Weatherization Assistance Program Overview

1. 2011 Orientation for State WAP Directors and Staff February 28, 2011 Weatherization Assistance Program Overview Jean Diggs, Greg Reamy & Erica Burrin

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

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

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

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

6. Weatherization Program Legislation • Weatherization is a categorical formula grant program administered by DOE under a regulatory framework laid out in 10 CFR Part 440. • Authority for the Program resides in Title 42 Public Health and Welfare U.S.C. 6861 and 7101. • Program was reauthorized under Title 1, Section 122 of the Energy Policy Act of 2005. • Energy Independence and Security Act of 2007 reauthorized the Program and expanded the definition of “State” to include U.S. Territories and also established the Sustainable Energy Resources for Consumer Grants. • The American Recovery and Reinvestment Act of 2009 (Recovery Act), signed February 17, 2009, made significant changes to the Program.

7. American Recovery and Reinvestment Act of 2009 (Recovery Act) • Appropriates $5.0 billion to Weatherization to help stimulate the economy and promote job creation. The Law also provides the following significant changes to the Program: • Increases Training and Technical Allowance to 20% of appropriation (up from 10%) • Increases income eligibility from 150% to 200% of poverty • Raises per unit expenditure from $2500 (indexed) to $6500

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

9. Program Funding • DOE provides core program funding and infrastructure for low-income energy efficiency making it the largest residential energy efficiency program in the nation. • Grantees contract with local agencies to deliver services to single-family, multi-family, and mobile homes • Grantees can also leverage funds from utilities and other sources.

10. The Team Approach Department of Energy Headquarters and Project Management Center 50 State Energy Offices, The District of Columbia, Native American Tribal Organizations, and 5 U.S. Territories 1,007 Local Subgrantees Serving All 3,054 Counties in the US Low-Income Americans Single, Multi-Family, Mobile Homes

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

12. The Need For Services • 38.6 Million families are eligible for assistance • Approximately 15 million ‘good candidate’ homes need weatherization • Through 2010 approximately 20% of the 38.6 million eligible families had received weatherization services

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

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

15. Where Does the Money Come From? • Congressional Appropriations (Energy and Water Appropriations Subcommittees in the House and Senate) • 2009 Allocation & Supplemental - $450 Million • 2009 Stimulus - $5 Billion • 2010 Allocation - $210 Million • 2011 Allocation - ? • States Transfer Funds from Low-Income Home Energy Assistance Program • Other Sources like Utilities, Landlords, State Appropriations, and Private Grants

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

17. Davis-Bacon Act (DBA) • Required for all Recovery Act Funds • Does NOT Apply to Any Years’ Appropriated Funds • Native American Tribes and Territories are Exempt • DBA Labor Rates Applies only to Laborers and Mechanics • Wages Must be Paid Weekly – NO EXCEPTIONS • Special “Weatherization Worker” Job Classification Created • Energy Auditors, Administrative or Support Workers Exempt • Labor Standards Clauses With Flow-Down Responsibilities • Subgrantees and Contractors Must Submit Certified Weekly Payrolls

18. Davis-Bacon Act http://apps1.eere.energy.gov/weatherization/recovery_act.cfm

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

34. Determining Eligibility • 10 CFR 440.22 (a) • Recovery Act – revised DOE’s income eligibility guideline to up to 200% of poverty • May also use LIHEAP guideline • Recipient of cash assistance payment under Title IV or XVI of the Social Security Act is an automatic qualifier • State selected criteria must be used state-wide • Multi-Family HUD Eligibility Outlined in WPN 10-15

35. Defining Income • DOE Revised Poverty Income Guidelines (PIGS) and Definition of Income (WPN 10-18) • Revised Version is More “User/Reader Friendly” • Breaks out Cash Receipts and Exclusions • Discusses Proof of Eligibility Including Self-Certification • Defines Child Support – Payee vs Payor • Defines Annualization of Income • Discusses Re-Certification

36. Determining Priority Service • 10 CFR 440.16(b) (1-5) • Elderly • Persons with disabilities • Families with children • High energy burden • High residential energy use

37. Reweatherization • 10 CFR 440.18(e)(2)(i-iii) • Date moved from September 30, 1985 to September 30, 1994 – Change Made in the American Recovery and Reinvestment Act • Homes weatherized prior to 1994 did not use advanced audits

38. Multi-family Eligibility • 10 CFR 440.22 (b) (2) (i-ii) • 66% of units must be income eligible • 50% of units must be income eligible for duplex, 4-unit, and certain large multi-family buildings. • Certain Large Multifamily criteria should take into consideration size, leveraged resources, significant energy efficiency improvements • HUD/DOE Final Rule • WPN 10-15 Posted 3 Eligibility Lists to DOE website • Guidance Regarding Prioritizing Weatherization Work based on Housing Type (WPN 11-04)

39. Rental Properties • Annual State Plan requires rental plan • Multi-family buildings require 66% eligibility to qualify entire structure • Certain large multi-family buildings can reduce eligibility from 66% to 50% • Must be: large, leveraged resources, have significant energy saving potential • DOE encourages discussion of the rental plan as a part of public hearing • HUD/DOE Final Rule • WPN 10-15 Posted 3 Eligibility Lists to DOE Website

40. Rental Requirements • 10 CFR 440.22 (b) (3) • Benefits accrue to low-income tenants • Rent will not be increased as a result of WX • Complaint procedures in place • No undue excessive enhancement to property • DOE encourages discussion of the rental plan as a part of public hearing • WPN 10-15A Discusses Accrual of Benefits Issue

41. Energy Audit Criteria • Section 10 CFR 440.21 provides criteria for minimum energy audit standards • All energy audits & priority lists must be revalidated every 5 years • Energy Audit requirements are defined in WPN 01-4 Revised Weatherization Program Energy Audit Approval Procedures

42. Single-Family Energy Audit Tools Used by the Weatherization Network AKWarm (AK) NEAT* (NH) Meadow 96* (ME) TREAT (WA) Montana Computerized Energy Audit (MT) NEAT (VT) WXEOR (ND) NEAT (MN) NEAT (MA) REM/Design* (OR) TIPS, TREAT (NY) EA5 (ID) NEAT (WI) NEAT (SD) NEAT (RI) NEAT (MI) NEAT (WY) RealHomeAnalyzer (CT) NEAT (PA) NEAT (IA) EA-QUIP* (NJ) NEAT (NE) WX Works (IL) NEAT (OH) REM/Design (NV) NEAT (IN) NEAT (DE) NEAT (UT) NEAT (WV) REM/ Design (CA) NEAT (CO) NEAT (VA) NEAT (MD) REM/Design (KS) NEAT (MO) NEAT (KY) NEAT* (DC) NEAT (NC) NEAT (TN) NEAT (OK) REM/Design (AZ) NEAT (SC) NEAT (AR) NEAT (NM) NEAT (GA) U.S. Territories: American Samoa Guam Northern Mariana Islands Puerto Rico U.S. Virgin Islands NEAT (AL) NEAT (MS) EASY* (TX) (LA) HI NEAT (FL) DOE Review is required every 5 years for Audit Tools Does not use audit NEAT Updated 01/28/2011 States with * listed next to their current audit tool have submitted a request to switch to another audit tools.

43. States That Use A Priority List* As Part of Their Energy Audit Procedures For Single-Family Homes AK NH WA ME VT MT ND MN MA OR WI NY RI SD ID MI CT WY PA IA NJ NE OH NV DE UT IL IN CA CO WV MD VA KS MO KY DC NC TN AZ OK AR NM SC Priority List: American Samoa Guam Northern Mariana Islands Puerto Rico U.S. Virgin Islands GA MS AL TX LA HI FL Priority list used to select measures on typical housing stock * A priority list is a list of weatherization measures that analysis has shown to be be cost-effective for typical housing stock. Computerized energy audit used on every house weatherized Updated 01/28/2011

44. A DOE Weatherized Unit is: • A dwelling unit on which a DOE-approved energy audit or priority list has been applied and weatherization work has been completed. • As funds allow, the appropriate measures installed on this unit have an SIR of 1.0 or greater, but also may include any necessary energy-related health and safety measures. • The use of DOE funds on this unit may include but are not limited to auditing, testing, measure installation, inspection and/or administration.

45. A dwelling unit that meets the definition of a DOE weatherized unit must be counted as a DOE completed unit. Reporting a DOE Completed Unit

46. Post-Work Inspection • Every home must receive a quality control inspection for workmanship and appropriateness • Blower door tests are conducted to ensure proper air sealing • Identifies any remaining air leaks • Indicates need for ventilation • Insulation and other measures checked for quality and completeness

47. WAP Results • Average annual energy savings = $437 per home • After Weatherization services, typical low-income home saves an average of 35% on energy consumption • Returns $1.80 in energy-related benefits per $1 invested • Returns $2.50 in non-energy benefits per $1 invested • Avoids 2.65 tons of carbon dioxide emissions for every home weatherized • Over 6.8 million households weatherized • Average reduction in natural gas use – 35%

48. Outcomes: Quality of Life • Improves health and safety - reducing carbon monoxide emissions and eliminating fire hazards • Lessens the excessive financial burden of families most in need – reducing the difficult choice between food and fuel • Helps revitalize neighborhoods and communities across the country • Used as catalyst to attract investments from utilities, other federal agencies, state governments, and private sources

49. Weatherization Impact • Reduces the export of local energy dollars and keeps more money in the community • Decreases electricity generation and resulting pollution; thus improving local air quality reducing adverse health effects • Avoids residential and power-plant emissions of carbon dioxide, a leading greenhouse gas

50. More HELP and RESOURCES Contact your PMC Project Manager or Refer to the follow Websites: • Weatherization Assistance Program Website • https://www.eere.energy.gov/weatherization/ • PMC Website • https://www.eere-pmc.energy.gov/ • WAPTAC Website • http://www.waptac.org • Weatherization Plus Website • http://www.weatherizationplus.org • Oak Ridge National Lab Website • http://weatherization.ornl.gov