Project Overview
- Project Name: Financial Assistance under the Department of Energy (DOE) Weatherization Assistance Program (WAP)
- Local Agency: CNMI Department of Public Works, Energy Division
- Local Contact Person: Thelma B. Inos, Energy Director/Lorraine M. Seman, WAP Program Manager
- Local Contact Number: +1 (670) 664-4480/1/4
Background Information:
The Commonwealth of the Northern Mariana Islands (CNMI) is the newest member of the United States, having entered into a political union with the US in 1976, being one of the most diverse, distant, and isolated entities. Geologically volcanic in origin, the 14 tropical islands comprising the CNMI archipelago stretch north south across 400 miles in the western Pacific Ocean, with a total land area of 183.5 square miles. The Mariana Islands formed by undersea volcanoes is located along the Mariana Trench, with the world’s greatest known ocean depth of 35,810 feet. The CNMI is located approximately 3,300 miles west of Honolulu, 1,272 miles south of Tokyo, 3,090 miles north of Sydney, and 125 miles north of Guam.
The commonwealth’s population lives primarily on three islands; Saipan, the largest and most populated island, is 12.5 miles long and 5.5 miles wide. The other two populated islands are Tinian and Rota, which lie between Saipan and Guam. The nine far northern islands are very sparsely inhabited with a combined population of 6 people in 2000. In the 2000 census, the total population in the CNMI was 69,221, with approximately 90 percent living in Saipan and 5 percent each in Tinian and Rota.
The CNMI’s population by ethnic groups taken from the 2000 census is as follows: 52% Asian, 34%CNMI descent (indigenous Chamorro and Carolinian people), 8% Pacific Islander, and 6% Other. Chamorro and Carolinian are considered the two ethnic groups indigenous to the CNMI. Additionally, the “Compacts of Free Association” permit the free movement of people between the freely associated states, flag territories, Hawai’i and the mainland United States. Foreign contract workers from Asia (primarily Chinese and Filipino) comprise over half of the jurisdiction’s population. These contract laborers work in CNMI’s private and public sector in difficult-to-fill positions.
Total population figures were projected in 2005 at 80,362 people. However, projected population figures based on the 2000 US Census are widely regarded as greatly inflated, secondary to the collapse of the CNMI’s garment factory industry and exodus from a strained economy and infrastructure. In fact, total population figures differ by some 20,000 from a recently released CNMI 2005 Household, Income and Expenditure Survey Report (CNMI-HEIS Report) Today, the CNMI is home to a multi-linguistic and multicultural population of about 66,000 people (approximately 31,000 U.S. Citizens and 35,000 Non-U.S. Citizens), according to the 2005 CNMI-HIES Report.
Problems and Needs Statement:
According to the 2000 Census, nearly a third of all families in the CNMI are below the U.S. poverty level. There are several factors contributing to this overwhelming number of low-income families and individuals. The main factor is that the minimum wage is only $4.05 per hour. This problem is exacerbated by the CNMI’s geographical remoteness, which requires the shipping importation of most products, including food, fuel, cars, household appliances and other basic commodities. This results in a high cost of living in the CNMI. For example, to date, the cheapest gallon of regular unleaded gasoline is $3.47 per gallon on Saipan, with higher prices on the smaller islands of Tinian and Rota. The public Commonwealth Utilities Corporation is the sole provider of electrical energy in the CNMI. This energy is produced by diesel engines, which again require the import of fossil fuel. The global rise in fuel costs and other factors have adversely impacted CNMI utility rates.
Because of the mass closure of major garment manufacturers in the early part of 2005 and the decline of tourists coming in to the CNMI, our economy had been adversely affected that resulted in the greater loss of jobs for our resident workers. This downturn in the economy is having a more immediate adverse affect on our low-income people.
Due to its sub-tropic climate, CNMI households face the challenge of cooling their homes year round. The average temperature in the CNMI year round is 85°F with high humidity. For families with elderly, very young, or disabled household members, home cooling is a priority. In order to withstand the high winds of tropical typhoons, 75 % of all housing units in the CNMI are constructed of either concrete blocks or poured concrete. The sun’s heat is absorbed and held by this type of construction material, and this contributes significantly to the cost of cooling a home. Other units are constructed of metal (frequently tin sheets) or wood.
The CNMI’s low income, elderly and disabled member of the family continue to struggle in coping with the high cost of energy. It involves, but not limited to the basic cost of electricity consumption, commodities, transportation, and medical attention. With these high costs of living, it is necessary that low-income families receive needed assistance to reduce electrical consumption in order to meet their daily necessities.
Given these unique geographic, economic, social and cultural conditions, the specific needs the project aims to address are:
- The need to minimize health risks for vulnerable households
- The need to increase the efficiency of energy usage
- The need to target assistance to households who need it most
It is the assumption of the Division of Energy that special attention must be given to vulnerable households, particularly those who utilize air-conditioning as a matter of health and not mere comfort. These households include individuals with disabilities who need to keep cool, families with disable member, households with children under age 18, and households of high energy burden.
It is the further assumption of the Energy Division that WAP clients need assistance in acquiring energy efficient products and that client will also benefit from taking initiative on this acquisition. With this in mind, the division will work with clients to provide them their initiative in choosing to participate in this project’s activities.
And it is the assumption of the Energy Division that a multi-faceted public information approach would be the most successful in targeting households who most need to learn about energy conservation. With this in mind, the division will use media targeting the low-income bracket, personal contact, and testimonials to generate public awareness of the services of WAP, particularly as related to technology of energy conservation, the cost-effectiveness of energy efficient products, and the global responsibility of everyone to conserve energy.
In meeting these needs, special attention will be given to responding to the stated needs of WAP clients. The Energy Division will be partnering with other government agencies such as Medicaid Office, CNMI Disabilities Council, LIHEAP/REACH, Food Stamp Office, and Office on Aging under the Department of Community and Cultural Affairs, and the Commonwealth Utilities Corporation. The views of eligible low-income individuals, elderly, and persons with disabilities will be solicited at the time of their re-certification, which takes place on a quarterly basis. Based on the stated needs and interests of these individuals, topics and approaches to address these views will be emphasized through the project activities.
General Information:
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009: On February 17, 2009, the
President signed into law the American Recovery and Reinvestment Act (ARRA) of 2009, Public Law 111-005. The purposes of the American Recovery and Reinvestment Act of 2009 (Recovery Act) are:
“To preserve and create jobs and promote economic recovery; to assist those most impacted by the recession; to provide investments needed to increase economic efficiency by spurring technological advances in science and health; to invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits; and, to stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.”
State Agency Authority:
The CNMI DPW/Energy Division is the recipient of WAP funds and will be responsible for the implementation of the proposed program. All grant awards under this program shall comply with applicable laws including regulations contained 10 CFR Part 440, The Energy Policy Act of 2005, Energy Independence and Security Act of 2007 and American Recovery and Reinvestment Act of 2009 and other procedures applicable as prescribed by U.S. DOE.
Program Description and Overview:
The Weatherization Assistance Program (WAP) provides financial assistance “to reduce energy costs for low-income families, particularly for the elderly, people with disabilities and children by improving the energy efficiency of their homes while ensuring their health and safety.
Areas to be Served:
Areas to be served will be primarily based on the three inhabited islands of Saipan, Tinian and Rota. These three islands have its own population of elderly, disabled and low-income families.
Services will be administered in the following order for the following islands: First year, the island of Saipan; 2nd. year, Tinian and 3rd. year Rota.
Priorities: Weatherization services will be extended to primary owned dwelling to qualified WAP applicant:
- elderly persons (60 years and older);
- family or persons with disabilities;
- families with children;
- high residential energy users; and
- household with a high energy burden