County of Santa Clara

Children and Families Committee
Supervisor Blanca Alvarado,Chairperson • Supervisor James T, Beall,Jr., Vice Chair

County Government Center• East Wing • 70 West Hedding Street - 10th Floor
San Jose, California 95110• Phone(408) 299-2040 • Fax (408) 295-8642

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THIS RELATES TO:

Memorandum

Item No. 47

Date: 6/5/01

DATE: May 31,2001
TO: Board of Supervisors

FROM: Blanca Alvarado A

Chair, Children anal

kilies Committee

James T. Beall,Jr. /JL

Vice Chair,Childrp and Families Committee

SUBJECT: ENERGY
ASSK^^^^CE PROPOSAL FOR LOW- AND FIXED-INCOME
RESIDENTS ^
RECOMMENDED ACTION

We recommend that the Board of Supervisors approve the attached proposal to fimd

critical service needs of low- and fixed-income residents affected by the energy crisis. A
combination of one-time funds would be utilized including the Welfare Reform Reserve

($350,000) and CalWORKs Incentives Fund ($150,000) totaling $500,000.
BACKGROUND

formed as a result of planning
An Energy Assistance Collaborative(EAC)was recently
on
lowand fixed-income residents.
meetings to address the impact of the energy crisis

Partners in this collaborative include Economic and Social Opportoities(ESO),United

Way^s Emergency Assistance Network(EAN),and the Social Services Agency(see

Attachment B). The EAC identified critical service gaps(see Attachment C)and

developed a funding proposal that serves to maximize and build upon available

resources.

The Children and Families Committee concurs with the findings of the EAC in that

requests for energy-related assistance by residents are rapidly depleting existing and
limited resources. ESO reported at the May 31,2001 CFC meeting that requests for

1

Page 2

energy assistance from residents will quickly exceed the capacity of ESO s resources,
and its current allocation will be depleted in July 2001. These funds will be spent just as
the energy demands begin peaking during the summer months.
Further,ESO reports that the demand for energy assistance has resulted primarily from
increases in the cost of natural gas. With the recent increase in electricity, combined
with the hot summer months ahead, the current shortage of energy assistance will likely
be exacerbated by the anticipated increase in demand from our low- and fixed-income
residents for energy assistance.

The EAC proposes a collaborative effort whereby all agencies providing energy

assistance to low- and fixed-income households would work together to address and

reduce critical service gaps that are otherwise unmet by Federal,State or other local
initiatives.

Recent efforts to address these service gaps include the passage of SB 5x (Sher,

Chaptered 4/11/01) which allocates funding to Santa Clara County for weatherization
and energy assistance. In addition, the Public Utilities Commission issued a ruling in
March 27, 2001 to exempt low-income residents who are participating in the PG&E
CARE program from recent rate increases. Most recently, the City of San Jose
annoimced the allocation of $1 million as part of the proposed Metcalf Energy Center

agreement with Calpine Corporation/Bechtel Enterprises Holdings,Inc. to provide
funding for energy conservation programs and assistance to low-income people to help
pay their energy bills.

This proposal provides additional resources for Santa Clara County residents and will

be coordinated with other private and public resources to maximize energy assistance

for low- and fixed-income residents. These funds will be used to leverage other

resources to ensure implementation of efficient and strategic efforts for coimtywide

energy assistance.

County of Santa Clara
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REVISED TRANSMITTAL

May 31,2001
TO:

Supervisor Blanca Alvarado, Chairperson
Children and Families Committee

Supervisor James T. Beall, Jr., Vice Chair
Children and Families Committee
«

FROM:

SUBJECT:

Will Lightboume, Director

Response to the Impact of the Energy Crisis on Low-and Fixed-Income
Residents

RECOMMENDED ACTION:

The Social Services Agency requests that the Children and Families Committee forward to the Board of

Supervisors a recommendation to fund critical service needs(see Attachment A)of low and fipd income
residents impacted by the energy crisis. This proposal also requests that authority be given to the

Director of the Social Services Agency to enter into and execute contracts with Economic and Social

Opportunities (ESO) and the United Way, upon approval by County Counsel. A combination of funds
will be utilized for this first stage, including Welfare Reserve ($350,000) and CalWORKs Incentives

($150,000), totaling $500,000.
BACKGROUND:

An Energy Assistance Collaborative (EAC) was recently formed as a result of planning meetings to
address the impact of the energy crisis on low and fixed-income residents. Partners in the collaborative
include Economic and Social Opportunities (ESO), United Way's Emergency Assistance Netv,'ork(EAN)
and the Social Services Agency (see Attachment B). The newly formed EAC concurs that increased

requests for energy related assistance are rapidly depleting their limited resources. The EAC identified
critical service gaps (see Attachment C), and developed a funding proposal that serves to maximize and
build upon available resources. It builds upon the existing and proposed collaborative efforts of its

member agencies and utilizes existing program eligibility criteria to minimize administrative complexity.
Currently, ESO manages utility assistance payments for LIHEAP (Low Income Household Energy
Assistance Program) to qualifying low-income households. ESO currently has a waiting pending
LIHEAP applications. The EAN, which is partially funded by United Way and CalWORKs Incentive
funds, offers various emergency assistance to low-income households.^ Another low-income utility

assistance program that is available, but underutilized, is PG&E's CARE discount program, which has.the
state. The Public Utility Commission
lowest penetration rate of any other utility company in the
were enrolled in CARE and therefore not
determined that less than one-half of eligible households

receiving benefits that include exemption from all utility rate increases.

Page 2

A report describing the ideas developed by EAC,Impacts on Low-Income Residents and Seniors was

presented to the Board of Supervisor's Emergency Energy Task Force on May 4, 2001. It highlighted

vulnerable populations, including the home-bound elderly, people with disabilities and shared living
arrangements, where limited or no assistance is available to address increased energy costs. The report
also identified potential sources offunding to address the needs of low-income households: an increased

allocation of LIHEAP funds (the county's annualized share is currently unknown); possible allocation
from the City of San Jose,(Mayor Gonzales announced allocating a portion of utility tax revenues) to die
ESO for the Low Income Household Energy Assistance Program (LIHEAP); and possible foundation
funding for energy efficient appliance replacement.

Additionally, anticipating the need for "heat relief resources for seniors and other at-risk individuals this
summer. plans for alternative public facilities and access to such resources for In-Home Supportive
Services(IHSS) clients are being developed for immediate implementation.

The Emergency Energy Assistance Task Force recognized the energy crisis as an issue concerning
everyone in the community and recommended that cities throughout the county be approached to assist
low-income residents of their respective community. Members of the EAC will be fbllowing-up with
city officials, in particular to communities with the highest concentration of low- and fixed-income
households, requesting their support to address this crisis by earmarking a portion of their utility tax or
other available revenue to assist low-income residents.
REASONS FOR RECOMMENDATION:

A concerted effort is recommended whereby all agencies providing energy assistance to low-and fixedincome households work together to address and reduce the myriad critical service gaps. The state's

legislative response will provide some relief for low-income households, yet many critical service gaps

will remain. SB5x (Sher, Chaptered 4/11/01) provides residents of Santa Clara County with the

following preliminary allocation: $463,576 for weatherization (e.g. furnace, water heater, window
replacements), LIHEAP - PG&E service area $92,046 and LIHEAP - Locally Owned Municipal Utilities
$239,579. Clarification on the on-going level of funding that will be received is needed. The Public

Utilities Commission's (PUC's) ruling of March 27, 2001 provides that low-income residents who are
active in the PG&E’s CARE program,(a monthly 15% percentage reduction), will be exempt from the

January 2001 electricity rate increase. The PUC's ruling on May 15* 2001, provides for a tiered system

that results in increases ranging from an estimated five to thirty-seven percent, and reconfirmed that
CARE participants will continue to be exempt from these increases.

ATTACHMENT A

RECOMMENDED SPENDING PLAN
ESO

First Phase
Amount

Activity

Emergency Utility Payment Assistance: For qualified households
with shut-off or termination notices, provides payment commitments to

$245,000

utility companies for the purpose of maintaining or reinstating their
utility services. Eligibility for these benefits will be consistent with

Critical gaps #s

Approximate number served:

450

federal energy assistance program guidelines.

Intervention Program: For households with higher than average utility
costs, program will focus on reducing household energy consumption

1,2,3,4,&5

$125,000

resulting in more affordable utility bills. Interventions will consist of:
energy

audits of residences, intensive in-home assessment and energy

education, review and ensure household's enrollment in all possible

energy assistance programs, residential energy improvements and
strategies to assist individuals who may be vulnerable/at-risk during
periods of power interruptions-blackouts (i.e., individuals with

Critical gaps #s
6,7,8, 9 & 10

health/medical conditions that may place them at-risk when their

electricity is interrupted during the hottest days this summer).
Approximate number served:

200+

EAN

Reduce Critical Service Gaps: Funding to meet one-time needs of

low-and fixed-income households that may not qualify for other utility

assistance programs, e.g. shared households and at-risk homebound
elderly and disabled individuals. Funding allocation to each EAN
agency per CalWORKs Incentive formula established by United
Way/EAN.

Approximate number served:

Requested Funding

$130,000

Critical gaps #s
10, 11, 12, & 5

200

$500,000

ANTICIPATED PRIVATE FUNDING

Appliance Replacement Program: Funded by private donations for the
replacement of existing appliances with energy efficient models to
reduce energy consumption and lower utility costs. Includes cost of
purchase & installation of appliance, recycling of existing appliance and
required work to ensure safe installation (e.g., installation of grounded

Critical gaps #s

Approximate number served, averaging, $700 per household:

140

electric circuit).

$100,000

8&9

ATTACHMENT B

ENERGY ASSISTANCE COLLABORATIVE
PARTICIPANTS

AGENCY

NAME

Adriana Flores

American Red Cross, Palo Alto

Alette Lundeberg

Social Services Agency

Alycia Cornejo

Salvation Army

Angela Olveda

St Vincent de Paul

Barbara Jones

Cupertino Community Services

David Cox

St Joseph's Family Center

Jaclyn Fabre

Cupertino Community Services, Inc

Margaret Tamisiea

Economic & Social Opportunities(ESO)

Mary Gillespie-Greenberg

Social Services Agency

Mary Helen Doherty

Social Services Agency

Maureen Wadiak

Community Services, Mt View

Nancy Tivol

Sunnyvale Community Services

Paul Tatsuta

Economic & Social Opportunities(ESO)

Rex Painter

American Red Cross, Silicon Valley Chapter

Rosanna Medina

Sacred Heart Community Services

Toni Ensunsa

United Way Silicon Valley

Will Lightboume

Social Services Agency

ATTACHMENT C

CRITICAL SERVICE GAPS

Energy Assistance Collaborative(EAC)

1. Lack of financial assistance to address reoccurring shut-off notices resulting from

continual increases in gas and/or electricity charges;

2. Existing programs only provide one annual assistance payment;
3. Limited assistance for households with past-due high utility bills;
4. Power interruptions due to failure to pay bills in a timely manner;

5. Landlord cooperation required to address "master meter" and Mobile Home Park
households, utilizing one meter;

6. Medically needy households relying on life support equipment;
7. Limited public knowledge and understanding about accessing energy assistance
programs;

8. Timely energy efficient appliance replacements and house wiring upgrade resources;
9. Limited resources to provide conservation outreach efforts, in particular house audits;
10. Limited enrollment in the existing PG&E CARE discount program (15%);
11. Need for senior "heat relief’ - in-home and center-based in process of getting
feedback;

12. Complexity in addressing the needs of shared and overcrowded households.