2010 Orientation for State WAP Directors and Staff

1. 2010 Orientation for State WAP Directors and Staff History of WAP, Philosophy, and Program Management Overview Jean Diggs, Michael Peterson, Eric Bell, Greg Reamy, and Holly Ravesloot

2. What is Weatherization? • Nation’s core program for delivering energy efficiency services to low-income homes • Operates in every state, District of Columbia, among Native American tribes, and U.S. Territories • Services delivered to single-family, multi-family, and mobile homes

3. Program Mission “To reduce energy costs for low-income families, particularly for the elderly, people with disabilities, and children, while ensuring their health and safety.”

4. 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

5. Frequently Used Terms • Grantee: State, U.S. Territory, or Certain Native America Tribes • Subgrantee: Community Action Agency, Community Action Partnership, Local Action Agency, or Local Unit of Government • T&TA: Training and Technical Assistance • HQ’s T&TA & State T&TA • Appendix A • Program Year/Fiscal Year • 440.3 Definitions • ARRA or Recovery Act Funds

6. Frequently Used Acronyms • DOE HQ – U.S. Department of Energy, Headquarters • PMC GFO/NETL – Project Management Center Golden Field Office/National Energy Technology Laboratory • ARRA or “Recovery Act” Funds – The American Recovery & Reinvestment Act of 2009 • Program Regulations/Rules/Guidance • OMB – Office of Management & Budget • IG – Inspector General • HHS – U.S. Department of Health & Human Services • LIHEAP – Low-Income Home Energy Assistance Program • HUD – U.S. Department of Housing & Urban Development • DOL – U.S. Department of Labor

7. Statutory Purpose • Increase energy efficiency of dwelling units owned or occupied by low-income persons • Reduce total residential energy expenditures • Improve the health and safety of low-income persons, especially the elderly, persons with disabilities, and families with children • 10CFR 440, 10CFR 600, DOE Program Notices, other policy documents

8. The Need For Services • 38 million American families are eligible for assistance • Approximately 15 million “good candidate” homes need weatherization • Through 2008 approximately 20% had received weatherization services

9. Characteristics of Households • Over 90% have annual incomes less than $15,000. Of these, two-thirds have less than $8,000 • More than 13% have annual incomes less than $2,000 per year • 17% of annual income is spent on energy vs. 4% by other households • The average energy expenditure is $1,871 per year (2008) • 40% occupied by an elderly person with special needs or a person with disabilities

10. WAP History • First Generation (1975 to 1979) • Response to oil embargo in early 1970’s • Started in Maine • Originally administered by CSA • Used volunteer labor • Installed only low-cost measures • Little or no reporting and accountability

11. WAP History (cont.) • Second Generation (1979 to 1986) • Used volunteer labor under CETA • Installed temporary measures (plastic storm windows, caulk, door stripping, attic insulation) • Little or no diagnostics • Project Retro-tech as audit tool • Addressed building envelope with heating priority

12. WAP History (cont.) • Third Generation (1987 to 1996) • Used professional labor • Addressed both building envelope and mechanical heating systems • Some diagnostics used • Computerization of audits and other operations • State and national evaluations • Structured training and technical assistance

13. WAP History (cont.) • Fourth Generation (1996 to present) • Highly trained crews • Permanent, cost effective measures (audit test) • Rental and health and safety plans • Advanced diagnostic tools in use • Addresses all climates – cooling and heating • Leverage activities at several levels • Coordination with housing programs • Comprehensive national evaluation

14. Where Does the Money Come From? • Congressional Appropriations (Energy and Water Appropriations Subcommittees in the House and Senate) • 2009 Allocation & Supplemental - $450 Million • 2009 Stimulus - $5 Billion • 2010 Allocation - $200 Million • States Transfer Funds from Low-Income Home Energy Assistance Program • Other Sources like Utilities, Landlords, State Appropriations, and Private Grants

15. Allocation Formula to States • Low-Income Population • Climatic Conditions • Residential Energy Expenditures by Low-Income Households in each State • Revised Formula Impacts States at $233+M

16. Defining Eligibility • Program Eligibility: 200% of poverty, or if the State elects, they may use the LIHEAP criteria or 60% of State median income. • Defining Income: Issued annually by DOE. Consist of Poverty Income Guidelines (PIGS) plus a definition of income (inclusion/exclusion) • HUD/DOE MOU on Public-Assisted Housing eligibility determinations – Final Rule Issued January 25, 2010

17. Determining Priority Service • Elderly • Persons with disabilities • Families with children • Households with high energy burden • Households with high residential energy use

18. What Does the Grantee Do with the Money? • Prepare State Plan in Compliance with 10CFR 440, 10CFR 600, DOE Program Notices, and other State and DOE policy documents • Solicit Input and Comments from Network • Conduct Public Hearing on Plan Contents • Submit State Plan and additional information to DOE based on Funding Opportunity Announcement Requirements

19. What’s in the State Plan? • Allocation of Funds to Local Agencies • Number of homes to be weatherized • Audit Techniques and Quality Control Inspection Process • Array of Allowable Services • Health and Safety Plan • Training and Technical Assistance Plan • Known Major Purchases of Vehicles and Equipment • Monitoring and Evaluation of Local Agencies • Other Rules for Operation

20. Leveraging • States MAY use part of DOE grant to leverage • State must develop a plan • Goal is a “dollar for dollar” return or better • States may use up to 15% of DOE grant • The larger the portion, the more detail required • Reviewed on case-by-case basis

21. Policy Advisory Council • 10CFR Part 440.17 • State may use “council or commission” • Must be addressed at hearing on annual plan • PAC’s have “preference” over state councils or commissions • Can be a valuable asset in contributing to and reviewing state plan

22. Administrative Costs • Limited to 10% (440.18(d)) • 5% for the State • At least 5% to local agencies • Local agencies with grants at or below $350K (new DOE funds only) may receive up to an additional 5% with State approval

23. Re-Weatherization • 10CFR Part 440.18(d)(e)(2) • Date moved from 1985 to 1994 (PY) • Homes weatherized prior to 1994 did not use advanced audits

24. Rental Properties • Annual State Plan requires rental plan • Multi-family buildings require 66% eligibility to qualify entire structure • Certain large multi-family buildings can reduce eligibility from 66% to 50% • Must be: large, leveraged resources, have significant energy saving potential • DOE encourages discussion of the rental plan as a part of public hearing • HUD/DOE MOU – Public Law January 25, 2010

25. Disaster Relief • DOE Weatherization can be a player • State lead agency on disaster relief should develop plan • DOE role must be limited

26. Energy Crisis Relief • States may now use DOE funds • States need to ensure only weatherization-eligible homes are served in crisis • DOE will waive certain eligibility criteria • Those served in crisis must be added to list of those to receive regular weatherization • States need to include/amend State plan • Public hearing required • Four basic triggers determines a crisis • No per unit cost restriction by DOE

27. ARRA Impact on Weatherization • American Recovery and Reinvestment Act of 2009 • Allocated $5 billion • Raised the income eligibility level from 150% to 200% of the federally established poverty level • Raised the assistance level per dwelling unit from $2,500 to $6,500 • Moved the reweatherization date from September 30, 1993 to September 30, 1994

28. ARRA Impact on Weatherization • Increased Training and Technical from 10% to up to 20% maximum • Hundreds of thousands of additional homes projected to be weatherized annually • Increased number of eligible homes by raising income level to 200% • Expected level of production for the three-year period for ARRA funding is approximately 600,000 units

29. Davis-Bacon & ARRA • DOE to delegate primary compliance to the States • All grants must have labor standards language • State and local units of government staff are exempt • BUT not their contractors • Applies to local agency direct hires and contractors • Revised Wage Determinations • Commercial Rates • Grant period – 1, 2, or 3 year • Alert service at www.wdpl.gov • Oversight & compliance • WPN 09-9, 10-4, 10-7

30. How Does the Program Work? • Customer applies for services • Energy audit conducted; technicians identify energy-related problems & Health & Safety issues • List of cost-effective measures developed • Energy efficiency measures installed • Client education • Post-work inspection

31. Customer Application • Must meet income eligibility guidelines • May receive priority • Elderly, disabled, family with children, household with high energy burden or high energy usage • Renters eligible, must get approval from property owner • When demand is high, customer may be added to waiting list

32. Client Education • Client education is a critical component • Prolongs life of measures/equipment • Conducted before and after measures are installed • Instructions on equipment operation and maintenance • Tips on energy-saving activities • Information on carbon monoxide and other hazards

33. Energy Audit • Uses audit software, priority list, or other method to estimate potential energy savings • Diagnostic tools used to identify energy problems • Identifies energy-related health and safety measures needed (e.g., carbon monoxide) • Ensures that all materials installed, except those to eliminate health and safety hazards, pass a cost-effectiveness test • Mandated by the DOE on each home • States may develop their own audit or use the DOE approved NEAT audit

34. Types of WAP Services • Furnace service • Furnace replacements • New refrigerators • Duct system balance and sealing • Energy efficient lighting retrofits (CFL) • Incidental repairs • And more……….. • Energy audits • Air infiltration reduction using blower doors • Attic and floor insulation • Dense-pack wall insulation • Duct sealing • Domestic hot water system improvements

35. Heating System • May need tune-up or basic repairs • Can replace hazardous or inoperable furnaces • Due to funding limitations, leveraged resources often used to replace heating systems • Un-vented space heaters pose large health and safety threat

36. Cooling System • Technicians can tune-up or repair cooling systems • Ducts may require sealing and/or balancing • May add fans, ventilation for health and safety

37. Air Sealing • Blower door test quantifies air leakage & identifies sites • Panel with fan is placed in a doorway to de-pressurize home • Exaggerates leakage so it can be measured and sealed

38. Infrared Camera • Illustrates heat loss • Guides air sealing and insulation • Helps to educate clients • Quality control for insulation and other measures

39. Duct Sealing • Duct system may need sealing and/or balancing • Duct tape should NOT be used – Apply Mastic • Ducts in unconditioned spaces should also be insulated

40. Pressure Pan • Leaky ducts can increase costs by 10-30% • While blower door runs, pressure pan placed over air register

41. Manometer • Manometer measures pressure created by air leaking into ductwork • Results help locate large leaks • Registers near leaks have higher readings • Duct blower can also be used for more accurate readings and to balance systems

42. Insulation • Blown insulation most effective • Holes discreetly cut in walls or ceiling • Insulation is blown into space through a tube

43. Insulation • Reduces air infiltration and heat loss • Dense-pack insulation often installed before air sealing, since it reduces leaks so effectively

44. Electric Base Load Measures • Converting incandescent lighting to fluorescent • Replacing refrigerators • Replacing or insulating water heaters • Reducing hot water use • Reducing appliance usage through client education

45. Lighting • Compact fluorescent lighting (CFL) • Harps and other hardware • Screw-in vs. pin base • Hard-wired fixtures • Savings may be more permanent • Some state or local codes require licensed electrician to wire fixtures

46. Refrigerators • Must meter at least 10% of units replaced • 2-hour minimum metering • Association of Home Appliance Manufacturers (AHAM) or alternative databases can provide energy use of existing refrigerators • Units not in database that are metered count toward 10% requirement

47. Water Heater • Efficient water heater, low-flow shower heads, and faucet aerators can cut use dramatically • WH tank and pipe insulation, low-flow shower heads, and faucet aerators are allowed as general heat waste • Timers on water heater can also be cost-effective • Replacements allowable

48. Health and Safety • Primary goal of WAP is “energy efficiency” • States may expend funds for the installation of materials to abate energy-related health and safety hazards • Separate line item and not part of the average cost per home limitation • First Rule – “Do no harm” • Conduct weatherization in a lead-safe manner • Check for carbon monoxide, gas leaks, moisture/mold, electrical hazards • Wear protective clothing, equipment • Always ensure customer safety

49. Lead Paint • Workers must conduct activities in a safe manner – Lead-Safe Weatherization (LSW) detailed in WPN 02-6, 08-6, and 09-6 • Workers must avoid contaminating homes with lead-based paint dust and debris • Workers must use materials, tools and equipment to avoid exposing the customers, themselves, and their families to this hazard • Workers are to assume the presence of lead-based paint in homes built before 1978 • WAP funds may not be used to abate, stabilize, or control the lead hazard • EPA’s Lead Renovation, Repair, and Painting Rule / Certified Renovator (CFR 40, Part 745) is in FULL EFFECT April 22, 2010

50. Mold and Moisture • Workers must perform services to avoid mold contamination • WAP funds can not be used to remove mold and other related biological substances • If necessary, services may be delayed until the existing mold problem can be eliminated • Customer must be notified upon discovery of mold condition