95-1432. Weatherization Assistance Program for Low-Income Persons

[Federal Register Volume 60, Number 14 (Monday, January 23, 1995)]
[Proposed Rules]
[Pages 4480-4491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1432]

[[Page 4479]]

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Part II

Department of Energy

_______________________________________________________________________

Office of Energy Efficiency and Renewable Energy

_______________________________________________________________________

10 CFR Part 440

Weatherization Assistance Program for Low-Income Persons; Proposed Rule

Federal Register / Vol. 60, No. 14 / Monday, January 23, 1995 /
Proposed Rules
[[Page 4480]]

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 440

[Docket No. EE-RM-95-401]

Weatherization Assistance Program for Low-Income Persons

AGENCY: Department of Energy.

ACTION: Notice of proposed rulemaking and public hearing.

-----------------------------------------------------------------------

SUMMARY: The Department of Energy (DOE) is today publishing a notice of
proposed rulemaking to amend the regulations for the Weatherization
Assistance Program for Low-Income Persons to propose changes to the
formula used to distribute funds among the States under the Program.
Pursuant to the Conference Report on the Department of Interior and
Related Agencies Appropriations Act, 1995, DOE proposes to change the
formula in order to increase the overall equity, among the States, of
fund allocations under the program regulations, while at the same time
preserving existing State program capabilities. The proposed formula
change proposed by DOE addresses several key concerns expressed by many
States. The criteria used in the proposed formula would reflect: Number
of low-income households by State; climatic conditions using weather
data by State; and residential energy expenditures by low-income
households by State.

DATES: Written comments (6 copies and, if possible, a computer disk--WP
5.1) must be received by the Department on or before March 9, 1995.
Oral views, data and arguments may be presented at public hearings to
be held in San Francisco, CA beginning at 5 p.m. on January 23, 1995
and in Washington, DC beginning at 9:30 a.m. on February 14, 1995.
Request to speak at the hearing in San Francisco, CA must be
received no later than 4 p.m. on January 19, 1995. Request to speak at
the hearing in Washington, DC must be received no later than 4 p.m. on
February 10, 1995. The length of each presentation is limited to 10
minutes.

ADDRESSES: All written comments (6 copies) and requests to speak at the
hearing should be addressed to: U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, EE-532 WAP Rulemaking, Docket
No. EE-RM-95-401, 1000 Independence Avenue SW., Washington, DC 20585,
(202) 586-3012. In the event any person wishing to submit a written
comment cannot provide six copies, alternative arrangements can be made
in advance by calling the phone number referenced above.
The hearings will be held at the following locations: Washington DC
hearing at U.S. Department of Energy, 1000 Independence Avenue SW.,
Room 1E-245 beginning at 9:30 a.m. San Francisco, CA hearing at San
Francisco Hilton, Continental Ballroom 4, 333 O'Farrell, San Francisco,
CA beginning at 5 p.m.
Copies of the transcript of the public hearing and written comments
received may be read at the DOE Freedom of Information Reading Room,
U.S. Department of Energy, Room 1E-190, 1000 Independence Avenue SW.,
Washington DC 20585, (202) 586-6020 between the hours of 9 a.m. and 4
p.m. Monday through Friday, except holidays. For more information
concerning public participation in this rulemaking proceeding see
section titled ``Opportunity for Public Comment'' of this notice.

FOR FURTHER INFORMATION CONTACT: Greg Reamy or Henry Clarius,
Weatherization Assistance Program Division, U.S. Department of Energy,
Mail Stop EE-532, 1000 Independence Avenue SW., Washington, DC 20585,
(202) 426-1698.
Vivian Lewis, Office of General Counsel, Mail Stop GC-72, 6B-256,
1000 Independence Avenue SW., Washington, DC 20585, (202) 586-9507.

SUPPLEMENTARY INFORMATION:

I. Introduction

Since 1976, the Department of Energy has operated the nation's
largest energy conservation program--the Weatherization Assistance
Program for Low-Income Persons (Program) pursuant to Title III of the
Energy Conservation and Production Act (Act), 42 U.S.C. 6861, et seq.
Section 411 of the Act, 42 U.S.C. 6861, provides that the Program is
``to develop and implement a weatherization assistance program to
increase the energy efficiency of dwellings owned or occupied by low-
income persons, reduce their total residential energy expenditures, and
improve their health and safety, especially low-income persons who are
particularly vulnerable such as the elderly, the handicapped, and
children.''
The Program is administered in all 50 States, and the District of
Columbia, and by certain Indian tribes, which in turn fund nearly 1,200
local agencies to provide weatherization services to eligible low-
income persons. Based on priorities identified by energy audits
conducted by local agencies and other weatherization service providers,
energy efficiency measures are installed, including modifications to
the heating and cooling systems. The overall condition of the dwellings
weatherized is usually poor, resulting in high energy bills. If the
low-income residents cannot afford to pay expensive fuel bills, the
occupants, who may be children, elderly or persons with disabilities,
may be rendered homeless because they cannot afford alternative
accommodations. Weatherization and incidental repair of such dwellings
help keep low-income people in their homes.
The Department of Energy (DOE or Department) today proposes to
change the formula used to distribute funds under the Weatherization
Assistance Program for Low-Income Persons, which is codified in 10 CFR
part 440. The Program is also subject to the DOE general financial
assistance regulations in 10 CFR part 600.
In the Conference Report (H.R. Conf. Rep. No. 103-740, 103rd Cong.,
2nd Sess. (1994) on the Department of Interior and Related Agencies
Appropriations Act, 1995 Pub. L. 103-332, the conference committee
stated that sufficient funds were being made available to permit DOE to
revise the formula. The intent of the Congress was to provide warmer-
weather States a greater share of the funding, while protecting the
Program capacity developed over the years by colder-weather States. DOE
believes that the proposed formula satisfies this intent and is
consistent with the requirements of the Act.
The Act requires DOE to allocate funds to States based on the
relative need for weatherization assistance among low-income persons
throughout the States, taking into account the following factors: (1)
the number of dwelling units to be weatherized; (2) the climatic
conditions in each State which may include annual degree days; (3) the
various types of weatherization work to be done; and (4) other factors
as determined by DOE, such as the cost of heating and cooling. 42
U.S.C. 6864(a).
In order to allocate funds each year, DOE applies the formula in 10
CFR 440.10 to the amount of funds remaining after training and
technical assistance funds are subtracted from the annual
appropriation. The current formula establishes for each State a minimum
base grant level of $100,000 (Alaska receives an additional $100,000).
The remaining available funds are allocated by a mathematical formula
which takes into account heating/cooling degree days, total residential
energy use for space heating/cooling, the number of low-income
[[Page 4481]] owner-occupied dwelling units, and the number of low-
income renter occupied dwelling units in the State. 10 CFR 440.10(b).
This basic formula has remained unchanged since 1977. Data used in the
formula for weather, residential energy use, and population have been
updated several times. The formula data for program year 1993 were
updated to include the 1990 census data.
Over the years, many of the warmer-weather States have maintained
that the current Program formula does not provide them an appropriate
share of funds and have encouraged both the Congress and DOE to make
changes to the formula. Although the States and Congress have
deliberated over this issue at length, there has been no consensus on
what changes should be made to the formula or how to implement such
changes.
Warmer-weather States believe the current requirement for the
squaring of heating and cooling degree days results in an over-
allocation of funds to colder-climate States. Many States believe
giving only one-half credit for renters in the formula unfairly reduces
allocations and does not reflect the true extent of poverty. Many
States believe DOE should use State level data for percent of energy
used for space heating and space cooling instead of the national
average that is currently used.
In analyzing the issues related to the formula, DOE carefully
evaluated the impact of making any type of change to the current
formula. DOE has received many suggestions from virtually all of the
Program's primary stakeholders--the States. Others expressed their
concerns or supported changes to the formula.
In an effort to evaluate the current positions of the States on
this issue, DOE initiated a study through the National Association of
State Community Services Programs (NASCSP), the national organization
for State Weatherization directors, to survey all members for their
ideas and to make recommendations to DOE. The study was conducted by a
NASCSP national review panel representing the ten Federal regions of
the country. While not all States are members of NASCSP, copies of a
draft of NASCSP's report on the study were made available to non-member
States. The findings of this study can be summarized in two key areas:
(1) formula criteria, and (2) formula implementation.
A final report of NASCSP, including comments of non-member States,
was issued to DOE in November 1993, entitled ``Final Report of the
Formula Allocation Project.'' Copies of this report can be obtained
from NASCSP, 444 North Capitol Street NW., Washington, DC. DOE will
also make available for inspection a copy of the study at the DOE
Freedom of Information Office Reading Room, Room 1E-090, 1000
Independence Avenue SW., Washington, DC 20585, between the hours of 9
a.m. and 4 p.m., Monday through Friday, except Federal holidays.
The Panel submitted for the Department's consideration four
formulas, including the Panel's own formula. In addition, one State
submitted a formula directly to the Department. The Panel also
submitted five alternatives for implementing the formula, including one
developed by the Panel. The Department evaluated each of these options,
as well as other input, in developing the formula change proposed
today.
The Panel's formula includes three elements: the number of low-
income households below 125 percent of the poverty level, giving equal
weight to owners and renters; climatic conditions across the country
using heating and cooling degree days; and residential energy
expenditures by low-income household per State. While the Department
agrees with the basic premise embodied in the Panel's formula, certain
modifications were made by DOE to the individual factors to provide a
more equitable distribution of funds among all States.
A second proposed formula submitted to the Panel by Montana would
continue to use the current formula. A third formula, submitted by
Illinois, suggests allocating half of the funding under the Panel's
formula and half under the current formula. A fourth formula, proposed
by Minnesota, is based on the Panel formula, but would change the way
the climate factor is calculated. Finally, Wisconsin proposed directly
to the Department a modification of the current formula regarding the
calculation of the cooling component for climatic conditions,
consideration of the age of the building stock, and consideration of
the percent of multifamily households.
Regarding Montana's recommendation, DOE disagrees with the
continued use of the existing formula because of the long-standing
perception of many States regarding its inequity. The formula submitted
by Illinois does not produce an acceptable distribution of funds among
States and would adversely affect the capacity in many State programs.
The formula submitted by Minnesota effectively approximates the current
squaring of heating and cooling degree days, resulting in a formula
that does not sufficiently address States' equity concerns. The
Department believes that the more important data necessary to implement
the formula submitted by Wisconsin is not readily available.
There was also a divergence of opinion among the States as to the
implementation strategy that DOE should use for any formula. The Panel
proposed a five year phase-in of its formula with all funds allocated
pursuant to the Panel's formula after the five-year phase-in period. An
alternative proposed by North Carolina and Oklahoma would immediately
implement the Panel's formula in its entirety and without regard to
impact on the size of existing State programs. Three other submissions
all included various mixes of current and new formulas designed to
avoid significant reductions below current levels for existing State
programs.
The Department accepts the need to buffer States from serious
losses in program capacity, while at the same time seeking to gain the
benefits of a new formula. Consistent with these two objectives, the
formula implementation proposed today establishes a fixed base amount
of funds for each State that is derived from the amount received from
the fiscal year 1993, while remaining funds would be distributed
pursuant to the proposed formula. Fiscal year 1993 was the most recent
available data when Congress passed the fiscal year 1995 appropriation.

II. Amendments to the Weatherization Assistance Program Formula

This part of the Supplementary Information discusses those
provisions of the proposed amendments that are not self-explanatory.

Sec. 440.3 Definitions.

DOE proposes to amend this section to delete the references to the
current formula which will not be a part of the proposed formula. The
definitions proposed to be deleted are: ``number of owner-occupied
units in the State''; ``number of low-income, renter-occupied dwelling
units in the State''; ``percentage of total residential energy used for
space cooling''; and ``percentage of total residential energy used for
space heating''.
In proposing a new formula for the Program, DOE proposes to add
several new definitions to Sec. 440.3 which describe the new criteria
to be used.
DOE proposes to add a definition of ``base allocation,'' as set
forth in proposed Sec. 440.10(b)(1), which refers to the fixed base
amount each State receives. That amount is derived from
[[Page 4482]] each State's fiscal year 1993 allocation of funds.
DOE also proposes to add definitions of ``program allocation'' and
``total program allocations.'' The former represents the amount of
funds (base allocation plus formula allocation), to be distributed to
each State. The latter refers to the annual appropriation less funds
reserved for training and technical assistance.
In Sec. 440.12(b)(4) the term ``tentative allocation'' would be
deleted and ``program allocation'' would be substituted to provide
consistency with the proposed Sec. 440.10. It should be noted that the
original intent in using the term ``tentative allocation'' (discretion
to reallocated funds if they are not used on a timely basis) is
retained by DOE in substituting ``program allocation'' as it applies in
proposed Sec. 440.10(f) and (g). In proposed Sec. 440.14(b)(9)(vi) the
term ``tentatively'' would be deleted.
In section 440.14(b)(8)(i) the term ``tentative allocation'' has
been retained. This term in context refers to State allocation (rather
than DOE allocation) of funds among their subgrantees and the right of
the State to reduce or withdraw these funds for non-performance or
other deficiencies.

Sec. 440.10 Allocation of funds.

DOE is proposing to delete the current formula in Sec. 440.10 and
replace it with the formula set forth in proposed Sec. 440.10(b).
Paragraph (b)(1) of proposed Sec. 440.10 would provide for a program
allocation (PA) for each State consisting of two parts. The two parts
are: (1) a fixed amount of money (approximately equal to the State's FY
1993 allocation), which is referred to as a State's ``Base Allocation''
(BA) (See Table 1); and (2) an amount of money referred to as the
``Formula Allocation, which will be determined by application of the
proposed formula.
The program allocation is expressed mathematically as:

PA=BA+FA

Base Allocation

Table 1 presents the ``Base Allocation'' for each State.

Table 1.--``Base Allocation'' By State

------------------------------------------------------------------------
Alabama................................................... 1,636,000
Alaska.................................................... 1,425,000
Arkansas.................................................. 1,417,000
Arizona................................................... 760,000
California................................................ 4,404,000
Colorado.................................................. 4,574,000
Connecticut............................................... 1,887,000
Delaware.................................................. 409,000
District of Columbia...................................... 487,000
Florida................................................... 761,000
Georgia................................................... 1,844,000
Hawaii.................................................... 120,000
Idaho..................................................... 1,618,000
Illinois.................................................. 10,717,000
Indiana................................................... 5,156,000
Iowa...................................................... 4,032,000
Kansas.................................................... 1,925,000
Kentucky.................................................. 3,615,000
Louisiana................................................. 912,000
Maine..................................................... 2,493,000
Maryland.................................................. 1,963,000
Massachusetts............................................. 5,111,000
Michigan.................................................. 12,346,000
Minnesota................................................. 8,342,000
Mississippi............................................... 1,094,000
Missouri.................................................. 4,615,000
Montana................................................... 2,123,000
Nebraska.................................................. 2,013,000
Nevada.................................................... 586,000
New Hampshire............................................. 1,193,000
New Jersey................................................ 3,775,000
New Mexico................................................ 1,519,000
New York.................................................. 15,302,000
North Carolina............................................ 2,853,000
North Dakota.............................................. 2,105,000
Ohio...................................................... 10,665,000
Oklahoma.................................................. 1,846,000
Oregon.................................................... 2,320,000
Pennsylvania.............................................. 11,457,000
Rhode Island.............................................. 878,000
South Carolina............................................ 1,130,000
South Dakota.............................................. 1,561,000
Tennessee................................................. 3,218,000
Texas..................................................... 2,999,000
Utah...................................................... 1,692,000
Vermont................................................... 1,014,000
Virginia.................................................. 2,970,000
Washington................................................ 3,775,000
West Virginia............................................. 2,573,000
Wisconsin................................................. 7,061,000
Wyoming................................................... 967,000

-------------
Total..................................................... 171,258,000
------------------------------------------------------------------------

Formula Allocation

The amount of total Formula Allocations (the amount which will be
distributed among States based on the proposed formula) is calculated
by subtracting total Base Allocations ($171,258,000) from the total
Program Allocations. For example, if the amount of total Program
Allocations is $200,000,000, the amount of total Formula Allocations
would be $28,742,000 ($200,000,000-$171,258,000).
The Formula Allocation for each State is calculated by multiplying
the total amount of Formula Allocations by each State's Formula Share,
which is determined by the proposed formula.

Formula Factors

The proposed formula is composed of three factors for each State.
The first factor (F1) is the population factor. The next factor (F2)
represents the climatic conditions in each State, derived from heating
and cooling degree days. The last factor (F3) is residential energy
expenditures by low-income households in each State.

F1 Population Factor

The first factor in the proposed formula is the population factor.
This is represented by the share of the Nation's low-income households
in each State expressed as a percentage. Unlike the current formula,
the proposed formula will give equal weight to owners and renters. The
number of low-income households was obtained from a special run by the
Bureau of the Census for the Department of Energy, referenced as
``Households at 125% or less, Special Tab #54, Census Bureau''.

F1--State Population Factor
[GRAPHIC][TIFF OMITTED]TP23JA95.000

Table 2 presents the number of low-income households and the
population factor (F1) for each State.

Table Explanation

Column A--State Name.
Column B--Number of Low-Income Households per State.
Column C--State Population Factor (F1)--is calculated by dividing the
number of low-income households in a given State (Column B) by the
national total (16,231,250--shown at the bottom of the table) and
multiplied by 100.

[[Page 4483]]
Table 2.--Low-Income Households by State
----------------------------------------------------------------------------------------------------------------
Percent of
Number of low- national low-
State A income households income households
B (F1) C
----------------------------------------------------------------------------------------------------------------
Alabama................................................................... 386,525 2.3814
Alaska.................................................................... 21,729 0.1339
Arizona................................................................... 261,161 1.6090
Arkansas.................................................................. 240,155 1.4796
California................................................................ 1,525,061 9.3958
Colorado.................................................................. 206,052 1.2695
Connecticut............................................................... 120,483 0.7423
Delaware.................................................................. 31,028 0.1912
District of Columbia...................................................... 46,438 0.2861
Florida................................................................... 879,786 5.4203
Georgia................................................................... 471,834 2.9069
Hawaii.................................................................... 40,856 0.2517
Idaho..................................................................... 69,204 0.4264
Illinois.................................................................. 657,508 4.0509
Indiana................................................................... 327,581 2.0182
Iowa...................................................................... 184,021 1.1337
Kansas.................................................................... 163,891 1.0097
Kentucky.................................................................. 357,665 2.2036
Louisiana................................................................. 442,320 2.7251
Maine..................................................................... 80,276 0.4946
Maryland.................................................................. 196,788 1.2124
Massachusetts............................................................. 313,297 1.9302
Michigan.................................................................. 598,427 3.6869
Minnesota................................................................. 247,149 1.5227
Mississippi............................................................... 294,611 1.8151
Missouri.................................................................. 377,864 2.3280
Montana................................................................... 68,456 0.4218
Nebraska.................................................................. 104,707 0.6451
Nevada.................................................................... 64,869 0.3997
New Hampshire............................................................. 43,406 0.2674
New Jersey................................................................ 303,328 1.8688
New Mexico................................................................ 135,642 0.8357
New York.................................................................. 1,138,016 7.0113
North Carolina............................................................ 489,172 3.0138
North Dakota.............................................................. 51,103 0.3148
Ohio...................................................................... 705,646 4.3475
Oklahoma.................................................................. 284,883 1.7552
Oregon.................................................................... 191,508 1.1799
Pennsylvania.............................................................. 725,124 4.4675
Rhode Island.............................................................. 57,155 0.3521
South Carolina............................................................ 274,749 1.6927
South Dakota.............................................................. 56,917 0.3507
Tennessee................................................................. 418,703 2.5796
Texas..................................................................... 1,345,471 8.2894
Utah...................................................................... 88,775 0.5469
Vermont................................................................... 32,563 0.2006
Virginia.................................................................. 333,824 2.0567
Washington................................................................ 280,943 1.7309
West Virginia............................................................. 184,759 1.1383
Wisconsin................................................................. 279,527 1.7222
Wyoming................................................................... 30,294 0.1866
-------------------------------------
National total...................................................... 16,231,250 100
----------------------------------------------------------------------------------------------------------------

F2 Climate Factor

The second factor, climatic conditions, is obtained by adding the
heating and cooling degree days for each State, treating the energy
needed for heating and cooling proportionately.
The proposed formula uses (as does the current formula) the thirty
year averages of heating degree days (HDD) and cooling degree days
(CDD) as reported by the National Oceanic and Atmospheric
Administration (NOAA) to account for climatic conditions. Heating and
cooling consumption data were obtained from Table 28 of the Energy
Information Administration's (EIA) Household Energy Consumption and
Expenditures 1990. [[Page 4484]]
State Climate Factor
F2=HDD State Ratio + CDD State Ratio
HDD and CDD Ratios
State HDD Ratio
[GRAPHIC][TIFF OMITTED]TP23JA95.001

State CDD Ratio
[GRAPHIC][TIFF OMITTED]TP23JA95.002

where
[GRAPHIC][TIFF OMITTED]TP23JA95.003

National heating consumption equals 4.79 quadrillion Btu and air
conditioning (cooling) consumption equals .49 quadrillion Btu. Cooling
consumption divided by heating consumption rounds to 0.1. The ratio of
cooling to heating energy consumption reflects the fact that nationally
households use, on average, one tenth as much energy for cooling as for
heating. This ratio is reflected in the existing allocation formula.
National data are used because of the absence of complete State-
specific data.
In order to account for the variation in weather in a simple but
equitable manner, DOE compares each State's climate to the national
median. Each State's HDD and CDD is divided by the series' median
value. Using the median as the denominator ensures that half of the
States would fall above 1 and half would fall below 1. A State HDD
ratio (HDD divided by the median) greater than 1 indicates a State with
relatively cold winters, while a value greater than 1 for a State's CDD
ratio indicates a State with a relatively warmer summer. To find the
median of any odd series of numbers, the series is arranged in
ascending order and the value that occurs in the middle of the series
is chosen. The series relevant to F2 is odd because it consists of the
50 States and the District of Columbia. The median value occurs at the
26th observation (State). The median was chosen, rather than the mean,
because of its characteristic of being ``insensitive'' to extreme
values. States like Alaska and Florida tend to skew or pull the average
towards one extreme or another. In calculating the heating and cooling
ratios the current formula multiplies each State's HDD's by the
national space heating consumption and its CDD's by the national air
conditioning (cooling) consumption. The proposed formula simplifies
this calculation by combining these two numbers into one by dividing
cooling consumption by heating consumption (as reported in Table 28 of
the Household Energy Consumption and Expenditures 1990). Each State's
CDD ratio is multiplied by this one number (which rounds to 0.1). The
final climate factor for each State is then the sum of the HDD and CDD
ratios.
Table 3 presents the data used to calculate the climate factor (F2)
for each State.

Table Explanation

Column A--State Name.
Column B--State heating degree days (HDD) as reported by the NOAA.
Column C--State HDD Ratio, calculated by dividing each State's HDD
by the national median (5,429.9--as shown on the bottom of Table 2).
Column D--State cooling degree days (CDD) as reported by the NOAA.
Column E--State CDD divided by the national median (867.3--as shown
on the bottom of Table 2).
Column F--State CDD Ratio, calculated by multiplying Column E by
the ratio of cooling consumption to heating consumption, which is 0.1.
Column G--State Climate Factor (F2), calculated by summing each
State's HDD and CDD ratios.

Table 3.--Weather Data by State
----------------------------------------------------------------------------------------------------------------
Heating Cooling CDD divided Climate
State A Degree Days HDD ratio C degree days by the CDD ratio F factor (F2)
B D median E G
----------------------------------------------------------------------------------------------------------------
Alabama........................... 2,853.8 0.526 1,855.9 2.140 0.214 0.740
Alaska............................ 11,475.2 2.113 1.9 0.002 0.000 2.114
Arizona........................... 2,232.6 0.411 2,695.4 3.108 0.311 0.722
Arkansas.......................... 3,365.0 0.620 1,801.2 2.077 0.208 0.827
California........................ 2,663.3 0.490 824.4 0.951 0.095 0.586
Colorado.......................... 7,264.0 1.338 280.4 0.323 0.032 1.370
Connecticut....................... 6,122.4 1.128 526.6 0.607 0.061 1.188
Delaware.......................... 4,741.7 0.873 1,034.4 1.193 0.119 0.993
District of Columbia.............. 4,785.7 0.881 1,008.5 1.163 0.116 0.998
Florida........................... 715.6 0.132 3,365.1 3.880 0.388 0.520
Georgia........................... 2,842.0 0.523 1,705.7 1.967 0.197 0.720
[[Page 4485]]

Hawaii............................ 0.0 0.000 3,528.0 4.068 0.407 0.407
Idaho............................. 6,960.0 1.282 434.9 0.501 0.050 1.332
Illinois.......................... 6,254.3 1.152 894.3 1.031 0.103 1.255
Indiana........................... 5,906.8 1.088 891.7 1.028 0.103 1.191
Iowa.............................. 6,894.6 1.270 867.3 1.000 0.100 1.370
Kansas............................ 4,990.9 0.919 1,490.4 1.718 0.172 1.091
Kentucky.......................... 4,566.8 0.841 1,174.4 1.354 0.135 0.976
Louisiana......................... 1,826.1 0.336 2,550.0 2.940 0.294 0.630
Maine............................. 8,069.2 1.486 215.6 0.249 0.025 1.511
Maryland.......................... 4,785.7 0.881 1,008.5 1.163 0.116 0.998
Massachusetts..................... 6,404.5 1.179 434.6 0.501 0.050 1.230
Michigan.......................... 6,837.5 1.259 565.7 0.652 0.065 1.324
Minnesota......................... 8,687.0 1.600 487.3 0.562 0.056 1.656
Mississippi....................... 2,549.5 0.470 2,094.4 2.415 0.241 0.711
Missouri.......................... 5,127.4 0.944 1,282.2 1.478 0.148 1.092
Montana........................... 8,144.8 1.500 259.4 0.299 0.030 1.530
Nebraska.......................... 6,412.3 1.181 1,052.0 1.213 0.121 1.302
Nevada............................ 4,260.1 0.785 1,572.0 1.813 0.181 0.966
New Hampshire..................... 7,594.6 1.399 289.4 0.334 0.033 1.432
New Jersey........................ 5,429.9 1.000 774.6 0.893 0.089 1.089
New Mexico........................ 4,714.2 0.868 890.2 1.026 0.103 0.971
New York.......................... 5,960.8 1.098 641.4 0.740 0.074 1.172
North Carolina.................... 3,492.2 0.643 1,366.3 1.575 0.158 0.801
North Dakota...................... 9,382.8 1.728 471.7 0.544 0.054 1.782
Ohio.............................. 5,932.2 1.093 740.2 0.853 0.085 1.178
Oklahoma.......................... 3,593.3 0.662 1,941.6 2.239 0.224 0.886
Oregon............................ 5,228.6 0.963 207.0 0.239 0.024 0.987
Pennsylvania...................... 5,920.7 1.090 659.2 0.760 0.076 1.166
Rhode Island...................... 5,942.0 1.094 457.2 0.527 0.053 1.147
South Carolina.................... 2,768.2 0.510 1,787.0 2.060 0.206 0.716
South Dakota...................... 7,613.7 1.402 804.6 0.928 0.093 1.495
Tennessee......................... 4,005.8 0.738 1,337.5 1.542 0.154 0.892
Texas............................. 2,039.7 0.376 2,623.2 3.025 0.302 0.678
Utah.............................. 6,451.3 1.188 694.7 0.801 0.080 1.268
Vermont........................... 7,970.9 1.468 280.5 0.323 0.032 1.500
Virginia.......................... 4,402.4 0.811 1,052.4 1.213 0.121 0.932
Washington........................ 5,636.0 1.038 174.9 0.202 0.020 1.058
West Virginia..................... 5,271.5 0.971 766.5 0.884 0.088 1.059
Wisconsin......................... 7,679.2 1.414 502.5 0.579 0.058 1.472
Wyoming........................... 8,081.3 1.488 308.5 0.356 0.036 1.524
-----------------------------------------------------------------------------
Median........................ 5,429.9 ........... 867.3 ........... ........... ...........
----------------------------------------------------------------------------------------------------------------

F3 Residential Energy Expenditure Factor

The final factor, residential energy expenditures by low-income
households was determined to be the closest approximation, given
available data, of the financial burden to low-income households of
energy use. Based on the same reasoning as discussed for the climate
factor, the national median is used to calculate the State residential
energy expenditure factors.
State Residential Energy Expenditure Factor
[GRAPHIC][TIFF OMITTED]TP23JA95.004

Due to the lack of State specific data on residential energy
expenditures by low-income households, an estimate is calculated based
on the published data that is available. Specifically, available
residential energy expenditures data at the State level does not
distinguish between low-income households and the overall population.
Information on residential energy expenditures by low-income households
is available at the Census division level. The nine Census divisions
including the States contained therein are shown below. Comparing each
State's average household residential energy expenditures with the
average household residential energy expenditures at its Census
division level provides a means of allocating the Census division low-
income residential energy expenditures to each State within that
division.

------------------------------------------------------------------------
Census division State abbreviations
------------------------------------------------------------------------
Northeast (NE)..................... CT, MA, ME, NH, RI, VT
Mid-Atlantic (MA).................. NJ, NY, PA
South Atlantic (SA)................ DC, DE, MD, VA, WV
East North Central (ENC)........... IL, IN, MI, OH, WI
[[Page 4486]]

East South Central (ESC)........... AL, KY, MS, TN
West North Central (WNC)........... IA, KS, MN, MO, ND, NE, SD
West South Central (WSC)........... AR, LA, OK, TX
Mountain (MN)...................... AZ, CO, ID, MT, NM, NV, UT, WY
Pacific (PAC)...................... AK, CA, HI, OR, WA
------------------------------------------------------------------------

Table 4, set forth below, presents the data used to calculate the
residential energy expenditures factor for each State.

Table Explanation

Column A--State Abbreviation.
Column B--Census Division Abbreviation.
Column C--Residential Energy Expenditures by State (State EE) is
published in the EIA's State Energy Price and Expenditure Report 1990
(SEPER). Data is expressed in millions of dollars.
Column D--Residential Energy Expenditures by Census division (Div
EE) is the sum of the State data in Column C for each Census division.
Data is expressed in millions of dollars.
Column E--Number of Households per State (State #HH) was obtained
from the Bureau of the Census' U.S. Summary of General Housing
Characteristics, 1990 Census.
Column F--Number of Households per Census division (Division #HH)
is the sum of the State data in Column E for each Census division.
Column G--Residential Energy Expenditures per Low-Income Household
for each State's Census division (Division EE/#LIHH) is published in
the EIA's Household Energy Consumption and Expenditures 1990--
Supplement: Regional.
Column H--The ratio of each State's Residential Energy Expenditures
per Household (State EE/#HH) over the Residential Energy Expenditures
per Household for each State's Census division (Division EE/#HH) is
calculated as follows:
Column I--Residential Energy Expenditures per Low-Income Household
by State (State EE/#LIHH) is calculated from columns C through G as
follows:
[GRAPHIC][TIFF OMITTED]TP23JA95.005

Column J--``Residential Energy Expenditure Factor (F3)'' is
calculated by dividing the estimate of residential energy expenditures
per low-income households for each State by the national median
($991.6).

Table 4.--Residential Energy Expenditure Factor Details
--------------------------------------------------------------------------------------------------------------------------------------------------------
Ratio of
state
Residential Residential energy Residential
Residential energy Households energy expenditure energy
energy expenditures Households (for expenditures per expenditures Expenditure
State abbrev. A Census expenditures (for census (by State) census per low- household per low- factor
division B (by State) division) E division) income to division income (F3)J
(million $) (million $) F household energy household
C D (for expenditure (by State) I
Division) G per
household H
--------------------------------------------------------------------------------------------------------------------------------------------------------
CT................................ NE $1,981.6 $7,351.8 1,230,479 4,942,714 $1,150.0 1.083 $1,245.1 1.256
MA................................ NE $3,243.9 $7,351.8 2,247,110 4,942,714 $1,150.0 0.971 $1,116.1 1.126
ME................................ NE $666.0 $7,351.8 465,312 4,942,714 $1,150.0 0.962 $1,106.6 1.116
NH................................ NE $621.3 $7,351.8 411,186 4,942,714 $1,150.0 1.016 $1,168.2 1.178
RI................................ NE $502.8 $7,351.8 377,977 4,942,714 $1,150.0 0.894 $1,028.5 1.037
VT................................ NE $336.2 $7,351.8 210,650 4,942,714 $1,150.0 1.073 $1,234.0 1.244
NJ................................ MA $3,881.6 $18,528.9 2,794,711 13,929,999 $1,157.0 1.044 $1,208.1 1.218
NY................................ MA $8,526.0 $18,528.9 6,639,322 13,929,999 $1,157.0 0.965 $1,117.0 1.127
PA................................ MA $6,121.3 $18,528.9 4,495,966 13,929,999 $1,157.0 1.024 $1,184.3 1.194
DC................................ SA $208.1 $19,120.1 249,634 16,503,063 $988.0 0.720 $710.9 0.717
DE................................ SA $346.7 $19,120.1 247,497 16,503,063 $988.0 1.209 $1,194.6 1.205
FL................................ SA $5,888.6 $19,120.1 5,134,869 16,503,063 $988.0 0.990 $977.9 0.986
GA................................ SA $2,990.0 $19,120.1 2,366,615 16,503,063 $988.0 1.090 $1,077.4 1.087
MD................................ SA $2,090.8 $19,120.1 1,748,991 16,503,063 $988.0 1.032 $1,019.4 1.028
NC................................ SA $3,226.4 $19,120.1 2,517,026 16,503,063 $988.0 1.106 $1,093.1 1.102
SC................................ SA $1,573.1 $19,120.1 1,258,044 16,503,063 $988.0 1.079 $1,066.3 1.075
VA................................ SA $2,796.4 $19,120.1 2,291,830 16,503,063 $988.0 1.053 $1,040.5 1.049
WV................................ SA $714.8 $19,120.1 688,557 16,503,063 $988.0 0.896 $885.3 0.893
IL................................ ENC $5,650.6 $19,424.2 4,202,240 15,596,590 $1,074.0 1.080 $1,159.6 1.169
IN................................ ENC $2,503.3 $19,424.2 2,065,355 15,596,590 $1,074.0 0.973 $1,045.2 1.054
MI................................ ENC $4,097.2 $19,424.2 3,419,331 15,596,590 $1,074.0 0.962 $1,033.3 1.042
OH................................ ENC $5,085.2 $19,424.2 4,087,546 15,596,590 $1,074.0 0.999 $1,072.8 1.082
WI................................ ENC $2,087.9 $19,424.2 1,822,118 15,596,590 $1,074.0 0.920 $988.2 0.997
AL................................ ESC $1,777.1 $6,157.9 1,506,790 5,651,671 $772.0 1.082 $835.6 0.843
KY................................ ESC $1,354.2 $6,157.9 1,379,782 5,651,671 $772.0 0.901 $695.4 0.701
MS................................ ESC $1,053.3 $6,157.9 911,374 5,651,671 $772.0 1.061 $818.9 0.826
TN................................ ESC $1,973.3 $6,157.9 1,853,725 5,651,671 $772.0 0.977 $754.2 0.761
IA................................ WNC $1,281.3 $7,742.7 1,064,325 6,720,385 $968.0 1.045 $1,011.5 1.020
KS................................ WNC $1,099.5 $7,742.7 944,726 6,720,385 $968.0 1.010 $977.8 0.986
MN................................ WNC $1,745.8 $7,742.7 1,647,853 6,720,385 $968.0 0.920 $890.1 0.898
MO................................ WNC $2,363.1 $7,742.7 1,961,206 6,720,385 $968.0 1.046 $1,012.4 1.021
ND................................ WNC $281.8 $7,742.7 240,878 6,720,385 $968.0 1.015 $982.9 0.991
[[Page 4487]]

NE................................ WNC $648.4 $7,742.7 602,363 6,720,385 $968.0 0.934 $904.4 0.912
SD................................ WNC $322.8 $7,742.7 259,034 6,720,385 $968.0 1.082 $1,047.0 1.056
AR................................ WSC $1,125.1 $11,951.9 891,179 9,667,520 $971.0 1.021 $991.6 1.000
LA................................ WSC $1,945.3 $11,951.9 1,499,269 9,667,520 $971.0 1.050 $1,019.1 1.028
OK................................ WSC $1,477.6 $11,951.9 1,206,135 9,667,520 $971.0 0.991 $962.2 0.970
TX................................ WSC $7,403.9 $11,951.9 6,070,937 9,667,520 $971.0 0.986 $957.9 0.966
AZ................................ MT $1,623.4 $5,169.9 1,368,843 5,033,336 $888.0 1.155 $1,025.3 1.034
CO................................ MT $1,153.3 $5,169.9 1,282,489 5,033,336 $888.0 0.876 $777.5 0.784
ID................................ MT $354.7 $5,169.9 360,723 5,033,336 $888.0 0.957 $850.1 0.857
MT................................ MT $301.1 $5,169.9 306,163 5,033,336 $888.0 0.957 $850.2 0.857
NM................................ MT $536.6 $5,169.9 542,709 5,033,336 $888.0 0.963 $854.8 0.862
NV................................ MT $462.0 $5,169.9 466,297 5,033,336 $888.0 0.965 $856.6 0.864
UT................................ MT $559.1 $5,169.9 537,273 5,033,336 $888.0 1.013 $899.7 0.907
WY................................ MT $179.7 $5,169.9 168,839 5,033,336 $888.0 1.036 $920.2 0.928
AK................................ PAC $342.4 $13,097.3 188,915 13,902,132 $676.0 1.924 $1,300.5 1.312
CA................................ PAC $9,892.5 $13,097.3 10,381,206 13,902,132 $676.0 1.011 $683.8 0.690
HI................................ PAC $255.6 $13,097.3 356,267 13,902,132 $676.0 0.762 $514.8 0.519
OR................................ PAC $966.2 $13,097.3 1,103,313 13,902,132 $676.0 0.930 $628.4 0.634
WA................................ PAC $1,640.6 $13,097.3 1,872,431 13,902,132 $676.0 0.930 $628.7 0.634
---------------------------------------------------------------------------------------------------------
National Median............. .......... ............ ............ .......... .......... ............ ........... $991.6 ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------

The underlying assumption in the calculation of State residential
energy expenditures per low-income household is that the relationship
between a State's residential energy expenditures per household and its
respective divisional residential energy expenditures per household is
the same for its low-income population as it is for its general
population. If State Y's average household spends twice the money on
its residential energy compared to the average household in its Census
division, then it is assumed that the low-income households in State Y
will also spend twice the money on residential energy than the average
low-income household in its division. For example, assume State Y's
residential energy expenditures per general household is $2,000 and the
average residential energy expenditures per general household in its
division is $1,000. If the average residential energy expenditures per
low-income households for the division is $800, then the residential
energy expenditures per low-income household for State Y would be
$1,600.

Formula Share

The above factors are combined into a single formula by multiplying
the percent of low-income households (F1) in each State by the climate
factor (F2) and the residential energy expenditures factor (F3) for
that State. For explanation purposes, the result of applying the
formula to a given State will now be called the State's weight (SW), as
follows:

SW=F1 x F2 x F3.

These State-by-State calculations do not necessarily sum to one. As
a result, each State's weight must be divided by the national total of
each State's weight to obtain the State's Formula Share, as follows:

State's Formula Share=State's Weight/National Total.

Table 5 shows the three factors (from the previous tables) for each
State along with each State's weight and Formula Share.

Table Explanation

Column A--State Name.
Column B--State's Population Factor (F1).
Column C--State's Climatic Factor (F2).
Column D--State's Residential Energy Expenditures Factor (F3).
Column E--State's Weight--F1 x F2 x F3.
Column F--State's Formula Share--State's weight (Column E) divided
by the national total (the sum of Column E).

Table 5.--Formula Factors, Weight and Formula Share by State
------------------------------------------------------------------------
Formula
State A F1 B F2 C F3 D Weight E share F
------------------------------------------------------------------------
Alabama............... 2.381 0.740 0.843 1.484 0.0155
Alaska................ 0.134 2.114 1.312 0.371 0.0039
Arizona............... 1.609 0.722 1.034 1.201 0.0125
Arkansas.............. 1.480 0.827 1.000 1.224 0.0127
California............ 9.396 0.586 0.690 3.794 0.0395
Colorado.............. 1.269 1.370 0.784 1.364 0.0142
[[Page 4488]]

Connecticut........... 0.742 1.188 1.256 1.108 0.0115
Delaware.............. 0.191 0.993 1.205 0.229 0.0024
District of Columbia.. 0.286 0.998 0.717 0.205 0.0021
Florida............... 5.420 0.520 0.986 2.779 0.0289
Georgia............... 2.907 0.720 1.087 2.274 0.0237
Hawaii................ 0.252 0.407 0.519 0.053 0.0006
Idaho................. 0.426 1.332 0.857 0.487 0.0051
Illinois.............. 4.051 1.255 1.169 5.945 0.0619
Indiana............... 2.018 1.191 1.054 2.533 0.0264
Iowa.................. 1.134 1.370 1.020 1.584 0.0165
Kansas................ 1.010 1.091 0.986 1.086 0.0113
Kentucky.............. 2.204 0.976 0.701 1.509 0.0157
Louisiana............. 2.725 0.630 1.028 1.765 0.0184
Maine................. 0.495 1.511 1.116 0.834 0.0087
Maryland.............. 1.212 0.998 1.028 1.244 0.0130
Massachusetts......... 1.930 1.230 1.126 2.672 0.0278
Michigan.............. 3.687 1.324 1.042 5.089 0.0530
Minnesota............. 1.523 1.656 0.898 2.264 0.0236
Mississippi........... 1.815 0.711 0.826 1.066 0.0111
Missouri.............. 2.328 1.092 1.021 2.596 0.0270
Montana............... 0.422 1.530 0.857 0.553 0.0058
Nebraska.............. 0.645 1.302 0.912 0.766 0.0080
Nevada................ 0.400 0.966 0.864 0.333 0.0035
New Hampshire......... 0.267 1.432 1.178 0.451 0.0047
New Jersey............ 1.869 1.089 1.218 2.480 0.0258
New Mexico............ 0.836 0.971 0.862 0.699 0.0073
New York.............. 7.011 1.172 1.127 9.255 0.0964
North Carolina........ 3.014 0.801 1.102 2.660 0.0277
North Dakota.......... 0.315 1.782 0.991 0.556 0.0058
Ohio.................. 4.347 1.178 1.082 5.540 0.0577
Oklahoma.............. 1.755 0.886 0.970 1.508 0.0157
Oregon................ 1.180 0.987 0.634 0.738 0.0077
Pennsylvania.......... 4.467 1.166 1.194 6.224 0.0648
Rhode Island.......... 0.352 1.147 1.037 0.419 0.0044
South Carolina........ 1.693 0.716 1.075 1.303 0.0136
South Dakota.......... 0.351 1.495 1.056 0.554 0.0058
Tennessee............. 2.580 0.892 0.761 1.750 0.0182
Texas................. 8.289 0.678 0.966 5.430 0.0565
Utah.................. 0.547 1.268 0.907 0.629 0.0066
Vermont............... 0.201 1.500 1.244 0.375 0.0039
Virginia.............. 2.057 0.932 1.049 2.012 0.0210
Washington............ 1.731 1.058 0.634 1.161 0.0121
West Virginia......... 1.138 1.059 0.893 1.076 0.0112
Wisconsin............. 1.722 1.472 0.997 2.527 0.0263
Wyoming............... 0.187 1.524 0.928 0.264 0.0027
-------------------------------------------------
National total.. ........ ........ ........ 96.022 1.0000
------------------------------------------------------------------------

Each State's share of the ``Formula Allocation'' is then calculated
by multiplying the total ``Formula Allocation'' by each State's
``Formula Share''.
Proposed Sec. 440.10(b) maintains the current capacity of States to
deliver weatherization services and sustains the strong network
developed for this purpose by minimizing the impact of the proposed
formula change on colder-weather States. Those States would otherwise
face layoffs of weatherization crews that would severely restrict their
ability to provide reasonable weatherization services to their low-
income residents.
Any increase in funds at or above the fiscal year 1995 total
program allocations level will be allocated according to the proposed
formula. Should total program allocations fall below the fiscal year
1995 level each State's program allocation would be reduced from its
fiscal year 1995 level by the same percentage. For example, if total
program allocations for a given year were to fall 10 percent below the
fiscal year 1995 level, this would result in an across the board
reduction of 10 percent for each State from its fiscal year 1995
program allocation. The rationale for this provision is to distribute
the effect of lower appropriations equitably.
DOE proposes to add Sec. 440.10(d) to clarify the sources of data
used in the proposed formula. All sources of data are publicly
available.
Section 440.10(e) is proposed to alert States of possible impacts
on their weatherization programs which may occur due to changes in
data. In any given program year where changes occur, DOE is proposing
to delay reallocations based on new data until the following year. This
will allow States to plan for anticipated shifts in funds and develop
alternative strategies for minimizing the impact of such a change.
[[Page 4489]]

Opportunity for Public Comment

A. Written Comment Procedures

Interested persons, organizations and State governments are invited
to participate in this rulemaking by submitting data, views, or
arguments with respect to the matters set forth in this notice to the
address indicated at the beginning of this notice.
Comments (6 copies) should be identified on the envelope and on the
documents themselves with the designation: ``WAP Rulemaking, EE-RM-95-
401, and must be received by the date specified at the beginning of
this notice. Six copies should be submitted. Additionally, the
Department would appreciate an electronic copy of the comments to the
extent possible. The Department is currently using Wordperfect 5.1. All
comments received by the dates specified at the beginning of this
notice and other information will be considered by DOE in the final
rule. In the event any person wishing to submit a written comment
cannot provide six copies, alternative arrangements can be made in
advance with the Hearings and Dockets Office.
All comments received will be available for public inspection in
the DOE Freedom of Information Office Reading Room at the address
indicated at the beginning of this notice.
Pursuant to the provisions of 10 CFR 1004.11, 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 its own determination
with regard to the confidential status of the information or data and
treat it accordingly to its determination.

B. Public Hearing Procedures

DOE will hold two public hearings on this proposed rule. The
hearing will be held on the date and at the locations indicated at the
beginning of this notice. Any person who has an interest in the
proposed regulation or who is a representative of a group or class of
persons which has an interest in it may request an opportunity to make
an oral presentation. A request to speak at a hearing should be
addressed to the address or phone number indicated at the beginning of
this notice.
The person making the request should briefly describe his or her
interest in the proceedings and, if appropriate, state why that person
is a proper representative of a group. The person should also provide a
phone number where he or she may be reached during the day. Persons
selected to be heard at a public hearing will be notified as to the
approximate time they will be speaking. They should bring seven copies
of their statement to the hearing. In the event any person wishing to
testify cannot meet this requirement, alternative arrangements can be
made in advance by so indicating in the letter or phone call requesting
an opportunity to make an oral presentation.
DOE reserves the right to select persons to be heard at the
hearings, to schedule their presentations, and to establish procedures
governing the conduct of the hearing. The length of each presentation
will be limited to twenty minutes, or based on the number of persons
requesting to speak.
A DOE official will preside at the hearing. This will not be a
judicial or evidentiary-type hearing but will be conducted in
accordance with 5 U.S.C. 553 and Sec. 336 of the DOE Organization Act,
42 U.S.C. 7191. At the conclusion of all initial oral statements, if
time permits, each person may be given the opportunity to make a
rebuttal or clarifying statement. These statements will be given in the
order in which the initial statements were made and will be limited to
five minutes each.
Any participant who wishes to ask a question of a speaker at the
hearing may submit the question in writing to the registration desk.
The presiding officer will determine whether the question is relevant
and material and whether time limitations permit it to be presented for
an answer.
Any further procedural rules needed for the proper conduct of the
hearing will be announced by the presiding officer.
A transcript of the hearing will be made, and the entire record of
the hearing, including the transcript, will be retained by DOE and made
available for inspection at the DOE Freedom of Information Office
Reading Room at the address indicated at the beginning of this notice.
Any person may purchase a copy of the transcript from the hearing
reporter.
If DOE must cancel a hearing, DOE will make every effort to publish
an advance notice of such cancellation in the Federal Register. Notice
of cancellation will also be given to all persons scheduled to speak at
the hearing. Hearing dates may be canceled in the event no public
testimony has been scheduled in advance.

IV. Review Under Executive Order 12866

Today's regulatory action has been determined not to be a
significant regulatory action under Executive Order 12866. Accordingly,
today's action was not subject to review under the Executive Order by
the Office of Management and Budget.

V. Review Under Executive Order 12778

Section 2 of E.O. 12778 instructs each agency to adhere to certain
requirements in promulgating new regulations and reviewing existing
regulations. These requirements, set forth in Sections 2 (a) and
(b)(2), include eliminating drafting errors and needless ambiguity,
drafting the regulation to minimize litigation, providing clear and
certain legal standards for affected conduct, and promoting
simplification and burden reduction. Agencies are also instructed to
make every reasonable effort to ensure that the regulation: specifies
clearly any preemptive effect, any effect on existing Federal law or
regulation, and any retroactive effect; describes any administrative
proceedings to be available to judicial review and any provisions for
the exhaustion of such administrative proceedings; and defines key
terms. DOE certifies that today's proposed regulation meets the
requirements of Secs. 2 (a) and (b) of E.O. 12778.

VI. Review Under Executive Order 12612

Executive Order 12612 requires that regulations 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 policymakers in
promulgating or implementing the regulation.
Today's regulatory action 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.

VII. Review Under the Regulatory Flexibility Act

The proposed regulations were reviewed under the Regulatory
Flexibility Act, Pub. L. 96-354, which requires preparation of a
regulatory flexibility analysis for any proposed regulation that will
have a significant economic impact on a substantial
[[Page 4490]] number of small entities, i.e., small businesses and
small government jurisdictions. DOE has concluded that the proposed
rule will affect the States and local agencies operating weatherization
programs, especially in the warmer-weather States which will receive
more funding. The incremental effect of the proposed changes relates to
the distribution of approximately $20 million. Thus this incremental
effect when spread among all of the States and the District of Columbia
will not have a significant impact on a substantial number of small
entities. Therefore, DOE certifies that there will not be a significant
economic impact on a substantial number of small entities and that
preparation of a regulatory flexibility analysis is not warranted.

VIII. Review Under the Paperwork Reduction Act

No new information collection or recordkeeping requirements are
imposed on the public by today's proposed rules. Accordingly, no OMB
clearance is required under the Paperwork Reduction Act, 44 U.S.C.
3501, et seq., or implementing regulations at 5 CFR Part 1320.

IX. Review Under National Environmental Policy Act

The rule proposes changes to the current formula used to distribute
funds among the States pursuant to the regulations for the
Weatherization Assistance Program for Low-Income Persons. Over the
years many warmer-weather States have maintained that the current
formula over allocates funds to colder-weather States. The purpose of
the proposed formula is to increase the overall equity among the
States. Since this proposed rule deals only with the manner in which
funds will be allocated among the States, the Department has therefore
determined that this proposed rule is covered under the Categorical
Exclusion found at paragraph A6 of Appendix A to Subpart D, 10 CFR Part
1021, which applies to the establishment of procedural rulemakings.
Accordingly, neither an environmental assessment nor an environmental
impact statement is required.

X. Other Federal Agencies

DOE provided draft copies of the proposed rule to the Department of
Health and Human Services Low-Income Home Energy Assistance Program and
the Department of Agriculture Farmers Home Administration. No comments
have been received. DOE also provided a draft copy to the Administrator
of the Environmental Protection Agency, pursuant to Sec. 7 of the
Federal Energy Administration Act, as amended, 15 U.S.C. 766. The
Administrator has not made any comment.

XI. The Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance number for the
Weatherization Assistance Program for Low-Income Persons is 81.042.

List of Subjects in 10 CFR Part 440

Administrative practice and procedure, aged, energy conservation,
grant programs-energy, grant programs-housing and community
development, handicapped, housing standards, Indians, reporting and
recordkeeping requirements, and weatherization.

Issued in Washington, D.C. on January 11, 1995.
Christine A. Ervin,
Assistant Secretary, Energy Efficiency and Renewable Energy.

For the reasons set forth in the preamble, DOE hereby proposes to
amend Chapter II of Title 10, Code of Federal Regulations, as set forth
below:

PART 440--WEATHERIZATION ASSISTANCE PROGRAM FOR LOW-INCOME PERSONS

1. The authority citation for part 440 is revised to read as
follows: 42 U.S.C. 6861-6871; 42 U.S.C. 7191.
2. In Sec. 440.3, remove the definitions for ``Number of Low-
Income, Owner-Occupied Dwelling Units in the State''; ``Number of Low-
Income Renter-Occupied Dwelling Units in the State''; ``Percentage of
Total Residential Energy Used for Space Cooling''; ``Percentage of
Total Residential Energy Used for Space Heating''; and add the
following definitions in alphabetical order to read as follows.

Sec. 440.3 Definitions.

* * * * *
Base Allocation means the fixed amount of funds each State will
receive as set forth in Sec. 440.10(b)(1).
* * * * *
Formula Allocation means the amount of funds received by each State
based on the formula as calculated in Sec. 440.10(b)(3).
Formula Share means the percentage of the total formula allocation
provided to each State as calculated in Sec. 440.10 (b)(3).
* * * * *
Program Allocation means the base allocation plus formula
allocation for each State.
* * * * *
Residential Energy Expenditures means the average annual cost of
purchased residential energy, including the cost of renewable energy
resources.
* * * * *
Total Program Allocations means the annual appropriation less funds
reserved for training and technical assistance.
* * * * *
3. Section 440.10 is revised to read as follows:

Sec. 440.10 Allocation of funds.

(a) DOE shall allocate financial assistance for each State from
sums appropriated for any fiscal year, only upon annual application.
(b) Based on total program allocations at or above the 1995 level,
DOE shall determine the program allocation for each State from
available funds as follows:
(1) Allocate to each State a ``Base Allocation'' as listed in Table
1.

Table 1

Vermont................................................... 1,014,000
Virginia.................................................. 2,970,000
Washington................................................ 3,775,000
West Virginia............................................. 2,573,000
Wisconsin................................................. 7,061,000
Wyoming................................................... 967,000
-------------
Total................................................. 171,258,000
------------------------------------------------------------------------

(2) Subtract 171,258,000 from total program allocations.
(3) Calculate each State's formula share as follows:
(i) Divide the number of ``Low Income'' households in each State by
the number of ``Low Income'' households in the United States and
multiply by 100.
(ii) Divide the number of ``Heating Degree Days'' for each State by
the median ``Heating Degree Days'' for all States.
(iii) Divide the number of ``Cooling Degree Days'' for each State
by the median ``Cooling Degree Days'' for all States, then multiply by
0.1.
(iv) Calculate the sum of the two numbers from paragraphs
(b)(3)(ii) and (iii) of this section.
(v) Divide the residential energy expenditures for each State by
the number of households in the State.
(vi) Divide the sum of the residential energy expenditures for the
States in each Census division by the sum of the households for the
States in that division.
(vii) Divide the quotient from paragraph (b)(3)(v) of this section
by the quotient from paragraph (b)(3)(vi) of this section.
(viii) Multiply the quotient from paragraph (b)(3)(vii) of this
section for each State by the residential energy expenditures per low-
income household for its respective Census division.
(ix) Divide the product from paragraph (b)(3)(viii) of this section
for each State by the median of the products of all States.
(x) Multiply the results for paragraphs (b)(3)(i), (iv) and (ix) of
this section for each State.
(xi) Divide the product in paragraph (b)(3)(x) of this section for
each State by the sum of the products in paragraph (b)(3)(x) of this
section for all States.
(4) Calculate each State's program allocation as follows:
(i) Multiply the remaining funds calculated in paragraph (b)(2) of
this section by the formula share calculated in paragraph (b)(3)(xi) of
this section,
(ii) Add the base allocation from paragraph (b)(1) of this section
to the product of paragraph (b)(4)(i) of this section.
(c) Should total program allocations for any fiscal year fall below
the total program allocations for fiscal year 1995, then each State's
program allocation shall be reduced from its fiscal year 1995 amount by
the same percentage as total program allocations for the fiscal year
fall below the total program allocations for fiscal year 1995.
(d) All data sources used in the development of the formula are
publicly available. The relevant data is available from the Bureau of
the Census, the Department of Energy's Energy Information
Administration and the National Oceanic and Atmospheric Administration.
(e) Should updates to the data used in the formula become available
in any fiscal year, these changes would be implemented in the formula
in the following program year.
(f) DOE may reduce the program allocation for a State by the amount
DOE determines cannot be reasonably expended by a grantee to weatherize
dwelling units during the budget period for which financial assistance
is to be awarded. In reaching this determination, DOE will consider the
amount of unexpended financial assistance currently available to a
grantee under this part and the number of dwelling units which remains
to be weatherized with the unexpended financial assistance.
(g) DOE may increase the program allocation of a State by the
amount DOE determines the grantee can expend to weatherize additional
dwelling units during the budget period for which financial assistance
is to be awarded.
(h) The Support Office Director shall notify each State of the
program allocation for which that State is eligible to apply.
4. Section 440.12 is amended by revising paragraph (b)(4) to read
as follows:

Sec. 440.12 State application.

* * * * *
(b) * * *
(4) The total number of dwelling units proposed to be weatherized
with grant funds during the budget period for which assistance is to be
awarded--
(i) With financial assistance previously obligated under this part,
and
(ii) With the program allocation to the State;
* * * * *
5. Section 440.14 is amended by revising paragraph (b)(9)(vi) to
read as follows:

Sec. 440.14 State plans.

* * * * *
(b) * * *
(9) * * *
(vi) The amount of weatherization grant funds allocated to the
State under this part;
* * * * *
[FR Doc. 95-1432 Filed 1-20-95; 8:45 am]
BILLING CODE 6450-01-P

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Document Information

Published:: 01/23/1995
Department:: Energy Efficiency and Renewable Energy Office
Entry Type:: Proposed Rule
Action:: Notice of proposed rulemaking and public hearing.
Document Number:: 95-1432
Dates:: Written comments (6 copies and, if possible, a computer disk--WP 5.1) must be received by the Department on or before March 9, 1995. Oral views, data and arguments may be presented at public hearings to be held in San Francisco, CA beginning at 5 p.m. on January 23, 1995 and in Washington, DC beginning at 9:30 a.m. on February 14, 1995.
Pages:: 4480-4491 (12 pages)
Docket Numbers:: Docket No. EE-RM-95-401
PDF File:: 95-1432.pdf
CFR: (4): 10 CFR 440.3; 10 CFR 440.10; 10 CFR 440.12; 10 CFR 440.14