[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
[Rules and Regulations]
[Pages 35890-35903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17067]
[[Page 35889]]
_______________________________________________________________________
Part IV
Department of Energy
_______________________________________________________________________
Office of Energy Efficiency and Renewable Energy
_______________________________________________________________________
10 CFR Parts 420 and 450
State Energy Conservation Program; Interim Rule
Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules
and Regulations
[[Page 35890]]
DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy
10 CFR Parts 420 and 450
[Docket No. EE-RM-96-402]
RIN 1904-AA81
State Energy Conservation Program
AGENCY: Office of Energy Efficiency and Renewable Energy.
ACTION: Interim final rule with opportunity to comment.
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SUMMARY: The Department of Energy (Department or DOE) amends the
regulations for the State Energy Conservation Program to provide for
the consolidation of two formula grant programs--the State Energy
Conservation Program (SECP) and the Institutional Conservation Program
(ICP). DOE removes prescriptive energy audit procedures that are no
longer needed and conflict with the President's regulatory reform
program. DOE is also incorporating in this rule provisions for
competitively awarded financial assistance for a number of State-
oriented special project activities.
DATES: This rule is effective July 8, 1996. Written comments [six
copies and, if possible, a computer disk] on the interim final rule
must be received by DOE no later than August 7, 1996, to ensure their
consideration.
The incorporation by reference of certain publications listed in
the regulation is approved by the Director of the Federal Register as
of July 8, 1996.
ADDRESSES: All written comments (six copies) are to be submitted to:
Thomas P. Stapp, U.S. Department of Energy, Office of Building
Technology, State and Community Programs, EE-44, Docket Number EE-RM-
96-402, 1000 Independence Avenue, S.W., Washington, DC, 20585, (202)
586-2096.
Copies of the comments, as well as other parts of the record, will
be available for inspection between the hours of 9:00 a.m. and 4:00
p.m., Monday through Friday except Federal holidays at the following
address: DOE Freedom of Information Reading Room, United States
Department of Energy, Room 1E-190, Forrestal Building, 1000
Independence Avenue, S.W., Washington, DC 20585, (202) 586-6020.
Copies of the material to be incorporated by reference are
available from:
The American Society of Heating, Refrigerating and Air-Conditioning
Engineers (ASHRAE), 1791 Tullie Circle, N.E., Atlanta, Georgia 30329,
(404) 636-8400;
The Illuminating Engineering Society of North America (IESNA), 345
East 47th Street, New York, New York 10017, (212) 705-7913; and
The Council of American Building Officials (CABO), 5203 Leesburg
Pike, Suite 708, Falls Church, Virginia 22041, (703) 931-4533.
For more information concerning public participation in this
rulemaking proceeding, see section IV, ``Opportunity for Public
Comment.''
FOR FURTHER INFORMATION CONTACT: Thomas P. Stapp, Office of Building
Technology, State and Community Programs, Department of Energy, Mail
Stop 5G-063, EE-44, Forrestal Building, 1000 Independence Avenue, S.W.,
Washington, DC 20585, (202) 586-2096.
SUPPLEMENTARY INFORMATION:
I. Introduction and Description of the Program
II. Rationale for Interim Final Rulemaking
III. The Revisions to the Rule
IV. Opportunity for Public Comment
V. Review Under Executive Order 12612
VI. Review Under Executive Order 12866
VII. Review Under Executive Order 12988
VIII. Unfunded Mandate Review
IX. Review Under the Regulatory Flexibility Act
X. Review Under the Paperwork Reduction Act
XI. Review Under the National Environmental Policy Act
XII. Review Under the Small Business Regulatory Enforcement Fairness
Act of 1996
XIII. The Catalog of Federal Domestic Assistance
I. Introduction and Description of the Program
The conference report accompanying the Balanced Budget Down Payment
Act II of 1996, Public Law 104-134, (H.R. Conf. Rept. No. 537, 104th
Cong., 2d Sess. (1996)), provided the Department with the opportunity
to consolidate two of its formula grant programs consistent with
recommendations made in an earlier conference report (H.R. Conf. Rept.
No. 402, 104th Cong., 1st Sess. 60 (1995)), which accompanied the
Interior and Related Agencies Appropriations Bill, 1996 (H.R. 1977,
104th Cong., 1st Sess. (1995)). Congress, in that earlier report,
recommended such a consolidation to provide a more flexible program to
be operated by the States. The Department is hereby following that
recommendation by consolidating the State Energy Conservation Program
(42 U.S.C. 6321 et seq.) and the Institutional Conservation Program (42
U.S.C. 6371 et seq.) under the name ``State Energy Program (SEP)''.
These two components will constitute the formula grants part of SEP. In
the other part of SEP, DOE is providing for financial assistance for a
number of State-oriented competitively awarded special project
activities.
The State Energy Program Formula Grants
The approach used to apply for and implement the activities
formerly funded under ICP regulations (10 CFR part 455) will be
different under SEP. The process for applying for the types of
activities formerly funded under SECP will essentially stay the same,
and will become the standard approach.
DOE encourages all States to consider including ICP-type activities
in their SEP State Plans in 1996 and future years, as appropriate.
Following are brief explanations of how the component programs under
the formula grants will work in the SEP context.
The State Energy Conservation Program
This program provides grants to States for a wide range of energy-
related projects, and such projects will continue to be eligible for
funding under SEP, using the same application process, and following
the same programmatic requirements. This rulemaking is based on the
SECP rule and makes only a few revisions to the SECP process, as
discussed further in this document.
The Institutional Conservation Program
This program provides grants both to schools and hospitals for a
variety of energy conservation measures and technical audits of
buildings, and to States to administer the program and, since 1993, to
provide specialized assistance to institutions. States wishing to
continue to undertake such activities under SEP will apply to do so
under the rule published today. Grants will no longer be issued by DOE
to individual schools and hospitals; the activities would now be
covered under one or more of the program activities under the SEP grant
to the State, and the State would then provide the funding to the
institutions using the financial mechanisms specified in its approved
State Plan. The State would also specify the requirements it will place
on its schools and hospitals applicants. The regulations covering ICP
(10 CFR Part 455) will not apply to grants issued under SEP but States
are free to adopt any of the requirements in those regulations to cover
ICP-type activities under SEP. ICP-type activities also continue to be
eligible for funding under the various Petroleum Violation Escrow (PVE)
settlements.
For fiscal year 1996 Congress consolidated the funding for ICP and
SECP. DOE believes that having these two programs consolidated into the
State Energy Program Formula Grants
[[Page 35891]]
part of SEP will make it easier for States to apply for grants and more
efficient for both DOE and the States to manage the grants. It should
also simplify the process for the ultimate recipients of assistance,
such as schools and hospitals, which will now be able to receive
assistance directly from their States, rather than from DOE.
Special Projects Financial Assistance
Financial assistance for the special projects now being provided
for in this rulemaking covers a range of State-oriented activities to
be offered as options in years when funding is available. States will
be invited to apply for any of a range of potential activities
announced for the fiscal year concerned. The announcement will be made
in special project notices of funding availability published in the
Federal Register, and in detailed program guidance/solicitation
documents.
Activities may include, but may not be limited to, new State-
oriented programs based on existing DOE initiatives such as Motor
Challenge, Climate Wise, Clean Cities, Rebuild America, and the Federal
Energy Management Program, as well as programs for updating State and
local government building energy codes.
DOE would then make its selection of projects based on the results
of the technical evaluations and on each State's expressed interests/
priorities, DOE's priorities, the amount of funding requested,
geographical diversity, the responsiveness of the applications to the
purposes, requirements and program policy selection factors specified
in the special projects guidance/solicitation, and the total funds
available for each type of project.
Providing for these projects to be undertaken as part of SEP will
result in a more efficient vehicle for funding these more specialized
activities, some of which may be new initiatives, and some of which
were formerly funded separately. The rationale for covering these
projects in a separate part of the rule, and for using a different
approach for the application process, is that appropriations for these
projects are from a variety of sources different from the source for
the formula grants, and the funding must, therefore, be separately
tracked. Projects approved for funding will be handled as amendment(s)
to the SEP grant.
Energy Audit Procedures and List of Measures
Consistent with section 365(e) of the Energy Policy and
Conservation Act (EPCA or the Act), 42 U.S.C. 6325(e), in the late
1970's DOE issued prescriptive regulations, codified at 10 CFR part
450, containing a list of energy conservation measures and detailed
energy audit procedures. The list of measures is no longer needed
because the programs that utilized them have not been funded for more
than 10 years. Prescriptive energy audit procedures are no longer
needed for SEP because States are familiar with developing such
procedures in light of their particular facts and circumstances. In
lieu of prescriptive regulations, DOE will be providing informally
energy audit guidance for States to consider and apply as they deem
appropriate. This approach is consistent with the President's
regulatory reform program which emphasizes removal of unnecessary
categorical requirements in State grant programs.
II. Rationale for Interim Final Rulemaking
In ordinary circumstances, DOE provides an opportunity for public
comment prior to making significant final changes in the rules for
financial assistance programs. Similarly, DOE ordinarily provides for
an effective date 30 days or more following the date of publication so
that affected entities have an opportunity to learn of changes and
prepare to comply. However, the unusual and extended delay in the
enactment of the 1996 appropriation for the State energy conservation
grants subject to today's interim rule necessitates that DOE make
expedited regulatory changes in order to facilitate early completion of
necessary pre-award DOE activities and State plan amendments in light
of the decrease in Federal funds for FY 1996. If the appropriation had
been enacted on or about October 1, 1995 (the beginning of FY 1996)
rather than April 25, 1996, then there would have been enough time for
DOE to conduct a normal notice and comment rulemaking, to issue annual
grant guidance on applying for funds to the States, and to review State
plans and award grants. There would also have been ample time for
States to develop and submit their plans reflecting a significant
downsizing of their programs and for their employees to begin making
appropriate personal plans where necessary.
Although the magnitude of the funding reduction has been apparent
for some time, DOE had to delay regulatory revisions until an
appropriation act became law. It is now so late in FY 1996, which ends
on September 30, 1996, that significant delay in changing existing
rules could pressure the States into making hasty and ill-considered
changes to their programs that would be highly disruptive. DOE has
extensively and informally consulted with the States on the content of
today's rule and has reason to believe that it will prove broadly
acceptable. In any event, adjustments, if warranted, will be made in
the notice of final rulemaking that responds to comments on today's
notice and will apply to funds for FY 1997 and thereafter. Simultaneous
with publication of this rule, DOE is sending a copy of this notice to
each State so that they will be aware of the revised regulations in
time to comply. On the basis of the foregoing, DOE has decided to waive
prior notice and opportunity for public comment because issuance of a
notice of proposed rulemaking is impracticable and contrary to the
public interest. For the same reasons, DOE is making today's interim
final rule effective immediately.
III. The Revisions to the Rule
List of Subparts and Sections
To provide for the different approaches for the State Energy
Program Formula Grants and the special projects financial assistance,
DOE has divided the rule into three subparts. Subpart A covers the
general provisions for all financial assistance under the program,
subpart B covers the Formula Grant procedures, and subpart C covers the
implementation of special projects financial assistance.
With the exceptions of Sec. 420.1, Sec. 420.2, Sec. 420.3 (formerly
Sec. 420.13), Sec. 420.4 (formerly Sec. 420.10), and Sec. 420.5
(formerly Sec. 420.11), now in subpart A, the sections now found under
subpart B comprised the entire former rule. Those sections have been
rearranged and in some cases revised to improve the organization of the
rule and to accommodate the new subpart format. The new arrangement
(with former section numbers noted, if there has been a change) is as
follows:
Subpart A--General Provisions for State Energy Program Financial
Assistance
420.1 Purpose and scope. (same)
420.2 Definitions. (same)
420.3 Administration of financial assistance. (formerly
Sec. 420.13)
420.4 Technical assistance. (formerly Sec. 420.10)
420.5 Reports. (formerly Sec. 420.11)
420.6 Reference sources. (new)
Subpart B--State Energy Program Formula Grant Procedures
420.10 Purpose. (new)
420.11 Allocations among the States. (formerly part of Sec. 420.3)
420.12 State matching contribution. (formerly part of Sec. 420.3)
420.13 Annual State applications and State plans. (formerly
Sec. 420.4)
[[Page 35892]]
420.14 Review and approval of annual State applications and State
plans. (formerly Sec. 420.5)
420.15 Minimum criteria for required program activities for plans.
(formerly Sec. 420.6)
420.16 Extensions for compliance with required program activities.
(formerly Sec. 420.8)
420.17 Optional elements of State Energy Program plans. (formerly
Sec. 420.7)
420.18 Expenditure prohibitions and limitations. (formerly
Sec. 420.12)
420.19 Administrative review. (formerly Sec. 420.9)
Throughout the rule cross-references have been revised to reflect
the new section numbers. Subpart C has been added to the rule to
provide for financial assistance for the new special projects. This
subpart, with its respective sections, is as follows:
Subpart C--Implementation of Special Projects Financial Assistance
420.30 Purpose and scope.
420.31 Notice of availability.
420.32 Program guidance/solicitation.
420.33 Application requirements.
420.34 Matching contributions or cost sharing.
420.35 Application evaluation.
420.36 Evaluation criteria.
420.37 Selection.
Subpart A--General Provisions for State Energy Program Financial
Assistance
Section 420.1 Purpose and scope
This section has been substantially reduced by eliminating the
first sentence of paragraph (a) and all of paragraph (b) and moving
paragraph (c) to new Sec. 420.13. The second sentence of paragraph (a)
is all that remains, modified to add the reduction of dependence on
imported oil as a purpose of the program and to refer to the new State
Energy Program name. The deleted wording from paragraphs (a) and (b)
was essentially redundant. Former paragraph (c) more appropriately
belongs under the section on State applications.
Section 420.2 Definitions
A definition for ``alternative transportation fuel'' has been added
to reflect the program's renewed emphasis on reducing dependence on
imported oil. The text of the definition is based on the definition of
alternative transportation fuel in section 301 of the Energy Policy Act
of 1992 (Pub. L. 102-486).
The definition for ``ASHRAE 90-75'' has been deleted because it is
now obsolete.
The definition of ``ASHRAE/IESNA 90.1-1989'' has been revised to
add ``NA'' after ``IES'', to add ``as amended,'' to add the
Illuminating Engineering Society of North America as co- publisher, and
to reference addenda to be used as part of this standard and to cite
the authority for incorporation by reference.
The definition of ``Assistant Secretary'' has been revised to
reflect the new name of the organization, Energy Efficiency and
Renewable Energy.
The definition of ``Btu'' has been deleted because it is more
completely defined under ``British thermal unit.''
The definition for ``building'' has been revised to include the
exempted buildings formerly included under the definition of ``exempted
building'' which has been deleted.
The definition of ``CABO MEC-89'' has been deleted because it is
out of date; Model Energy Code, 1993 is the version of this standard
that should now be used.
The definition for ``Deputy Assistant Secretary'' has been revised
to reflect a reorganization within DOE whereby the Deputy Assistant
Secretary for Building Technology, State and Community Programs has
assumed responsibility for SEP.
A definition for ``Director, State and Community Programs'' has
been added to provide for this position which has responsibility for
DOE's formula grants to States.
The definition of ``energy audit'' has been revised primarily to
delete the reference to 10 CFR part 450 which has been removed for
reasons discussed above, under Energy Audit Procedures and list of
measures.
A definition for ``energy conservation measure'' has been added, to
provide for this type of activity which may be more important under SEP
now that ICP is included in the program. This definition is based on
the one in Section 366 of the Act, 42 U.S.C. 6326 (4). As a conforming
change, this term has been substituted for the term ``energy
conservation building retrofit'' wherever that term appeared in the
existing rule.
The definition for ``exempted building'' has been deleted, with
types of buildings formerly listed under that definition moved to the
definition of ``building.''
The definition for ``Governor'' has been revised to conform to the
definition of ``State.''
The definition for ``HUD minimum property standards'' has been
deleted because it is out of date. The Model Energy Code, 1993 should
now be used instead.
The definition for ``industrial plant'' is being revised to
``industrial facility'' because that is the term now used in the rule.
The definition for ``major building type'' is being deleted because
the term is no longer used in the rule.
A definition for ``Model Energy Code, 1993'' has been added. This
standard replaces the former ``CABO MEC-89,'' which has been deleted,
as previously discussed.
The definition for ``National energy conservation program'' is
being deleted because it is no longer used in the rule.
The definition for ``petroleum violation escrow funds'' has been
revised to clarify that the matching requirements referred to are only
found in Sec. 420.12 (formerly Sec. 420.3(e)), whereas under
Sec. 420.18(b) (formerly Sec. 420.12(b)), there are cost limitations.
The definition of ``plan'' has been revised to refer to the new
State Energy Program.
The definition for ``program measure'' has been revised to replace
the word ``measure'' with the word ``activity.'' The term ``program
activity'' now covers what were formerly referred to as ``program
measures'' in some parts of the rule and ``programs'' in other parts of
the rule.
Under the definition of ``public building,'' a new subparagraph(e)
has been added to include public and private non-profit schools and
hospitals, reflecting the consolidation of ICP into SEP.
The definition of ``renewable-resource energy measure'' has been
revised to be a definition of ``renewable energy measure'' and to
provide a more detailed description of such measures. This definition
is based on the one in section 366 of the Act, 42 U.S.C. 6326(6). In
addition, the reference to subpart D (covering Energy Measures) of 10
CFR part 450, is being deleted, for reasons discussed earlier under
Energy Audit Procedures and list of measures.
The definition of ``State economic product'' has been deleted
because the term is no longer used in the rule.
The definition of ``Support Office Director'' has been revised to
reflect the new title ``Regional Support Office Director.'' The new
title, and the new Regional Support Office name, are now used
throughout the rule wherever the former names appeared.
Section 420.3 Administration of Financial Assistance
Former paragraph (a) (now paragraph (a)(1)) of this section has
been revised to provide the current references for the requirement for
intergovernmental review and coordination, now found in Executive Order
12372 and its
[[Page 35893]]
implementing regulations at 10 CFR part 1005.
Paragraphs (b) and (c) of this section were formerly found under
Sec. 420.3 as paragraphs (c) and (e), respectively. Paragraph (b) has
been revised to specify that budget periods (for both formula grants
and special projects) shall be consistent with 10 CFR part 600.
Paragraph (c) has been revised to add the necessity for subawards
to be consistent with this part and 10 CFR part 600.
Section 420.4 Technical Assistance
This section was formerly Sec. 420.10.
Section 420.5 Reports
This section was formerly Sec. 420.11. It now covers all SEP
financial assistance under both subpart B and subpart C. The
requirement for an annual energy savings report has been deleted
because of the marginal need for this particular type of report at this
time.
Section 420.6 Reference Standards
This is a new section providing information about the incorporation
by reference of two standards, ASHRAE/IESNA 90.1-1989 and The Model
Energy Code, 1993, which are referred to in Sec. 420.2 and Sec. 420.15.
Subpart B--State Energy Program Formula Grant Procedures
Section 420.10 Purpose
This is a new section to introduce the purpose of subpart B, which
is to set forth the procedures that apply to the State Energy Program
Formula Grants.
Section 420.11 Allocation of Funds Among the States
This section has been adapted from paragraphs (a) and (b) of former
Sec. 420.3. Paragraph (a) remains the same.
DOE has revised the process (specified under Sec. 420.11(b)) by
which grant funds are allocated to the States, to accommodate the
inclusion of ICP funds which were formerly allocated to States using a
formula different from that used for SECP. The only common element in
the two formulas was the population of each State. The other two
elements in the ICP formula were regional costs of energy and the sum
of a State's heating and cooling degree days. The other two elements in
the SECP formula were a provision for dividing a portion of the funds
equally among all the States, and the State's estimated energy savings
from SECP efforts undertaken in calendar year 1980.
The revised process involves an allocation for each State
consisting of: a base allocation calculated on the program's $25.5
million available funding for fiscal year 1996 and divided in the same
ratio as each State received in fiscal year 1995 in combined funding
from appropriations for ICP and SECP, together with a provision that
any available funding beyond $25.5 million be allocated based on a new
formula. This revised process serves several purposes: (1) it will
reflect and incorporate in the base allocation the historical funding
of the two distinct major component programs in SEP that formerly used
different funding formulas; (2) it will provide for an equitable
adjustment in program funding levels; and (3) it will help maintain the
organizational capacity of the States to manage the programs.
Base Allocation
To achieve this, DOE is hereby replacing the former SECP formula
with the two-step process discussed above. The base allocation reflects
elements from the ICP and SECP formulas in such a way that each State
will receive, in fiscal year 1996, a base allocation in the same ratio
(based on each State's 1995 allocations from 1995 appropriated funds)
as it would have received if ICP and SECP were operated as separate
programs. This base allocation, which applies to the first $25.5
million of funds available, will remain the same in future years, or be
adjusted downward if available funds are less than $25.5 million. Table
1, listing the base allocation by State using the $25.5 million total,
is added after Sec. 420.11(b)(1). Funds available above $25.5 million
will be allocated based on the new formula described below.
Formula Allocation
Funding available for SEP beyond the base $25.5 million ICP/SECP
consolidated funds will be allocated using the new formula based on the
following factors: 33\1/3\ percent divided among the States equally;
33\1/3\ percent divided on the basis of the population of the
participating States; and 33\1/3\ percent divided on the basis of the
energy consumption of the participating States.
The formula for the entire annual allocation is expressed
mathematically as (PA)=(BA)+(FA), where (PA) is the total program
allocation, (BA) is the base allocation, and (FA) is the formula
allocation.
Paragraphs (c) and (e) are now found under new Sec. 420.3, as
already discussed under that section.
Paragraph (d) is now found under new Sec. 420.12.
Section 420.12 State Matching Contribution
This section was formerly paragraph (d) of former Sec. 420.3. It
has been given a new title, and revised to replace the term ``cost
sharing'' with ``match'' or ``matching'' because the Act uses the term
``match'' in the sense of a percent of the State's Federal allocation,
whereas, in this context, a ``cost share'' would be a percent of the
total project cost. To receive financial assistance, each State must
contribute a match of no less than 20 percent of the Federal financial
assistance allocated to the State. Cash and in-kind contributions may
continue to be used to meet this requirement. The sentence in this
paragraph requiring that the State's match be identified in the State's
application has been moved to Sec. 420.13 where it becomes new
Sec. 420.13(b)(4)(ii).
Section 420.13 Annual State Application and State Plans
This section was formerly Sec. 420.4.
The title of this section has been changed to add State plans which
must be included with SEP grant applications.
A new paragraph (b)(1) has been added to provide for the submission
of an application face page on Standard Form 424.
Former paragraph (b)(1) has been redesignated (b)(2).
Paragraph (b)(3) has been added to this section (it was formerly
Sec. 420.1(c)). Since this paragraph refers to a requirement for State
plans, DOE felt it was more appropriate to include it in the section
covering applications and plans.
Former paragraph (b)(2) has been redesignated (b)(4) to provide for
the addition of new paragraphs (b)(1) and (b)(3) and has been revised
to add a new (b)(4)(ii) requiring that States include their matching
contribution in their applications, as already discussed under
Sec. 420.12.
Former subparagraphs (b)(2)(ii), (b)(2)(iii), and (b)(2)(iv) have
been redesignated (b)(4)(iii), (b)(4)(iv), and (b)(4)(v), respectively,
to allow for new (b)(4)(ii).
Former paragraph (b)(3) has been redesignated (b)(5) to provide for
the addition of new paragraphs (b)(1) and (b)(3).
Paragraph (b)(6) (formerly paragraph (b)(4)) of this section, which
required States to specify that activities funded under SECP would
supplement and not supplant activities funded under ICP or the
Weatherization Assistance Program (Weatherization), has been revised by
deleting the reference to ICP. Activities
[[Page 35894]]
formerly funded under ICP are now being funded under SEP, so
supplantation is not an issue.
To continue the renumbering of paragraphs necessitated by the
addition of paragraphs (b)(1) and (b)(3), former (b)(5) has been
renumbered (b)(7); a new paragraph (b)(8) has been added covering State
assurances; and former (b)(6) has been renumbered (b)(9).
Former paragraph (b)(7) has been deleted because it does not relate
to the contents of an application.
The wording of a number of paragraphs in this section has been
simplified to make the format consistent.
Section 420.14 Review and Approval of Annual State Applications and
State Plans
This section was formerly Sec. 420.5
Section 420.15 Minimum Criteria for Required Program Measures for
Plans
This section was formerly Sec. 420.6.
Paragraphs (a)(3) and (d)(3) have been revised to refer to ASHRAE/
IESNA 90.1-1989 as amended, which is the current citation, as
previously discussed under Sec. 420.2, Definitions. Paragraph (d)(4)
has been revised to refer to Model Energy Code, 1993 as amended, which
is the current citation, as previously discussed under Sec. 420.2,
Definitions. The new standards are based upon the requirements of Title
III of the Energy Conservation and Production Act, 42 U.S.C. 6831 et
seq.
A new paragraph (e)(3) has been added to provide for left turns
from one-way streets onto one-way streets at traffic lights (right
turns for the Virgin Islands), where appropriate, as required by
section 362(c)(5) of EPCA, 42 U.S.C. 6322(c)(5).
Former paragraph (e)(3) has been eliminated. This paragraph
provided for a delay in implementing the requirement under paragraph
(e)(2) until June 27, 1979. That provision is no longer necessary.
Section 420.16 Extensions for Compliance With Required Program
Activities
This section was formerly Sec. 420.8.
Section 420.17 Optional Elements of State Energy Program Plans
This section was formerly Sec. 420.7.
Paragraph (a)(3)(ii) has been revised to add wording at the end to
make clear that public and private non-profit schools and hospitals,
and local government buildings, which were formerly covered by ICP, are
eligible buildings under SEP. It is important to note that local
government buildings, which were eligible only for technical audits
under ICP, are also eligible for energy conservation measures under
SEP.
New paragraphs (a)(10), (a)(11),(a)(12) and (a)(13) are being added
to provide for four new examples of optional elements of State plans
which were added to EPCA by section 141(b) of the Energy Policy Act of
1992, Pub. L. 102-486 (EPACT). Those new elements are: program
activities to provide training to building designers and contractors to
promote energy efficiency ((a)(10)); program activities for the
development of building retrofit standards ((a)(11)); support for
feasibility studies to facilitate access to capital and credit for
energy efficiency projects ((a)(12)); and program activities to
facilitate the voluntary use of renewable energy technologies in
Federal agency programs ((a)(13)).
Former paragraph (a)(10) has been renumbered (a)(14).
Section 420.18 Expenditure Prohibitions and Limitations
This section was formerly Sec. 420.12.
This section has been renamed because the former name, ``Prohibited
expenditures,'' did not reflect the fact that a number of the
paragraphs under this section cover expenditures that are, under
certain circumstances, allowable.
Paragraph (e) has been revised to change the limitation of 33
percent of a State's allocation to 50 percent, and to clarify that, up
to that limit, funds may be used for the purchase and installation of
energy conservation measures and renewable energy measures, to allow
States more flexibility in this regard. With ICP-typed activities now a
component of the consolidated SEP, and with energy conservation
measures and renewable energy measures the primary purpose of ICP, DOE
does not want to limit States to 33 percent for such expenditures, and
believes a 50 percent limit is now appropriate because approximately 50
percent of the appropriated funds for FY 1996 are attributable to ICP.
Paragraph (e)(4), which required that funds under this program be
used to supplement, but not supplant, ICP or Weatherization funds, has
been revised to delete the reference to ICP. The reasons were
previously discussed under Sec. 420.13.
Former subparagraphs (e)(6)(i) and (e)(6)(iv) have been deleted
because they are no longer necessary, and former subparagraphs
(e)(6)(ii) and (e)(6)(iii) have been redesignated new subparagraphs
(e)(6)(i) and (e)(6)(ii), respectively.
Former paragraph (e)(7) has been deleted because the same
limitation is covered in paragraph (d).
Section 420.19 Administrative Review
This section was formerly Sec. 420.9. It covers decisions made
under Sec. 420.14 and does not apply to financial assistance for the
special projects in subpart C.
Subpart C--Implementation of Special Projects Financial Assistance
This subpart is being added to specify how DOE will implement
financial assistance for these special projects activities under SEP.
Section 420.30 Purpose
This section is being added to provide the purpose of subpart C.
Section 420.31 Notice of Availability
This section is being added to specify the process DOE will use for
announcing the availability of funds for special projects financial
assistance.
Section 420.32 Program Guidance/Solicitation
This section is being added to provide for the program guidance/
solicitation, which will contain the relevant information necessary for
States to apply for funding under this subpart.
Section 420.33 Application Requirements
This section is being added to provide general information about
applying for financial assistance for these special projects. More
detailed application requirements will be provided by DOE in the
program guidance/solicitation document.
Section 420.34 Matching Contributions or Cost Sharing
This section is being added to address the possibility of a match
or cost share requirement for some, or all, special projects financial
assistance, to be specified in the program guidance/solicitation.
Section 420.35 Application Evaluation
This section is being added to provide for the technical
evaluations of applications for financial assistance pursuant to this
subpart.
Section 420.36 Evaluation Criteria
This section is being added to provide for the evaluation criteria
to be applied to applications for financial assistance pursuant to this
subpart.
Section 420.37 Selection
This section is being added to provide for program policy factors
which may be
[[Page 35895]]
applied in selecting special projects for funding under this subpart.
IV. Opportunity for Public Comment
Written Comment Procedures
Interested persons are invited to participate in this rulemaking by
submitting data, views or arguments with respect to the matters set
forth in this notice.
Comments (6 copies and, if possible, a computer disk) should be
identified on the outside of the envelope, and on the documents
themselves, with the designation: ``State Energy Program, Interim Final
Rule, Docket Number EE-RM-96-402.'' In the event any person wishing to
submit a written comment cannot provide six copies, alternative
arrangements can be made in advance by calling (202) 586-2096.
Any person submitting information which that person believes to be
confidential, and which may be exempt by law from public disclosure,
should submit one complete copy, as well as two copies from which the
information claimed to be confidential has been deleted. DOE shall make
a determination of any such claim as set forth in 10 CFR 1004.11 (53 FR
15661, May 3, 1988).
V. Review Under Executive Order 12612
Executive Order 12612, 52 FR 41685 (October 30, 1987) requires that
regulations, legislation and any other policy action be reviewed for
any substantial direct effects on States, on the relationship between
the National Government and the States, or on the distribution of power
among various levels of government. If there are sufficient substantial
direct effects, the Executive Order requires preparation of a
federalism assessment to be used in decisions by senior policy-makers
in promulgating or implementing the regulation.
Today's regulatory amendments will not have a substantial direct
effect on the traditional rights and prerogatives of States in
relationship to the Federal Government. Preparation of a federalism
assessment is therefore unnecessary.
VI. Review Under Executive Order 12866
Today's regulatory action has been determined not to be a
significant regulatory action under Executive Order 12866, Regulatory
Planning and Review, October 4, 1993. Accordingly, this action was not
subject to review under the Executive Order by the Office of
Information and Regulatory Affairs (OIRA).
VII. Review Under Executive Order 12988
Section 3 of Executive Order 12988, 61 FR 4729 (February 7, 1996),
instructs each agency to adhere to certain requirements in promulgating
new regulations. These requirements, set forth in Section 3(a) and (b),
include eliminating drafting errors and needless ambiguity, drafting
the regulations to minimize litigation, providing clear and certain
legal standards for affected legal conduct, and promoting
simplification and burden reduction. Agencies are also instructed to
make every reasonable effort to ensure that the regulation describes
any administrative proceeding to be available prior to judicial review
and any provisions for the exhaustion of administrative remedies. The
Department has determined that today's regulatory action meets the
requirements of Section 3 (a) and (b) of Executive Order 12988.
VIII. Unfunded Mandate Review
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) places a
variety of review and consultative obligations on Federal agencies
proposing regulatory actions for Federal intergovernmental mandates.
Today's rule does not involve such a mandate because the Unfunded
Mandates Reform Act excludes from the definition of ``Federal
intergovernmental mandate'' provisions in a regulation that would
impose conditions incident to a financial assistance program (not
involving an entitlement) or a duty arising from participation in a
voluntary Federal program 2 U.S.C. 658(5). This program is a standard
non-entitlement financial assistance program and States are not
obligated to participate in it.
IX. Review Under the Regulatory Flexibility Act
There is no need to prepare a final regulatory flexibility analysis
of today's interim final regulations under the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq., because they are not subject to a legal
requirement for a general notice of proposed rulemaking.
X. Review Under the Paperwork Reduction Act
No new information collection or recordkeeping requirements are
imposed on the public by today's rules.
XI. Review Under the National Environmental Policy Act
A programmatic environmental assessment has been prepared covering
the grant program under the interim final regulations published today
which was sent to the States for comment on March 27, 1996. No comments
were received by the end of the 14-day comment period. This
programmatic environmental assessment resulted in a finding of no
significant impact (FONSI). A FONSI was issued on June 7, 1996. The
documents relating to this programmatic environmental assessment are
available in the DOE Freedom of Information Reading Room, United States
Department of Energy, Room 1E-190, Forrestal Building, 1000
Independence Avenue, SW., Washington, DC 20585, (202) 586-6020.
XII. Congressional Notification
The final regulations published today are subject to the
Congressional notification requirements of the Small Business
Regulatory Enforcement Fairness Act of 1996 (Act), 5 U.S.C. 801. OMB
has determined that the final regulations do not constitute a ``major
rule'' under the Act, 5 U.S.C. 804. DOE will report to Congress on the
promulgation of the final regulations prior to the effective date set
forth at the beginning of this notice.
XIII. The Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for the State
Energy Program is 81.041.
List of Subjects
10 CFR Part 420
Energy conservation, Grant programs--energy, Reporting and
recordkeeping requirements, Technical assistance, Incorporation by
reference.
10 CFR Part 450
Buildings, Business and Industry, Energy conservation, Housing,
Reporting and recordkeeping requirements.
Issued in Washington, DC, on June 26, 1996.
Christine A. Ervin,
Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reasons set forth in the preamble, Chapter II of Title 10,
Code of Federal Regulations is amended as follows:
1. Part 420 is revised to read as follows:
PART 420--STATE ENERGY PROGRAM
Subpart A--General Provisions for State Energy Program Financial
Assistance
Sec.
420.1 Purpose and scope.
420.2 Definitions.
420.3 Administration of financial assistance.
[[Page 35896]]
420.4 Technical assistance.
420.5 Reports.
420.6 Reference standards.
Subpart B--Formula Grant Procedures
420.10 Purpose.
420.11 Allocation of funds among the States.
420.12 State matching contribution.
420.13 Annual State applications and State plans.
420.14 Review and approval of annual State applications and State
plans.
420.15 Minimum criteria for required program activities for plans.
420.16 Extensions for compliance with required program activities.
420.17 Optional elements of State Energy Program plans.
420.18 Expenditure prohibitions and limitations.
420.19 Administrative review.
Subpart C--Implementation of Special Projects Financial Assistance
420.30 Purpose and scope.
420.31 Notice of availability.
420.32 Program guidance/solicitation.
420.33 Application requirements.
420.34 Matching contributions or cost-sharing.
420.35 Application evaluation.
420.36 Evaluation criteria.
420.37 Selection.
Authority: Title III, part D, as amended, of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.); Department of Energy
Organization Act (42 U.S.C. 7101 et seq.)
Subpart A--General Provisions for State Energy Program Financial
Assistance
Sec. 420.1 Purpose and scope.
It is the purpose of this part to promote the conservation of
energy, to reduce the rate of growth of energy demand, and to reduce
dependence on imported oil through the development and implementation
of a comprehensive State Energy Program and the provision of Federal
financial and technical assistance to States in support of such
program.
Sec. 420.2 Definitions.
As used in this part:
Act means title III, part D, as amended, of the Energy Policy and
Conservation Act, 42 U.S.C. 6321 et seq.
Alternative transportation fuel means methanol, denatured ethanol,
and other alcohols; mixtures containing 85 percent or more by volume of
methanol, denatured ethanol, and other alcohols with gasoline or other
fuels; natural gas; liquified petroleum gas; hydrogen; coal-derived
liquid fuels; fuels (other than alcohol) derived from biological
materials (including neat biodiesel); and electricity (including
electricity from solar energy).
ASHRAE/IESNA 90.1-1989, as amended means the building design
standard published in December 1989 by the American Society of Heating,
Refrigerating and Air-Conditioning Engineers, and the Illuminating
Engineering Society of North America titled ``Energy Efficient Design
of New Buildings Except Low-Rise Residential Buildings,'' with Addenda
90.1b-1992; Addenda 90.1d-1992; Addenda 90.1e-1992; Addenda 90.1g-1993;
and Addenda 90.1i-1993, which is incorporated by reference in
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. The availability of
this incorporation by reference is given in Sec. 420.6(b).
Assistant Secretary means the Assistant Secretary for Energy
Efficiency and Renewable Energy or any official to whom the Assistant
Secretary's functions may be redelegated by the Secretary.
British thermal unit (Btu) means the quantity of heat necessary to
raise the temperature of one pound of water one degree Fahrenheit at
39.2 degrees Fahrenheit and at one atmosphere of pressure.
Building means any structure which includes provision for a heating
or cooling system, or both, or for a hot water system, except for the
following:
(1) Any building whose peak design rate of energy usage for all
purposes is less than one watt (3.4 Btu's per hour) per square foot of
floor area for all purposes;
(2) Any building with neither a heating nor cooling system;
(3) Any mobile home; or
(4) Any building owned or leased in whole or in part by the United
States.
Carpool means the sharing of a ride by two or more people in an
automobile.
Carpool matching and promotion campaign means a campaign to
coordinate riders with drivers to form carpools and/or vanpools.
Commercial building means any building other than a residential
building, including any building constructed for industrial or public
purposes.
Commercially available means available for purchase by the general
public or target audience in the State.
Deputy Assistant Secretary means the Deputy Assistant Secretary for
Building Technology, State and Community Programs or any official to
whom the Deputy Assistant Secretary's functions may be redelegated by
the Assistant Secretary.
Director, Office of State and Community Programs means the official
responsible for DOE's formula grant programs to States, or any official
to whom the Director's functions may be redelegated by the Assistant
Secretary.
DOE means the Department of Energy.
Energy audit means a determination of the energy consumption
characteristics of a building which:
(1) Identifies the type, size, energy use level and the major
energy using systems of such building or buildings;
(2) Determines appropriate energy conservation maintenance and
operating procedures; and
(3) Indicates the need and the estimated cost and energy cost
savings, if any, associated with the acquisition and installation of
energy conservation measures.
Energy conservation measure means an installation which modifies
any building, building system, energy consuming device associated with
the building or industrial facility the construction of which was
completed prior to May 1, 1989, if such measure has been determined by
means of an energy audit to be likely to maintain or improve the
efficiency of energy use and to reduce energy costs in an amount
sufficient to enable a person to recover the total cost of purchasing
and installing such measure within the lesser of--
(1) The useful life of the modification involved; or
(2) 15 years after the purchase and installation of such measure.
Environmental residual means any pollutant or pollution causing
factor which results from any activity.
Exterior envelope physical characteristics means the physical
nature of those elements of a building which enclose conditioned spaces
through which thermal energy may be transferred to or from the
exterior.
Governor means the chief executive officer of a State, the District
of Columbia, Puerto Rico, or any territory or possession of the United
States, or a person duly designated in writing by the Governor to act
upon his or her behalf.
Grantee means the State or other entity named in the notice of
grant award as the recipient.
HVAC means heating, ventilating and air-conditioning.
IBR means incorporation by reference.
Industrial facility means any fixed equipment or facility which is
used in connection with, or as part of, any process or system for
industrial production or output.
Institution of higher education has the same meaning as such term
is defined in section 1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a)).
Metropolitan Planning Organization means that organization required
by the
[[Page 35897]]
Department of Transportation, and designated by the Governor as being
responsible for coordination within the State, to carry out
transportation planning provisions in a Standard Metropolitan
Statistical Area.
Model Energy Code, 1993, including Errata, means the model building
code published by the Council of American Building Officials, which is
incorporated by reference in accordance with 5 U.S.C. 552(a) and 1 CFR
part 51. The availability of this incorporation by reference is given
in Sec. 420.6(b).
Park-and-ride lot means a parking facility generally located at or
near the trip origin of carpools, vanpools and/or mass transit.
Petroleum violation escrow funds. For purposes both of exempting
petroleum violation escrow funds from the matching requirements of
Sec. 420.12 and of applying the limitations specified under
Sec. 420.18(b), this term means any funds distributed to the States by
the Department of Energy or any court and identified as Alleged Crude
Oil Violation funds, together with any interest earned thereon by the
States, but excludes any funds designated as ``excess funds'' under
section 3003(d) of the Petroleum Overcharge Distribution and
Restitution Act, subtitle A of title III of the Omnibus Budget
Reconciliation Act of 1986, Public Law 99-509, and the funds
distributed under the ``Warner Amendment,'' section 155 of Public Law
97-377.
Plan means a State Energy Program plan including required program
activities in accordance with Sec. 420.15 and otherwise meeting the
applicable provisions of this part.
Political subdivision means a unit of government within a State,
including a county, municipality, city, town, township, parish,
village, local public authority, school district, special district,
council of governments, or any other regional or intrastate
governmental entity or instrumentality of a local government exclusive
of institutions of higher learning and hospitals.
Preferential traffic control means any one of a variety of traffic
control techniques used to give carpools, vanpools and public
transportation vehicles priority treatment over single occupant
vehicles other than bicycles and other two-wheeled motorized vehicles.
Program activity means one or more State actions, in a particular
area, designed to promote energy efficiency, renewable energy and
alternative transportation fuel.
Public building means any building which is open to the public
during normal business hours, including:
(1) Any building which provides facilities or shelter for public
assembly, or which is used for educational office or institutional
purposes;
(2) Any inn, hotel, motel, sports arena, supermarket,
transportation terminal, retail store, restaurant, or other commercial
establishment which provides services or retail merchandise;
(3) Any general office space and any portion of an industrial
facility used primarily as office space;
(4) Any building owned by a State or political subdivision thereof,
including libraries, museums, schools, hospitals, auditoriums, sport
arenas, and university buildings; and
(5) Any public or private non-profit school or hospital.
Public transportation means any scheduled or nonscheduled
transportation service for public use.
Regional Support Office Director means the director of a DOE
Regional Support Office with responsibility for grants administration
or any official to whom that function may be redelegated.
Renewable energy means a non-depletable source of energy.
Renewable energy measure means a measure which modifies any
building or industrial facility if such measure has been determined by
means of an energy audit to--
(1) Involve changing, in whole or in part, the fuel or source of
the energy used to meet the requirements of such building or facility
from a depletable source of energy to a non-depletable source of
energy; and
(2) Be likely to reduce energy costs (as calculated on the basis of
energy cost assumptions provided by DOE) in an amount sufficient to
enable a person to recover the total cost of purchasing and installing
such measure (without regard to any tax benefit or Federal financial
assistance applicable thereto) within the lesser of--
(i) The useful life of the modification involved; or
(ii) 25 years after the purchase and installation of such measure.
Residential building means any building which is constructed for
residential occupancy.
Secretary mean the Secretary of DOE.
SEP means the State Energy Program under this part.
Small business means a private firm that does not exceed the
numerical size standard promulgated by the Small Business
Administration under section 3(a) of the Small Business Act (15 U.S.C.
632) for the Standard Industrial Classification (SIC) codes designated
by the Secretary of Energy.
Start-up business means a small business which has been in
existence for 5 years or less.
State means a State, the District of Columbia, Puerto Rico, or any
territory or possession of the United States.
State or local government building means any building owned and
primarily occupied by offices or agencies of a State; and any building
of a unit of local government or a public care institution which could
be covered by part H, title III, of the Energy Policy and Conservation
Act, 42 U.S.C. 6372-6372i.
Transit level of service means characteristics of transit service
provided which indicate its quantity, geographic area of coverage,
frequency and quality (comfort, travel, time, fare and image).
Urban area traffic restriction means a setting aside of certain
portions of an urban area as restricted zones where varying degrees of
limitation are placed on general traffic usage and/or parking.
Vanpool means a group of riders using a vehicle, with a seating
capacity of not less than eight individuals and not more than fifteen
individuals, for transportation to and from their residence or other
designated locations and their place of employment, provided the
vehicle is driven by one of the pool members.
Variable working schedule means a flexible working schedule to
facilitate carpool, vanpool and/or public transportation usage.
Sec. 420.3 Administration of financial assistance.
(a) Financial assistance under this part shall comply with
applicable laws and regulations including, but without limitation, the
requirements of:
(1) Executive Order 12372, Intergovernmental Review of Federal
Programs, as implemented by 10 CFR part 1005.
(2) DOE Financial Assistance Rules (10 CFR part 600); and
(3) Other procedures which DOE may from time to time prescribe for
the administration of financial assistance under this part.
(b) The budget period(s) covered by the financial assistance
provided to a State according to Sec. 420.11(b) or Sec. 420.33 shall be
consistent with 10 CFR part 600.
(c) Subawards are authorized under this part and are subject to the
requirements of this part and 10 CFR part 600.
Sec. 420.4 Technical assistance.
At the request of the Governor of any State to DOE and subject to
the
[[Page 35898]]
availability of personnel and funds, DOE will provide information and
technical assistance to the State in connection with effectuating the
purposes of this part.
Sec. 420.5 Reports.
(a) Each State receiving financial assistance under this part shall
submit to the cognizant Regional Support Office Director a quarterly
program performance report and a quarterly financial status report.
(b) Reports under this section shall contain such information as
the Secretary may prescribe in order to monitor effectively the
implementation of a State's activities under this part.
(c) The reports shall be submitted within 30 days following the end
of each calendar year quarter.
Sec. 420.6 Reference standards.
(a) The following standards which are not otherwise set forth in
this part are incorporated by reference and made a part of this part.
The following standards have been approved for incorporation by
reference by the Director of the Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. A notice of any change in these
materials will be published in the Federal Register. The standards
incorporated by reference are available for inspection at the Office of
the Federal Register, 800 North Capitol Street, N.W., suite 700,
Washington, D.C.
(b) The following standards are incorporated by reference in this
part:
(1) The American Society of Heating, Refrigerating and Air-
Conditioning Engineers (ASHRAE), 1791 Tullie Circle, N.E., Atlanta,
Georgia 30329, (404) 636-8400/The Illuminating Engineering Society of
North America (IESNA), 345 East 47th Street, New York, New York 10017,
(212) 705-7913: (i) ASHRAE/IESNA 90.1-1989, entitled ``Energy Efficient
Design of New Buildings Except Low-Rise Residential Buildings,'' with
Addenda 90.1b-1992; Addenda 90.1d-1992; Addenda 90.1e-1992; Addenda
90.1g-1993; and Addenda 90.1i-1993, IBR approved for Sec. 420.2 and
Sec. 420.15.
(2) The Council of American Building Officials (CABO), 5203
Leesburg Pike, Suite 708, Falls Church, Virginia 22041, (703) 931-4533:
(i) The Model Energy Code, 1993, including Errata, IBR approved for
Sec. 420.2 and Sec. 420.15.
Subpart B--Formula Grant Procedures
Sec. 420.10 Purpose.
This subpart specifies the procedures that apply to the Formula
Grant part of the State Energy Program, which allows States to apply
for financial assistance to undertake a wide range of required and
optional energy-related activities provided for under Sec. 420.15 and
Sec. 420.17. Funding for these activities is allocated to the States
based on funds available for any fiscal year, as described under
Sec. 420.11.
Sec. 420.11 Allocation of funds among the States.
(a) The cognizant Regional Support Office Director shall provide
financial assistance to each State having an approved annual
application from funds available for any fiscal year to develop,
modify, or implement a plan.
(b) DOE shall allocate financial assistance to develop, implement
or modify plans among the States from funds available for any fiscal
year, as follows:
(1) If the available funds equal $25.5 million, such funds shall be
allocated to the States according to Table 1 of this section.
(2) The base allocation for each State is listed in Table 1.
Table 1.--Base Allocation by State
------------------------------------------------------------------------
State/Territory
------------------------------------------------------------------------
Alabama................................................. $381,000
Alaska.................................................. 180,000
Arizona................................................. 344,000
Arkansas................................................ 307,000
California.............................................. 1,602,000
Colorado................................................ 399,000
Connecticut............................................. 397,000
Delaware................................................ 164,000
District of Columbia.................................... 158,000
Florida................................................. 831,000
Georgia................................................. 534,000
Hawaii.................................................. 170,000
Idaho................................................... 190,000
Illinois................................................ 1,150,000
Indiana................................................. 631,000
Iowa.................................................... 373,000
Kansas.................................................. 327,000
Kentucky................................................ 411,000
Louisiana............................................... 446,000
Maine................................................... 231,000
Maryland................................................ 486,000
Massachusetts........................................... 617,000
Michigan................................................ 973,000
Minnesota............................................... 584,000
Mississippi............................................. 279,000
Missouri................................................ 518,000
Montana................................................. 182,000
Nebraska................................................ 246,000
Nevada.................................................. 196,000
New Hampshire........................................... 216,000
New Jersey.............................................. 783,000
New Mexico.............................................. 219,000
New York................................................ 1,633,000
North Carolina.......................................... 564,000
North Dakota............................................ 172,000
Ohio.................................................... 1,073,000
Oklahoma................................................ 352,000
Oregon.................................................. 325,000
Pennsylvania............................................ 1,090,000
Rhode Island............................................ 199,000
South Carolina.......................................... 340,000
South Dakota............................................ 168,000
Tennessee............................................... 476,000
Texas................................................... 1,322,000
Utah.................................................... 242,000
Vermont................................................. 172,000
Virginia................................................ 571,000
Washington.............................................. 438,000
West Virginia........................................... 286,000
Wisconsin............................................... 604,000
Wyoming................................................. 155,000
American Samoa.......................................... 115,000
Guam.................................................... 120,000
Northern Marianas....................................... 114,000
Puerto Rico............................................. 322,000
U.S. Virgin Islands..................................... 122,000
------------------------------------------------------------------------
Total............................................. 25,500,000
------------------------------------------------------------------------
(3) If the available funds for any fiscal year are less than $25.5
million, then the base allocation for each State shall be reduced
proportionally.
(4) If the available funds exceed $25.5 million, $25.5 million
shall be allocated as specified in Table 1 and any in excess of $25.5
million shall be allocated as follows:
(i) One-third of the available funds is divided among the States
equally;
(ii) One-third of the available funds is divided on the basis of
the population of the participating States as contained in the most
recent reliable census data available from the Bureau of the Census,
Department of Commerce, for all participating States at the time DOE
needs to compute State formula shares; and
(iii) One-third of the available funds is divided on the basis of
the energy consumption of the participating States as contained in the
most recent State Energy Data Report available from DOE's Energy
Information Administration.
(c) The budget period covered by the financial assistance provided
to a State according to Sec. 420.11(b) shall be consistent with 10 CFR
part 600.
Sec. 420.12 State matching contribution.
(a) Each State shall provide cash, in kind contributions, or both
for SEP activities in an amount totalling not less than 20 percent of
the financial assistance allocated to the State under Sec. 420.11(b).
(b) Cash and in-kind contributions used to meet this State matching
requirement are subject to the limitations on expenditures described in
Sec. 420.18(a), but are not subject to the 20 percent limitation in
Sec. 420.18(b).
[[Page 35899]]
(c) Nothing in this section shall be read to require a match for
petroleum violation escrow funds used under this part.
Sec. 420.13 Annual State applications and State plans.
(a) To be eligible for financial assistance under subpart B of this
part, a State shall submit to the cognizant Regional Support Office
Director an original and two copies of the annual application executed
by the Governor. The date for submission of the annual State
application shall be set by DOE.
(b) An application shall include:
(1) A face sheet containing basic identifying information, on
Standard Form (SF) 424;
(2) A description of the energy efficiency, renewable energy, and
alternative transportation fuel goals to be achieved, including
wherever practicable:
(i) An estimate of the energy to be saved by implementation of the
State plan;
(ii) Why the goals were selected;
(iii) How the attainment of the goals will be measured by the
State; and
(iv) How the program activities included in the State plan
represent a strategy to achieve these goals;
(3) With respect to financial assistance under subpart B of this
part, a goal, consisting of an improvement of 10 percent or more in the
efficiency of use of energy in the State concerned in the calendar year
2000, as compared to the calendar year 1990, and may contain interim
goals;
(4) For the budget period for which financial assistance will be
provided:
(i) A total program budget with supporting justification, broken
out by object category and by source of funding;
(ii) The source and amount of State matching contribution;
(iii) A narrative statement detailing the nature of amendments and
of new program activities;
(iv) For each program activity, a budget and listing of milestones;
and
(v) An explanation of how the minimum criteria for required program
activities prescribed in Sec. 420.15 shall be satisfied;
(5) A detailed description of the increase or decrease in
environmental residuals expected from implementation of a plan defined
insofar as possible through the use of information to be provided by
DOE and an indication of how these environmental factors were
considered in the selection of program activities.
(6) For program activities involving purchase or installation of
materials or equipment for weatherization of low-income housing, an
explanation of how these activities would supplement and not supplant
the existing DOE program under 10 CFR part 440.
(7) A reasonable assurance to DOE that it has established policies
and procedures designed to assure that Federal financial assistance
under subpart B of this part will be used to supplement, and not to
supplant, State and local funds, and to the extent practicable, to
increase the amount of such funds that otherwise would be available, in
the absence of such Federal financial assistance, for those activities
set forth in the State Energy Program plan approved pursuant to this
part;
(8) An assurance that the State shall comply with all applicable
statutes and regulations in effect with respect to the periods for
which it receives grant funding; and
(9) For informational purposes only, and not subject to DOE review,
an energy emergency plan for an energy supply disruption, as designed
by the State consistent with applicable Federal and State law including
an implementation strategy or strategies (including regional
coordination) for dealing with energy emergencies.
(c) The Governor may request an extension of the annual submission
date by submitting a written request to the cognizant Regional Support
Office Director not less than 15 days prior to the annual submission
date. The extension shall be granted only if, in the cognizant Regional
Support Office Director's judgment, acceptable and substantial
justification is shown, and the extension would further objectives of
the Act.
Sec. 420.14 Review and approval of annual State applications and State
plans.
(a) After receipt of an application for financial assistance under
subpart B of this part, or application for approval of an amendment to
a State plan, the cognizant Regional Support Office Director may
request the State to submit within a reasonable period of time any
revisions necessary to make the application complete and to bring the
application into compliance with the requirements of this part. The
cognizant Regional Support Office Director shall attempt to resolve any
dispute over the application informally and to seek voluntary
compliance. If a State fails to submit timely appropriate revisions to
complete an application and/or bring it into compliance, the cognizant
Regional Support Office Director may reject the application in a
written decision, including a statement of reasons, which shall be
subject to administrative review under Sec. 420.19 of this part.
(b) On or before 60 days from the date that a timely filed
application is complete, the cognizant Regional Support Office Director
shall--
(1) Approve the application in whole or in part to the extent
that--
(i) The application conforms to the requirements of this part;
(ii) The proposed program activities are consistent with a State's
achievement of its energy conservation goals in accordance with
Sec. 420.13; and
(iii) The provisions of the application regarding program
activities satisfy the minimum requirements prescribed by Sec. 420.15
and Sec. 420.17 as applicable;
(2) Approve the application in whole or in part subject to special
conditions designed to ensure compliance with the requirements of this
part; or
(3) Disapprove the application if it does not conform to the
requirements of this part.
Sec. 420.15 Minimum criteria for required program activities for
plans.
A plan shall satisfy all of the following minimum criteria for
required program activities.
(a) Mandatory lighting efficiency standards for public buildings
shall:
(1) Be implemented throughout the State, except that the standards
shall be adopted by the State as a model code for those local
governments of the State for which the State's constitution reserves
the exclusive authority to adopt and implement building standards
within their jurisdictions;
(2) Apply to all public buildings above a certain size, as
determined by the State;
(3) For new public buildings, be no less stringent than the
provisions of ASHRAE/IESNA 90.1-1989, and should be updated by
enactment of, or support for the enactment into local codes or
standards, which, at a minimum, are comparable to provisions of ASHRAE/
IESNA 90.1-1989 which is incorporated by reference in accordance with 5
U.S.C. 552 (a) and 1 CFR part 51. The availability of this
incorporation by reference is given in Sec. 420.6; and
(4) For existing public buildings, contain the elements deemed
appropriate by the State.
(b) Program activities to promote the availability and use of
carpools, vanpools, and public transportation shall:
(1) Have at least one of the following actions under implementation
in at least one urbanized area with a population of 50,000 or more
within the State or in the largest urbanized area within the State if
that State does not have an urbanized
[[Page 35900]]
area with a population of 50,000 or more:
(i) A carpool/vanpool matching and promotion campaign;
(ii) Park-and-ride lots;
(iii) Preferential traffic control for carpoolers and public
transportation patrons;
(iv) Preferential parking for carpools and vanpools;
(v) Variable working schedules;
(vi) Improvement in transit level of service for public
transportation;
(vii) Exemption of carpools and vanpools from regulated carrier
status;
(viii) Parking taxes, parking fee regulations or surcharge on
parking costs;
(ix) Full-cost parking fees for State and/or local government
employees;
(x) Urban area traffic restrictions;
(xi) Geographical or time restrictions on automobile use; or
(xii) Area or facility tolls; and
(2) Be coordinated with the relevant Metropolitan Planning
Organization, unless no Metropolitan Planning Organization exists in
the urbanized area, and not be inconsistent with any applicable Federal
requirements.
(c) Mandatory standards and policies affecting the procurement
practices of the State and its political subdivisions to improve energy
efficiency shall--
(1) With respect to all State procurement and with respect to
procurement of political subdivisions to the extent determined feasible
by the State, be under implementation; and
(2) Contain the elements deemed appropriate by the State to improve
energy efficiency through the procurement practices of the State and
its political subdivisions.
(d) Mandatory thermal efficiency standards for new and renovated
buildings shall--
(1) Be implemented throughout the State, with respect to all
buildings other than exempted buildings, except that the standards
shall be adopted by the State as a model code for those local
governments of the State for which the State's constitution reserves
the exclusive authority to adopt and implement building standards
within their jurisdictions;
(2) Take into account the exterior envelope physical
characteristics, HVAC system selection and configuration, HVAC
equipment performance and service water heating design and equipment
selection;
(3) For all new commercial and multifamily high-rise buildings, be
no less stringent than provisions of sections 7-12 of ASHRAE/IESNA
90.1-1989, and should be updated by enactment of, or support for the
enactment into local codes or standards, which, at a minimum, are
comparable to provisions of ASHRAE/IESNA 90.1-1989; and
(4) For all new single-family and multifamily low-rise residential
buildings, be no less stringent than the Model Energy Code, 1993, and
should be updated by enactment of, or support for the enactment into
local codes or standards, which, at a minimum, are comparable to the
Model Energy Code, 1993, which is incorporated by reference in
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. The availability of
this incorporation by reference is given in Sec. 420.6;
(5) For renovated buildings:
(i) Apply to those buildings determined by the State to be
renovated buildings; and
(ii) Contain the elements deemed appropriate by the State regarding
thermal efficiency standards for renovated buildings.
(e) A traffic law or regulation which permits the operator of a
motor vehicle to make a turn at a red light after stopping shall:
(1) Be in a State's motor vehicle code and under implementation
throughout all political subdivisions of the State;
(2) Permit the operator of a motor vehicle to make a right turn
(left turn with respect to the Virgin Islands) at a red traffic light
after stopping except where specifically prohibited by a traffic sign
for reasons of safety or except where generally prohibited in an urban
enclave for reasons of safety; and
(3) Permit the operator of a motor vehicle to make a left turn from
a one-way street to a one-way street (right turn with respect to the
Virgin Islands) at a red traffic light after stopping except where
specifically prohibited by a traffic sign for reasons of safety or
except where generally prohibited in an urban enclave for reasons of
safety.
(f) Procedures must exist for ensuring effective coordination among
various local, State, and Federal energy efficiency, renewable energy
and alternative transportation fuel programs within the State,
including any program administered within the Office of Building
Technology, State and Community Programs of the Department of Energy
and the Low Income Home Energy Assistance Program administered by the
Department of Health and Human Services.
Sec. 420.16 Extensions for compliance with required program
activities.
An extension of time by which a required program activity must be
ready for implementation may be granted if DOE determines that the
extension is justified. A written request for an extension, with
accompanying justification and an action plan acceptable to DOE for
achieving compliance in the shortest reasonable time, shall be made to
the cognizant Regional Support Office Director. Any extension shall be
only for the shortest reasonable time that DOE determines necessary to
achieve compliance. The action plan shall contain a schedule for full
compliance and shall identify and make the most reasonable commitment
possible to provision of the resources necessary for achieving the
scheduled compliance.
Sec. 420.17 Optional elements of State Energy Program plans.
(a) Other appropriate activities or programs may be included in the
State plan. These activities may include, but are not limited to, the
following:
(1) Program activities of public education to promote energy
efficiency, renewable energy, and alternative transportation fuels;
(2) Program activities to increase transportation energy
efficiency, including programs to accelerate the use of alternative
transportation fuels for government vehicles, fleet vehicles, taxis,
mass transit, and privately owned vehicles;
(3) Program activities for financing energy conservation measures
and renewable energy measures--
(i) Which may include loan programs and performance contracting
programs for leveraging of additional public and private sector funds
and program activities which allow rebates, grants, or other incentives
for the purchase of energy conservation measures and renewable energy
measures; or
(ii) In addition to or in lieu of program activities described in
paragraph (a)(3)(i) of this section, which may be used in connection
with public or nonprofit buildings owned and operated by a State, a
political subdivision of a State or an agency or instrumentality of a
State, or an organization exempt from taxation under section 501(c)(3)
of the Internal Revenue Code of 1986 including public and private non-
profit schools and hospitals, and local government buildings;
(4) Program activities for encouraging and for carrying out energy
audits with respect to buildings and industrial facilities (including
industrial processes) within the State;
(5) Program activities to promote the adoption of integrated energy
plans which provide for:
(i) Periodic evaluation of a State's energy needs, available energy
resources (including greater energy efficiency), and energy costs; and
[[Page 35901]]
(ii) Utilization of adequate and reliable energy supplies,
including greater energy efficiency, that meet applicable safety,
environmental, and policy requirements at the lowest cost;
(6) Program activities to promote energy efficiency in residential
housing, such as:
(i) Program activities for development and promotion of energy
efficiency rating systems for newly constructed housing and existing
housing so that consumers can compare the energy efficiency of
different housing; and
(ii) Program activities for the adoption of incentives for
builders, utilities, and mortgage lenders to build, service, or finance
energy efficient housing;
(7) Program activities to identify unfair or deceptive acts or
practices which relate to the implementation of energy conservation
measures and renewable energy measures and to educate consumers
concerning such acts or practices;
(8) Program activities to modify patterns of energy consumption so
as to reduce peak demands for energy and improve the efficiency of
energy supply systems, including electricity supply systems;
(9) Program activities to promote energy efficiency as an integral
component of economic development planning conducted by State, local,
or other governmental entities or by energy utilities;
(10) Program activities (enlisting appropriate trade and
professional organizations in the development and financing of such
programs) to provide training and education (including, if appropriate,
training workshops, practice manuals, and testing for each area of
energy efficiency technology) to building designers and contractors
involved in building design and construction or in the sale,
installation, and maintenance of energy systems and equipment to
promote building energy efficiency;
(11) Program activities for the development of building retrofit
standards and regulations, including retrofit ordinances enforced at
the time of the sale of a building;
(12) Program activities to provide support for prefeasibility and
feasibility studies for projects that utilize renewable energy and
energy efficiency resource technologies in order to facilitate access
to capital and credit for such projects;
(13) Program activities to facilitate and encourage the voluntary
use of renewable energy technologies for eligible participants in
Federal agency programs, including the Rural Electrification
Administration and the Farmers Home Administration; and
(14) In accordance with paragraph (b) of this section, program
activities to implement the Energy Technology Commercialization
Services Program.
(b) This section prescribes requirements for establishing State-
level Energy Technology Commercialization Services Program as an
optional element of State plans.
(1) The program activities to implement the functions of the Energy
Technology Commercialization Services Program shall:
(i) Aid small and start-up businesses in discovering useful and
practical information relating to manufacturing and commercial
production techniques and costs associated with new energy
technologies;
(ii) Encourage the application of such information in order to
solve energy technology product development and manufacturing problems;
(iii) Establish an Energy Technology Commercialization Services
Program affiliated with an existing entity in each State;
(iv) Coordinate engineers and manufacturers to aid small and start-
up businesses in solving specific technical problems and improving the
cost effectiveness of methods for manufacturing new energy
technologies;
(v) Assist small and start-up businesses in preparing the technical
portions of proposals seeking financial assistance for new energy
technology commercialization; and
(vi) Facilitate contract research between university faculty and
students and small start-up businesses, in order to improve energy
technology product development and independent quality control testing.
(2) Each State Energy Technology Commercialization Services Program
shall develop and maintain a data base of engineering and scientific
experts in energy technologies and product commercialization interested
in participating in the service. Such data base shall, at a minimum,
include faculty of institutions of higher education, retired
manufacturing experts, and National Laboratory personnel.
(3) The services provided by the Energy Technology
Commercialization Services Program established under this part shall be
available to any small or start-up business. Such service programs
shall charge fees which are affordable to a party eligible for
assistance, which shall be determined by examining factors, including
the following: the costs of the services received; the need of the
recipient for the services; and the ability of the recipient to pay for
the services.
Sec. 420.18 Expenditure prohibitions and limitations.
(a) No financial assistance provided to a State under this part
shall be used:
(1) For construction, such as construction of mass transit systems
and exclusive bus lanes, or for construction or repair of buildings or
structures;
(2) To purchase land, a building or structure or any interest
therein;
(3) To subsidize fares for public transportation;
(4) To subsidize utility rate demonstrations or State tax credits
for energy conservation measures or renewable energy measures; or
(5) To conduct, or purchase equipment to conduct, research,
development or demonstration of energy efficiency or renewable energy
techniques and technologies not commercially available.
(b) No more than 20 percent of the financial assistance awarded to
the State for this program shall be used to purchase office supplies,
library materials, or other equipment whose purchase is not otherwise
prohibited by this section. Nothing in this paragraph shall be read to
apply this 20 percent limitation to petroleum violation escrow funds
used under this part.
(c) Demonstrations of commercially available energy efficiency or
renewable energy techniques and technologies are permitted, and are not
subject to the prohibitions of Sec. 420.18(a)(1), or to the limitation
on equipment purchases of Sec. 420.18(b).
(d) A State may use regular or revolving loan mechanisms to fund
SEP services which are consistent with this part and which are included
in the State's approved SEP plan. The State may use loan repayments and
any interest on the loan funds only for activities which are consistent
with this part and which are included in the State's approved SEP plan.
(e) A State may use funds under this part for the purchase and
installation of equipment and materials for energy conservation
measures and renewable energy measures subject to the following terms
and conditions:
(1) Such use must be included in the State's approved plan and, if
funded by petroleum violation escrow funds, must be consistent with any
judicial or administrative terms and conditions imposed upon State use
of such funds;
(2) A State may use for these purposes no more than 50 percent of
all funds allocated by the State to SEP in a given year, regardless of
source, except that this limitation shall not include regular
[[Page 35902]]
and revolving loan programs funded with petroleum violation escrow
funds, and is subject to waiver by DOE for good cause. Loan documents
shall ensure repayment of principal and interest within a reasonable
period of time, and shall not include provisions of loan forgiveness.
(3) Subject to the restrictions of this part, State and local
government buildings, as defined in Sec. 420.2, are eligible for energy
conservation measures and renewable energy measures under this section;
(4) Funds must be used to supplement and no funds may be used to
supplant weatherization activities under the Weatherization Assistance
Program for Low-Income Persons, under 10 CFR part 440;
(5) Subject to paragraph (e)(6) of this section, a State may use a
variety of financial incentives to fund purchases and installation of
materials and equipment under this paragraph including, but not limited
to, regular loans, revolving loans, loan buy-downs, performance
contracting, rebates, and grants.
(6) The following mechanisms are not allowed for funding the
purchase and installation of materials and equipment under this
paragraph:
(i) Rebates for more than 50 percent of the total cost of
purchasing and installing materials and equipment (States shall set
appropriate restrictions and limits to insure the most efficient use of
rebates); and
(ii) Loan guarantees.
Sec. 420.19 Administrative review.
(a) A State shall have 20 days from the date of receipt of a
decision under Sec. 420.14 to file a notice requesting administrative
review in accordance with paragraph (b) of this section. If an
applicant does not timely file such a notice, the decision under
Sec. 420.14 shall become final for DOE.
(b) A notice requesting administrative review shall be filed with
the cognizant Regional Support Office Director and shall be accompanied
by a written statement containing supporting arguments. If the
cognizant Regional Support Office Director has disapproved an entire
application for financial assistance, the State may request a public
hearing.
(c) A notice or any other document shall be deemed filed under this
section upon receipt.
(d) On or before 15 days from receipt of a notice requesting
administrative review which is timely filed, the cognizant Regional
Support Office Director shall forward to the Deputy Assistant
Secretary, the notice requesting administrative review, the decision
under Sec. 420.14 as to which administrative review is sought, a draft
recommended final decision for concurrence, and any other relevant
material.
(e) If the State requests a public hearing on the disapproval of an
entire application for financial assistance, the Deputy Assistant
Secretary, within 15 days, shall give actual notice to the State and
Federal Register notice of the date, place, time, and procedures which
shall apply to the public hearing. Any public hearing under this
section shall be informal and legislative in nature.
(f) On or before 45 days from receipt of documents under paragraph
(d) of this section or the conclusion of the public hearing, whichever
is later, the Deputy Assistant Secretary shall concur in, concur in as
modified, or issue a substitute for the recommended decision of the
cognizant Regional Support Office Director.
(g) On or before 15 days from the date of receipt of the
determination under paragraph (f) of this section, the Governor may
file an application for discretionary review by the Assistant
Secretary. On or before 15 days from filing, the Assistant Secretary
shall send a notice to the Governor stating whether the Deputy
Assistant Secretary's determination will be reviewed. If the Assistant
Secretary grants a review, a decision shall be issued no later than 60
days from the date review is granted. The Assistant Secretary may not
issue a notice or decision under this paragraph without the concurrence
of the DOE Office of General Counsel.
(h) A decision under paragraph (f) of this section shall be final
for DOE if there is no review under paragraph (g) of this section. If
there is review under paragraph (g) of this section, the decision
thereunder shall be final for DOE and no appeal shall lie elsewhere in
DOE.
(i) Prior to the effective date of the termination or suspension of
a grant award for failure to implement an approved State plan in
compliance with the requirements of this part, a grantee shall have the
right to written notice of the basis for the enforcement action and of
the opportunity for public hearing before the DOE Financial Assistance
Appeals Board notwithstanding any provisions to the contrary of 10 CFR
600.22, 600.24, 600.25, and 600.243. To obtain a public hearing, the
grantee must request an evidentiary hearing, with prior Federal
Register notice, in the election letter submitted under Rule 2 of 10
CFR 1024.4 and the request shall be granted notwithstanding any
provisions to the contrary of Rule 2.
Subpart C--Implementation of Special Projects Financial Assistance
Sec. 420.30 Purpose and scope.
(a) This subpart sets forth DOE's policies and procedures for
implementing special projects financial assistance under this part.
(b) For years in which such funding is available, States may apply
for financial assistance to undertake a variety of State-oriented
energy-related special projects activities in addition to the funds
provided under the regular SEP grants.
(c) The types of funded activities may vary from year to year, and
from State to State, depending upon funds available for each type of
activity and DOE and State priorities.
(d) A number of end-use sector programs in the Office of Energy
Efficiency and Renewable Energy participate in the funding of these
activities, and the projects must meet the requirements of those
programs.
(e) The purposes of the special project activities are:
(1) To utilize States to accelerate deployment of energy
efficiency, renewable energy, and alternative transportation fuel
technologies;
(2) To facilitate the commercialization of emerging and
underutilized energy efficiency and renewable energy technologies; and
(3) To increase the responsiveness of Federally funded technology
development efforts to the needs of the marketplace.
Sec. 420.31 Notice of availability.
(a) If in any fiscal year DOE has funds available for special
projects, DOE shall publish in the Federal Register one or more
notice(s) of availability of SEP special projects financial assistance.
(b) Each notice of availability shall cite this part and shall
include:
(1) Brief descriptions of the activities for which funding is
available;
(2) The amount of money DOE has available or estimates it will have
available for award for each type of activity, and the total amount
available;
(3) The program official to contact for additional information,
application forms, and the program guidance/solicitation document; and
(4) The dates when:
(i) The program guidance/solicitation will be available; and
(ii) The applications for financial assistance must be received by
DOE.
Sec. 420.32 Program guidance/solicitation.
After the publication of the notice of availability in the Federal
Register, DOE shall, upon request, provide States
[[Page 35903]]
interested in applying for one or more project(s) under the special
projects financial assistance with a detailed program guidance/
solicitation that will include:
(a) The control number of the program;
(b) The expected duration of DOE support or period of performance;
(c) An application form or the format to be used, location for
application submission, and number of copies required;
(d) The name of the DOE program office contact from whom to seek
additional information;
(e) Detailed descriptions of each type of program activity for
which financial assistance is being offered;
(f) The amount of money available for award, together with any
limitations as to maximum or minimum amounts expected to be awarded;
(g) Deadlines for submitting applications;
(h) Evaluation criteria that DOE will apply in the selection and
ranking process for applications for each program activity;
(i) The evaluation process to be applied to each type of program
activity;
(j) A listing of program policy factors if any that DOE may use in
the final selection process, in addition to the results of the
evaluations, including:
(1) The importance and relevance of the proposed applications to
SEP and the participating programs in the Office of Energy Efficiency
and Renewable Energy; and
(2) Geographical diversity;
(k) Reporting requirements;
(l) References to:
(1) Statutory authority for the program;
(2) Applicable rules; and
(3) Other terms and conditions applicable to awards made under the
program guidance/solicitation; and
(m) A statement that DOE reserves the right to fund in whole or in
part, any, all, or none of the applications submitted.
Sec. 420.33 Application requirements.
(a) Consistent with Sec. 420.32 of this part, DOE shall set forth
general and special project activity-specific requirements for
applications for special projects financial assistance in the program
guidance/solicitation.
(b) In addition to any other requirements, all applications shall
provide:
(1) A detailed description of the proposed project, including the
objectives of the project in relationship to DOE's program and the
State's plan for carrying it out;
(2) A detailed budget for the entire proposed period of support,
with written justification sufficient to evaluate the itemized list of
costs provided on the entire project; and
(3) An implementation schedule for carrying out the project.
(c) DOE may, subsequent to receipt of an application, request
additional budgetary information from a State when necessary for
clarification or to make informed preaward determinations.
(d) DOE may return an application which does not include all
information and documentation required by this part, 10 CFR part 600,
or the program guidance/solicitation, when the nature of the omission
precludes review of the application.
Sec. 420.34 Matching contributions or cost-sharing.
DOE may require (as set forth in the program guidance/solicitation)
States to provide either:
(a) A matching contribution of at least a specified percentage of
the Federal financial assistance award; or
(b) A specified share of the total cost of the project for which
financial assistance is provided.
Sec. 420.35 Application evaluation.
(a) DOE staff at the cognizant Regional Support Office shall
perform an initial review of all applications to ensure that the State
has provided the information required by this part, 10 CFR part 600,
and the program guidance/solicitation.
(b) DOE shall group, and technically evaluate according to program
activity, all applications determined to be complete and satisfactory.
(c) DOE shall select evaluators on the basis of their professional
qualifications and expertise relating to the particular program
activity being evaluated.
(1) DOE anticipates that evaluators will primarily be DOE
employees; but
(2) If DOE uses non-DOE evaluators, DOE shall require them to
comply with all applicable DOE rules or directives concerning the use
of outside evaluators.
Sec. 420.36 Evaluation criteria.
The evaluation criteria, including program activity-specific
criteria, will be set forth in the program guidance/solicitation
document.
Sec. 420.37 Selection.
(a) DOE may make selection of applications for award based on:
(1) The findings of the technical evaluations;
(2) The priorities of DOE, SEP, and the participating program
offices;
(3) The availability of funds for the various special project
activities; and
(4) Any program policy factors set forth in the program guidance/
solicitation.
(b) The Director, Office of State and Community Programs makes the
final selections of projects to be awarded financial assistance.
PART 450--[REMOVED]
2. Under the authority of 42 U.S.C. 7101 et seq. Part 450 is
removed.
[FR Doc. 96-17067 Filed 7-5-96; 8:45 am]
BILLING CODE 6450-01-P
