The following is an article written by Meg Power, Senior Advisor to the National Community Action Foundation (NCAF). NCAF is the Washington, DC representative of the nation’s 1100 local Community Action Agencies, which deliver many services and investments in all the nation’s low-income communities including Low-Income Home Energy Assistance and the federal Weatherization Assistance Program. NCAF has endorsed the CLEAR Act.
Why the CLEAR Act is Fair to Low- and Moderate-Income Households
By Meg Power
About one-third of US households have incomes lower than 60% of the median income of their state and qualify for the federal Low-Income Home Energy Assistance Program. Their average annual residential usage is just 87% of the average for the other 2/3 of consumers. The gasoline consumption of the lowest income drivers is less than half that of median income households. Their houses are smaller, albeit more inefficient per square foot; they own fewer appliances, buy few finished goods and drive fewer cars. Their carbon footprint is far lighter than that of middle income consumers.
However, these Americans are extremely vulnerable to increases in energy costs; on average they spend from 18% to more than 23% percent of an entire year’s income directly on energy, including home fuels and gasoline, depending on the fuel prices in a given year. This percentage is known as the Continue reading