Weatherization Assistance Program for Low-Income Persons

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 440

[Docket No. EE-RM-94-401]

Weatherization Assistance Program for Low-Income Persons

AGENCY: Department of Energy.

ACTION: Interim final rule.

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SUMMARY: The Department of Energy (DOE) is today publishing an interim

final rule amending the regulations for the Weatherization Assistance

Program for Low-Income Persons to change the formula used to distribute

funds among the States under the Program. DOE issued the Notice of

Proposed Rulemaking pursuant to the Conference Report on the Department

of Interior and Related Agencies Appropriations Act of 1995 which

accompanied Pub. L. [[Page 29470]] 103-332 and premised the

implementation of the proposed formula on specific language contained

in that report. DOE is issuing this document as an interim final rule

because of Congressional budgetary issues that have surfaced since the

Notice of Proposed Rulemaking was published on January 23, 1995. The

Department has made appropriate revisions in this interim final rule to

accommodate possible rescissions to Fiscal Year 1995 appropriations to

the Program.

The new formula increases the overall equity, among the States, of

fund allocations under the program regulations, while at the same time

preserving existing State program capabilities. The principal criteria

in the formula 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.

EFFECTIVE DATE: July 5, 1995.

FOR FURTHER INFORMATION CONTACT: Greg Reamy, Weatherization Assistance

Program Division, U.S. Department of Energy, Mail Stop EE-532, 1000

Independence Avenue, SW., Washington, DC 20585, (202) 426-1698.

SUPPLEMENTARY INFORMATION:

I. Introduction

The Department of Energy (DOE or Department) is amending its

regulations to change the formula used to distribute funds for the

Weatherization Assistance Program for Low-Income Persons Program, which

is authorized by Title IV of the Energy Conservation and Production Act

(Act) 42 U.S.C. 6861 et seq. and is codified in 10 CFR part 440. The

Program is also subject to the DOE general financial assistance

regulations in 10 CFR part 600.

Since 1976, the Department of Energy has operated one of the

nation's largest energy conservation programs--the Weatherization

Assistance Program. The goal of the Program is to reduce heating and

cooling costs for low-income families. The program improves the energy

efficiency of the homes of low-income families, reducing their energy

consumption, lowering their fuel bills, increasing the comfort of the

homes, and insuring health and safety. This Program is critical to low-

income populations who are particularly vulnerable--the elderly,

persons with disabilities, and children.

The Program is administered by all 50 States, the District of

Columbia, and 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. Consistent with the Act, the Program

focuses particularly on the housing of low-income children, elderly,

and disabled persons. 42 U.S.C. 6861(b).

The formula increases the overall equity, among the States, of fund

allocations under the Program regulations, while at the same time

preserving existing State program capabilities. The Department is

taking this action based in part on the response to a Notice of

Proposed Rulemaking (NOPR) published by DOE in the Federal Register on

January 23, 1995, 60 FR 4480. In addition to accepting written comments

on the NOPR, DOE held two public hearings to solicit oral testimony.

In the Conference Report on the Department of Interior and Related

Agencies Appropriations Act, 1995, the conference committee stated that

sufficient funds were being made available to permit DOE to revise the

formula. H.R. Conf. Rep. No. 740, 103rd Cong., 2nd Sess. 50 (1994). 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 formula

in the interim final rule 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 under the old formula i.e., (the

existing formula being revised today) each year, DOE applied the

formula in old 10 CFR 440.10(b) to the amount of funds remaining after

training and technical assistance funds were subtracted from the annual

appropriation. The old formula established for each State a minimum

base grant level of $100,000 (Alaska received an additional $100,000).

The remaining available funds were allocated by a mathematical formula

which took into account heating/cooling degree days, total residential

energy use for space heating/cooling, the number of low-income owner-

occupied dwelling units, and the number of low-income renter occupied

dwelling units in the State. This basic formula had remained unchanged

since 1977. Data used in the formula for weather, residential energy

use, and population were however updated several times. The data for

program year 1993 were updated to include the 1990 census data.

As revised today, the new 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 per low-income household per State.

The new formula buffers States from serious losses in program

capacity, while at the same time allowing warmer-States to gain the

benefits of a new formula. Consistent with these two objectives, the

formula implementation establishes a fixed base amount of funds for

each State that is derived from the amount received for the fiscal year

1993, while remaining funds will be distributed pursuant to the

formula. Fiscal year 1993 was used to fix the base amounts because it

was the most recent available data when Congress passed the fiscal year

1995 appropriation.

II. Amendments to the Weatherization Assistance Program Formula and

Discussion of Public Comments

This part of the Supplementary Information discusses, where

appropriate, the proposed changes to the regulations, comments received

pertaining to the proposed changes, and the DOE final action.

Section 440.3 Definitions

No comments were received on the definitions and without change the

Department is finalizing the proposed amendments to Sec. 440.3.

DOE amends this section by deleting the references to the old

formula which are not a part of the new formula. The definitions

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''.

Additionally, several definitions are added to Sec. 440.3 which

describe the new criteria to be used in the new formula. DOE adds a

definition of ``base allocation,'' as set forth in Sec. 440.10(b)(1),

which refers to the fixed base amount each State receives. That amount

is [[Page 29471]] derived from each State's fiscal year 1993 allocation

of funds.

DOE also adds 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.

Section 440.10(b) Allocation of Funds

DOE deletes the old formula in Sec. 440.10(b) and replaces it with

the new formula set forth in revised Sec. 440.10(b). Paragraph (b)(1)

of Sec. 440.10 provides for a program allocation (PA) for each State

consisting of two parts. The two parts are: (1) A fixed amount of money

(derived from 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'' (FA), which is

determined by application of the new formula.

As mentioned earlier, DOE held two public hearings on the NOPR. Ten

of the eleven speakers offered testimony in support of the proposed

formula. One speaker expressed concern over the source of weather data

in the form of heating and cooling degree days which was addressed in

the proposed formula, but not specifically in the data. Additionally,

the Department received 9 written comments generally supporting the

formula change. However, 2 of the 9 written comments, while generally

supporting the formula change, expressed concern about current and

future funding levels, including possible Congressional budgetary

actions on fiscal year 1995 appropriations and their effect on

implementation. These commenters reserved the right to withdraw their

support if funding levels are revised. Two commenters was generally

non-supportive of the change as proposed.

One comment proposed that all funds above the fiscal year 1993

program allocation be provided to those States that would gain under

the proposed formula; no other State would receive additional funds

until ``the previously disadvantaged States (i.e. warmer-weather

States) achieve equity.'' Thereafter, the Program Allocation equation

would be applied to all States. In making this proposal, however, the

comment erroneously argues that colder-weather States would lose no

money because they would remain at the current Base Allocation. In

fact, limiting these States to their fiscal year 1993 base allocation

would lower their program funds because they would not benefit from

later higher increases in funding levels for the Program. DOE disagrees

that the new formula ``assumes historic equity of the funding

allocation'' since the new formula does shift a greater share of funds

to warmer-weather States. The new formula embodies congressional intent

of allowing for a more equitable apportionment of funds while

protecting program capacity of any State. For these reasons, DOE does

not believe that the formula implementation contained in the notice of

proposed rulemaking should be modified as suggested by this commenter.

One comment questioned the appropriateness of multiplying F2

(climate) and F3 (energy expenditures). The comment argued that these

factors are so similar that the outcome is similar to the old formula,

presumably the squaring (or multiplying together) of degree days. Our

analysis of weather and expenditure factors, however, indicates that

there is not much similarity between these two factors; that is, the

analysis indicated that the weather factor is not very indicative of

energy expenditures. As a result, DOE concludes that these two factors

represent two distinct elements contributing to the need for

weatherization assistance by low-income households. Throughout its

history, the Program has been concerned with both the need for energy

generated by weather conditions and the importance of helping low-

income households afford their energy bills. Adding these elements, as

suggested by the comment, would reduce the relative importance of each

in the new formula allocation.

The same comment expressed concern that the new formula does not

protect program capacity developed over the years by colder-weather

States. This comment contends that the new formula provides a greater

share of funds to warmer-weather States and that the formula

disproportionally affects the distribution of funds. The comment thus

concludes that the new formula does not ``work if it requires a hold

harmless clause to meet the intent of Congress.'' DOE notes here that

the formula did not include a ``hold harmless clause,'' per se.

Moreover, the proposed formula as a whole balances congressional intent

of maintaining program capacity and apportioning funds more equitably

among the States. Under the formula, no State loses more than one-half

of one-percent of FY 1994 funds unless total program allocations fall

below $220 million. All States gain when funds rise above this amount.

Changing individual pieces of the formula would disrupt this balance.

Likewise, although the base allocation could be changed, changing this

element of the formula would alter the resulting overall balance.

One comment recommended including only cooling degree days (CDDs)

associated with an unspecified level of extreme high temperatures and

formulation of the formula so that no ``cold-weather'' State would have

an ``energy factor'' less than one (1). The formula does not have an

energy factor per se. Colder States, in fact, do have weather factors

greater than one. When relatively lower formula shares result for

colder-weather States, it is due to fewer low-income households or

lower energy prices.

Another comment indicated dissatisfaction with the methods used by

the National Oceanic and Atmospheric Administration (NOAA) to calculate

heating and cooling degree days. However, the comment did not offer a

viable alternative that could be readily adopted. DOE notes that this

rule cannot govern NOAA calculations, but that it does provide a

mechanism for updating the data for the formula factors, including

weather data.

One comment recommended eliminating the energy expenditure factor

to avoid ``taking into account the constant fluctuation in fuel

prices.'' Energy expenditures are consumption multiplied by price.

Review of recent changes in State energy prices, consumption, and

resulting energy expenditures indicates that the impact of fluctuations

in any of these factors on final State shares tends to be relatively

small. In fact, because price and consumption changes in any given year

are often partially offsetting, percentage changes in expenditures from

year to year tend to be smaller than changes in consumption.

Another comment recommended that DOE phase in the formula over a

five year period to correct for fluctuations in funding formula

factors. This recommendation was based on the premise that it would

take several years before it could be determined if the proposed

formula needs to be adjusted. While there will be some fluctuation from

year to year, the comment merely speculated that the degree of

fluctuation warranted adding a complex adjustment to the formula. DOE

agrees that there will be some fluctuation from year to year. However,

DOE's analysis reveals no wide degree of fluctuation that would disrupt

the Program. Thus, no change has been made in the implementation of the

new formula. However, DOE will be monitoring the year to year

fluctuations in the allocations. If these fluctuations are

[[Page 29472]] significant and persistent, DOE should be able to

identify whether a formula factor is the cause and would act to remedy

the problem.

One comment suggested continuing to count the families in multi-

family buildings as one-half a household. Although households in multi-

family buildings tend to use less energy than households in single-

family homes, these and other differences in energy use are reflected

in the energy expenditure factor F3. Therefore, no change needs to be

made.

Revised 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 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.

For all the reasons set forth above, DOE has made no substantive

changes in the proposed Sec. 440.10(b).

Summary of Revised Formula

An explanation of the revised allocated allocation formula is set

forth below. This explanation is based on the summary provided in the

notice of proposed rulemaking, with minor clarifying changes. The

figures contained in Tables 1 through 5 are based on available data as

of fiscal year 1995. Depending upon changes in data available

thereafter, some of these figures may change periodically. See

Sec. 440.10(e) for further information pertaining to updates.

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

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

Formula Allocation

The amount of total Formula Allocations (the amount which will be

distributed among States based on the new 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 new formula.

Formula Factors

The new 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 new 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 old formula, the new

formula gives 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]TR05JN95.004

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 29473]]

Table 2.--Low-Income Households by State

Percent of

Number of national low-

State low-income income

households households

(F1)

A B C

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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

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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 new formula uses (as did the old 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.

State Climate Factor

F2=HDD State Ratio+CDD State Ratio [[Page 29474]]

HDD and CDD Ratios

State HDD Ratio

[GRAPHIC][TIFF OMITTED]TR05JN95.000

State CDD Ratio

[GRAPHIC][TIFF OMITTED]TR05JN95.001

where

[GRAPHIC][TIFF OMITTED]TR05JN95.002

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 old 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 old formula multiplied each State's HDD's by the national

space heating consumption and its CDD's by the national air

conditioning (cooling) consumption. The new 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 Climate

State degree HDD ratio degree divided by CDD ratio factor

days days the median (F2)

A B C D E F 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

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

[[Page 29475]]

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]TR05JN95.005

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.

[[Page 29476]]

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

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, FL, GA, SC, NC

East North Central (ENC)........... IL, IN, MI, OH, WI

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 1991

(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:

[GRAPHIC][TIFF OMITTED]TR05JN95.003

Column I--Residential Energy Expenditures per Low-Income Household

by State (State EE/#LIHH) is calculated as follows:

Column I = Column G x Column H

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 ($998.52).

Table 4.--Residential Energy Expenditure Factor Details

Ratio of

state

Residential energy Residential

Residential Residential energy expenditure energy

energy energy Households expenditures per expenditures

State abbrev. Census expenditures expenditures Households (for per low- household per low- Expenditure

division (by state) (for census (by state) census income to division income factor (F3)

(million $) division) division) household energy household

(million $) (for census expenditure (by state)

division) per

household

A B C D E F G H I J

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

CT.............................. NE $2,024.20 $7,476.80 $1,230,479 $4,942,714 $1,150 $1.087 $1,250.62 $1.2565

MA.............................. NE 3,264.10 7,476.80 2,247,110 4,942,714 1,150 0.960 1,104.30 1.1095

ME.............................. NE 708.30 7,476.80 465,312 4,942,714 1,150 1.006 1,157.23 1.1627

NH.............................. NE 596.90 7,476.80 411,186 4,942,714 1,150 0.960 1,103.60 1.1088

RI.............................. NE 530.50 7,476.80 377,977 4,942,714 1,150 0.928 1,067.01 1.0720

VT.............................. NE 352.80 7,476.80 210,650 4,942,714 1,150 1.107 1,273.25 1.2792

NJ.............................. MA 4,114.50 19,378.30 2,794,711 13,929,999 1,157 1.058 1,224.47 1.2302

NY.............................. MA 8,785.50 19,378.30 6,639,322 13,929,999 1,157 0.951 1,100.55 1.1057

DC.............................. SA 222.40 20,804.00 249,634 16,503,063 988 0.707 698.24 0.7015

DE.............................. SA 369.30 20,804.00 247,497 16,503,063 988 1.184 1,169.46 1.1749

MD.............................. SA 2,309.50 20,804.00 1,748,991 16,503,063 988 1.047 1,034.92 1.0398

PA.............................. MA 6,478.30 19,378.30 4,495,966 13,929,999 1,157 1.036 1,198.41 1.2040

VA.............................. SA 2,920.60 20,804.00 2,291,830 16,503,063 988 1.011 998.77 1.0034

WV.............................. SA 742.10 20,804.00 688,557 16,503,063 988 0.855 844.69 0.8486

AL.............................. ESC 1,857.90 6,423.40 1,506,790 5,651,671 772 1.085 837.53 0.8415

FL.............................. SA 6,144.50 20,804.00 5,134,869 16,503,063 988 0.949 937.85 0.9422

GA.............................. SA 3,063.30 20,804.00 2,366,615 16,503,063 988 1.027 1,014.46 1.0192

KY.............................. ESC 1,474.00 6,423.40 1,379,782 5,651,671 772 0.940 725.63 0.7290

MS.............................. ESC 1,068.00 6,423.40 911,374 5,651,671 772 1.031 795.98 0.7997

NC.............................. SA 3,390.90 20,804.00 2,517,026 16,503,063 988 1.069 1,055.85 1.0608

SC.............................. SA 1,641.40 20,804.00 1,258,044 16,503,063 988 1.035 1,022.57 1.0274

TN.............................. ESC 2,023.50 6,423.40 1,853,725 5,651,671 772 0.960 741.46 0.7449

IL.............................. ENC 6,017.80 20,660.20 4,202,240 15,596,590 1,074 1.081 1,161.06 1.1665

IN.............................. ENC 2,644.70 20,660.20 2,065,355 15,596,590 1,074 0.967 1,038.20 1.0431

MI.............................. ENC 4,339.90 20,660.20 3,419,331 15,596,590 1,074 0.958 1,029.05 1.0339

MN.............................. WNC 1,868.50 8,200.60 1,647,853 6,720,385 968 0.929 899.49 0.9037

OH.............................. ENC 5,420.90 20,660.20 4,087,546 15,596,590 1,074 1.001 1,075.25 1.0803

WI.............................. ENC 2,236.90 20,660.20 1,822,118 15,596,590 1,074 0.927 995.34 1.0000

AR.............................. WSC 1,168.50 12,362.20 891,179 9,667,520 971 1.025 995.64 1.0003

LA.............................. WSC 1,950.10 12,362.20 1,499,269 9,667,520 971 1.017 987.68 0.9923

NM.............................. MT 545.40 5,476.10 542,709 5,033,336 888 0.924 820.25 0.8241

OK.............................. WSC 1,441.60 12,362.20 1,206,135 9,667,520 971 0.935 907.59 0.9118

[[Page 29477]]

TX.............................. WSC 7,802.00 12,362.20 6,070,937 9,667,520 971 1.005 975.86 0.9804

IA.............................. WNC 1,355.70 8,200.60 1,064,325 6,720,385 968 1.044 1,010.45 1.0152

KS.............................. WNC 1,138.90 8,200.60 944,726 6,720,385 968 0.988 956.32 0.9608

MO.............................. WNC 2,539.40 8,200.60 1,961,206 6,720,385 968 1.061 1,027.15 1.0320

NE.............................. WNC 680.70 8,200.60 602,363 6,720,385 968 0.926 896.44 0.9006

CO.............................. MT 1,214.70 5,476.10 1,282,489 5,033,336 888 0.871 773.06 0.7767

MT.............................. MT 321.50 5,476.10 306,163 5,033,336 888 0.965 857.09 0.8611

ND.............................. WNC 303.20 8,200.60 240,878 6,720,385 968 1.032 998.52 1.0032

SD.............................. WNC 314.20 8,200.60 259,034 6,720,385 968 0.994 962.22 0.9667

UT.............................. MT 620.90 5,476.10 537,273 5,033,336 888 1.062 943.24 0.9477

WY.............................. MT 194.40 5,476.10 168,839 5,033,336 888 1.058 939.77 0.9442

AZ.............................. MT 1,694.00 5,476.10 1,368,843 5,033,336 888 1.137 1,010.08 1.0148

CA.............................. PAC 10,642.80 13,958.20 10,381,206 13,902,132 676 1.021 690.25 0.6935

HI.............................. PAC 273.20 13,958.20 356,267 13,902,132 676 0.764 516.30 0.5187

NV.............................. MT 493.20 5,476.10 466,297 5,033,336 888 0.972 863.29 0.8673

AK.............................. PAC 349.00 13,958.20 188,915 13,902,132 676 1.840 1,243.82 1.2496

ID.............................. MT 392.00 5,476.10 360,723 5,033,336 888 0.999 886.97 0.8911

OR.............................. PAC 1,013.60 13,958.20 1,103,313 13,902,132 676 0.915 618.54 0.6214

WA.............................. PAC 1,679.60 13,958.20 1,872,431 13,902,132 676 0.893 603.95 0.6068

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

Total/Median................ ............ ............ ............ .......... .......... ............ ........... 995.34 ...........

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 100 percent more on

residential energy than the average household in its Census division,

then it is assumed that the low-income households in State Y will also

spend 100 percent more 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 3.

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).

[[Page 29478]]

Table 5.--Formula Factors, Weight and Formula Share by State

State F1 F2 F3 Weight Share

A B C D E F

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

Alabama........................................ 2.381 0.740 0.841 1.482 0.0156

Alaska......................................... 0.134 2.114 1.250 0.354 0.0037

Arizona........................................ 1.609 0.722 1.015 1.179 0.0124

Arkansas....................................... 1.480 0.827 1.000 1.225 0.0129

California..................................... 9.396 0.586 0.693 3.815 0.0401

Colorado....................................... 1.269 1.370 0.777 1.351 0.0142

Connecticut.................................... 0.742 1.188 1.256 1.108 0.0117

Delaware....................................... 0.191 0.993 1.175 0.223 0.0023

District of Columbia........................... 0.286 0.998 0.702 0.200 0.0021

Florida........................................ 5.420 0.520 0.942 2.655 0.0279

Georgia........................................ 2.907 0.720 1.019 2.133 0.0224

Hawaii......................................... 0.252 0.407 0.519 0.053 0.0006

Idaho.......................................... 0.426 1.332 0.891 0.506 0.0053

Illinois....................................... 4.051 1.255 1.167 5.930 0.0624

Indiana........................................ 2.018 1.191 1.043 2.507 0.0264

Iowa........................................... 1.134 1.370 1.015 1.577 0.0166

Kansas......................................... 1.010 1.091 0.961 1.058 0.0111

Kentucky....................................... 2.204 0.976 0.729 1.569 0.0165

Louisiana...................................... 2.725 0.630 0.992 1.704 0.0179

Maine.......................................... 0.495 1.511 1.163 0.869 0.0091

Maryland....................................... 1.212 0.998 1.040 1.258 0.0132

Massachusetts.................................. 1.930 1.230 1.109 2.633 0.0277

Michigan....................................... 3.687 1.324 1.034 5.049 0.0531

Minnesota...................................... 1.523 1.656 0.904 2.279 0.0240

Mississippi.................................... 1.815 0.711 0.800 1.032 0.0109

Missouri....................................... 2.328 1.092 1.032 2.624 0.0276

Montana........................................ 0.422 1.530 0.861 0.556 0.0058

Nebraska....................................... 0.645 1.302 0.901 0.757 0.0080

Nevada......................................... 0.400 0.966 0.867 0.335 0.0035

New Hampshire.................................. 0.267 1.432 1.109 0.425 0.0045

New Jersey..................................... 1.869 1.089 1.230 2.504 0.0263

New Mexico..................................... 0.836 0.971 0.824 0.669 0.0070

New York....................................... 7.011 1.172 1.106 9.084 0.0955

North Carolina................................. 3.014 0.801 1.061 2.560 0.0269

North Dakota................................... 0.315 1.782 1.003 0.563 0.0059

Ohio........................................... 4.347 1.178 1.080 5.532 0.0582

Oklahoma....................................... 1.755 0.886 0.912 1.417 0.0149

Oregon......................................... 1.180 0.987 0.621 0.724 0.0076

Pennsylvania................................... 4.467 1.166 1.204 6.274 0.0660

Rhode Island................................... 0.352 1.147 1.072 0.433 0.0046

South Carolina................................. 1.693 0.716 1.027 1.245 0.0131

South Dakota................................... 0.351 1.495 0.967 0.507 0.0053

Tennessee...................................... 2.580 0.892 0.745 1.714 0.0180

Texas.......................................... 8.289 0.678 0.980 5.511 0.0580

Utah........................................... 0.547 1.268 0.948 0.657 0.0069

Vermont........................................ 0.201 1.500 1.279 0.385 0.0040

Virginia....................................... 2.057 0.932 1.003 1.924 0.0202

Washington..................................... 1.731 1.058 0.607 1.111 0.0117

West Virginia.................................. 1.138 1.059 0.849 1.023 0.0108

Wisconsin...................................... 1.722 1.472 1.000 2.535 0.0267

Wyoming........................................ 0.187 1.524 0.944 0.269 0.0028

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

National Total............................. ........... ........... ........... 95.083 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''.

Section 440.10(c) Allocation of Funds

Two comments noted that since the NOPR was published on January 23,

1995, Congressional budgetary issues, which may affect the level of

program funds available, have surfaced. In the NOPR, Sec. 440.10(c)

referred to fiscal year 1995 funding. At that time, the Department

contemplated possible reductions in funding beginning after fiscal year

1995. Because of the possibility of reductions in fiscal year 1995

funding, this provision has been modified from the proposed language to

clarify that the level of appropriations referred to in this section is

that found in Pub. L. 103-332. Therefore, any increase in funds above

the total program allocations level under Pub. L. 103-332 will be

allocated according to the new formula. Should total program

allocations for any fiscal year fall below the total program

allocations under Pub. L. 103-332, then each State's program allocation

shall be reduced from its allocated amount under Pub. L. 103-332 by the

same percentage. For example, if total program allocations for a given

year were 10 percent below the amount under Pub. L. 103-332, then each

State's [[Page 29479]] program allocation would be 10 percent less than

under Pub. L. 103-332. This approach distributes the effect of lower

appropriations equitably.

Section 440.10(d) Allocation of Funds

In Sec. 440.10(d), DOE clarifies the sources of data used in the

new formula. All sources of data are publicly available. Since

publication of the NOPR, DOE has obtained updated data on State energy

expenditures and incorporated this new data in Tables 4 and 5 of this

interim final rule.

Section 440.10(e) Allocation of Funds

Section 440.10(e) alerts States of possible impacts on their

weatherization programs that may occur due to changes in data. For any

given program year when changes occur, DOE will delay reallocations

based on new data until the following year. This allows States to plan

for anticipated shifts in funds and develop alternative strategies for

minimizing the impact of such change.

Section 440.12 State Application

In Sec. 440.12(b)(4) the term ``tentative allocation'' is deleted

and ``program allocation'' is substituted to provide consistency with

Sec. 440.10. It should be noted that the original intent in using the

term ``tentative allocation'', that is, retaining DOE's discretion to

reallocate funds if they are not used on a timely basis, is preserved

by substituting ``program allocation'' as it applies in Sec. 440.10 (f)

and (g). The term ``tentatively'' in Sec. 440.14(b)(9)(vi) is deleted.

Section 440.14 State Plans

In Sec. 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, after providing appropriate due process, to reduce or withdraw

these funds for non-performance or other deficiencies.

III. Interim Final Effect

DOE has issued today's regulatory amendments as an interim final

rule to reserve the possibility of reopening the record in light of the

ultimate disposition of pending budgetary bills during the current

session of Congress. The Department anticipates removing the interim

final designation before the end of 1995.

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 regulation meets the requirements of sections 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 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 number of small entities, i.e., small

businesses and small government jurisdictions. DOE has concluded that

the interim final 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

final 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 interim final rule. 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 interim final rule provides the new formula which will be 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 old formula

overallocated funds to colder-weather States. The purpose of the new

formula is to increase the overall equity among the States. The

Department has determined that this interim final 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 interim final 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 were received. DOE also provided a draft

copy to the Administrator of the Environmental Protection Agency,

pursuant to section 7 of the Federal Energy Administration Act, as

amended, 15 U.S.C. 766. The Administrator did not submit any comment.

XI. The Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance number for the

[[Page 29480]] 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 Weather.

Issued in Washington, DC, on May 25, 1995.

Christine A. Ervin,

Assistant Secretary, Energy Efficiency and Renewable Energy.

For the reasons set forth in the preamble, DOE hereby amends

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:

Authority: 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 for each State as

set forth in Sec. 440.10(b)(1).

* * * * *

Formula Allocation means the amount of funds for each State as

calculated based on the formula 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, upon annual application.

(b) Based on total program allocations at or above the amount of

total program allocations under Pub. L. 103-332, 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

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

(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 paragraph (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 paragraph (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 under Pub. L. 103- 332, then each State's

program [[Page 29481]] allocation shall be reduced from its allocated

amount under Pub. L. 103-332 by the same percentage as total program

allocations for the fiscal year fall below the total program

allocations under Pub. L. 103-332.

(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 applications.

* * * * *

(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. 95-13437 Filed 6-2-95; 8:45 am]

BILLING CODE 6450-01-P