[Federal Register Volume 66, Number 225 (Wednesday, November 21, 2001)]
[Rules and Regulations]
[Pages 58364-58366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28823]


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DEPARTMENT OF ENERGY

Office of Energy Efficiency and Renewable Energy

10 CFR Part 440

RIN 1904-AB05


Weatherization Assistance Program for Low-Income Persons

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Final rule.

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SUMMARY: The Department of Energy adopts, with changes, the interim 
final rule published in the Federal Register on December 8, 2000, to 
amend the Weatherization Assistance Program for Low-Income Persons. 
This final rule also incorporates certain statutory amendments which 
were discussed in the preamble of the interim final rule published on 
December 8, 2000.

EFFECTIVE DATE: November 21, 2001.

FOR FURTHER INFORMATION CONTACT: Greg Reamy, Office of Building 
Technology Assistance, U.S. Department of Energy, Mail Stop EE-42, 5E-
066, 1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-
4074.

SUPPLEMENTARY INFORMATION:

I. Introduction
II. Amendments to the Weatherization Assistance Program
III. Procedural Requirements
IV. Other Federal Agencies
V. The Catalog of Federal Domestic Assistance

[[Page 58365]]

I. Introduction

    The Department of Energy (DOE or Department) amends the program 
regulations for the Weatherization Assistance Program for Low-Income 
Persons (WAP or Program). This Program is authorized by Title III of 
the Energy Conservation and Production Act, as amended (Act), 42 U.S.C. 
6561 et seq. The changes are necessitated by the statutory amendments 
enacted by the Congress on November 9, 2000, as part of the Energy 
Policy and Conservation Act Amendments of 2000. These statutory 
changes: (1) Eliminate the requirement in Sec. 440.18 that 40 percent 
of the funds used to weatherize a home be spent for materials; (2) 
restructure the method in Sec. 440.18 by which States compute their 
average cost per home by increasing the average cost per home to $2,500 
beginning in 2000; and (3) eliminate the separate per dwelling unit 
average in Sec. 440.18 for capital intensive improvements and include 
capital intensive costs as a part of the average costs.
    In the preamble of the December 8, 2000, interim final rule, DOE 
indicated that it intended to include a discussion of the program 
regulations in the final rule. This discussion was intended to explain 
and clarify areas of the regulations where no changes were made. This 
discussion was to provide States and local agencies background 
information on the existing program regulations as well as some of the 
discussion used in the preambles of previous rulemakings, since many 
State and local staffs have changed several times over the years and 
much institutional knowledge has been lost. DOE has decided not to 
provide this information in this final rule, but rather through program 
guidance documents. DOE has also amended, as necessary, other sections 
in the regulations which reference the principal sections that were 
affected.

II. Amendments to the Weatherization Assistance Program

Section 440.14  State Plans

    DOE eliminates Sec. 440.14(c)(6)(ix) referring to the 40 percent 
materials requirement.

Section 440.18  Allowable Expenditures

    DOE eliminates Sec. 440.18(a) referring to the 40 percent materials 
requirement and the need for a waiver. This provision was deleted from 
the statute as part of the Energy Policy and Conservation Act 
Amendments of 2000. DOE changes new Sec. 440.18(a) and (b) by 
increasing the average cost per home to $2,500 beginning in 2000.
    DOE eliminates the separate per dwelling unit average by deleting 
Sec. 440.18(a)(ii)(2) for capital intensive improvements and now 
includes capital intensive costs as a part of the average cost per 
home.

III. Procedural Requirements

A. Review Under Executive Order 12866

    Today's final rule has been determined not to be ``a significant 
regulatory action'' under Executive Order 12866, ``Regulatory Planning 
and Review,'' 58 FR 51735 (October 4, 1993). Accordingly, this action 
was not subject to review under that Executive Order by the Office of 
Information and Regulatory Affairs of the Office of Management and 
Budget (OMB).

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. DOE 
published an interim final rulemaking to amend 10 CFR part 440 to give 
State and local agencies additional flexibility in addressing the 
weatherization needs of low-income citizens and to make other changes 
designed to streamline and update DOE's Weatherization Assistance 
Program. The interim final rule, and the preceding proposed rule, were 
developed following extensive consultation with State and local 
stakeholders and after reviewing comments received. DOE said that the 
previous interim final rule and the preceding proposed rule would not 
have any adverse economic impact on small governments, organizations or 
businesses. Accordingly, DOE certifies that the final rule, as 
promulgated, will not have a significant economic impact on a 
substantial number of small entities.

C. Review Under the Paperwork Reduction Act

    No new collection of information is imposed by this final rule. 
Accordingly, no clearance by the Office of Management and Budget is 
required under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

D. Review Under the National Environmental Policy Act

    DOE has concluded that promulgation of this final rule falls into a 
class of actions that would not individually or cumulatively have a 
significant impact on the human environment, as determined by DOE 
regulations implementing the National Environmental Policy Act of 1969, 
(42 U.S.C. 4321 et seq.) Specifically, this final rule is covered under 
the Categorical Exclusion in paragraph A5 to subpart D, 10 CFR part 
1021, which covers rulemakings that interpret or amend an existing 
regulation without changing the environmental effect of the regulation. 
Accordingly, neither an environmental assessment nor an environmental 
impact statement is required.

E. Review Under Executive Order 13132

    Executive Order 13132 (64 FR 43255, August 10, 1999) imposes 
certain requirements on agencies formulating and implementing policies 
or regulations that preempt State law or that have federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and carefully assess the 
necessity for such actions. DOE has examined today's final rule and has 
determined that it does not preempt State law and does not have a 
substantial direct effect on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government. No further 
action is required by Executive Order 13132.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Federal agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. Section 3(b) of Executive 
Order 12988 specifically requires that Executive agencies make every 
reasonable effort to ensure that the regulation: (1) Clearly specifies 
the preemptive effect, if any; (2) clearly specifies any effect on 
existing Federal law or regulation; (3) provides a clear legal standard 
for affected conduct while promoting simplification and burden 
reduction; (4) specifies the retroactive effect, if any; (5) adequately 
defines key terms; and (6) addresses

[[Page 58366]]

other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General. Section 3(c) of 
Executive Order 12988 requires Executive agencies to review regulations 
in light of applicable standards in section 3(a) and section 3(b) to 
determine whether they are met or it is unreasonable to meet one or 
more of them. DOE has completed the required review and determined 
that, to the extent permitted by law, this final rule meets the 
relevant standards of Executive Order 12988.

G. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L.104-4) 
requires each Federal agency to prepare a written assessment of the 
effects of any Federal mandate in a proposed or final rule that may 
result in the expenditure by State, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million in any one 
year. The Act also requires a Federal agency to develop an effective 
process to permit timely input by elected officers of State, local, and 
tribal governments on a proposed ``significant intergovernmental 
mandate,'' and it requires an agency to develop a plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirement that might 
significantly or uniquely affect small governments. The final rule 
published today does not contain any Federal mandate, so these 
requirements do not apply.

H. Review Under the Treasury and General Government Appropriations Act

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule or policy that may affect family 
well-being. Today's final rule will not have any impact on the autonomy 
or integrity of the family as an institution. Accordingly, DOE has 
concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

I. Review Under Small Business Regulatory Enforcement Fairness Act of 
1996

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of the rule prior to its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 804(3).

IV. Other Federal Agencies

    DOE provided draft copies of the final rule to the Department of 
Health and Human Services' Low-Income Home Energy Assistance Program 
and the Department of Agriculture's Farmers Home Administration. We 
have received no comments. 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 made no comments.

V. 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, Housing standards, Indians, Individuals with disabilities, 
Reporting and recordkeeping requirements, Weatherization.

    Issued in Washington, DC, on November 7, 2001.
David K. Garman,
Assistant Secretary, Energy Efficiency and Renewable Energy.

    Accordingly, the interim rule amending 10 CFR Part 440 which was 
published at 65 FR 77210 on December 8, 2000, is adopted as a final 
rule with the following changes:

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

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

    Authority: 42 U.S.C. 6861 et seq., 42 U.S.C. 7101 et seq.


Sec. 440.14  [Amended]

    2. In Sec. 440.14 paragraph (c)(6)(ix) is removed and reserved.


Sec. 440.18  [Amended]

    3. In Sec. 440.18
    a. Revise paragraph (a) and remove paragraphs (b) introductory text 
and (b)(2);
    b. Redesignate paragraph (b)(1) introductory text as paragraph (b) 
introductory text and revise it; and
    c. Redesignate paragraphs (b)(1)(i) and (ii) introductory text as 
praragraphs (b)(1) and (2) introductory text, and redesignate 
paragraphs (b)(1) (ii)(A) and (B) as paragraphs (b)(2)(i) and (ii):


Sec. 440.18  Allowable Expenditures.

    (a) Except as adjusted, the expenditure of financial assistance 
provided under this part for labor, weatherization materials, and 
related matters included in paragraphs (c)(1) through (9) of this 
section shall not exceed an average of $2,500 per dwelling unit 
weatherized in the State, except as adjusted in paragraph (b) of this 
section.
    (b) The $2,500 average will be adjusted annually by DOE beginning 
in calendar year 2000 by increasing the limitation by an amount equal 
to:
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[FR Doc. 01-28823 Filed 11-20-01; 8:45 am]
BILLING CODE 6450-01-P