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




[[Page 4479]]

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Part II





Department of Energy





_______________________________________________________________________



Office of Energy Efficiency and Renewable Energy



_______________________________________________________________________



10 CFR Part 440



Weatherization Assistance Program for Low-Income Persons; Proposed Rule

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

DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 440

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


Weatherization Assistance Program for Low-Income Persons

AGENCY: Department of Energy.

ACTION: Notice of proposed rulemaking and public hearing.

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

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

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

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

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

SUPPLEMENTARY INFORMATION:

I. Introduction

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

II. Amendments to the Weatherization Assistance Program Formula

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


Sec. 440.3  Definitions.

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


Sec. 440.10  Allocation of funds.

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

PA=BA+FA

Base Allocation

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

                 Table 1.--``Base Allocation'' By State                 
                                                                        
                                                                        
------------------------------------------------------------------------
Alabama...................................................     1,636,000
Alaska....................................................     1,425,000
Arkansas..................................................     1,417,000
Arizona...................................................       760,000
California................................................     4,404,000
Colorado..................................................     4,574,000
Connecticut...............................................     1,887,000
Delaware..................................................       409,000
District of Columbia......................................       487,000
Florida...................................................       761,000
Georgia...................................................     1,844,000
Hawaii....................................................       120,000
Idaho.....................................................     1,618,000
Illinois..................................................    10,717,000
Indiana...................................................     5,156,000
Iowa......................................................     4,032,000
Kansas....................................................     1,925,000
Kentucky..................................................     3,615,000
Louisiana.................................................       912,000
Maine.....................................................     2,493,000
Maryland..................................................     1,963,000
Massachusetts.............................................     5,111,000
Michigan..................................................    12,346,000
Minnesota.................................................     8,342,000
Mississippi...............................................     1,094,000
Missouri..................................................     4,615,000
Montana...................................................     2,123,000
Nebraska..................................................     2,013,000
Nevada....................................................       586,000
New Hampshire.............................................     1,193,000
New Jersey................................................     3,775,000
New Mexico................................................     1,519,000
New York..................................................    15,302,000
North Carolina............................................     2,853,000
North Dakota..............................................     2,105,000
Ohio......................................................    10,665,000
Oklahoma..................................................     1,846,000
Oregon....................................................     2,320,000
Pennsylvania..............................................    11,457,000
Rhode Island..............................................       878,000
South Carolina............................................     1,130,000
South Dakota..............................................     1,561,000
Tennessee.................................................     3,218,000
Texas.....................................................     2,999,000
Utah......................................................     1,692,000
Vermont...................................................     1,014,000
Virginia..................................................     2,970,000
Washington................................................     3,775,000
West Virginia.............................................     2,573,000
Wisconsin.................................................     7,061,000
Wyoming...................................................       967,000
                                                                        
                                                           -------------
Total.....................................................   171,258,000
------------------------------------------------------------------------

Formula Allocation

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

Formula Factors

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

F1 Population Factor

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

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


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

Table Explanation

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

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

F2 Climate Factor

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


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


where
[GRAPHIC][TIFF OMITTED]TP23JA95.003


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

Table Explanation

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

                                         Table 3.--Weather Data by State                                        
----------------------------------------------------------------------------------------------------------------
                                      Heating                   Cooling    CDD divided                 Climate  
              State A               Degree Days  HDD ratio C  degree days     by the    CDD ratio F  factor (F2)
                                         B                         D         median E                     G     
----------------------------------------------------------------------------------------------------------------
Alabama...........................      2,853.8        0.526      1,855.9        2.140        0.214        0.740
Alaska............................     11,475.2        2.113          1.9        0.002        0.000        2.114
Arizona...........................      2,232.6        0.411      2,695.4        3.108        0.311        0.722
Arkansas..........................      3,365.0        0.620      1,801.2        2.077        0.208        0.827
California........................      2,663.3        0.490        824.4        0.951        0.095        0.586
Colorado..........................      7,264.0        1.338        280.4        0.323        0.032        1.370
Connecticut.......................      6,122.4        1.128        526.6        0.607        0.061        1.188
Delaware..........................      4,741.7        0.873      1,034.4        1.193        0.119        0.993
District of Columbia..............      4,785.7        0.881      1,008.5        1.163        0.116        0.998
Florida...........................        715.6        0.132      3,365.1        3.880        0.388        0.520
Georgia...........................      2,842.0        0.523      1,705.7        1.967        0.197        0.720
[[Page 4485]]                                                                                                   
                                                                                                                
Hawaii............................          0.0        0.000      3,528.0        4.068        0.407        0.407
Idaho.............................      6,960.0        1.282        434.9        0.501        0.050        1.332
Illinois..........................      6,254.3        1.152        894.3        1.031        0.103        1.255
Indiana...........................      5,906.8        1.088        891.7        1.028        0.103        1.191
Iowa..............................      6,894.6        1.270        867.3        1.000        0.100        1.370
Kansas............................      4,990.9        0.919      1,490.4        1.718        0.172        1.091
Kentucky..........................      4,566.8        0.841      1,174.4        1.354        0.135        0.976
Louisiana.........................      1,826.1        0.336      2,550.0        2.940        0.294        0.630
Maine.............................      8,069.2        1.486        215.6        0.249        0.025        1.511
Maryland..........................      4,785.7        0.881      1,008.5        1.163        0.116        0.998
Massachusetts.....................      6,404.5        1.179        434.6        0.501        0.050        1.230
Michigan..........................      6,837.5        1.259        565.7        0.652        0.065        1.324
Minnesota.........................      8,687.0        1.600        487.3        0.562        0.056        1.656
Mississippi.......................      2,549.5        0.470      2,094.4        2.415        0.241        0.711
Missouri..........................      5,127.4        0.944      1,282.2        1.478        0.148        1.092
Montana...........................      8,144.8        1.500        259.4        0.299        0.030        1.530
Nebraska..........................      6,412.3        1.181      1,052.0        1.213        0.121        1.302
Nevada............................      4,260.1        0.785      1,572.0        1.813        0.181        0.966
New Hampshire.....................      7,594.6        1.399        289.4        0.334        0.033        1.432
New Jersey........................      5,429.9        1.000        774.6        0.893        0.089        1.089
New Mexico........................      4,714.2        0.868        890.2        1.026        0.103        0.971
New York..........................      5,960.8        1.098        641.4        0.740        0.074        1.172
North Carolina....................      3,492.2        0.643      1,366.3        1.575        0.158        0.801
North Dakota......................      9,382.8        1.728        471.7        0.544        0.054        1.782
Ohio..............................      5,932.2        1.093        740.2        0.853        0.085        1.178
Oklahoma..........................      3,593.3        0.662      1,941.6        2.239        0.224        0.886
Oregon............................      5,228.6        0.963        207.0        0.239        0.024        0.987
Pennsylvania......................      5,920.7        1.090        659.2        0.760        0.076        1.166
Rhode Island......................      5,942.0        1.094        457.2        0.527        0.053        1.147
South Carolina....................      2,768.2        0.510      1,787.0        2.060        0.206        0.716
South Dakota......................      7,613.7        1.402        804.6        0.928        0.093        1.495
Tennessee.........................      4,005.8        0.738      1,337.5        1.542        0.154        0.892
Texas.............................      2,039.7        0.376      2,623.2        3.025        0.302        0.678
Utah..............................      6,451.3        1.188        694.7        0.801        0.080        1.268
Vermont...........................      7,970.9        1.468        280.5        0.323        0.032        1.500
Virginia..........................      4,402.4        0.811      1,052.4        1.213        0.121        0.932
Washington........................      5,636.0        1.038        174.9        0.202        0.020        1.058
West Virginia.....................      5,271.5        0.971        766.5        0.884        0.088        1.059
Wisconsin.........................      7,679.2        1.414        502.5        0.579        0.058        1.472
Wyoming...........................      8,081.3        1.488        308.5        0.356        0.036        1.524
                                   -----------------------------------------------------------------------------
    Median........................      5,429.9  ...........        867.3  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------

F3 Residential Energy Expenditure Factor

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


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

------------------------------------------------------------------------
          Census division                    State abbreviations        
------------------------------------------------------------------------
Northeast (NE).....................  CT, MA, ME, NH, RI, VT             
Mid-Atlantic (MA)..................  NJ, NY, PA                         
South Atlantic (SA)................  DC, DE, MD, VA, WV                 
East North Central (ENC)...........  IL, IN, MI, OH, WI                 
[[Page 4486]]                                                           
                                                                        
East South Central (ESC)...........  AL, KY, MS, TN                     
West North Central (WNC)...........  IA, KS, MN, MO, ND, NE, SD         
West South Central (WSC)...........  AR, LA, OK, TX                     
Mountain (MN)......................  AZ, CO, ID, MT, NM, NV, UT, WY     
Pacific (PAC)......................  AK, CA, HI, OR, WA                 
------------------------------------------------------------------------

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

Table Explanation

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


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

                                                 Table 4.--Residential Energy Expenditure Factor Details                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Ratio of                            
                                                                                                                     state                              
                                                               Residential                           Residential     energy     Residential             
                                                 Residential     energy                 Households     energy     expenditure     energy                
                                                   energy     expenditures  Households     (for     expenditures      per      expenditures  Expenditure
          State abbrev. A             Census    expenditures   (for census  (by State)    census      per low-     household     per low-       factor  
                                    division B   (by State)     division)        E       division)     income     to division     income        (F3)J   
                                                 (million $)   (million $)                   F        household      energy      household              
                                                      C             D                                   (for      expenditure  (by State) I             
                                                                                                     Division) G      per                               
                                                                                                                  household H                           
--------------------------------------------------------------------------------------------------------------------------------------------------------
CT................................  NE             $1,981.6      $7,351.8    1,230,479   4,942,714     $1,150.0         1.083     $1,245.1         1.256
MA................................  NE             $3,243.9      $7,351.8    2,247,110   4,942,714     $1,150.0         0.971     $1,116.1         1.126
ME................................  NE               $666.0      $7,351.8      465,312   4,942,714     $1,150.0         0.962     $1,106.6         1.116
NH................................  NE               $621.3      $7,351.8      411,186   4,942,714     $1,150.0         1.016     $1,168.2         1.178
RI................................  NE               $502.8      $7,351.8      377,977   4,942,714     $1,150.0         0.894     $1,028.5         1.037
VT................................  NE               $336.2      $7,351.8      210,650   4,942,714     $1,150.0         1.073     $1,234.0         1.244
NJ................................  MA             $3,881.6     $18,528.9    2,794,711  13,929,999     $1,157.0         1.044     $1,208.1         1.218
NY................................  MA             $8,526.0     $18,528.9    6,639,322  13,929,999     $1,157.0         0.965     $1,117.0         1.127
PA................................  MA             $6,121.3     $18,528.9    4,495,966  13,929,999     $1,157.0         1.024     $1,184.3         1.194
DC................................  SA               $208.1     $19,120.1      249,634  16,503,063       $988.0         0.720       $710.9         0.717
DE................................  SA               $346.7     $19,120.1      247,497  16,503,063       $988.0         1.209     $1,194.6         1.205
FL................................  SA             $5,888.6     $19,120.1    5,134,869  16,503,063       $988.0         0.990       $977.9         0.986
GA................................  SA             $2,990.0     $19,120.1    2,366,615  16,503,063       $988.0         1.090     $1,077.4         1.087
MD................................  SA             $2,090.8     $19,120.1    1,748,991  16,503,063       $988.0         1.032     $1,019.4         1.028
NC................................  SA             $3,226.4     $19,120.1    2,517,026  16,503,063       $988.0         1.106     $1,093.1         1.102
SC................................  SA             $1,573.1     $19,120.1    1,258,044  16,503,063       $988.0         1.079     $1,066.3         1.075
VA................................  SA             $2,796.4     $19,120.1    2,291,830  16,503,063       $988.0         1.053     $1,040.5         1.049
WV................................  SA               $714.8     $19,120.1      688,557  16,503,063       $988.0         0.896       $885.3         0.893
IL................................  ENC            $5,650.6     $19,424.2    4,202,240  15,596,590     $1,074.0         1.080     $1,159.6         1.169
IN................................  ENC            $2,503.3     $19,424.2    2,065,355  15,596,590     $1,074.0         0.973     $1,045.2         1.054
MI................................  ENC            $4,097.2     $19,424.2    3,419,331  15,596,590     $1,074.0         0.962     $1,033.3         1.042
OH................................  ENC            $5,085.2     $19,424.2    4,087,546  15,596,590     $1,074.0         0.999     $1,072.8         1.082
WI................................  ENC            $2,087.9     $19,424.2    1,822,118  15,596,590     $1,074.0         0.920       $988.2         0.997
AL................................  ESC            $1,777.1      $6,157.9    1,506,790   5,651,671       $772.0         1.082       $835.6         0.843
KY................................  ESC            $1,354.2      $6,157.9    1,379,782   5,651,671       $772.0         0.901       $695.4         0.701
MS................................  ESC            $1,053.3      $6,157.9      911,374   5,651,671       $772.0         1.061       $818.9         0.826
TN................................  ESC            $1,973.3      $6,157.9    1,853,725   5,651,671       $772.0         0.977       $754.2         0.761
IA................................  WNC            $1,281.3      $7,742.7    1,064,325   6,720,385       $968.0         1.045     $1,011.5         1.020
KS................................  WNC            $1,099.5      $7,742.7      944,726   6,720,385       $968.0         1.010       $977.8         0.986
MN................................  WNC            $1,745.8      $7,742.7    1,647,853   6,720,385       $968.0         0.920       $890.1         0.898
MO................................  WNC            $2,363.1      $7,742.7    1,961,206   6,720,385       $968.0         1.046     $1,012.4         1.021
ND................................  WNC              $281.8      $7,742.7      240,878   6,720,385       $968.0         1.015       $982.9        0.991 
[[Page 4487]]                                                                                                                                           
                                                                                                                                                        
NE................................  WNC              $648.4      $7,742.7      602,363   6,720,385       $968.0         0.934       $904.4         0.912
SD................................  WNC              $322.8      $7,742.7      259,034   6,720,385       $968.0         1.082     $1,047.0         1.056
AR................................  WSC            $1,125.1     $11,951.9      891,179   9,667,520       $971.0         1.021       $991.6         1.000
LA................................  WSC            $1,945.3     $11,951.9    1,499,269   9,667,520       $971.0         1.050     $1,019.1         1.028
OK................................  WSC            $1,477.6     $11,951.9    1,206,135   9,667,520       $971.0         0.991       $962.2         0.970
TX................................  WSC            $7,403.9     $11,951.9    6,070,937   9,667,520       $971.0         0.986       $957.9         0.966
AZ................................  MT             $1,623.4      $5,169.9    1,368,843   5,033,336       $888.0         1.155     $1,025.3         1.034
CO................................  MT             $1,153.3      $5,169.9    1,282,489   5,033,336       $888.0         0.876       $777.5         0.784
ID................................  MT               $354.7      $5,169.9      360,723   5,033,336       $888.0         0.957       $850.1         0.857
MT................................  MT               $301.1      $5,169.9      306,163   5,033,336       $888.0         0.957       $850.2         0.857
NM................................  MT               $536.6      $5,169.9      542,709   5,033,336       $888.0         0.963       $854.8         0.862
NV................................  MT               $462.0      $5,169.9      466,297   5,033,336       $888.0         0.965       $856.6         0.864
UT................................  MT               $559.1      $5,169.9      537,273   5,033,336       $888.0         1.013       $899.7         0.907
WY................................  MT               $179.7      $5,169.9      168,839   5,033,336       $888.0         1.036       $920.2         0.928
AK................................  PAC              $342.4     $13,097.3      188,915  13,902,132       $676.0         1.924     $1,300.5         1.312
CA................................  PAC            $9,892.5     $13,097.3   10,381,206  13,902,132       $676.0         1.011       $683.8         0.690
HI................................  PAC              $255.6     $13,097.3      356,267  13,902,132       $676.0         0.762       $514.8         0.519
OR................................  PAC              $966.2     $13,097.3    1,103,313  13,902,132       $676.0         0.930       $628.4         0.634
WA................................  PAC            $1,640.6     $13,097.3    1,872,431  13,902,132       $676.0         0.930       $628.7         0.634
                                               ---------------------------------------------------------------------------------------------------------
      National Median.............  ..........  ............  ............  ..........  ..........  ............  ...........       $991.6   ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------

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

Formula Share

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

SW=F1 x F2 x F3.

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

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

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

Table Explanation

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

      Table 5.--Formula Factors, Weight and Formula Share by State      
------------------------------------------------------------------------
                                                                 Formula
        State A           F1 B      F2 C      F3 D    Weight E   share F
------------------------------------------------------------------------
Alabama...............     2.381     0.740     0.843     1.484    0.0155
Alaska................     0.134     2.114     1.312     0.371    0.0039
Arizona...............     1.609     0.722     1.034     1.201    0.0125
Arkansas..............     1.480     0.827     1.000     1.224    0.0127
California............     9.396     0.586     0.690     3.794    0.0395
Colorado..............     1.269     1.370     0.784     1.364   0.0142 
[[Page 4488]]                                                           
                                                                        
Connecticut...........     0.742     1.188     1.256     1.108    0.0115
Delaware..............     0.191     0.993     1.205     0.229    0.0024
District of Columbia..     0.286     0.998     0.717     0.205    0.0021
Florida...............     5.420     0.520     0.986     2.779    0.0289
Georgia...............     2.907     0.720     1.087     2.274    0.0237
Hawaii................     0.252     0.407     0.519     0.053    0.0006
Idaho.................     0.426     1.332     0.857     0.487    0.0051
Illinois..............     4.051     1.255     1.169     5.945    0.0619
Indiana...............     2.018     1.191     1.054     2.533    0.0264
Iowa..................     1.134     1.370     1.020     1.584    0.0165
Kansas................     1.010     1.091     0.986     1.086    0.0113
Kentucky..............     2.204     0.976     0.701     1.509    0.0157
Louisiana.............     2.725     0.630     1.028     1.765    0.0184
Maine.................     0.495     1.511     1.116     0.834    0.0087
Maryland..............     1.212     0.998     1.028     1.244    0.0130
Massachusetts.........     1.930     1.230     1.126     2.672    0.0278
Michigan..............     3.687     1.324     1.042     5.089    0.0530
Minnesota.............     1.523     1.656     0.898     2.264    0.0236
Mississippi...........     1.815     0.711     0.826     1.066    0.0111
Missouri..............     2.328     1.092     1.021     2.596    0.0270
Montana...............     0.422     1.530     0.857     0.553    0.0058
Nebraska..............     0.645     1.302     0.912     0.766    0.0080
Nevada................     0.400     0.966     0.864     0.333    0.0035
New Hampshire.........     0.267     1.432     1.178     0.451    0.0047
New Jersey............     1.869     1.089     1.218     2.480    0.0258
New Mexico............     0.836     0.971     0.862     0.699    0.0073
New York..............     7.011     1.172     1.127     9.255    0.0964
North Carolina........     3.014     0.801     1.102     2.660    0.0277
North Dakota..........     0.315     1.782     0.991     0.556    0.0058
Ohio..................     4.347     1.178     1.082     5.540    0.0577
Oklahoma..............     1.755     0.886     0.970     1.508    0.0157
Oregon................     1.180     0.987     0.634     0.738    0.0077
Pennsylvania..........     4.467     1.166     1.194     6.224    0.0648
Rhode Island..........     0.352     1.147     1.037     0.419    0.0044
South Carolina........     1.693     0.716     1.075     1.303    0.0136
South Dakota..........     0.351     1.495     1.056     0.554    0.0058
Tennessee.............     2.580     0.892     0.761     1.750    0.0182
Texas.................     8.289     0.678     0.966     5.430    0.0565
Utah..................     0.547     1.268     0.907     0.629    0.0066
Vermont...............     0.201     1.500     1.244     0.375    0.0039
Virginia..............     2.057     0.932     1.049     2.012    0.0210
Washington............     1.731     1.058     0.634     1.161    0.0121
West Virginia.........     1.138     1.059     0.893     1.076    0.0112
Wisconsin.............     1.722     1.472     0.997     2.527    0.0263
Wyoming...............     0.187     1.524     0.928     0.264    0.0027
                       -------------------------------------------------
      National total..  ........  ........  ........    96.022    1.0000
------------------------------------------------------------------------

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

Opportunity for Public Comment

A. Written Comment Procedures

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

B. Public Hearing Procedures

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

IV. Review Under Executive Order 12866

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

V. Review Under Executive Order 12778

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

VI. Review Under Executive Order 12612

    Executive Order 12612 requires that regulations be reviewed for any 
substantial direct effects on States, on the relationship between the 
national Government and the States, or on the distribution of power 
among various levels of Government. If there are sufficient substantial 
direct effects, the Executive Order requires preparation of a 
federalism assessment to be used in decisions by senior policymakers in 
promulgating or implementing the regulation.
    Today's regulatory action will not have a substantial direct effect 
on the traditional rights and prerogatives of States in relationship to 
the Federal Government. Preparation of a federalism assessment is 
therefore unnecessary.

VII. Review Under the Regulatory Flexibility Act

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

VIII. Review Under the Paperwork Reduction Act

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

IX. Review Under National Environmental Policy Act

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

X. Other Federal Agencies

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

XI. The Catalog of Federal Domestic Assistance

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

List of Subjects in 10 CFR Part 440

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

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

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

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

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


Sec. 440.3  Definitions.

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


Sec. 440.10  Allocation of funds.

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

                                 Table 1                                
                                                                        
                                                                        
------------------------------------------------------------------------
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 
[[Page 4491]]                                                           
                                                                        
Vermont...................................................     1,014,000
Virginia..................................................     2,970,000
Washington................................................     3,775,000
West Virginia.............................................     2,573,000
Wisconsin.................................................     7,061,000
Wyoming...................................................       967,000
                                                           -------------
    Total.................................................   171,258,000
------------------------------------------------------------------------

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


Sec. 440.12  State application.

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


Sec. 440.14  State plans.

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