Energy Justice for All: Keeping Disadvantaged Populations Cool in a Heating World
Extreme heat is the deadliest weather phenomenon in the United States — more lethal than hurricanes, floods, and tornadoes combined. And, as extreme temperatures rise, so do American household energy bills. An alarming 16% (20.9 million) of U.S. households are behind on their energy bills and at an increased risk of utility shut-offs.
Many households rely on electrical power systems like air conditioning (AC) to combat immediate heat effects, increasing energy demand and straining power transmission capabilities, non-reliability, and energy insecurity. Even as increasingly warmer winter months due to climate change reduce the need for heating, this indicates a future with increased energy demand for cooling. In the U.S., projected changes in cooling degree days — the metric to estimate how much cooling is needed to maintain a comfortable indoor air temperature — are expected to drive a 71% increase in household cooling demand by 2050, according to the latest annual energy outlook from the U.S. Energy Information Administration (EIA).
Increasingly excessive heat is, therefore, a financial burden for many people, particularly low-income households. This is especially the case as low-income households tend to live in less energy-efficient homes that are more expensive to cool. The inability to afford household energy needs — that is, energy insecurity — makes it a challenge to stay cool, comfortable, and healthy during periods of extreme heat. Thus, as the impacts of extreme heat and energy insecurity are not distributed evenly, it is increasingly essential for the federal government to consider equity and prioritize disadvantaged populations in its efforts to tackle these intertwined crises.
Extreme Heat Drives Energy Burdens and Utility Insecurities
Energy insecurity refers to an individual or household’s inability to adequately meet basic household energy needs, like cooling and heating. Extreme heat compounds existing energy insecurities by surging the need for AC and other electrical sources of cooling technology. Thus, as the demand for cooling during summer increases energy consumption, many households cannot afford to run their AC, leading to life-threatening living conditions. According to the latest EIA Residential Energy Consumption Survey (RECS), a striking one in five households reported reducing or forgoing necessities like food and medicine to pay an energy bill. Over 10% of households reported keeping their home at an unhealthy or unsafe temperature due to costs.
Additionally, while household access to AC has increased over the years, a significant one in eight U.S. homes on average are still lacking AC, with renters going without at a higher rate than homeowners. The lack of access to cooling may be particularly hazardous for low-income, renter, rural, or elderly households, especially for those with underlying health conditions and those living in heat islands—urban areas where temperatures are higher than surrounding rural and suburban areas.
Another critical issue is that at least three million U.S. utility customers have their power disconnected every year due to payment challenges, yet 31 states have no policy preventing energy shut-offs during excessive heat events. The states that do have policies vary widely in their cut-off points and protection policies. Across the board, low-income people are disproportionately facing disconnections and are often charged a “reconnect fee” or a deposit after a cutoff.
As of 2021, 29 states had seasonal protections and 23 had temperature-based disconnection protections that prohibit utility companies from disconnecting power. Still, research from the Indiana University Energy Justice Lab shows that these do not fully prohibit disconnections, often putting the onus on customers to demonstrate eligibility for an exemption, such as medical need. Further, while 46 states, along with Washington D.C., give customers the option to set up a payment plan as an alternative to disconnection, high interest rates may be costly, and income-based repayment is rarely an option.
These cut-off policies are all set at the state level, and there is still an ongoing need to identify best practices that save lives. Policymakers can use utility regulations to protect residents from the financial burden of extreme heat events. For example, Phoenix passed a policy that went into effect in 2022 and prevents both residential energy disconnections in summer months (through October 2024) and late fees incurred during this time for residents who owe less than $300. Also, some stakeholders in Massachusetts are considering “networked geothermal energy with microdistricts” — also known as geogrids — to build the physical capability to transfer cool air through a geothermal network. This could allow different energy users to trade hot and cool air, in order to move cool air from members who can pay for it to those who cannot.
Grid Insecurity
Extreme heat also poses a significant threat to national energy grid infrastructure by increasing the risk of power outages due to increased energy consumption. Nationwide, major power outages have increased tenfold since 1980, largely because of damages from extreme weather and aging grid infrastructure. Regions not accustomed to experiencing extreme heat and lacking the infrastructure to deal with it will now become particularly vulnerable. Disadvantaged neighborhoods in urban heat islands also face heightened risks as they more frequently lack the essential infrastructure needed to adapt to the changing climate. For example, grid infrastructure in California’s urban disadvantaged communities has been shown to be weaker and less ready to support electric appliances.
Similarly, rural communities face unique challenges in preparing for disasters that could lead to power loss. Geographic isolation, limited resources, and older infrastructure are all factors that make power outages more frequent and long-lasting in rural areas. These factors also affect the frequency of maintenance service and speed of repairs. In addition, rural areas often have less access to emergency services and cooling centers, making power outages during extreme heat events additionally hazardous. Power outages during extreme heat events increase the risks for heat-related illnesses such as fainting, heat exhaustion, and heatstroke. And, for rural homes that rely on well water, losing power can mean losing access to water, since well systems rely on electrical pumps to bring water into the home.
Further heightening the need for urgency to consider these especially vulnerable populations and regions, research has shown that the time to restore power after an outage is significantly longer for rural communities and in low-income communities of color. Power restoration time reflects which communities are prioritized and, as a result, which communities are neglected.
Equity Considerations For Different Housing Types
Extreme heat and energy security cannot be addressed without considering equity, as the impacts are not distributed evenly, especially by race, income, and housing type. One example of this intersection: Black renters have faced disproportionate burdens of extreme heat and energy security, as wealth is deeply correlated with race and homeownership in the U.S. In 2021, the EPA reported that Black people are 40% more likely than non-Black people to live in areas with the highest projected increase in mortality rates due to extreme temperatures. Simultaneously, a 2020 analysis by the Brookings Institute found that Black renters had greater energy insecurity than white renters, Black homeowners, and white homeowners. Beyond the cost burden of staying cool, this energy security puts lives at greater risk of heat-related illness and death and hinders economic mobility.
This paradigm reflects historic, discriminatory housing policies like redlining. Such policies segregated neighborhoods, induced lower homeownership rates, and ensured underinvestment in low-income communities of color—all of these factors play a significant part in making Black residents more vulnerable to the effects of extreme heat. Further compounding this, a 2020 study of more than 100 cities across the U.S. found that 94% of formerly redlined areas are hotter than non-redlined areas; in the summer, this difference can be as high as 12.6℉.
Nationwide, households living in manufactured homes also face disproportionate risks and impacts, with about 25% having incomes at or below the federal poverty level. At the same time, manufactured homes consume 70% more per square foot on energy than site-built homes, while using 35% less energy due to their smaller size. Notably, about 70% of all manufactured homes are located in rural areas, which on average have higher median energy burdens than metropolitan areas.
Further, older manufactured housing units are often in inadequate condition and do not meet building codes established after 1976. However, research has shown that the vulnerability of households living in manufactured housing units to extreme temperatures is only partially related to whether they have AC systems installed. Other key factors that residents report to drive vulnerability include AC units that do not work efficiently, are located in less-used parts of the house, or are ineffective in maintaining comfortable temperatures. These factors hamper manufactured housing residents’ ability to control their home’s thermal environment — thereby driving thermal insecurity.
Manufactured housing households facing challenges with resource access (such as exclusions from assistance programs and lack of credit access), physical health and mental limitations, care burdens, and documentation status may be at disproportionate risk. These households deal with multiple, intersecting vulnerabilities and often must engage in trade-off behavior to meet their most immediate needs, sacrificing their ability to address unsafe temperatures at home. They often take adapting to the increasingly extreme climate into their own hands, using various ways to cope with thermal insecurity, such as installing dual-pane windows, adding insulation, planting shade trees, using supplemental mobile AC units, and even leaving home to visit local air-conditioned malls.
These overlapping paradigms showcase the intrinsic interconnectedness among climate justice, climate justice, energy justice, and housing justice. Essentially, housing equity cannot be pursued without energy justice and climate justice, as the conditions for realizing each of these concepts entail the conditions for the others. Realizing these conditions will require substantial investment and funding for climate programs to include heat governance, housing resilience, and poverty alleviation policies.
Policy Considerations
Energy Burdens and Utility Insecurity
Update the Low Income Home Energy Assistance Program (LIHEAP)
The Low Income Home Energy Assistance Program (LIHEAP) exists to relieve energy burdens, yet was designed primarily for heating assistance. Thus, the LIHEAP formulas advantage states with historically cooler climates. To put this in perspective, some states with the highest heat risk — such as Missouri, Nevada, North Carolina, and Utah — offer no cooling assistance funds from LIHEAP. Despite their warm climates, Arizona, Arkansas, Florida, and Hawai’i all limit LIHEAP cooling assistance per household to less than half the available heating assistance benefit. And, since most states use their LIHEAP budgets for heating first, very little remains for cooling assistance — in some cases, cooling assistance is not offered at all. As a result, from 2001 to 2019, only 5% of national energy assistance went to cooling.
For vulnerable households, the lack of cooling assistance is compounded by a lack of disconnection protections from extreme heat. Thus, with advanced forecasts, LIHEAP should also be deployed both to restore disconnected electric service and to make payments on energy bills, which may surge even higher with the increase in demand response pricing due to more extreme temperatures. The distribution of LIHEAP funds to the most vulnerable households should also be maximized. As most states do not have firm guidelines on which households to distribute LIHEAP funds to and use a modified “first-come, first-served” approach, a small number of questions specific to heat risk could be added to LIHEAP applications and used to generate a household heat vulnerability score.
Further, the LIHEAP program is massively oversubscribed, and can only service a portion of in-need families. To adapt to a hotter nation and world at large, the annual budgets for LIHEAP must increase and the allocation formulas will need to be made more “cooling”-aware and equitable for hot-weather states. The FY25 presidential budget keeps LIHEAP’s funding levels at $4.1 billion, while also proposing expanding eligible activities that will draw on available resources. Analysis from the National Energy Assistance Directors Association found that this funding level could cut off up to 1.5 million families from the program and remove program benefits like cooling.
Reform the Public Utility Regulatory Policies Act of 1978 (PURPA)
While PURPA prohibits electric utilities from shutting off home electricity for overdue bills when doing so would be dangerous for someone’s health, it does not have explicit protections for extreme temperatures. The federal government could consider reforms to PURPA that require utilities to have moratoriums on energy shut-offs during extreme heat seasons.
Housing Improvements
Expand Weatherization Assistance Programs
Weatherization aims to make homes more energy efficient and comfortable in various climates through actions, such as attic and wall insulation, air sealing, or adding weather stripping to doors and windows. More than half of cities have a weatherization program. The Department of Energy (DOE) Weatherization Assistance Program (WAP) funding is available for states and other entities to retrofit older homes for improved energy efficiency to power cooling technologies like AC. However, similar to LIHEAP, WAP primarily focuses on support for heating-related repairs rather than cooling. For all residential property types, weatherization audits, through WAP and LIHEAP, can be expanded to consider heat resilience and cooling efficiency of the property and then identify upgrades such as more efficient AC, building envelope improvements, cool roofs, cool walls, shade, and other infrastructure.
Further, weatherization can be complicated when trying to help the most vulnerable populations. As some of the houses are in such poor condition that they do not qualify for weatherization, there is a need for nationwide access to pre-weatherization assistance programs. These programs address severe conditions in a home that would cause a home to be deferred from the federal WAP because the conditions would make the weatherization measures unsafe or ineffective. Pre-weatherization assistance programs are typically run by the State WAP Office or administered in partnership with another state office.
Additionally, as the Infrastructure Investment and Jobs Act (IJA) allocated roughly $3.5 billion to WAP, states should utilize this funding to target energy-insecure neighborhoods with high rates of rental properties. Doing so will help states prioritize decreasing energy insecurity and its associated safety risks for some of the most vulnerable households.
Increase Research on Federal Protections for Vulnerable Housing Types
There is a need for a nationwide policy for secure access to cooling. While the Department of Housing and Urban Development (HUD) does not regulate manufactured home parks, it does finance the parks through Section 207 mortgages. HUD could stipulate park owners must guarantee resident safety. This agency could also update the Manufactured Home Construction and Safety Standards to allow for AC and other cooling regulations in local building codes to apply to manufactured homes, as they do for other forms of housing, as well as require homes perform to a certain level of cooling under high heat conditions. Additionally, to support lower-cost retrofit methods for manufactured homes and other vulnerable housing types, new approaches to financing, permitting, and incentivizing building retrofits should be developed, per the Biden-Harris Administration’s Climate Resilience Game Changers Assessment. HUD’s Green and Resilient Retrofit Program, which provides climate resilience funding to affordable housing properties, can serve as a model.
Further, as home heat-risk remains under-studied and under-addressed by hazard mitigation planning, and policy processes, there needs to be better measures of home thermal security. Without better data, homes will continue to be overlooked in state and federal climate and adaptation efforts.
Grid Resilience and Energy Access
Prioritize access to affordable, resilient energy alternatives for energy-insecure individuals
The most long-term investment in reducing energy insecurity and climate vulnerability is ensuring the most energy insecure populations have access to alternative, renewable energy sources, such as wind and solar. This is a core focus of the DOE Energy Futures Grant (EFG) program, which provides $27 million in financial assistance and technical assistance to local- and state-led partnership efforts for increasing access to affordable clean energy. EFG is a Justice 40 program, and required to ensure 40% of the overall benefits of its federal investments flow to disadvantaged communities. Programs like EFG can serve as a model for federal efforts to reduce energy cost burdens, while simultaneously reducing dependence on nonrenewable energy sources like oil and natural gas.
Accelerate Energy-Efficient Infrastructure
Efficient AC technologies, such as air source heat pumps, can help make cooling more affordable. Therefore, resilient cooling strategies, like high-energy efficiency cooling systems, demand/response systems, and passive cooling interventions, need federal policy actions to rapidly scale for a warming world. For example, cool roofs, walls, and surfaces can keep buildings cool and less reliant on mechanical cooling, but are often not considered a part of weatherization audits and upgrades. District cooling, such as through networked geothermal, can keep entire neighborhoods cool while relying on little electricity. However, this is still in the demonstration project phase in the U.S. Initiatives like the DOE Affordable Home Energy Shot can bring new resilient cooling technologies into reach for millions of Americans, but only if it is given sufficient financial resources. The Environmental Protection Agency’s Energy Star program can further incentivize low-power and resilient cooling technologies if rebates are designed that take advantage of these technologies.
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