Vermonters spend a growing share of their income to heat their homes — and that percentage is increasing faster for low wage earners living in drafty homes, according to a study by the Vermont Law School.
In the wake of the Shumlin administration’s proposal to cut $6 million in state funding for low income heating assistance, advocates joined the authors of the 2014 report at the Statehouse on Thursday to request funding for state weatherization and fuel assistance programs.
Vermont residents pay relatively more for heat as their income declines, the report found. Low-income residents often use more expensive sources of heat — such as electric space heating or small propane tanks — because they cannot afford cheaper options that require large upfront investments, like filling an oil tank.
Anita Kelman, an energy efficiency coach with Barre-based low-income service agency, Capstone Community Action, said she has found residents heating their homes with grill propane tanks, space heaters and open ovens, and others using a hair dryer to keep their pipes from freezing.
“We see this all the time,” she said. “They lack the upfront resources to save them money down the road.”
According to the report, nearly three-quarters of Vermonters earning less than $14,000 spent on average 27 percent of their income on home heating in 2012, a 40 percent jump from 2000. The average income earner in Vermont — about $52,000 per year — spent 6 percent of their income on heating, a 20 percent increase over the same period.
“Home energy costs have become an unbearable burden for many Vermont households, and the lower their income, the higher the percentage of their income they pay to stay warm,” said Karen Lafayette, of the advocacy group Vermont Low Income Advocacy Council.
Cold homes cause about 170 deaths in Vermont every year, double the number of lethal automobile and transportation accidents, according to Jonathan Teller-Elsberg, a VLS graduate and author of the report.
Teller-Elsberg said residents earning less than $15,000 per year spend more than a quarter of their income on heating their homes. He said people who spend more than 10 percent of their income on heat — or those considered to be in “fuel poverty” — have an increased risk of stroke, heart attack, pneumonia, influenza and household accidents.
“Together these risk lead to a phenomena called ‘excess winter mortalities.’ That is, people die during the winter because of fuel poverty,” he said. “The leading contributor to fuel poverty is the combination of inefficient homes that rely on expensive sources of energy.”
The Shumlin administration’s budget includes $6 million in cuts to a heating assistance program, the Low Income Home Energy Assistance Program (LIHEAP), among other cuts to social programs.
VLS student Emily Laine said that fuel assistance is an important social safety net for low-income residents. Also, she said, home thermal efficiency (insulation) investments save money on heating and health-related issues.
“For every $1 invested in weatherization, the benefit is $2.51,” Laine said. “That’s $1.80 in reduced energy costs and and 71 cents in social costs like public health, safety and public welfare.”
There is currently an 18-month wait for weatherization assistance at Capstone, Laine said. One way lawmakers could tackle the problem would be to raise the state’s gross receipts tax to 2 percent, up from 0.5 percent, to increase funding for weatherization, she said.
She also recommended the state require mandatory thermal efficiency labeling for buildings so buyers and renters know how much they will spend on heating in advance, which may spur competition among owners to invest in efficiency. The legislature should consider a minimum standard to become certified, she said.
The study was funded with a $40,000 grant from the Vermont Low Income Trust for Energy. The group had no further involvement in the report, according to Kevin Jones, deputy director at VLS’ Institute for Energy and the Environment.
CORRECTION: The report was funded through the Vermont Low Income Trust for Energy, not the Vermont Low Income Advocacy Council, as originally reported.
