Demonstration Projects Have Tried Various Approaches and Included Some Activities Not Directly Related to Home Energy

Through the end of fiscal year 2000, OCS had awarded $30 million in REACH grants to states and tribal organizations for 54 projects (29 state and 25 tribal projects) to address the home heating and cooling needs of low-income households using a variety of approaches. Some REACH projects included social services not directly related to home energy needs. Some REACH projects have involved innovative activities. The legislation authorizing the REACH program requires that REACH project plans describe performance goals for each project, which are to include   a reduction in the energy costs of participating households over 1 or more   an increase in the regularity of home energy bill payments by eligible   an increase in energy vendor (such as utility companies) contributions towards reducing energy burdens of eligible households. HHS Has Not Yet Planned How to Communicate REACH Project Successes and Lessons Learned

OCS has not yet planned how it can best communicate information to state officials and others about the results of REACH projects, such as what approaches prove to be the most successful in meeting the home energy needs of low-income households. While the evaluations conducted on the first year of state grants have many shortcomings that limit their usefulness in assessing project effectiveness, the REACH program recognizes the problems and has been taking steps to help improve future project evaluations. Families would reduce their demand for Low-Income Home Energy Assistance Program (LIHEAP) payment assistance. Utility bills were to be obtained from energy suppliers. The project’s design and implementation allowed statistically valid conclusions to be made about the effect of project services on participant energy use. Appendix VIII: Comments From the Department of Health and Human Services

The following are GAO’s comments on the Department of Health and Human Services’ letter dated July 23, 2001. 2. 3. 6.
What GAO Found

Rising prices for natural gas, electricity, and other fuels have made it even harder for low-income families to pay their utility bills. By the end of fiscal year 2000, the Office of Community Services had awarded $30 million in Residential Energy Assistance Challenge Option (REACH) program grants to 24 states and 12 tribal organizations to fund 54 separate projects to help meet the home energy (heating and cooling) needs of low-income households. These grants ranged from $50,000 to $1.6 million. Most of the 54 REACH projects have educated low-income clients about home energy efficiency through group workshops or on individual home visits. Many REACH projects have involved energy-related repairs to homes and budget counseling, and three state REACH projects are developing consumer cooperatives to purchase electricity or bulk fuels, such as heating oil. However, some REACH projects have included social services not directly related to meeting home energy needs. The legislation authorizing REACH identifies the following three performance goals for individual REACH projects, (1) reduce the energy costs of participating households, (2) increase the regularity of home energy bill payments, and (3) increase energy suppliers' contributions to reduce eligible households' energy burden. Of the six project evaluations completed by states as of May 2001, only one project's design and implementation allowed statistically valid conclusions to be made about the effect of project services on participant energy use. The five other state project evaluations had analytical problems and other shortcomings that limited their usefulness in assessing project results. The Department of Health and Human Services has not yet developed a comprehensive plan for how it can best communicate summary information on best practices and lessons learned from the REACH program.