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N.J. ramps up weatherization program after audit showed mismanagement of federal funds

TRENTON — New Jersey’s weatherization program, which has struggled with slow progress, lax oversight and two critical audits, is back on track, Community Affairs Commissioner Lori Grifa said told a Senate committee today. "These shortcomings have been, or are in the process of being, remedied," Grifa told the Senate Legislative Oversight Committee. "My overarching goal and commitment is to...

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Lori Grifa, Commissioner, N.J. Department of Community Affairs, testifies in this November photo.

TRENTON — New Jersey’s weatherization program, which has struggled with slow progress, lax oversight and two critical audits, is back on track, Community Affairs Commissioner Lori Grifa said told a Senate committee today.

"These shortcomings have been, or are in the process of being, remedied," Grifa told the Senate Legislative Oversight Committee. "My overarching goal and commitment is to ensure transparency and accountability for every one of these federal dollars."

In an interview later, she said, "With eight weeks of intense supervision, we’ve turned this program around."

The federal program is designed to help low-income families reduce their heating costs while at the same time reduce greenhouse gas emissions and create jobs.

As of September, New Jersey had one of the worst records in the country for completing weatherization projects, according to an analysis of federal data. Since then, production has increased dramatically, from an average of 129 homes per month earlier this year to 711 in November.

But problems remain. Only a small percentage of people who completed a taxpayer-funded training program have found weatherization work. In addition, Grifa said, accounting problems at some nonprofit agencies handling weatherization work have been referred to state authorities for possible criminal investigation.

Federal officials are also watching New Jersey’s progress and will visit the state this week.

"Since the state’s production and expenditures remain below target, the (U.S. Department of Energy) has provided support that reaches far beyond standard oversight procedures," said Jen Stutsman, a department spokeswoman. "This visit is part of a much larger effort to ensure that the state weatherization funds are spent both efficiently and effectively."

President Obama’s stimulus plan includes $5 billion over three years to upgrade 593,000 homes nationwide. New Jersey was allocated $118.8 million for nearly 13,400 homes, although it has only received half the money. It can apply for the rest when it surpasses 30 percent of its target number of homes. Grifa said the state will exceed that mark by the end of the month.

Senate Majority Leader Barbara Buono (D-Middlesex), who chairs the oversight committee, said she wants to ensure the state’s early missteps don’t jeopardize additional funding.

"We need assurances that we’re fixing issues related to this program," she said. "We don’t want to lose an opportunity to put people back to work, to create careers paths in energy efficiency and green technology."

Though the state has increased production, it has not resulted in more jobs. Only seven of the 184 people who graduated from the training program have found work. Another 35 have found work in other fields.

"Clearly the hiring did not take place," Grifa said. "It’s been frustrating."

Grifa also defended a decision to cut funding to seven county and nonprofit agencies that have been handling weatherization work.

"Those actions were not arbitrary or capricious, but necessary to help the New Jersey weatherization program recover from its shaky start," she said. "We have some agencies who are performing remarkably. We have others who are performing abysmally."


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