Federal Register, Volume 60 Issue 107 (Monday, June 5, 1995)

[Federal Register Volume 60, Number 107 (Monday, June 5, 1995)]
[Rules and Regulations]
[Pages 29469-29481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13437]

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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 440

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

Weatherization Assistance Program for Low-Income Persons

AGENCY: Department of Energy.

ACTION: Interim final rule.

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SUMMARY: The Department of Energy (DOE) is today publishing an interim
final rule amending the regulations for the Weatherization Assistance
Program for Low-Income Persons to change the formula used to distribute
funds among the States under the Program. DOE issued the Notice of
Proposed Rulemaking pursuant to the Conference Report on the Department
of Interior and Related Agencies Appropriations Act of 1995 which
accompanied Pub. L. [[Page 29470]] 103-332 and premised the
implementation of the proposed formula on specific language contained
in that report. DOE is issuing this document as an interim final rule
because of Congressional budgetary issues that have surfaced since the
Notice of Proposed Rulemaking was published on January 23, 1995. The
Department has made appropriate revisions in this interim final rule to
accommodate possible rescissions to Fiscal Year 1995 appropriations to
the Program.
The new formula increases the overall equity, among the States, of
fund allocations under the program regulations, while at the same time
preserving existing State program capabilities. The principal criteria
in the formula reflect: Number of low-income households by State,
climatic conditions using weather data by State, and residential energy
expenditures by low-income households by State.

EFFECTIVE DATE: July 5, 1995.

FOR FURTHER INFORMATION CONTACT: Greg Reamy, Weatherization Assistance
Program Division, U.S. Department of Energy, Mail Stop EE-532, 1000
Independence Avenue, SW., Washington, DC 20585, (202) 426-1698.

SUPPLEMENTARY INFORMATION:

I. Introduction

The Department of Energy (DOE or Department) is amending its
regulations to change the formula used to distribute funds for the
Weatherization Assistance Program for Low-Income Persons Program, which
is authorized by Title IV of the Energy Conservation and Production Act
(Act) 42 U.S.C. 6861 et seq. and is codified in 10 CFR part 440. The
Program is also subject to the DOE general financial assistance
regulations in 10 CFR part 600.
Since 1976, the Department of Energy has operated one of the
nation's largest energy conservation programs--the Weatherization
Assistance Program. The goal of the Program is to reduce heating and
cooling costs for low-income families. The program improves the energy
efficiency of the homes of low-income families, reducing their energy
consumption, lowering their fuel bills, increasing the comfort of the
homes, and insuring health and safety. This Program is critical to low-
income populations who are particularly vulnerable--the elderly,
persons with disabilities, and children.
The Program is administered by all 50 States, the District of
Columbia, and certain Indian tribes, which in turn fund nearly 1,200
local agencies to provide weatherization services to eligible low-
income persons. Based on priorities identified by energy audits
conducted by local agencies and other weatherization service providers,
energy efficiency measures are installed, including modifications to
the heating and cooling systems. Consistent with the Act, the Program
focuses particularly on the housing of low-income children, elderly,
and disabled persons. 42 U.S.C. 6861(b).
The formula increases the overall equity, among the States, of fund
allocations under the Program regulations, while at the same time
preserving existing State program capabilities. The Department is
taking this action based in part on the response to a Notice of
Proposed Rulemaking (NOPR) published by DOE in the Federal Register on
January 23, 1995, 60 FR 4480. In addition to accepting written comments
on the NOPR, DOE held two public hearings to solicit oral testimony.
In the Conference Report on the Department of Interior and Related
Agencies Appropriations Act, 1995, the conference committee stated that
sufficient funds were being made available to permit DOE to revise the
formula. H.R. Conf. Rep. No. 740, 103rd Cong., 2nd Sess. 50 (1994). The
intent of the Congress was to provide warmer-weather States a greater
share of the funding, while protecting the Program capacity developed
over the years by colder-weather States. DOE believes that the formula
in the interim final rule satisfies this intent and is consistent with
the requirements of the Act.
The Act requires DOE to allocate funds to States based on the
relative need for weatherization assistance among low-income persons
throughout the States, taking into account the following factors: (1)
The number of dwelling units to be weatherized; (2) the climatic
conditions in each State which may include annual degree days; (3) the
various types of weatherization work to be done; and (4) other factors
as determined by DOE, such as the cost of heating and cooling. 42
U.S.C. 6864(a).
In order to allocate funds under the old formula i.e., (the
existing formula being revised today) each year, DOE applied the
formula in old 10 CFR 440.10(b) to the amount of funds remaining after
training and technical assistance funds were subtracted from the annual
appropriation. The old formula established for each State a minimum
base grant level of $100,000 (Alaska received an additional $100,000).
The remaining available funds were allocated by a mathematical formula
which took into account heating/cooling degree days, total residential
energy use for space heating/cooling, the number of low-income owner-
occupied dwelling units, and the number of low-income renter occupied
dwelling units in the State. This basic formula had remained unchanged
since 1977. Data used in the formula for weather, residential energy
use, and population were however updated several times. The data for
program year 1993 were updated to include the 1990 census data.
As revised today, the new formula includes three elements: The
number of low-income households below 125 percent of the poverty level,
giving equal weight to owners and renters; climatic conditions across
the country using heating and cooling degree days; and residential
energy expenditures per low-income household per State.
The new formula buffers States from serious losses in program
capacity, while at the same time allowing warmer-States to gain the
benefits of a new formula. Consistent with these two objectives, the
formula implementation establishes a fixed base amount of funds for
each State that is derived from the amount received for the fiscal year
1993, while remaining funds will be distributed pursuant to the
formula. Fiscal year 1993 was used to fix the base amounts because it
was the most recent available data when Congress passed the fiscal year
1995 appropriation.

II. Amendments to the Weatherization Assistance Program Formula and
Discussion of Public Comments

This part of the Supplementary Information discusses, where
appropriate, the proposed changes to the regulations, comments received
pertaining to the proposed changes, and the DOE final action.

Section 440.3 Definitions

No comments were received on the definitions and without change the
Department is finalizing the proposed amendments to Sec. 440.3.
DOE amends this section by deleting the references to the old
formula which are not a part of the new formula. The definitions
deleted are: ``Number of owner-occupied units in the State''; ``number
of low-income, renter-occupied dwelling units in the State'';
``percentage of total residential energy used for space cooling''; and
``percentage of total residential energy used for space heating''.
Additionally, several definitions are added to Sec. 440.3 which
describe the new criteria to be used in the new formula. DOE adds a
definition of ``base allocation,'' as set forth in Sec. 440.10(b)(1),
which refers to the fixed base amount each State receives. That amount
is [[Page 29471]] derived from each State's fiscal year 1993 allocation
of funds.
DOE also adds definitions of ``program allocation'' and ``total
program allocations.'' The former represents the amount of funds (base
allocation plus formula allocation) to be distributed to each State.
The latter refers to the annual appropriation less funds reserved for
training and technical assistance.

Section 440.10(b) Allocation of Funds

DOE deletes the old formula in Sec. 440.10(b) and replaces it with
the new formula set forth in revised Sec. 440.10(b). Paragraph (b)(1)
of Sec. 440.10 provides for a program allocation (PA) for each State
consisting of two parts. The two parts are: (1) A fixed amount of money
(derived from the State's FY 1993 allocation), which is referred to as
a State's ``Base Allocation'' (BA) (See Table 1); and (2) an amount of
money referred to as the ``Formula Allocation'' (FA), which is
determined by application of the new formula.
As mentioned earlier, DOE held two public hearings on the NOPR. Ten
of the eleven speakers offered testimony in support of the proposed
formula. One speaker expressed concern over the source of weather data
in the form of heating and cooling degree days which was addressed in
the proposed formula, but not specifically in the data. Additionally,
the Department received 9 written comments generally supporting the
formula change. However, 2 of the 9 written comments, while generally
supporting the formula change, expressed concern about current and
future funding levels, including possible Congressional budgetary
actions on fiscal year 1995 appropriations and their effect on
implementation. These commenters reserved the right to withdraw their
support if funding levels are revised. Two commenters was generally
non-supportive of the change as proposed.
One comment proposed that all funds above the fiscal year 1993
program allocation be provided to those States that would gain under
the proposed formula; no other State would receive additional funds
until ``the previously disadvantaged States (i.e. warmer-weather
States) achieve equity.'' Thereafter, the Program Allocation equation
would be applied to all States. In making this proposal, however, the
comment erroneously argues that colder-weather States would lose no
money because they would remain at the current Base Allocation. In
fact, limiting these States to their fiscal year 1993 base allocation
would lower their program funds because they would not benefit from
later higher increases in funding levels for the Program. DOE disagrees
that the new formula ``assumes historic equity of the funding
allocation'' since the new formula does shift a greater share of funds
to warmer-weather States. The new formula embodies congressional intent
of allowing for a more equitable apportionment of funds while
protecting program capacity of any State. For these reasons, DOE does
not believe that the formula implementation contained in the notice of
proposed rulemaking should be modified as suggested by this commenter.
One comment questioned the appropriateness of multiplying F2
(climate) and F3 (energy expenditures). The comment argued that these
factors are so similar that the outcome is similar to the old formula,
presumably the squaring (or multiplying together) of degree days. Our
analysis of weather and expenditure factors, however, indicates that
there is not much similarity between these two factors; that is, the
analysis indicated that the weather factor is not very indicative of
energy expenditures. As a result, DOE concludes that these two factors
represent two distinct elements contributing to the need for
weatherization assistance by low-income households. Throughout its
history, the Program has been concerned with both the need for energy
generated by weather conditions and the importance of helping low-
income households afford their energy bills. Adding these elements, as
suggested by the comment, would reduce the relative importance of each
in the new formula allocation.
The same comment expressed concern that the new formula does not
protect program capacity developed over the years by colder-weather
States. This comment contends that the new formula provides a greater
share of funds to warmer-weather States and that the formula
disproportionally affects the distribution of funds. The comment thus
concludes that the new formula does not ``work if it requires a hold
harmless clause to meet the intent of Congress.'' DOE notes here that
the formula did not include a ``hold harmless clause,'' per se.
Moreover, the proposed formula as a whole balances congressional intent
of maintaining program capacity and apportioning funds more equitably
among the States. Under the formula, no State loses more than one-half
of one-percent of FY 1994 funds unless total program allocations fall
below $220 million. All States gain when funds rise above this amount.
Changing individual pieces of the formula would disrupt this balance.
Likewise, although the base allocation could be changed, changing this
element of the formula would alter the resulting overall balance.
One comment recommended including only cooling degree days (CDDs)
associated with an unspecified level of extreme high temperatures and
formulation of the formula so that no ``cold-weather'' State would have
an ``energy factor'' less than one (1). The formula does not have an
energy factor per se. Colder States, in fact, do have weather factors
greater than one. When relatively lower formula shares result for
colder-weather States, it is due to fewer low-income households or
lower energy prices.
Another comment indicated dissatisfaction with the methods used by
the National Oceanic and Atmospheric Administration (NOAA) to calculate
heating and cooling degree days. However, the comment did not offer a
viable alternative that could be readily adopted. DOE notes that this
rule cannot govern NOAA calculations, but that it does provide a
mechanism for updating the data for the formula factors, including
weather data.
One comment recommended eliminating the energy expenditure factor
to avoid ``taking into account the constant fluctuation in fuel
prices.'' Energy expenditures are consumption multiplied by price.
Review of recent changes in State energy prices, consumption, and
resulting energy expenditures indicates that the impact of fluctuations
in any of these factors on final State shares tends to be relatively
small. In fact, because price and consumption changes in any given year
are often partially offsetting, percentage changes in expenditures from
year to year tend to be smaller than changes in consumption.
Another comment recommended that DOE phase in the formula over a
five year period to correct for fluctuations in funding formula
factors. This recommendation was based on the premise that it would
take several years before it could be determined if the proposed
formula needs to be adjusted. While there will be some fluctuation from
year to year, the comment merely speculated that the degree of
fluctuation warranted adding a complex adjustment to the formula. DOE
agrees that there will be some fluctuation from year to year. However,
DOE's analysis reveals no wide degree of fluctuation that would disrupt
the Program. Thus, no change has been made in the implementation of the
new formula. However, DOE will be monitoring the year to year
fluctuations in the allocations. If these fluctuations are
[[Page 29472]] significant and persistent, DOE should be able to
identify whether a formula factor is the cause and would act to remedy
the problem.
One comment suggested continuing to count the families in multi-
family buildings as one-half a household. Although households in multi-
family buildings tend to use less energy than households in single-
family homes, these and other differences in energy use are reflected
in the energy expenditure factor F3. Therefore, no change needs to be
made.
Revised Sec. 440.10(b) maintains the current capacity of States to
deliver weatherization services and sustains the strong network
developed for this purpose by minimizing the impact of the formula
change on colder-weather States. Those States would otherwise face
layoffs of weatherization crews that would severely restrict their
ability to provide reasonable weatherization services to their low-
income residents.
For all the reasons set forth above, DOE has made no substantive
changes in the proposed Sec. 440.10(b).

Summary of Revised Formula

An explanation of the revised allocated allocation formula is set
forth below. This explanation is based on the summary provided in the
notice of proposed rulemaking, with minor clarifying changes. The
figures contained in Tables 1 through 5 are based on available data as
of fiscal year 1995. Depending upon changes in data available
thereafter, some of these figures may change periodically. See
Sec. 440.10(e) for further information pertaining to updates.
The program allocation is expressed mathematically as:

PA=BA+FA

Base Allocation

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

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

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

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

Formula Allocation

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

Formula Factors

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

F1 Population Factor

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

F1--State Population Factor
[GRAPHIC][TIFF OMITTED]TR05JN95.004

Table 2 presents the number of low-income households and the
population factor (F1) for each State.
Table Explanation
Column A--State Name.
Column B--Number of Low-Income Households per State.
Column C--State Population Factor (F1)--is calculated by dividing
the number of low-income households in a given State (Column B) by the
national total (16,231,250--shown at the bottom of the table) and
multiplied by 100.

[[Page 29473]]
Table 2.--Low-Income Households by State

Percent of
Number of national low-
State low-income income
households households
(F1)
A B C

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

F2 Climate Factor

The second factor, climatic conditions, is obtained by adding the
heating and cooling degree days for each State, treating the energy
needed for heating and cooling proportionately.
The new formula uses (as did the old formula) the thirty year
averages of heating degree days (HDD) and cooling degree days (CDD) as
reported by the National Oceanic and Atmospheric Administration (NOAA)
to account for climatic conditions. Heating and cooling consumption
data were obtained from Table 28 of the Energy Information
Administration's (EIA) Household Energy Consumption and Expenditures
1990.

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

HDD and CDD Ratios

State HDD Ratio
[GRAPHIC][TIFF OMITTED]TR05JN95.000

State CDD Ratio
[GRAPHIC][TIFF OMITTED]TR05JN95.001

where
[GRAPHIC][TIFF OMITTED]TR05JN95.002

National heating consumption equals 4.79 quadrillion Btu and air
conditioning (cooling) consumption equals .49 quadrillion Btu. Cooling
consumption divided by heating consumption rounds to 0.1. The ratio of
cooling to heating energy consumption reflects the fact that nationally
households use, on average, one tenth as much energy for cooling as for
heating. This ratio is reflected in the old allocation formula.
National data are used because of the absence of complete State-
specific data.
In order to account for the variation in weather in a simple but
equitable manner, DOE compares each State's climate to the national
median. Each State's HDD and CDD is divided by the series' median
value. Using the median as the denominator ensures that half of the
States would fall above 1 and half would fall below 1. A State HDD
ratio (HDD divided by the median) greater than 1 indicates a State with
relatively cold winters, while a value greater than 1 for a State's CDD
ratio indicates a State with a relatively warmer summer. To find the
median of any odd series of numbers, the series is arranged in
ascending order and the value that occurs in the middle of the series
is chosen. The series relevant to F2 is odd because it consists of the
50 States and the District of Columbia. The median value occurs at the
26th observation (State). The median was chosen, rather than the mean,
because of its characteristic of being ``insensitive'' to extreme
values. States like Alaska and Florida tend to skew or pull the average
towards one extreme or another. In calculating the heating and cooling
ratios the old formula multiplied each State's HDD's by the national
space heating consumption and its CDD's by the national air
conditioning (cooling) consumption. The new formula simplifies this
calculation by combining these two numbers into one by dividing cooling
consumption by heating consumption (as reported in Table 28 of the
Household Energy Consumption and Expenditures 1990). Each State's CDD
ratio is multiplied by this one number (which rounds to 0.1). The final
climate factor for each State is then the sum of the HDD and CDD
ratios.
Table 3 presents the data used to calculate the climate factor (F2)
for each State.
Table Explanation
Column A--State Name.
Column B--State heating degree days (HDD) as reported by the NOAA.
Column C--State HDD Ratio, calculated by dividing each State's HDD
by the national median (5,429.9--as shown on the bottom of Table 2).
Column D--State cooling degree days (CDD) as reported by the NOAA.
Column E--State CDD divided by the national median (867.3--as shown
on the bottom of Table 2).
Column F--State CDD Ratio, calculated by multiplying Column E by
the ratio of cooling consumption to heating consumption, which is 0.1.
Column G--State Climate Factor (F2), calculated by summing each
State's HDD and CDD ratios.

Table 3.--Weather Data by State

Heating Cooling CDD Climate
State degree HDD ratio degree divided by CDD ratio factor
days days the median (F2)
A B C D E F G

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

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Median.................................. 5,429.9 .......... 867.3 .......... .......... ..........

F3 Residential Energy Expenditure Factor

The final factor, residential energy expenditures by low-income
households was determined to be the closest approximation, given
available data, of the financial burden to low-income households of
energy use. Based on the same reasoning as discussed for the climate
factor, the national median is used to calculate the State residential
energy expenditure factors.

State Residential Energy Expenditure Factor
[GRAPHIC][TIFF OMITTED]TR05JN95.005

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

[[Page 29476]]
------------------------------------------------------------------------
Census division State abbreviations
------------------------------------------------------------------------
Northeast (NE)..................... CT, MA, ME, NH, RI, VT
Mid-Atlantic (MA).................. NJ, NY, PA
South Atlantic (SA)................ DC, DE, MD, VA, WV, FL, GA, SC, NC
East North Central (ENC)........... IL, IN, MI, OH, WI
East South Central (ESC)........... AL, KY, MS, TN
West North Central (WNC)........... IA, KS, MN, MO, ND, NE, SD
West South Central (WSC)........... AR, LA, OK, TX
Mountain (MN)...................... AZ, CO, ID, MT, NM, NV, UT, WY
Pacific (PAC)...................... AK, CA, HI, OR, WA
------------------------------------------------------------------------

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

Table Explanation

Column A--State Abbreviation.
Column B--Census Division Abbreviation.
Column C--Residential Energy Expenditures by State (State EE) is
published in the EIA's State Energy Price and Expenditure Report 1991
(SEPER). Data is expressed in millions of dollars.
Column D--Residential Energy Expenditures by Census division (Div
EE) is the sum of the State data in Column C for each Census division.
Data is expressed in millions of dollars.
Column E--Number of Households per State (State #HH) was obtained
from the Bureau of the Census' U.S. Summary of General Housing
Characteristics, 1990 Census.
Column F--Number of Households per Census division (Division #HH)
is the sum of the State data in Column E for each Census division.
Column G--Residential Energy Expenditures per Low-Income Household
for each State's Census division (Division EE/#LIHH) is published in
the EIA's Household Energy Consumption and Expenditures 1990--
Supplement: Regional.
Column H--The ratio of each State's Residential Energy Expenditures
per Household (State EE/#HH) over the Residential Energy Expenditures
per Household for each State's Census division (Division EE/#HH) is
calculated as follows:
[GRAPHIC][TIFF OMITTED]TR05JN95.003

Column I--Residential Energy Expenditures per Low-Income Household
by State (State EE/#LIHH) is calculated as follows:

Column I = Column G x Column H
Column J--``Residential Energy

Expenditure Factor (F3)'' is calculated by dividing the estimate of
residential energy expenditures per low-income households for each
State by the national median ($998.52).

Table 4.--Residential Energy Expenditure Factor Details

Ratio of
state
Residential energy Residential
Residential Residential energy expenditure energy
energy energy Households expenditures per expenditures
State abbrev. Census expenditures expenditures Households (for per low- household per low- Expenditure
division (by state) (for census (by state) census income to division income factor (F3)
(million $) division) division) household energy household
(million $) (for census expenditure (by state)
division) per
household
A B C D E F G H I J

--------------------------------------------------------------------------------------------------------------------------------------------------------
CT.............................. NE $2,024.20 $7,476.80 $1,230,479 $4,942,714 $1,150 $1.087 $1,250.62 $1.2565
MA.............................. NE 3,264.10 7,476.80 2,247,110 4,942,714 1,150 0.960 1,104.30 1.1095
ME.............................. NE 708.30 7,476.80 465,312 4,942,714 1,150 1.006 1,157.23 1.1627
NH.............................. NE 596.90 7,476.80 411,186 4,942,714 1,150 0.960 1,103.60 1.1088
RI.............................. NE 530.50 7,476.80 377,977 4,942,714 1,150 0.928 1,067.01 1.0720
VT.............................. NE 352.80 7,476.80 210,650 4,942,714 1,150 1.107 1,273.25 1.2792
NJ.............................. MA 4,114.50 19,378.30 2,794,711 13,929,999 1,157 1.058 1,224.47 1.2302
NY.............................. MA 8,785.50 19,378.30 6,639,322 13,929,999 1,157 0.951 1,100.55 1.1057
DC.............................. SA 222.40 20,804.00 249,634 16,503,063 988 0.707 698.24 0.7015
DE.............................. SA 369.30 20,804.00 247,497 16,503,063 988 1.184 1,169.46 1.1749
MD.............................. SA 2,309.50 20,804.00 1,748,991 16,503,063 988 1.047 1,034.92 1.0398
PA.............................. MA 6,478.30 19,378.30 4,495,966 13,929,999 1,157 1.036 1,198.41 1.2040
VA.............................. SA 2,920.60 20,804.00 2,291,830 16,503,063 988 1.011 998.77 1.0034
WV.............................. SA 742.10 20,804.00 688,557 16,503,063 988 0.855 844.69 0.8486
AL.............................. ESC 1,857.90 6,423.40 1,506,790 5,651,671 772 1.085 837.53 0.8415
FL.............................. SA 6,144.50 20,804.00 5,134,869 16,503,063 988 0.949 937.85 0.9422
GA.............................. SA 3,063.30 20,804.00 2,366,615 16,503,063 988 1.027 1,014.46 1.0192
KY.............................. ESC 1,474.00 6,423.40 1,379,782 5,651,671 772 0.940 725.63 0.7290
MS.............................. ESC 1,068.00 6,423.40 911,374 5,651,671 772 1.031 795.98 0.7997
NC.............................. SA 3,390.90 20,804.00 2,517,026 16,503,063 988 1.069 1,055.85 1.0608
SC.............................. SA 1,641.40 20,804.00 1,258,044 16,503,063 988 1.035 1,022.57 1.0274
TN.............................. ESC 2,023.50 6,423.40 1,853,725 5,651,671 772 0.960 741.46 0.7449
IL.............................. ENC 6,017.80 20,660.20 4,202,240 15,596,590 1,074 1.081 1,161.06 1.1665
IN.............................. ENC 2,644.70 20,660.20 2,065,355 15,596,590 1,074 0.967 1,038.20 1.0431
MI.............................. ENC 4,339.90 20,660.20 3,419,331 15,596,590 1,074 0.958 1,029.05 1.0339
MN.............................. WNC 1,868.50 8,200.60 1,647,853 6,720,385 968 0.929 899.49 0.9037
OH.............................. ENC 5,420.90 20,660.20 4,087,546 15,596,590 1,074 1.001 1,075.25 1.0803
WI.............................. ENC 2,236.90 20,660.20 1,822,118 15,596,590 1,074 0.927 995.34 1.0000
AR.............................. WSC 1,168.50 12,362.20 891,179 9,667,520 971 1.025 995.64 1.0003
LA.............................. WSC 1,950.10 12,362.20 1,499,269 9,667,520 971 1.017 987.68 0.9923
NM.............................. MT 545.40 5,476.10 542,709 5,033,336 888 0.924 820.25 0.8241
OK.............................. WSC 1,441.60 12,362.20 1,206,135 9,667,520 971 0.935 907.59 0.9118
[[Page 29477]]

TX.............................. WSC 7,802.00 12,362.20 6,070,937 9,667,520 971 1.005 975.86 0.9804
IA.............................. WNC 1,355.70 8,200.60 1,064,325 6,720,385 968 1.044 1,010.45 1.0152
KS.............................. WNC 1,138.90 8,200.60 944,726 6,720,385 968 0.988 956.32 0.9608
MO.............................. WNC 2,539.40 8,200.60 1,961,206 6,720,385 968 1.061 1,027.15 1.0320
NE.............................. WNC 680.70 8,200.60 602,363 6,720,385 968 0.926 896.44 0.9006
CO.............................. MT 1,214.70 5,476.10 1,282,489 5,033,336 888 0.871 773.06 0.7767
MT.............................. MT 321.50 5,476.10 306,163 5,033,336 888 0.965 857.09 0.8611
ND.............................. WNC 303.20 8,200.60 240,878 6,720,385 968 1.032 998.52 1.0032
SD.............................. WNC 314.20 8,200.60 259,034 6,720,385 968 0.994 962.22 0.9667
UT.............................. MT 620.90 5,476.10 537,273 5,033,336 888 1.062 943.24 0.9477
WY.............................. MT 194.40 5,476.10 168,839 5,033,336 888 1.058 939.77 0.9442
AZ.............................. MT 1,694.00 5,476.10 1,368,843 5,033,336 888 1.137 1,010.08 1.0148
CA.............................. PAC 10,642.80 13,958.20 10,381,206 13,902,132 676 1.021 690.25 0.6935
HI.............................. PAC 273.20 13,958.20 356,267 13,902,132 676 0.764 516.30 0.5187
NV.............................. MT 493.20 5,476.10 466,297 5,033,336 888 0.972 863.29 0.8673
AK.............................. PAC 349.00 13,958.20 188,915 13,902,132 676 1.840 1,243.82 1.2496
ID.............................. MT 392.00 5,476.10 360,723 5,033,336 888 0.999 886.97 0.8911
OR.............................. PAC 1,013.60 13,958.20 1,103,313 13,902,132 676 0.915 618.54 0.6214
WA.............................. PAC 1,679.60 13,958.20 1,872,431 13,902,132 676 0.893 603.95 0.6068

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

The underlying assumption in the calculation of State residential
energy expenditures per low-income household is that the relationship
between a State's residential energy expenditures per household and its
respective divisional residential energy expenditures per household is
the same for its low-income population as it is for its general
population. If State Y's average household spends 100 percent more on
residential energy than the average household in its Census division,
then it is assumed that the low-income households in State Y will also
spend 100 percent more on residential energy than the average low-
income household in its division. For example, assume State Y's
residential energy expenditures per general household is $2,000 and the
average residential energy expenditures per general household in its
division is $1,000. If the average residential energy expenditures per
low-income households for the division is $800, then the residential
energy expenditures per low-income household for State Y would be
$1,600.

Formula Share

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

SW=F1 x F2 x 3.

These State-by-State calculations do not necessarily sum to one. As
a result, each State's weight must be divided by the national total of
each State's weight to obtain the State's Formula Share, as follows:
State's Formula Share=State's Weight/National Total.
Table 5 shows the three factors (from the previous tables) for each
State along with each State's weight and Formula Share.
Table Explanation
Column A--State Name.
Column B--State's Population Factor (F1).
Column C--State's Climatic Factor (F2).
Column D--State's Residential Energy Expenditures Factor (F3).
Column E--State's Weight--F1 x F2 x F3.
Column F--State's Formula Share--State's weight (Column E) divided
by the national total (the sum of Column E).

[[Page 29478]]
Table 5.--Formula Factors, Weight and Formula Share by State

State F1 F2 F3 Weight Share
A B C D E F

----------------------------------------------------------------------------------------------------------------
Alabama........................................ 2.381 0.740 0.841 1.482 0.0156
Alaska......................................... 0.134 2.114 1.250 0.354 0.0037
Arizona........................................ 1.609 0.722 1.015 1.179 0.0124
Arkansas....................................... 1.480 0.827 1.000 1.225 0.0129
California..................................... 9.396 0.586 0.693 3.815 0.0401
Colorado....................................... 1.269 1.370 0.777 1.351 0.0142
Connecticut.................................... 0.742 1.188 1.256 1.108 0.0117
Delaware....................................... 0.191 0.993 1.175 0.223 0.0023
District of Columbia........................... 0.286 0.998 0.702 0.200 0.0021
Florida........................................ 5.420 0.520 0.942 2.655 0.0279
Georgia........................................ 2.907 0.720 1.019 2.133 0.0224
Hawaii......................................... 0.252 0.407 0.519 0.053 0.0006
Idaho.......................................... 0.426 1.332 0.891 0.506 0.0053
Illinois....................................... 4.051 1.255 1.167 5.930 0.0624
Indiana........................................ 2.018 1.191 1.043 2.507 0.0264
Iowa........................................... 1.134 1.370 1.015 1.577 0.0166
Kansas......................................... 1.010 1.091 0.961 1.058 0.0111
Kentucky....................................... 2.204 0.976 0.729 1.569 0.0165
Louisiana...................................... 2.725 0.630 0.992 1.704 0.0179
Maine.......................................... 0.495 1.511 1.163 0.869 0.0091
Maryland....................................... 1.212 0.998 1.040 1.258 0.0132
Massachusetts.................................. 1.930 1.230 1.109 2.633 0.0277
Michigan....................................... 3.687 1.324 1.034 5.049 0.0531
Minnesota...................................... 1.523 1.656 0.904 2.279 0.0240
Mississippi.................................... 1.815 0.711 0.800 1.032 0.0109
Missouri....................................... 2.328 1.092 1.032 2.624 0.0276
Montana........................................ 0.422 1.530 0.861 0.556 0.0058
Nebraska....................................... 0.645 1.302 0.901 0.757 0.0080
Nevada......................................... 0.400 0.966 0.867 0.335 0.0035
New Hampshire.................................. 0.267 1.432 1.109 0.425 0.0045
New Jersey..................................... 1.869 1.089 1.230 2.504 0.0263
New Mexico..................................... 0.836 0.971 0.824 0.669 0.0070
New York....................................... 7.011 1.172 1.106 9.084 0.0955
North Carolina................................. 3.014 0.801 1.061 2.560 0.0269
North Dakota................................... 0.315 1.782 1.003 0.563 0.0059
Ohio........................................... 4.347 1.178 1.080 5.532 0.0582
Oklahoma....................................... 1.755 0.886 0.912 1.417 0.0149
Oregon......................................... 1.180 0.987 0.621 0.724 0.0076
Pennsylvania................................... 4.467 1.166 1.204 6.274 0.0660
Rhode Island................................... 0.352 1.147 1.072 0.433 0.0046
South Carolina................................. 1.693 0.716 1.027 1.245 0.0131
South Dakota................................... 0.351 1.495 0.967 0.507 0.0053
Tennessee...................................... 2.580 0.892 0.745 1.714 0.0180
Texas.......................................... 8.289 0.678 0.980 5.511 0.0580
Utah........................................... 0.547 1.268 0.948 0.657 0.0069
Vermont........................................ 0.201 1.500 1.279 0.385 0.0040
Virginia....................................... 2.057 0.932 1.003 1.924 0.0202
Washington..................................... 1.731 1.058 0.607 1.111 0.0117
West Virginia.................................. 1.138 1.059 0.849 1.023 0.0108
Wisconsin...................................... 1.722 1.472 1.000 2.535 0.0267
Wyoming........................................ 0.187 1.524 0.944 0.269 0.0028

----------------------------------------------------------------
National Total............................. ........... ........... ........... 95.083 1.0000

Each State's share of the ``Formula Allocation'' is then calculated
by multiplying the total ``Formula Allocation'' by each State's
``Formula Share''.

Section 440.10(c) Allocation of Funds

Two comments noted that since the NOPR was published on January 23,
1995, Congressional budgetary issues, which may affect the level of
program funds available, have surfaced. In the NOPR, Sec. 440.10(c)
referred to fiscal year 1995 funding. At that time, the Department
contemplated possible reductions in funding beginning after fiscal year
1995. Because of the possibility of reductions in fiscal year 1995
funding, this provision has been modified from the proposed language to
clarify that the level of appropriations referred to in this section is
that found in Pub. L. 103-332. Therefore, any increase in funds above
the total program allocations level under Pub. L. 103-332 will be
allocated according to the new formula. Should total program
allocations for any fiscal year fall below the total program
allocations under Pub. L. 103-332, then each State's program allocation
shall be reduced from its allocated amount under Pub. L. 103-332 by the
same percentage. For example, if total program allocations for a given
year were 10 percent below the amount under Pub. L. 103-332, then each
State's [[Page 29479]] program allocation would be 10 percent less than
under Pub. L. 103-332. This approach distributes the effect of lower
appropriations equitably.

Section 440.10(d) Allocation of Funds

In Sec. 440.10(d), DOE clarifies the sources of data used in the
new formula. All sources of data are publicly available. Since
publication of the NOPR, DOE has obtained updated data on State energy
expenditures and incorporated this new data in Tables 4 and 5 of this
interim final rule.

Section 440.10(e) Allocation of Funds

Section 440.10(e) alerts States of possible impacts on their
weatherization programs that may occur due to changes in data. For any
given program year when changes occur, DOE will delay reallocations
based on new data until the following year. This allows States to plan
for anticipated shifts in funds and develop alternative strategies for
minimizing the impact of such change.

Section 440.12 State Application

In Sec. 440.12(b)(4) the term ``tentative allocation'' is deleted
and ``program allocation'' is substituted to provide consistency with
Sec. 440.10. It should be noted that the original intent in using the
term ``tentative allocation'', that is, retaining DOE's discretion to
reallocate funds if they are not used on a timely basis, is preserved
by substituting ``program allocation'' as it applies in Sec. 440.10 (f)
and (g). The term ``tentatively'' in Sec. 440.14(b)(9)(vi) is deleted.

Section 440.14 State Plans

In Sec. 440.14(b)(8)(i) the term ``tentative allocation'' has been
retained. This term in context refers to State allocation (rather than
DOE allocation) of funds among their subgrantees and the right of the
State, after providing appropriate due process, to reduce or withdraw
these funds for non-performance or other deficiencies.

III. Interim Final Effect

DOE has issued today's regulatory amendments as an interim final
rule to reserve the possibility of reopening the record in light of the
ultimate disposition of pending budgetary bills during the current
session of Congress. The Department anticipates removing the interim
final designation before the end of 1995.

IV. Review Under Executive Order 12866

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

V. Review Under Executive Order 12778

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

VI. Review Under Executive Order 12612

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

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

VIII. Review Under the Paperwork Reduction Act

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

IX. Review Under National Environmental Policy Act

The interim final rule provides the new formula which will be used
to distribute funds among the States pursuant to the regulations for
the Weatherization Assistance Program for Low-Income Persons. Over the
years many warmer-weather States have maintained that the old formula
overallocated funds to colder-weather States. The purpose of the new
formula is to increase the overall equity among the States. The
Department has determined that this interim final rule is covered under
the Categorical Exclusion found at paragraph A6 of appendix A to
subpart D, 10 CFR part 1021, which applies to the establishment of
procedural rulemakings. Accordingly, neither an environmental
assessment nor an environmental impact statement is required.

X. Other Federal Agencies

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

XI. The Catalog of Federal Domestic Assistance

The Catalog of Federal Domestic Assistance number for the
[[Page 29480]] Weatherization Assistance Program for Low-Income Persons
is 81.042.

List of Subjects in 10 CFR Part 440

Administrative practice and procedure, Aged, Energy conservation,
Grant programs-energy, Grant programs-housing and community
development, Handicapped, Housing standards, Indians, Reporting and
recordkeeping requirements, and Weather.

Issued in Washington, DC, on May 25, 1995.
Christine A. Ervin,
Assistant Secretary, Energy Efficiency and Renewable Energy.

For the reasons set forth in the preamble, DOE hereby amends
chapter II of title 10, Code of Federal Regulations, as set forth
below:

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

1. The authority citation for part 440 is revised to read as
follows:

Authority: 42 U.S.C. 6861-6871; 42 U.S.C. 7191.

2. In Sec. 440.3, remove the definitions for ``Number of Low-
Income, Owner Occupied Dwelling Units in the State''; ``Number of Low-
Income, Renter-Occupied Dwelling Units in the State''; ``Percentage of
Total Residential Energy Used for Space Cooling''; ``Percentage of
Total Residential Energy Used for Space Heating''; and add the
following definitions in alphabetical order to read as follows.

Sec. 440.3 Definitions.

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

Sec. 440.10 Allocation of funds.

(a) DOE shall allocate financial assistance for each State from
sums appropriated for any fiscal year, upon annual application.
(b) Based on total program allocations at or above the amount of
total program allocations under Pub. L. 103-332, DOE shall determine
the program allocation for each State from available funds as follows:
(1) Allocate to each State a ``Base Allocation'' as listed in Table
1.

Table 1

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

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

(2) Subtract 171,258,000 from total program allocations.
(3) Calculate each State's formula share as follows:
(i) Divide the number of ``Low Income'' households in each State by
the number of ``Low Income'' households in the United States and
multiply by 100.
(ii) Divide the number of ``Heating Degree Days'' for each State by
the median ``Heating Degree Days'' for all States.
(iii) Divide the number of ``Cooling Degree Days'' for each State
by the median ``Cooling Degree Days'' for all States, then multiply by
0.1.
(iv) Calculate the sum of the two numbers from paragraph (b)(3)(ii)
and (iii) of this section.
(v) Divide the residential energy expenditures for each State by
the number of households in the State.
(vi) Divide the sum of the residential energy expenditures for the
States in each Census division by the sum of the households for the
States in that division.
(vii) Divide the quotient from paragraph (b)(3)(v) of this section
by the quotient from paragraph (b)(3)(vi) of this section.
(viii) Multiply the quotient from paragraph (b)(3)(vii) of this
section for each State by the residential energy expenditures per low-
income household for its respective Census division.
(ix) Divide the product from paragraph (b)(3)(viii) of this section
for each State by the median of the products of all States.
(x) Multiply the results for paragraph (b)(3)(i), (iv) and (ix) of
this section for each State.
(xi) Divide the product in paragraph (b)(3)(x) of this section for
each State by the sum of the products in paragraph (b)(3)(x) of this
section for all States.
(4) Calculate each State's program allocation as follows:
(i) Multiply the remaining funds calculated in paragraph (b)(2) of
this section by the formula share calculated in paragraph (b)(3)(xi) of
this section,
(ii) Add the base allocation from paragraph (b)(1) of this section
to the product of paragraph (b)(4)(i) of this section.
(c) Should total program allocations for any fiscal year fall below
the total program allocations under Pub. L. 103- 332, then each State's
program [[Page 29481]] allocation shall be reduced from its allocated
amount under Pub. L. 103-332 by the same percentage as total program
allocations for the fiscal year fall below the total program
allocations under Pub. L. 103-332.
(d) All data sources used in the development of the formula are
publicly available. The relevant data is available from the Bureau of
the Census, the Department of Energy's Energy Information
Administration and the National Oceanic and Atmospheric Administration.
(e) Should updates to the data used in the formula become available
in any fiscal year, these changes would be implemented in the formula
in the following program year.
(f) DOE may reduce the program allocation for a State by the amount
DOE determines cannot be reasonably expended by a grantee to weatherize
dwelling units during the budget period for which financial assistance
is to be awarded. In reaching this determination, DOE will consider the
amount of unexpended financial assistance currently available to a
grantee under this part and the number of dwelling units which remains
to be weatherized with the unexpended financial assistance.
(g) DOE may increase the program allocation of a State by the
amount DOE determines the grantee can expend to weatherize additional
dwelling units during the budget period for which financial assistance
is to be awarded.
(h) The Support Office Director shall notify each State of the
program allocation for which that State is eligible to apply.

4. Section 440.12 is amended by revising paragraph (b)(4) to read
as follows:

Sec. 440.12 State applications.

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

Sec. 440.14 State plans.

* * * * *
(b) * * *
(9) * * *
(vi) The amount of weatherization grant funds allocated to the
State under this part;
* * * * *
[FR Doc. 95-13437 Filed 6-2-95; 8:45 am]
BILLING CODE 6450-01-P