Energy Efficiency Photo by Sierra Club

Every Virginian deserves to live in homes that are comfortable and affordable. We rely on air conditioning (AC) and heating to keep our homes and businesses comfortable and livable year-round, but this can be very costly. Yet, each building requires different amounts of energy to keep them comfortable. Energy-inefficient homes, like those with poor insulation, outdated appliances, etc., require more energy to keep them comfortable. This increases energy consumption, energy bills and releases more harmful pollution. 

Temperatures are high this summer, but luckily, many Virginia residents have access to air conditioning for their homes, schools, and businesses, but not all. Part of that is due to energy inefficiency. Energy inefficient homes disproportionately affect lower-income families due to higher energy costs and limited resources for improvement due to the high costs. Lower-income families are more likely to live in houses with poor insulation and heating and are unable to afford home improvement costs to fix them. Families may have to choose between paying for energy or paying for food and healthcare. The Housing Innovations in Energy Efficiency (HIEE) Program was established to help low-income Virginians  by providing funding for energy efficiency projects. 

The HIEE Program is a program created in 2021 and funded through the Regional Greenhouse Gas Initiative (RGGI), a pollution reduction program where polluters pay for their emissions. HIEE and RGGI work together to reduce carbon emissions, improve air quality and public health, while also generating funding for helping lower-income Virginia families with energy bills and flood protection through the Community Flood Preparedness Fund. Virginia participated in RGGI from 2021-2023, until Governor Youngkin illegally withdrew Virginia from the program. From RGGI funds, 50% of RGGI proceeds are used to fund energy efficiency projects for low-income Virginians. The HIEE program is funded through the remaining proceeds from Virginia’s participation in RGGI. The HIEE program funds both the Affordable and Special Needs Housing (ASNH) and the Weatherization Deferral Repair (WDR) programs.

During Virginia’s participation in RGGI, carbon pollution from power plants dropped 22%. There is still funding at the Department of Housing and Community Development (DHCD) from when Virginia was in RGGI, that is ready to be used for its intended purpose. The program was able to be so successful because of its ability to help Virginia families in need.

HIEE funding has been distributed to the two supported programs to assist in their goals. The Weatherization Deferral Repair (WDR) program agencies have been allocated $15 million in HIEE funds for the 2022-2023 program year, and another $15 million for the 2023-2024 program year. More than $24 million dollars of HIEE funding has been utilized in Richmond for affordable special needs housing since Fall of 2021. As of early 2023, 32 projects have been funded by the Affordable Special Needs Housing program allowing for 2618 units to be more energy efficient. Thousands more Virginia households could benefit from the life changing improvements to their homes that HIEE funding can support.

VAEEC ASNH Funding Map

One HIEE-funded project funded home improvement projects at Wellesley Commons Apartments, developed by Community Housing Partners (CHP). Wellesley is a three story, 40 unit affordable housing complex located in Newport News, Virginia. Community Housing Partners shared the following information on their use of HIEE funds. The Department of Housing and Community Development (DHCD) gave Community Housing Partners the energy efficiency funding they applied for, providing more funding than they typically would have been able to afford. Specific improvements made in the complex include two ductless mini split systems in the units, dehumidification systems, increased levels of insulation, and modifications of window types. The home improvement changes made in the apartment complex allowed for a 35% improvement in energy efficiency. Energy efficiency measures at Wellesley Commons are estimated to save families an estimated $753 in annual costs, according to the Home Energy Rating System (HERS) index for one unit. The affordable housing available at Wellesley Commons Apartments are around $400 under market rent, helping lower income residents manage rent payments. For all of these reasons, and many more, Community Housing Partners “definitely recommends” using RGGI energy efficiency funding as a developer working in affordable housing because of the ease of use and the assistance offered. During development they had a hiccup caused by flooding that set them back around 6 months, but the HIEE funding helped them to go back and fix things. 

Overall, RGGI and the energy efficiency programs it supports are vital for Virginians to help families save money and save the planet! There is still RGGI energy efficiency money to be used at DHCD and Virginia has an opportunity to rejoin RGGI to keep that funding coming in steadily. Additionally, if Virginia rejoins RGGI, there will be steady, future funding for energy efficiency in lower income housing helping families and the environment! 

Learn more about how other Virginians from across the Commonwealth directly benefited from  HIEE funding to help make home improvements. Increasing energy efficiency equals increasing energy affordability!