Weatherization Assistance Program for Low-Income Persons

Federal RegisterJan 23, 1995

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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.

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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

Table 1