NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Rawson

 

DATE TYPED:

02/16/03

 

HB

 

 

SHORT TITLE:

Weatherization Assistance Program

 

SB

355

 

 

ANALYST:

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$1,000.0

 

See Fiscal Impact Narrative

    Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

 

See Narrative

Recurring

Federal

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

 

Duplicates House Bill 705

 

SOURCES OF INFORMATION

 

New Mexico Mortgage Finance Authority (MFA)

Department of Finance and Administration (DFA)

Energy, Minerals and Natural Resources Department (EMNRD)

Legislative Files

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 355 appropriates $1,000,000 from the general fund to the Department of Finance and Administration for the purpose of funding the Weatherization Assistance Program to increase the energy efficiency of homes occupied by low-income people, reduce their total residential energy expenses and to improve their health and safety.

 

     Significant Issues

 

The Weatherization Assistance Program (WAP) is a federal grant program administered by the U. S. Department of Energy (DOE) and implemented and administered in New Mexico by the MFA under a Joint Powers Agreement with the Department of Finance and Administration.  MFA works through community-based non-profit organizations to distribute the funds.  DOE

expects financial participation from the states to supplement the program and increase the number of assisted households. 

 

If enacted, Senate Bill 355 will provide $1 million in weatherization assistance funding from the general fund.  It is expected DOE will provide an addition $1.7 million for the program for fiscal years 2003-04, sufficient funding for approximately 826 units.  As of June 30, 2002, 973 applicants are on a waiting list for home weatherization assistance.

 

Households with incomes at or below 125% of poverty level are eligible for the program.  Priority for funding is given to the elderly, disabled and families with children.  Dwellings weatherized from 1992 to present are ineligible for assistance.  Work to be done in homes is determined through an energy audit approved by DOE, are based on a cost-benefit analysis and the average cost per unit may not exceed $2,568.  Typically, weatherization work includes weather-stripping and caulking of the exterior environment, repair of broken windows, insulation, repair of furnaces or heating units, installing carbon monoxide detectors, etc.

 

FISCAL IMPLICATIONS

 

The appropriation of $1,000.0 contained in this bill is recurring.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund. 

 

During fiscal years 2001-02 DOE funding was $1.2 million and state funding was $1 million from the general fund; in fiscal year 2002-03 DOE funding was $1.7 million and state funding was $666.7 from Severance Tax Bond funds.  DOE funding for 2003-04 is estimated to be $1.7 million.  In past years, funding for the weatherization program has been requested by the Department of Finance and Administration as special appropriations, until last year, when the appropriation was requested from Severance Tax Bond funding.

 

LMK/prr