussion but Rich could have used tyhe space to "educate us".
For example how much fuel do you save in fuel when, everything else being equal, you drive 5 miles per hour slower, or 10? If you normally have the thermostat at 68 degrees is it worth droping to 65 or must you go to 60 degrees to have a measurable saving. Tell us.
It would be nice if GVEA would take another look at how they set up budget plans for electric. As it stands right now they aren't very "friendly" to anyone!
I can't recall the exact percentage but when I inquired about a budget plan this past winter I was told that a huge percentage of your heat source has to come from electric in order to qualify! Mine is mostly fuel oil BUT I still used electric to power that Toyo Stove, exhaust fans and stuff like that.
I have never lived anywhere where it was "policy" to turn someones power off during the winter. I kind of gathered from this article that its ok to do that here in Alaska. CRAZY!
Boom and bust economy in the Interior. We had cheap energy (boom) and now we don't(bust). I am sure there are people who would like an apartment overlooking Central Park in NYC, but cann't afford it. The hard part is to realize that you may not be able to afford your current lifestyle and make yourself a new plan. Waiting for a government life raft probably won't happen. Hard to face, but you do what you have to do.
Boom and bust economy in the Interior. We had cheap energy (boom) and now we don't(bust). I am sure there are people who would like an apartment overlooking Central Park in NYC, but cann't afford it. The hard part is to realize that you may not be able to afford your current lifestyle. You need to make yourself a new plan as hard as it may sound. Waiting for a government life raft probably won't happen. Hard to face, but you do what you have to do.
Any benefit should be awarded on a per capita basis as this will not distort incentives as much. Giving aid to those who do not pay their bills gives incentives for them and others not to do so in the future. For example; one of my ex-girlfriends once paid her cable TV bill but not her electric bill and thus was unable to enjoy her TV at all. She thought that as a “need” she would be given more time to pay her power bill than her cable bill before having her service disconnected. See the distorted incentives of such a plan? It would encourage people to pay for luxuries before basics, the opposite of what should take place.
About the only part of this article that makes sense is the desire for more information to be linked to the use of the energy conservation and weatherization money.
an extra 100 dollars a month for fuel would help me out a lot. it would be like lopping a dollar a gallon off the currant price. also, it might be enough to keep a few merchants solvent this year, with the added cash floating around.
Suspend all royalties on resources used within the state until oil drops to $92.50 per barrel. The state still makes a ton off of exports and everybody gets a fuel/energy break.
I think the state should divide the $$ up write each of us a check for (~ $300K) and we can all leave and let the natives and other welfare folks take over and live happy ever after. They can go back to the old ways of their culture and live off the land and all that neat stuff. Their energy needs would be small so all issues are solved.
Brilliant I am!
brilliant james? no i don't think so. but you are a good example of the need for continued advancement in the field of birth control.
I don't know if the debit card plan is the best we can do, but I do know it would help my small family. I am required to have a vehicle for my job, so the bus isn't an option. My husband & I carpool as much as possible, though occasionally two cars are needed. Currently he is biking to work. The vehicle we have does need to be plugged in to start in winter, even on a timer that adds up. We are not able to invest in winterization as we do rent. Our landlord does a good job of sealing windows for the winter & we in return try & keep our thermostat at a reasonable & affordable temperature.
Last night we took a walk & tried to plan how we were going to afford our GVEA bills next winter, it really is going to be a trial. The vehicle we have does need to be plugged in to start, even on a timer that adds up.
We aren't wasting energy or fuel, but next winter is still going to be tough. We both work hard & try to be budget minded. Honestly I would appreciate some sort of help. Nothing long-term, but a little boost from the state could really help a lot of people right now. Many families that are fiscally responsible & employed are in the same straits. I don't know what the best plan is, but looking for one is a start.
Did anyone find it odd that the governer offers up all this money to help us out. This money is supposed to go to us and the utility comapanies that provide us with what we need to survive the long, cold, dark winters. Now that that has been announced GVEA raises thier rates yet again.
JoeC66, yeah, I was kind of waiting for it.
OH gosh Hot_Reuben ... go make a cold sandwich then ...lol.
Yota99714 and everyone else that "don't like the idea of a GI who collects a PFD would get a debit card while living in base housing in Florida", need to think about this picture before you discredit the value of our fellow Alaska residents who are in the military. An 18 year old Alaska resident born and raised here, who signs up for service doesn't always get a choice in their assignment. Those service men and women have a choice to maintain their Alaska residency and are entitled to their fair share of the State's resources according to the constitution. If you take them out of your picture as non-deserving, then you are taking the stand that Alaska should not honor military obligations as a service to the Nation or the State. The few residents that are out-of-state serving in the military are a lot more valuable to the state than the paltry sum that the proposed immediate relief plans are offering.
We Alaskans are drowning in wealth, but cannot seem to find a constitutional way to disperse enough of the spoils to the residents to provide immediate relief while collectively saving and planning for the future. Those kids born in Alaska with parents serving in Florida don't get anything that help them offset the doubling cost of fuel, but by Alaska State Law, we should provide them with the same boost we offer to the sourghdoughs in Circle.
I have two questions for the legislators: How long will it take to convert the GVEA power plants to burn gas (natural or lp). How long will it take to get the gas line built to fuel those plants? We don't need individual service to each home for gas if we can make cheap electriciy or, instead of fuel oil delivery we have gas delivery trucks and a large storage facility.
This gas is a natural resource that we need price controls implemented on now so that the state controls the local price. Government price controls can work for the state within the state, and we can still sell the exported gas on the open market.
There are two seperate solutions to the energy cost crisis for Alaska residents. One is short term, quick relief to Alaskans based on their stake and ownership of the royalties from the high price of oil. The short term fix needs to be prepared to cover that time span between now and when the long term plan is operating. We have systems in place right now to distribute those immediate relief funds and shouldn't waste money reinventing the wheel.
The long term approaches to keeping energy costs under control within the state are big budget items, but the final answers need to be regionally based, long term, energy cost saving plans for residents. The solutions the legislature approves should positively affect both this winter and the winters of the next hundred years for all Alaskans.
Here is another thought. What about the GI's here that live off post, pay rent, electricity and support their local community. We are residents but have not been here long enough to receive a PFD check, many of us own homes in other states we can not sell, so we pay rent payments and house payments so that we may be with our families while we can. We struggle too and under the proposal do not qualify for the assistance. I do not understand why they can not look at who has an active electricity account. Correct me if I am wrong, but I assume the majority have electricity? Seems like assistance is a good idea, just poorly thought out....
pixy ...your situation is just like anyone else who has recently moved to AK..you have to wait a while for the PFD
how much is the PFD? well mine is not much at all and nothing to depend on.
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