Efficiency Vermont outlines weatherization programs, funding gaps and contractor constraints

BURLINGTON, Vt. — Efficiency Vermont staff told the House Energy and Digital Infrastructure Committee on April 16 that state weatherization work reduces energy bills, improves indoor comfort and helps cut greenhouse-gas emissions — but that the program faces persistent funding and workforce constraints that limit how quickly homes can be upgraded.

Peter Wouk, managing director of Efficiency Vermont, and Juliana Bortz, program manager for weatherization, described the agency's Home Performance with ENERGY STAR rebates, a recently launched home-repair fund, financing options and partnerships with the state's Weatherization Assistance Programs (WAPs).

Wouk said the program began in 2009 with the creation of the Thermal Energy and Process Fuels Fund (TEPF) and that thermal funding has since come from a variety of sources, including RGGI proceeds and two tranches of ARPA dollars. "The weatherization doesn't happen through pure capitalist economics alone," Wouk said, explaining why incentives are necessary for many homeowners to proceed with projects.

Efficiency Vermont staff framed weatherization as two complementary measures: insulation and air sealing. "When I'm talking about weatherization work, we're talking about both insulation and air sealing. They are the dynamic duo of weatherization work," Bortz said, describing air sealing as stopping small leaks that can amount to the size of a football in total leakage. Staff said weatherization improves comfort, reduces fuel use and can lower housing-related greenhouse-gas emissions.

Program details and recent initiatives

Efficiency Vermont offers income-scaled rebates through its Home Performance with ENERGY STAR program, administered via a network of certified contractors. According to Bortz, rebate levels discussed in the briefing were: low-income households (at or below 80% area median income) receiving 90% of project costs up to $9,500; moderate-income households (80% to 120% AMI) receiving 75% up to $9,500; and higher-income customers receiving a different rebate structure described in the briefing (transcript: 75% of costs up to $4,000). Efficiency Vermont noted the program is rebate-based, so homeowners generally must front project costs and receive payment after completion.

To address conditions that prevent weatherization, Efficiency Vermont launched a Home Repair for Weatherization program on Oct. 1 (funded with ARPA state dollars) that provided up to a percentage of repair costs up to $15,000 to address barriers such as roof or foundation repairs, vermiculite/asbestos remediation and basement moisture mitigation. The program had $2,250,000 available; staff set aside 25% of those funds for WAPs and allocated roughly $1.8 million for Efficiency Vermont applicants, which was fully committed within about six months and assisted just under 200 households, the presenters said.

Financing and on-bill options

Efficiency Vermont described financing tools to help homeowners cover upfront costs. The agency's home-energy loan (administered with lenders and buy-downs from Efficiency Vermont) now covers up to $25,000 with rates ranging from 0% to 6.99%; staff said 0% financing applies to many low- and moderate-income five-year loans. The Weatherization Repayment Assistance Program (RAP) was described as an on-bill repayment option implemented with VHFA, BED and other partners; RAP carries the repayment on the utility account (not the person) and requires no credit check. Presenters said RAP uptake has been smaller than hoped and participation by utilities varies by territory (examples cited: VGS, BED, GMP, Ludlow Electric, Vermont Electric Cooperative).

Workforce, supply-chain and equity challenges

Wouk and Bortz said contractor capacity and geographic equity remain central challenges. Efficiency Vermont's contractor network peaked around 70 weatherization contractors in 2012 and has declined to about 52 firms, staff reported. Contractors told staff that the key barrier to scaling is sustained, predictable incentives; rapid, one-time funding spikes (for example, stimulus funding years) create boom-bust conditions that make long-term workforce investments difficult.

Presenters highlighted special challenges for manufactured and mobile homes (about 6% of the state's housing stock), rental properties (split incentives between landlords and tenants) and older housing stock (roughly 25% of Vermont homes are 100+ years old). Staff also noted that many weatherization benefits, such as health improvements, are not currently captured by the energy-funding streams and that efforts to have health systems or Medicaid pay for weatherization have not produced a sustainable funding source.

Results and state goals

Efficiency Vermont showed historical weatherization data, noting a 2012 spike tied in part to ARRA funds and that recent work has been supported by partnerships with multifamily program contractor "3 d thermal." Wouk referenced the state climate action plan goal (20,000 homes by 2030) and cited a 2024 report indicating the state is about one-third of the way to that target.

Coordination and next steps

Staff said they coordinate closely with WAP providers and recommended further work with VHFA, utilities and state agencies to expand financing and target underserved areas. They also described a newly funded workforce training center and internal efforts to ramp up contractor training.

Committee members asked for follow-up information on administrative details for RAP/on-bill financing, utility participation, and the regulatory cost-effectiveness language that constrains spending on low- and moderate-income weatherization. Wouk said he would provide the committee with the cited regulatory language and additional material.

Ending

Efficiency Vermont officials said the demand and barriers make weatherization a continuing priority and asked the committee to consider sustained funding approaches rather than one-time infusions. They offered to return with more data and invited state partners to brief the committee on financing pilots.