Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 20 - Division of County Operations › Rule 016.20.10-002 - American Recovery and Reinvestment Act (ARRA) Low-Income Weatherization Assistance Program

Current through Register Vol. 49, No. 6, June, 2024
PART I
ANNUAL FILE
OVERVIEW
A.
Background
Arkansas Department of Human Services, Division of County
				Operations, Office of Community Services (DHS) will administer the American
				Recovery and Reinvestment Act (ARRA) Low-Income Weatherization Assistance
				Program in compliance with
				public
				law 111-5. DHS will administer the American
				Recovery and Reinvestment Act, 2009-2012 Weatherization Program, in compliance
				with the applicable law, including regulations contained in 10 CFR Part 440
				(issued February 1, 2002), and other procedures applicable to this regulation
				as the United States Department of Energy may prescribe for the administration
				of financial assistance. The plan is for a three-year period, fiscal year 2009
				through fiscal year 2012.
DHS will monitor subgrantee performance in an effort to
				increase production of weatherized units. Quarterly production reports will be
				submitted to DOE on time.
All units weatherized using American Recovery and Reinvestment
				Act funds from DOE will comply with all requirements for a completed unit and
				will be reported to DOE.
The purpose of the Weatherization Assistance program is to
				increase energy efficiency of dwellings owned or occupied by low-income
				persons, reduce their total residential expenditures, and improve their health
				and safety.
The priority population for the Weatherization Assistance
				Program is persons who are particularly vulnerable such as the elderly, persons
				with disabilities, families with children, high residential energy users, and
				households with high energy burden. The ARRA weatherization program was enacted
				to preserve and create jobs and promote economic recovery. The only health and
				safety measures' installed with ARRA funds will be "energy-related" health and
				safety measures. The state ensures that it will comply with the DOE "prudent
				use" policy for health and safety funds.
B. General
Funding
The federally appropriated ARRA funds are included in the plan
				for DOE approval. The DOE allocation is $48,114,415.
C. Adjusted Average
The adjusted average of $6,500 will be in use for the
				program.
D.
Funds
			 for Administrative Purposes
The state will use less than 5% for administration; the balance
				up to the 5% allowable will be passed to subgrantees. Subgrantees will receive
				5% for administration since all will be allocated more than $350,000 for the
				program period.
E. (i
			 Additional funding
[GREATER THAN] The state has received an amendment to the
				existing grant for Sustainable Energy Resources for Consumers (SERC)
				activities.
1. Selected Arkansas
			 Weatherization subgrantees are hereby authorized to obligate funds and perform
			 all tasks associated with the f Sustainable Energy Resources for Consumers
			 (SERC) activities as! delineated in the Department of Energy notice of
			 selection dated August 25, 2010 and the authorizing law, EISA Section 411(b),
			 which states' that funds must be used to expand WAP for materials, benefits,
			 and renewable and domestic energy technologies not covered under It he
			 program.
2. The selected project(s)
			 must comply with the following guidelines:
a)
			 State limits per unit: DOE limits the
statewide
average cost per unit to $12,000 and limits any individual
			 expenditure;! per Hinit to a maximum of #30,000. ' '*
b)
Expansion of the WAP Program:
Ensure that SERC funds are
\
spent to expand the
			 Weatherization program beyond the (materials, benefits and technologies
			 currently covered by the £WAP. Expanding the program is defined as using
			 funds to:
' 'I '
a. Implement
			 technologies outside of Appendix A to Part 440 - Standards for Weatherization
			 Materials (Appendix A) . ' * * |
b.
			 Implement technologies included in Appendix A, but that do not mee current WAP
			 SIR requirements for the Sub-Grantee .
Technologies not installed with WAP funds due to budgetary
				constraints (to comply with the $6,500 average per home limit) or precluded by
				existing income limits are
not
!*
				eligible expenses.
c)
Evaluation:
The Department of
			 Energy will be conducting J '''independent evaluations of project performance
			 under the i 'Sustainable Energy Resources for Consumers grants program. fThis
			 will sometimes require structuring projects in a way that :iwill enable the
			 development of accurate performance metrics.
ii These performance metrics may include but not be limited to
				|the creation of comparison groups, the gathering of metering 'information, the
				collection of billing data and the collection of comprehensive cost
				information.
3.
			 The Recipient shall revise their current Annual Plan and Budgets with the
			 Office of Community Services (OCS) to reflect the addition of the SERC
			 activities.
The Budget Revision Application shall be submitted within 60
			 days of the date of this amendment.
The application shall include, at a
			 minimum, the following information:
-| Standard Form 424
- Standard Form 424A
-" Budget Justification File
In the event an application is not received 'within 60 days
				after the date of this amendment, the Arkansas Department of Human Services,
				Office of Community Services reserves the right to place a hold"on the funds
				the Recipient can request for reimbursement or advance.
4. The Special Terms and Conditions,
			 Reporting Requirements Provision is hereby revised to include the following
			 language:
"NOTE: Subject to OMB approval pursuant to the
				Paperwork
Reduction
Act and the Privacy Information Act, DOE reserves the
				right to -
amend the
||
Reporting requirements to include additional
				data."
5. The Special Terms and
			 Conditions are hereby revised to include the following NEPA provision.
"NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) REQUIREMENTS
The following SERC activities have received a Categorically
				Exclusion (CX) NEPA determination:
* Durable high-R enclosure system retrofits, including
				high-performance walls, foundations, windows, attic ventilation, attic and
				basement air sealing, and ceiling or cathedral .roof insulation;
* High-performance space conditioning system retrofits,
				including air handler upgrades, ducts in conditioned space, ventilation,
				heating, solar ventilation pre-heat, cooling, and direct supply of combustion
				air, if needed;\
* High-performance hot water systems, including condensing,
				tankless, and solar hot water systems;
* Cool roof technologies;
* Integration with utility smart-grid pilots or
				implementations;
* Energy usage benchmarking with feedback, which could be o
				In-home displays o Increased on-line access to energy use information o Reports
				or mailings o Other means of transmitting this information;
* Community-Based Social Marketing (CBSM) and other behavior
				approaches;
* Developing innovative buying cooperatives and bulk buying
				strategies to lower costs of materials;
* Onsite renewable energy technology that generates electricity
				from renewable resources, including the following which are generally
				categorically excluded under the National Environmental Policy Act
				(NEPA):
o Solar Electricity/Photovoltaic - appropriately sized system
				or unit on existing rooftops and parking shade structures; or a 60 KW system or
				small unit installed on the ground within the boundaries of an existing
				facility, o Wind Turbine - 20 KW or smaller.
o Solar Thermal - system must be 20 KW or smaller, o Solar
				Thermal Hot Water - appropriately sized for residences or small commercial
				buildings, o Ground Source Heat Pump - 5.5 tons of capacity or smaller,
horizontal/ vertical, ground, closed-loop system, o Combined
				Heat and Power System - boilers sized appropriate for the buildings in which
				they are located, o Biomass Thermal - 3 MMBTUs per hour or smaller system with
				appropriate Best Available Control Technologies (BACT)
installed and operated.
Any SERC activities that are not identified above may require
				an individual NEAP review and determination. You are restricted from taking any
				action using Federal funds for projects that would have an adverse effect on
				the environment prior to DOE providing a final NEPA determination.
If an eligible sub grantee moves forward with activities that
				are identified above in advance of a final NEPA determination, associated costs
				may not be recogni'zed as allowable project costs.
E.
Leveraged Resources
The local agencies will use DOE resources to leverage with the
				Arkansas Weatherization Program.
F. '
Training and Technical
			 Assistance
The state will use the ARRA T/TA funds to provide training and
				technical t assistance to subgrantees. As a part of its technical assistance
				plan the state will -; develop a certification program for subgrantees. As a
				part of this process, the state proposes to develop a model weatherization
				program by restructuring the program at Pine Bluff Jefferson County Economic
				Opportunity Commission, Inc.
The new program model developed for PBJCEOC will innerface with
				the
t
Weatherization Training Center as
				a pathway to certification of all subgrantee staff in the state.
G. [LESS THAN]
Application
			 Package
f * The state will comply with Fed Connect and other
				requirements as prescribed * by DOE.
* The Master file has been eliminated from the.plan. The state,
				however, will ; keep relevant information on file.
* The state does not use funds for Low-Cost/No-Cost. The state
				will use the MHEA and NEAT energy audits. These plans are kept on file but are
				not included in this plan.
* The plan is for a three-year period, fiscal year 2009 through
				fiscal year 2012.
* The source of labor is no longer required to be
				reported.
* The Congressional Districts served by the various subgrantees
				are included in this plan. However, a breakdown of the percentage of funds
				going to the various districts is no longer required.
* The production, as required by DOE, is included in this plan.
				There are no downsizing efforts this program period.
* The potential energy savings are included in this
				plan.
* . The Training and Technical Assistance Plan and the
				Monitoring Plan are combined into one plan. A house may be re-weatherized if it
				was previously weatherized prior to September 30,1994.
* The annual application includes ARRA DOE funds. All laborers
				and mechanics employed by contractors and subcontractors on projects funded
				directly by or assisted in whole or in part by and through the Federal
, Government pursuant to the American Recovery and Reinvestment
				Act of 2009, Public Law 111.5, will be paid, wages at rates not less than those
				prevailing on projects of a character similar in locality as determined by the
				Secretary of Labor in accordance with Subchapter IV of Chapter 31 title 40,
				United States Code.
* Subgrantees use DOE funds for leveraging purposes with the
				Arkansas Weatherization Program. Electric base load measures are included in
				the NEAT/MHEA Audits.
* A list of PAC members is included in this plan.
* Subgrantees use DOE funds for leveraging purposes with the
				Arkansas Weatherization Program. Electric base load measures are included in
				the NEAT/MHEA Audits.
* A list of PAC members is included in this plan.
* A transcript is included in this plan. The state requires
				subgrantees and contractors to maintain adequate liability insurance and
				pollution occurrence insurance.
H.
Public Hearing
The state conducted a public hearing January 29, 2010 in
				compliance with ARRA DOE requirements. During the Public Hearing, information
				pertaining to the operation of the WAP was shared including that subgrantees
				are selected in compliance with
				10 CFR
				440.14 and 10 CFR 440.15. Additionally,
				information was shared as to the what action the state would take if production
				falls ! substantially below the projection rate for a subgrantee, as prescribed
				by the Office of Community Services, the Office of Community Services reserved
				the right to transfer all or a part of the responsibility for administration of
				the program from one subgrantee to another.,
The Pine Bluff Economic Opportunity Commission, Inc. (PBJCEOC)
				encountered problems during the ramp up phase of the ARRA program and
				subsequently suffered the loss of its Executive Director and Weatherization
				Director. Interim leadership attempted to operate the program; however, it
				became obvious that a total restructuring of the program would be necessary. In
				order to meet the production goals established by DOE for ARRA, the state made
				the decision to transfer both the regular DOE and ARRA program to the Central .
				Arkansas Development Council (CADC). Simultaneously the state will restructure
				the program at PBJCEOC with the goal of transferring the regular DOE program
				back March 31, 2011. Due to the limited time remaining under the ARRA program
				the state decided that CADC will retain the ARRA program through completion
				March 31, 2012.
On July 31, 2010, the Office of Community Services held a
				Public Hearing regarding the Pine Bluff Economic Opportunity Commission, Inc.
				(PBJCEOC) agency and the presented the plan transferring the program to another
				Community Action Agency (CAA).
There were no comments received during the comment
				period.
On September 27, 2010, the Office of Community Services held a
				Public Hearing regarding the SERC grant. ... . jj
There were no comments received during the comment
				period.
I.
Training
			 and Technical Assistance Plan
DHS has developed two training centers to address the training
				needs of the WAP network. All subgrantee staff engaged in weatherization work
				will be required to obtain certification through one of the state training
				centers by March 31, 2012 in order to continue working in the Weatherization
				Assistance Program. Subgrantees using contractors will be required to use only
				WAP Certified contractors. No staff will be "grandfathered" into certification.
				Once all program staff is certified, additional training needs will be assessed
				through a review of monitoring reports and agency requests for training. The
				state has a full time
Weatherization Training Coordinator who assesses training needs
				and will !? coordinate training on a continuous basis.
				The training centers will have a
i
curriculum based upon the
				Weatherization Core Competencies. Additionally,
training will be designed for each staff role, energy auditor,
				inspector, crew chief,
weatherization technician.
In addition to training at state training centers, the
				Weatherization Directors will :j be required to attend
				the state annual training conference and fall skills training. '; No
				certification is required prior to hire date; however, new hires must obtain
				certification within six months from the date of hire.
Ji
Client Education
i
The state provides client information and
				material at the time of weatherization.
|t
1
*'-.
K;. Program Evaluation
| DOE published a national evaluation of weatherization in
				1993. Implementation of the new national evaluation has been suspended by the
				Office of Energy Efficiency and Renewable Energy (EERE). EERE has commissioned
				a strategic evaluation of the program to access a variety of program structures
				and options for program development. 
				4
f - ' ' ' ' '."''
Ul
Grantee Program Oversight
The state will
				monitor each subgrantee at least two times annually and monitor at least 15% of
				the units and files.
M.
Energy
			 Audit Criteria
The state will use the MHEA and the NEAT energy audits.
N.
Health and Safety
i The Health and Safety Plan is included in the Master File and
				is not included in this Annual File. The plan has been amended to include DOE
				requirements regarding mold and mildew.
O.
Vehicle Purchases
The state will allow vehicle purchases with an acquisition
				price of $5,000 or more to be spread over the entire life of the vehicle and
				the number of homes served I during that period.
P.
Policy Advisory Council
, The state will maintain the Policy Advisory Council instead
				of using a State Council.
Q.
Reporting Requirements
The state will comply with the financial and program reporting
				requirements of ( ARRADOE.
R.
Reporting DOE Completed
			 Units
The state will report all units that contain ARRA DOE funds.
				All units weatherized with DOE funds will comply with the DOE definition of a
				completed unit.
S.
Financial Audits
Subgrantees may budget financial audit cost as'a separate
				budget category.
T.
Newly Legalized Aliens
The Immigration and Nationality Act made certain aliens
				legalized under the Immigration and Control Act of 1986 temporarily ineligible
				for weatherization assistance. The provisions of this law have expired. The
				only potential implications are those cases that were open while this law was
				in effect. Local agencies that are charitable and nonprofit are exempt from
				implementing new status verification requirements for nonqualified aliens.
				However, local government agencies must conduct status verification when
				serving nonqualified aliens.
U.
Multi-Family Eligibility
A multifamily building may be weatherized if two-thirds of the
				units are eligible. Certain multifamily buildings with significant energy
				efficiency improvements or leverage resources require only one-half of the
				units to be eligible. A building containing two or four units may be
				weatherized if one-half of the units are eligible. A nonqualified alien could
				be the recipient of weatherization services as part of the two-thirds or
				one-half rule.
V.
Recovered Materials
Each subgrantee has a policy and procedure for using insulation
				composed of the highest percentage of recovered materials practical.
W.
Rental
			 Requirements
There are no changes in rental procedures.
X.
Income Eligibility
The state will use 200 percent of poverty as the income
				eligibility level.
Y.
Fuel Switching
DOE does not permit the general practice of fuel switching when
				replacing furnaces and appliances.
Z.
Protection of Whistleblowers
Any employee of any non-Federal employer receiving covered
				funds under the Recovery Act may not be discharged, demoted, or otherwise
				discriminated against as a reprisal for disclosing information the employee
				believes is evidence of: gross management of an agency contract or grant
				relating to covered funds; a gross waste of covered funds, a substantial and
				specific danger to public health or safety related to the implementation or use
				of covered funds; an abuse of authority related to the implementation or use of
				covered funds; or a violation of law, rule, or regulation related to an agency
				contract (including the competition for or negotiation of a contract) or grant,
				awarded or issued relating to recovered funds.
AA.
False Claims Act
'
The state and subgrantees will promptly refer
				to the DOE or other appropriate
Inspector General any credible evidence that a principle,
				employee, agency, contractor, subcontractor or other person has submitted a
				false claim under the False Claims Act or has committed a criminal or civil
				violation of laws pertaining to fraud, conflict of interest, bribery, gratuity
				or similar misconduct involving those funds.
BB.
Information in Support of Recovery
			 Act Reporting
The state or subgrantees may be required to submit backup
				documentation for expenditures of funds under the Recovery Act including such
				items as timecards and invoices. The state or subgrantees shall provide copies
				of backup documentation at the request of the Contracting Officer or
				designee.
CC.
Access
			 to Records
Any representative of an appropriate inspector general
				appointed under section 3 or 8G of the Inspector General Act of 1988 (5 U.S.C.
				App.) or of the Comptroller General is authorized to (1) examine any records of
				the state, any of its contractors or subgrantees, or any State or local agency
				administering such contract that pertain to, and involve transactions in
				relation to, the subcontract, grant, or subgrant; and (2) interview any officer
				or employee of the contractor, grantee, or subgrantee, or agency regarding such
				transactions.
GRANT APPLICATION
STANDARD FORM 424
i
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