Overview

There are several factors that contribute to Texas’ energy crisis, one of which is that much of our energy is wasted due to inefficiency. One of the cheapest and easiest ways to address this problem is to increase our energy productivity by implementing some very common-sense energy efficiency programs such as home weatherization. Air sealing, insulation and window replacements are all forms of home weatherization that can reduce energy by 20 percent. Air that escapes through cracks around doors windows and other pathways increases the load on heating and air conditioning systems and wastes energy that could otherwise be saved by ensuring that the building envelope is completely sealed.

Additionally, homes with cheap rent or affordable mortgages are attractive to low-income Texans. Often times, these homes do not use energy efficiently. As a result, some low-income Texans live in homes that generate huge, unaffordable utility bills even though their rents or mortgages may be reasonable. 

For this reason, the state has a program called the System Benefit Fund (SBF) designed to help low-income Texans in this predicament. The SBF is an account in the General Revenue Fund and is financed by a mandatory surcharge that all energy consumers in the competitive markets must pay every month. Money deposited into the SBF may only be appropriated for very specific purposes. For example, the Legislature can allocate money from the SBF to the Texas Department of Housing and Community Affairs (TDHCA) to help pay to weatherize homes for Texans living at or below 125% of the federal poverty level.

In 2002 and 2003, $17.9 million of SBF funds were used to weatherize approximately 5,000 homes. These 5,000 homes are now more energy efficient which means that energy consumers pay less for their utilities every month. Home weatherization not only helps the individuals in these 5,000 homes, but the total reduction in energy consumption has significant benefits for the TOTAL energy use and peak demand for ALL Texans. 

Since 2003, the Legislature has not appropriated any funds from the SBF for weatherization and has instead relied on federal funds or utility efficiency programs mandated by Texas law to fund energy efficiency work. Unfortunately, this combination of funding only benefits a fraction of the Texans that could otherwise see a reduction in energy consumption and relief from sky-rocketing energy costs.

There is currently over $800 million in the SBF. If the Legislature appropriates $85 million, or 10 percent, of this available money to provide assistance for home weatherization, approximately 17,000 households will become more energy efficient. This will help the low-income community save money on their utility bills every month. This reduction in energy use will benefit the state as a whole by reducing total energy consumption through a reduction in the overall peak demand.