2010 Orientation for State WAP Directors and Staff

1. 2010 Orientation for State WAP Directors and Staff Review of WAP Regulations and Program Guidance Documents Jean Diggs, Eric Bell, Greg Reamy, Michael Peterson, and Holly Ravesloot

2. Agenda • DOE Legislation, Regulations, Grant Guidance, Weatherization Program Notices (WPN) • Weatherization Assistance Program Administrative Requirements • Weatherization Assistance Program Technical Requirements • Flexibility • Bottom Line

3. Weatherization Program Legislation • Weatherization is a categorical formula grant program administered by DOE under a regulatory framework laid out in 10 CFR Part 440. • Authority for the Program resides in Title 42 Public Health and Welfare U.S.C. 6861 and 7101. • Program was reauthorized under Title 1, Section 122 of the Energy Policy Act of 2005. • Energy Independence and Security Act of 2007 reauthorized the Program and expanded the definition of “State” to include U.S. Territories and also established the Sustainable Energy Resources for Consumer Grants. • American Reinvestment and Recovery Act of 2009, signed February 17, 2009, made significant changes to the Program.

4. American Reinvestment and Recovery Act of 2009 • Appropriates $5.0 billion to Weatherization and will make a significant deposit on President Obama’s intent to weatherize 1 million homes. The Law also provides the following significant changes to the Program: • Increases Training and Technical Allowance to 20% of appropriation (up from 10%) • Increases income eligibility from 150% to 200% of poverty • Raises per unit expenditure from $2500 (indexed) to $6500

5. The Team Approach 50 State Energy Offices, The District of Columbia, Native American Tribal Organizations, and U.S. Territories Department of Energy Headquarters and Project Management Center Over 900 Local Agencies Low-income Americans

6. Program Funding • DOE provides core program funding and infrastructure for low-income energy efficiency making it the largest residential energy efficiency program in the nation. • Grantees contract with local agencies to deliver services to single-family, multi-family, and mobile homes • Grantees can also leverage funds from utilities and other sources.

7. Administrative Requirements

8. State Plans • 10 CFR 440.14 • Developed by State • Public Hearing required – 10 day notice • Annual File • On-File Information

9. Administrative Costs • Limited to 10% (440.18(d))* • No more than 5% for the State* • At least 5% to subgrantees* • Local agencies with grants at or below $350K may receive up to an additional 5% • Additional flexibility offered by previous memorandum issued by DOE

10. Policy Advisory Council • 10 CFR 440.17 • Responsible for advising the Grantee on Weatherization Program Composition of the PAC • Broadly Representative • Low-income • Elderly • Disabled • Native Americans • Geographical Areas • PAC’s have “preference” over state councils or commissions • Grantees may use “council or commission”

11. Determining Eligibility and Defining Income • 10 CFR 440.22 (a) • American Recovery and Reinvestment Act – revised DOE’s income eligibility guideline to up to 200% of poverty • May also use LIHEAP guideline • Recipient of cash assistance payment under Title IV or XVI of the Social Security Act is an automatic qualifier • State selected criteria must be used state-wide • Multi-Family HUD Eligibility

12. Determining Priority Service • 10 CFR 440.16(b) (1-5) • Elderly • Persons with disabilities • Families with children • High energy burden • High residential energy use

13. Reweatherization • 10 CFR 440.18(e)(2)(i-iii) • Date moved from September 30, 1985 to September 30, 1994 – Change Made in the American Recovery and Reinvestment Act • Homes weatherized prior to 1994 did not use advanced audits

14. Multi-family Eligibility • 10 CFR 440.22 (b) (2) (i-ii) • 66% of units must be income eligible • 50% of units must be income eligible for duplex, 4-unit, and certain large multi-family buildings. • Certain Large Multifamily criteria should take into consideration size, leveraged resources, significant energy efficiency improvements • HUD/DOE Final Rule

15. Rental Requirements • 10 CFR 440.22 (b) (3) • Benefits accrue to low-income tenants • Rent will not be increased as a result of WX • Complaint procedures in place • No undue excessive enhancement to property • DOE encourages discussion of the rental plan as a part of public hearing

16. Legalized Aliens • Immigration and Nationalization Act (INA) as amended made certain legalized aliens temporarily ineligible for WAP. • No final rule issued and provisions of law have expired. • DOE to follow HHS on definitions. • DOE providers are not required to verify citizenship. • HHS memorandum LIHEAP IM 98-25 & 99-10 • WPN 10-1 Section 5.1 (web-link)

17. Vehicle & Equipment Purchase • 10 CFR 440.18(b)(6) • Still part of Average Cost Per Home (ACPH) • Includes equipment purchase over $5,000 • PMC Project Manager approves • State & local agencies may amortize cost over the life of the vehicle • For additional details refer to WPN 09-1B section 5.15 in the ARRA Grant Guidance

18. Davis-Bacon Act http://apps1.eere.energy.gov/weatherization/recovery_act.cfm

19. Technical Requirements

20. Energy Audit Criteria • Section 10 CFR 440.21 provides criteria for minimum energy audit standards • All energy audits & priority lists must be revalidated every 5 years • Energy Audit requirements are defined in WPN 01-4 Revised Weatherization Program Energy Audit Approval Procedures

21. Single-Family Energy Audit Tools Used by the Weatherization Network AKWarm (AK) NEAT (NH) Meadow 96 (ME) NEAT, TREAT (WA) Montana Computerized Energy Audit (MT) NEAT (VT) WXEOR (ND) NEAT (MN) NEAT (MA) REM/Rate (OR) TIPS, TREAT (NY) EA-3 (ID) NEAT (WI) NEAT (SD) NEAT (RI) NEAT (MI) NEAT (WY) HomeCheck (CT) NEAT (PA) NEAT (IA) EA-QUIP (NJ) NEAT (NE) NEAT (OH) REM/Rate (NV) NEAT (IN) NEAT (DE) NEAT (UT) WHEA (IL) NEAT (WV) NEAT (CA) NEAT, TAP (CO) REM/ Rate (KS) NEAT (VA) NEAT (MD) NEAT (MO) NEAT (KY) NEAT (DC) NEAT (NC) NEAT (TN) NEAT (OK) REM/Rate (AZ) NEAT (SC) NEAT (AR) NEAT (NM) NEAT (AL) NEAT (GA) NEAT (MS) EASY (TX) (LA) HI NEAT (FL) Does not use audit NEAT Updated 2/1/2010

22. States That Use A Priority List* As Part of Their Energy Audit Procedures For Single-Family Homes AK NH WA ME VT MT ND MN MA OR ID WI NY RI SD MI CT WY PA IA NJ NE OH NV DE UT IL IN CA CO WV MD VA KS MO KY DC NC TN AZ OK AR NM SC Priority List: American Samoa Guam Northern Mariana Islands Puerto Rico U.S. Virgin Islands GA MS AL TX LA HI FL Priority list used to select measures on typical housing stock • A priority list is a list of weatherization measures that analysis has shown to be cost-effective for typical housing stock. Computerized energy audit used on every house weatherized Updated 02/01/10

23. Electric Baseload Measures (EBL) • Introduced new term to regulations (10 CFR 440.3, Definitions and Appendix A) • Compact Fluorescent Lights (CFL) • Included replacement refrigerators refer to the toolkit located at www.waptac.org • Fuel switching for water heaters and furnaces is reviewed on a case by case basis • Reference Annual Guidance section 5.18

24. Health & Safety • 10 CFR 440.21 (c) • Primary goal of Program remains “energy efficiency” • Energy-related health & safety measures are allowable – as part of H&S Plan WPN 02-5 • Plan includes at a minimum 5 sections: • Grantee Health and Safety • Crew/Contractor Health and Safety • Client Health and Safety • Potential Hazard Considerations • Deferral Standards • Strengthened H&S Plan WPN 08-6 • Separate line item and not part of the average cost per home limitation

25. Lead Paint • DOE WAP’s legislative purpose is to install energy efficiency measures • DOE funds may be used to mitigate • DOE WAP funds may NOT be used for abatement, stabilization, or control of lead-based paint hazard • Weatherization activities in a safe manner – Lead-Safe Weatherization (LSW) • On April 22, 2008 Weatherization was identified as an activity under EPA’s Lead Renovation, Repair, and Painting Program (LRRPP) • LRRPP becomes effective April 22, 2010.

26. Lead Paint (Continued) • Pollution Occurrence Insurance (POI) generally not included in regular liability insurance coverage • POI is not required, but is strongly encouraged • WX is NOT a renovation, remodeling, or rehabilitation program – may be subject to other agencies’ rules • WPN 02-6, WPN 08-6, WPN 09-6 – other federal agencies regulations

27. Mold and Moisture • Mold Awareness • Good weatherization practices can alleviate most conditions • DOE funds should NOT be used to test or remediate mold • Referral or walk-away policy • Health & Safety Plans must include: • Mold protocol/checklist • Mold training plan on awareness of hazards • Notification/disclaimer to the client or landlord about the presence of mold

28. Renewable and Bio-based Measures • Legislative and regulatory change • Section 206 of EPACT 2005 • Adds renewable energy system definitions • Defining and evaluating acceptable technologies and systems for use in weatherization: www.wapsirtt.org • Direct Final Rule in Federal Register • Annual Guidance section 5.6

29. Flexibility

30. Leveraging • Grantees MAY use up to 15% of their DOE grant to leverage non-federal additional resources • In the Annual State Plan Grantees must describe leveraging activities in detail and indicate how additional units leveraged will be reported • Aim is a minimum dollar for dollar return • Leveraging is not considered program income; however, program income is a form of leveraging

31. Leveraging (continued) • 10 CFR 440.14(c)(xiv): The State Plan must describe “The amount of Federal funds and how they will be used to increase the amount of weatherization assistance that the State obtains from non-federal sources, including private sources, and the expected leveraging effect to be accomplished.” • Leveraging is….any non-Federal resources (other than funds earned under program income) which are used to supplement the program or are used to run a parallel program (regardless of who initiates the action) and expands energy efficiency services and/or increases the number of dwelling units completed for Weatherization eligible clients.

32. Program Income • State & Local Governments-10 CFR 600.225 • Non-Profit Organizations-10 CFR 600.124 • Program Income is…gross income generated by a grant-supported activity; it is earned only as a result of the grant agreement during the grant period • Vehicles and Equipment used for non-DOE Weatherization purposes must be appropriately reimbursed back to the program • This does not include landlord contributions

33. Disaster Relief • DOE Weatherization can be a play a limited role • Declared by a Presidential or Gubernatorial order • State lead agency on disaster relief should develop plan • PMC approves plans • Reference WPN 08-5

34. Energy Crisis Relief • Energy crisis is determined by: • Release of LIHEAP Emergency Funds • Sharp increases in energy prices • Energy shortages • Disruptions to fuel supplies • Crisis generally will involve three components: • Crisis itself • Short term • Long term • Reference WPN 01-7

35. A DOE Weatherized Unit is: A dwelling unit on which a DOE-approved energy audit or priority list has been applied and weatherization work has been completed. As funds allow, the appropriate measures installed on this unit have an SIR of 1.0 or greater, but also may include any necessary energy-related health and safety measures. The use of DOE funds on this unit may include but are not limited to auditing, testing, measure installation, inspection and/or administration.

36. A dwelling unit that meets the definition of a DOE weatherized unit must be counted as a DOE completed unit. Reporting a DOE Completed Unit

37. Bottom Line … “Before any work was done, my electric bill for the previous month was $200.33...(After Weatherization) my current bill is only $105.68...I am a mother of three children, one of which is enrolled in your HomeBase Head Start Program. One hundred dollars may not seem like a lot to most, but for me and my family, that is an extra $100 we can use in other areas.” – Recipient of Weatherization services in Oklahoma

38. More HELP and RESOURCES Contact your PMC Project Manager or Refer to the follow Websites: • Weatherization Assistance Program Website • https://www.eere.energy.gov/weatherization/ • PMC Website • https://www.eere-pmc.energy.gov/ • WAPTAC Website • http://www.waptac.org • Weatherization Plus Website • http://www.weatherizationplus.org • Oak Ridge National Lab Website • http://weatherization.ornl.gov