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Washington's REACH Program Evaluation Summary

Abstract
Washington state's REACH was an innovative project designed to increase self-sufficiency of low-income families by securing long-term fixed-price energy sources and nonfederal energy assistance through participation in Washington's wind power industry. A World Institute for Sustainable Humanity designed the project, provided technical assistance and formed a partnership with utilities and the state's LIHEAP, weatherization, and Community Services Block Grant network. The idea was to help Community Based Organizations (CBOs) acquire and operate wind turbines or become part owners in cooperatively-owned wind farms. The energy produced would be exchanged for rate discounts or rebates to low-income customers in the project area.

Duration
Three years: 2003-2005

Grant Amount
$1,000,000 (2003 grant)

Goals
The main goal of the project was to stabilize energy costs for low-income households by working with the wind power industry to develop Community Wind. Five interventions were proposed:

• Intervention 1, Single Owner Model—Coastal Cap, in cooperation with Grays Harbor PUD and the landowner will acquire and operate their own wind turbines, exchanging the energy produced for rate discounts or rebates to low-income customers. This initial project will serve as a model for other CBOs to follow.
  
  
• Intervention 2, Second Wind Model—Coastal CAP will help other CBOs develop their own wind projects through workshops, conferences and other venues.
  
  
• Intervention 3, Cooperative Model—CBOs will become part owners in cooperatively owned wind farms. Blocks of power will be set aside for low-income households.
  
  
• Intervention 4, Process Participation—builds upon Washington's previous REACH project by continuing to participate in ratemaking and mergers before the Washington Transportation and Utilities Commission, advocating for low-income interests and generating capital for low-income wind projects.
  
  
• Intervention 5, Tailored Energy Assistance Programs—since the wind energy generated is controlled by CBOs, they will be able to tailor energy assistance programs that best fit the local low-income population.

The REACH project hoped to develop 5 megawatts of wind-generated electricity for Community Wind. Resources developed under the project are expected to provide benefits for 17 to 20 years after the REACH project ends.

Client Eligibility
LIHEAP-eligible households heating with electricity.

Client Services
Proposed generation of revenue by the wind industry will fund low-income programs that will reduce the energy burden of households in the project area.

Outcomes
Four of the five interventions were not completed during the three-year project period due to many obstacles about the wind industry that were not known—legislative delays in federal tax credits and availability of hardware, among other factors.

Financing for Intervention 1, the single ownership model, had not yet been located at the end of the project period and that model was not able to progress to the point of implementing Intervention 2.

The cooperative ownership model proved a successful approach and created leveraged funds. Clean Renewable Energy Bonds (CREBs) of $1.187 million and $307,000 in USDA funds were leveraged for the project. The leveraged funds made it possible to build one wind turbine that will produce 660 kw.

A 600kW wind turbine will be installed in Klickitat county at a site previously developed by Bonneville Power Administration and the Department of Energy for a wind demonstration project .

The 660 kW wind turbine was not operating at the end of the project period due to delays in obtaining hardware. Thus, assumptions of revenue from the generated electricity were made. The first 15 years of generation were expected to produce $22,455 per year for Operation Warm Heart with the remainder used to repay the CREBs. After the first 15 years, revenues of about $100,000 annually were estimated for the remaining life of the wind turbine. Generated revenue was projected to provide Operation Warm Heart with an estimated $933,760 for 4,750 low-income households during the first 20 years. Operation Warm Heart is an energy assistance
program administered by the Washington Gorge Action Programs and Klickitat PUD.

No rulemaking hearings were held that the REACH project could participate in, thus Intervention 4 had not progressed and could not be used to implement Intervention 5.

Since, electricity generation had not started during the project period, it was impossible to do an economic analysis on the impact of the project on the target population.

Contact the LIHEAP Clearinghouse for the full-text evaluation report.

Page Last Updated: January 27, 2010