A program in South Carolina offers a new way to help families apply for benefits like LIHEAP. (image: liheap.dpw.state.pa.us)

Heating assistance programs face a number of well-known problems. In some states they lack the resources to help all those in need; in New Jersey, a slew of recent indictments has revealed that funds for the state’s Home Energy Assistance program have been siphoned off by corrupt local administrators. Yet one of the most vexing problems facing heating assistance programs, like other federal and state benefits programs, is that funds often go unused even though people are in need.

In New York State, over 1 million eligible households did not apply for heating assistance in 2008, leaving funds set aside specifically for heating assistance unused. Applying for assistance can be difficult and time-consuming, deterring people from applying, and often people are unaware that they are eligible for benefits. Now South Carolina is initiating a new program for distributing state and federal benefits like food stamps and health insurance by using an online service called The Benefit Bank, reports IndependentMail.com. South Carolina plans to expand the service to include heating assistance, and other states already use The Benefit Bank to administer the Low-Income Home Energy Assistance Program (LIHEAP).

IndependentMail.com tells the story of Anderson Interfaith Ministries, which recently became a site for The Benefit Bank of South Carolina and is already helping local families. By becoming a Benefit Bank site, Anderson Interfaith Ministries gives residents another location to apply for benefits—instead of having to go to one local government office—and also makes available counselors to help families apply for benefits. Families fill out just one application—not several—and the counselors use the Benefit Bank’s online service to determine if they qualify for Medicaid, food stamps, or federal student aid, and soon may be able to determine if they qualify for heating assistance.

Lorin Larason of Anderson Interfaith Ministries talked to IndependentMail.com about the agency’s goals in working with Benefit Bank:

“We want to be a one-stop shop,” Larason said. “You fill out one application and it works for a lot of programs.”

Eight states currently work with the Benefit Bank, meaning that most people in the US can’t take advantage of its services. But if The Benefit Bank continues to have the success and the promise that IndependentMail.com says it’s having in Anderson, SC, then The Benefit Bank—or programs like it—may soon be able to help more residents get the assistance, including heating assistance, that they need.

A technician performs a blower door test, part of a home energy audit. A free home energy audit is the first step for homeowners who apply for the Energy Smart Quincy program. (image: austinqualitygreen.com)

Energy Smart Quincy is a new program designed to help the town of Quincy, MA reduce energy consumption and save money, the Boston Globe reported on Thursday. The program started in July, and provides homeowners and businesses with a free energy audit, during which a technician identifies ways to reduce energy use and informs consumers about available rebates and incentives for making energy-efficiency improvements.

The program is funded by federal stimulus money through an Energy Efficiency and Conservation Block Grant worth $881,000. That money will not go directly to homeowners, though; instead, it provides for the free energy audit and assistance in taking advantage of existing rebates and incentives. National Grid offers rebates of up to $2,000 and federal tax credits can take $1,500 off the cost of efficiency improvements. Those incentives can often help homeowners make the initial investment in projects such as adding insulation or sealing air leaks, which provide energy savings for years to come.

Home energy audits for the program are carried out by Next Step Living, whose chief executive, Geoff Chapin, heartily endorsed the program to the Globe:

“It’s an incredible deal. Not many people know about it,’’ Chapin said. “We help people access the rebates, fill out the forms. We make it easy.’’

Caryn Smith, a Quincy homeowner, spoke with the Globe about her efforts to reduce her energy costs. A home energy audit revealed that her 130-year-old home needed insulation in its roof and eaves. Through rebates and tax credits, what would have been a $5,500 job became a $2,000 job. That’s not exactly chump change, but Smith anticipates that the new insulation will save her $700 a year in heating costs, helping her pay off the investment in just under three years. After that, the improvement will continue to afford Smith the rewards of a more efficient home year after year.

Even a much smaller investment, combined with incentives, can substantially reduce energy bills. Larry Chretien, the executive director of Mass Energy Consumers Alliance, says that a $500 out-of-pocket expense can pay for $2,700 in insulation and air sealing, and usually saves consumers enough money that the initial investment pays for itself in just one year.

Quincy residents can apply today at the Energy Smart Quincy website. For those of you who live elsewhere, the example of Quincy might serve as inspiration. Find out what rebates or tax credits are available to you, and get a home energy audit to find out what improvements you can make to lower your heating costs. An upfront expense today could save you money for years to come.

Slower than expected GDP growth pushed down oil prices on Friday. (image: ft.com)

Oil prices fell early in the morning on the news that US GDP grew more slowly than expected in the second quarter. The Commerce Department’s report had an immediate impact on the oil market, but crude oil and heating oil prices have since pared their losses, moving close to even for the day. Oil prices have gotten some support from a weak dollar, which makes commodities priced in dollars—like crude oil and heating oil—cheaper for traders who hold other currencies. That makes them more appealing, driving up demand and lifting prices. So far, though, the poor GDP numbers have outweighed the effect of the weak US currency and kept oil prices down.

Today’s prices on the NYMEX as of 12:17 pm

Crude oil (September 2010 contract): Down 0.5 percent, $77.94 per barrel.
Heating oil (August 2010 contract): Down 0.3 percent.

Heating oil prices jumped as the value of the dollar plunged. (image: Nicholas Whitaker for HeatingOil.com)

The dollar weakened on Thursday, reaching its lowest point against the euro in 12 weeks and losing ground relative to most other currencies as well. The weak US currency boosted oil prices, since it made crude oil futures and heating oil futures—both of which are priced in US dollars—cheaper and more attractive to traders who hold other currencies. The impact of currency prices overwhelmed the affect of some negative economic news and Wednesday’s report of a massive increase in crude oil inventories. While oil prices have defied bleak economic news on Wednesday and Thursday, Friday’s report that US GDP grew at a slower rate than expected has led oil prices to fall sharply in early trading, and could produce lower retail heating oil prices over the weekend.

Today’s average retail heating oil price in the Northeast is 4 cents higher than Thursday’s average price.

Oil prices climbed as the dollar weakened against other currencies. (image: ft.com)

The dollar weakened considerably on Thursday, helping oil prices rise for the first time in a week. Because crude oil and heating oil futures are priced in dollars, a weak dollar makes them cheaper (and more attractive) for traders who hold other currencies, which in turn supports higher prices. The dollar fell against most other currencies, and hit a 12-week low against the euro. Action in the currency markets drove up oil prices even as stock markets remained flat and inventories remain high.

Today’s closing prices on the NYMEX

Crude oil (September 2010 contract): Up 1.8 percent, $78.37 per barrel.
Heating oil (August 2010 contract): Up 2.2 percent.

Attorney General Paula Dow (center) and Criminal Justice Director Stephen Taylor (left) have indicted another heating assistance administrator for fraud. (image: nj.com)

In what’s becoming a familiar story, a local administrator of New Jersey’s Home Energy Assistance (HEA) program has been indicted for filing fraudulent applications to get benefits for herself and others. Denise Johnson was indicted on Wednesday, reported NewJerseyNewsroom.com, and follows in the footsteps of fellow HEA administrators Nicole Victor (indicted in May) and Constance Campbell (sentenced to five years in prison on July 19).

In a statement released by the Office of the Attorney General, New Jersey Attorney General Paula Dow said the latest indictment is the result of a lengthy investigation into corruption in the energy assistance program:

“This is the fourth case that we have filed in the last twelve months as a result of our ongoing investigations into fraud against the New Jersey Home Energy Assistance Program,” said Attorney General Dow. “By vigorously investigating and prosecuting these cases, we are working to prevent misappropriation of taxpayer dollars and ensure that program funds are used to heat the homes of vulnerable residents who are rightful beneficiaries of the program.”

The fourth case that Dow mentioned was that of Thomas Harris, a fuel supplier involved in the frauds perpetrated or allegedly perpetrated by the three HEA administrators. As the sole proprietor of Harris Fuel Oil, Harris offered cash for heating assistance checks instead of fuel. Harris would pay out in cash less than the value of the assistance checks, and has been sentenced to four years in prison after pleading guilty to defrauding the state of nearly $400,000.

Johnson allegedly stole $22,905 in assistance funds for her own benefit, and assisted her boyfriend, Anthony Lamont Taylor, and her half-brother, Vincent Lipsey, in filing false applications and receiving $2,648 each in program funds.

The latest indictment may not be the last. According to State Criminal Justice Director Stephen Taylor, investigations are still in progress:

Through the exemplary work of our investigators and attorneys, we are continuing to follow the evidence and build strong cases charging fraud against this program.

As New Jersey continues to investigate fraud within the HEA program, low-income New Jersey residents stand to benefit as more of the program’s funds go to their rightful recipients.