Arkansas Administrative Code
Agency 168 - Arkansas Economic Development Commission
Rule 168.00.15-001 - Weatherization Assistance Program: July 1, 2015 - June 30, 2016

Weatherization Program Administrator

Budget Specialist

Grants Analyst (2)

Administrative Assistant

No

Catalog quotes and prior purchases - $8,700.00

The Program Monitors will need Blower Door, Duct Blaster, Infrared Camera to conduct QCI verification in the field.

Office purchases for stationary and other office supplies, printing and postage.

N/A

The state uses a cost allocation formula that has been approved by the Department of Energy. The cost allocation formula is updated annually.

In accordance with 10 CFR 440.16(a), AEO understands that no dwelling unit may be weatherized without documentation that the unit is an eligible dwelling unit as provided in 440.22.

Income Verification

* A dwelling unit shall be eligible for weatherization assistance under this part if it is occupied by a family unit;

Procedures to Determine that Units Weatherized Have Eligibility Documentation All dwelling units certified as eligible for services shall be occupied by an income-eligible household family unit with income at or below 200 percent of the poverty level, or "which contains a member who has received cash assistance payments under Title IV or XVI of the Social Security Act or applicable State or local law during the twelve (12) month period preceding the determination of eligibility for weatherization assistance," or which contains a member which has received energy assistance payments under the Low Income Home Energy Assistance Program during the twelve (12) month period preceding the determination of eligibility for weatherization assistance. Subgrantees are required to keep documentation in each client file for review during Program Compliance and Onsite Project monitoring visits by the state WAP staff

Reweatherization Compliance

Homes weatherized on or before September 30, 1994 are eligible to be reweatherized. No more than ten percent (10%) of a subgrantee's DOE completions may be reweatherized without approval from the AEO. The priority wait list will be followed in addressing reweatherized units.

Building Eligibility - Housing Types

Eligible housing types include owner and renter-occupied single-family homes, manufactured (mobile) homes, and multifamily buildings.

State Historic Preservation Officer (SHPO) Compliance

Prior to the expenditure of federal funds to alter any structure or site, AEO Subgrantees are required to comply with Section 106 of the National Historic Preservation Act (NHPA). Section 106 applies to historic properties or sites that are listed on or eligible for listing on the National Register of Historic Places. In order to fulfill the requirements of Section 106, the Subgrantee must contact the Historic Preservation Office to coordinate the Section 106 review as set forth in 36 CFR Part 800 and consistent with DOE's 2009 Letter of Delegation of Authority.

Subgrantees are required to obtain/verify the year built for all homes prior to weatherization (typically records are located with the county assessor's office) and follow the protocol listed below prior to weatherizing a home that is 50 years old or older.

* Take a picture of the front and rear of the home;

* Draft a cover letter that states the address of the home, include an ECOS printout, work order and pictures as attachments, and requests approval to complete weatherization measures.

* Letters should be mailed to: J. Eric Gilliland, Senior Archeologist and Section 106 Review Coordinator, Arkansas Historic Preservation Program, Tower Building, 323 Center Street, Little Rock, AR 72201.

The SHPO has thirty (30) days to review the information and render a decision as to whether or not the measures will change the historic nature of the property.

Rental and Multifamily Building Procedures

Rentals may be weatherized when occupied by an eligible client 3, and:

3 See V. 1.1 Approach to Client Eligibility

* The subgrantee has written permission from the owner or agent of the rental unit. Such written permission shall be permanently maintained in the file of the client whose unit is weatherized.

* The benefits of weatherization assistance will accrue primarily to low-income tenants.

* Not less than 66 percent (50 percent for duplexes and four-unit buildings) of the dwelling units in the building are eligible dwelling units or will become eligible dwelling units within 180 days under a Federal, State, or local program for rehabilitating the building or making similar improvements to the building.

* The subgrantee must obtain and place in the client file a signed agreement from the landlord (or authorized agent of the landlord) that states that for a minimum of twelve (12) months after weatherization work has been completed on a dwelling, the tenants in that dwelling will not be subjected to rent increases because of the increased value of dwelling units due solely to weatherization assistance provided under this part.

* Subgrantees will provide copies of the signed Landlord Agreements to the tenants and ensure that documentation is placed in the Subgrantee Client File.

* Other Considerations:

* No undue or excessive enhancement shall occur to the value of the dwelling units.

* In the event of a dispute between the tenant and property owner regarding the issues listed above, the subgrantee will attempt to resolve the dispute; if that fails, the tenant will be referred to legal aid by the subgrantee.

* In the case of a vacant rental dwelling, weatherization assistance may be provided if there is assurance that a low-income household will inhabit the dwelling within 180 days of the date the weatherization service was completed.

* The Arkansas Weatherization Assistance Program does not seek property owner agreements for placement of liens nor does it use other contractual restriction.

Multi-family Buildings

The total amount of funds that can be invested in a multi-family project is determined by the following formula: multiply the total number of income-eligible units in the multi-family building by the current statewide average cost per unit. The total is the maximum amount of DOE funding available to weatherize the building. All units in the building can be served and all units should be reported to DOE.

Deferral Process

There are conditions and situations under which a subgrantee must not or may choose not to weatherize an otherwise eligible dwelling unit. Information for making this determination may become evident during either the eligibility process or during the initial inspection process. The Arkansas WAP Deferral policy is part of the Health & Safety plan found in the Arkansas Subgrantee Operations Manual, Chapter 7 Technical Standards and Best Practices, VI. Health & Safety.

Children are defined as those individuals under the age of 19.

Low-income members of Indian tribes will receive benefits equivalent to the assistance provided to other low-income persons within Arkansas. Arkansas has no identified Indian Tribes.

The term "disabled person" means any individual who:

Arkansas has adopted the Standard Work Specifications (SWS) Field Guide "Deck of Cards" maintained on an on line system by Santa Fe Community College ("SFCC"). The SWS Deck of Cards Field Guide (issued 2014) will replace our existing Arkansas Weatherization Assistance Program Field Guide. The Standard Work Specification Deck of Cards (SWSDC) is considered the Gold Standard by DOE for compliance with the SWS. The SWSDC is comprised of a set of PDF documents ("cards") that incorporate the National Standard Work Specifications (SWS), which define performance requirements for a particular task, into the Department of Energy (DOE) Weatherization Assistance Program (WAP) Field Guide to be used as a tool for weatherization services training, implementation and inspection. Each "Card" in the "Deck" addresses the elements of an individual SWS, providing both written instructions and photographic illustrations for performance of the SWS.

* Providing An Electronic Link

Prior to the beginning of Program Year 2015, the SWS Field Guide will be available to subgrantees via the Energy Conservation Online System (ECOS). It will also be available to subgrantees and direct hire contractors through an electronic link at the Arkansas Economic Development Commission-Energy Office website. A third access option for contractors and subgrantees will be through the National Renewable Energy Laboratory (NREL) website; and the user will be able to download the complete field guide as a pdf which can be emailed or printed out.

* Arkansas Weatherization Assistance Program has opted to have the Center of Excellence Green Building/Energy Efficiency (Santa Fe Community College), the creators of the Deck of Cards, to customize the SWS Deck of Cards to our region. The AEO invited Arkansas's WAP stakeholders (subgrantees and WTC staff) to review the existing cards for state customization. Final review will take place April 20, 2015. The Center of Excellence is expected to complete the customization of the cards by the beginning of the 2015 Program Year.

* Documenting the Process for Distribution

The AEO will send each subgrantee one copy of the SWS Deck of Cards via certified mail. Each subgrantee must sign for delivery. The United States Postal Service will send us a copy of the signature cards which will be our written verification that the subgrantees have received a copy. As a reminder, the SWS Deck of Cards will be available throughout the 2015 Program Year (and beyond) on three (3) different web links. Likewise, subgrantees will have their direct hires sign-off that they have received a copy of the SWS Deck of Cards at the time of their contract signing. Subgrantees will then send AEO a copy of the sign-offs for each of its direct hires.

AEO's Statement of Assurances on Language within all Subgrantee Agreements & Vendor Contracts

The AEO will ensure that all subgrantee agreements and subgrantee direct hire contractor's contracts will contain language which clearly specifies that all work performed will be of a quality outlined in WPN 15-4, Section 2.

The language will clearly document the following:

AEO's Declaration Statement of Using the Appropriate Audit & Materials to Be Used

All work will be performed in accordance with our DOE-approved Energy Audit procedures and all materials will be approved materials specified in the 10CFR 440 Appendix A.

* Language in Subgrantee Agreement

In 2013, AEO revamped its subgrantee agreements which incorporated clarifying language which stated the expectations for work quality and how the subgrantee's direct hire contracts must specify the same. See a copy of the Subgrantee Agreement and an example of the Subgrantee's Contractor's contract.

* Describe Mechanism Used

The mechanism AEO will utilize to verify that subgrantees understand and agree to expectations of work to be performed will be via the subgrantee's signature on the contract documents.

In accordance with the 10 CFR 440.21 (i), all Grantees must resubmit their audit procedures to DOE for approval every five (5) years. In March 2014, AEO submitted the Energy Conservation Online System (ECOS) for review and approval. The software was submitted to Glen Silas for review. A second submission was made on August 11, 2014. Erica Burrin submitted a notification to AEO on final approval of the software on December 22, 2014.

Single Family Energy Audit

Energy Conservation Online Software will be utilized to audit single family homes. Site specific audits must be run on all single family homes weatherized with Arkansas Weatherization Assistance Program funds.

Manufactured Housing Energy Audit

Energy Conservation Online Software will be utilized to audit manufactured housing. Site specific audits must be run on all mobile homes weatherized with Arkansas weatherization Assistance Program funds.

Multifamily Energy Audit

AEO will utilize NEAT on its garden-style, single story fourplexes which make up a multifamily complex; the MulTea (once available) will be used on any multifamily complexes that are high rises. In the event that AEO falls below the twenty percent (20%) threshold in servicing multifamily units and the MulTea is not yet available, AEO will address multifamily units in the manner described below:

* Multifamily Units Receiving Cost-effective Measures

The AEO budgeted funds specifically for servicing multifamily complexes. AEO's newest service provider will only service multifamily complexes throughout the entire state. Our goal is to service at least one complex within each of our four congressional districts.

Ten percent (10%) of the total number of units that make up each multi-family complex will have a site specific audit ran. This sampling will create a priority list including health and safety measures for the entire multifamily complex.

In the event that additional ECMs or health and safety measures are needed on non-sampled units, those measures will be itemized and adjustments to the work order for that unit will be noted. The same holds true if measures are listed for a unit and that specific unit does not need the measure, adjustments will be noted and deducted from the total cost of the job.

* Project Officer Review Prior to Commencing Work

AEO will submit to our Project Officer all pertinent materials to approve the multifamily project prior to commencing weatherizing the building. AEO will submit Auditor's Input Sheets, Recommended Measures Output Report, etc., for a case-by-case approval.

AEO estimates that the number of multifamily complexes it will weatherize during the 2015 Program Year will not represent more than twenty percent (20%) of AEO's building type.

Describing the Approach for Multifamily Service Delivery

The AEO has signed MOU's with both the local-level HUD Office and the USDA Rural Development Office to develop partnerships with a goal of weatherizing multifamily complexes throughout the state of Arkansas. The AEO will utilize HUD's pre-approved list for multifamily complexes and USDA Rural Development is offering funds for a blended service approach. Pre-audits have already been conducted on three (3) potential complexes. A more detailed analysis must be conducted to determine the site-specific needs.

AEO's Verifying Statement for Project Approval

The AEO understands the approval process for multifamily complexes begins with submitting all pertinent material (Auditor's Input Sheets, Recommended Measures Output Report, etc.) to the Project Officer for approval. The Project Officer will review material and determine approval or denial on a case-by-case basis.

Inspection and Monitoring of Work Using Guidelines and Standards

DOE requires that Quality Control Inspectors working for the WAP possess the knowledge, skills and abilities outlined in the National Renewable Energy Laboratory (NREL) Job Task Analysis for Quality Control Inspectors. This requirement applies to all individuals who perform an evaluation and sign off on work performed in homes including final inspectors and state monitoring staff.

For Program Year 2015, the state will ensure that Quality Control Inspector (QCI) competency is demonstrated by mandating certification as a Home Energy Professional (HEP) QCI. The state will require that each Program Monitor become certified as a HEP QCI and/or the state will hire a third-party contractor with the HEP QCI credentials. Each subgrantee will employ or contract with a HEP QCI. And because the state is ultimately responsible for ensuring that every unit reported to DOE meets the work quality guidelines required by the WAP, subgrantees must include in their application package the credentials of all staff employed as a QCI and of any third party organizations engaged to conduct QCI's.

AEO's Final Inspection & Assurance Statement

Beginning in Program Year 2015, the AEO will require that every DOE WAP unit reported as a "completed unit" undergoes a final inspection by a certified QCI ensuring that all work meets the minimum specifications outlined in the SWS in accordance with 10 CFR 440.

* Units will be inspected using criteria found in the specifications outlined in the Work Quality section of this plan.

* Every client file will have a form that certifies that the unit had a final inspection and that all work met the required standards. The certification will be by a certified QCI. Signatures will meet the requirement. If a unit has received both a final inspection and has also been monitored by the state, two certification forms will be available in the client file - one for each inspection.

* The Quality Control Inspection will include an assessment of the original audit and confirm that the measures called for on the work order were appropriate and compliant with the state audit procedures and protocols approved by DOE.

The Use of Quality Control Inspectors

Arkansas has elected to implement one of the DOE standard options for administering quality control inspections by requiring an independent QCI. The QCI is the individual who has no involvement in the work on the home either as the auditor or as a member of the crew. Each subgrantee must have either a QCI-certified staff member or a QCI-certified third party perform final inspections on each unit prior to submitting the unit as a "completed unit" to the state.

AEO staff or a DOE approved representative (QCI-certified third party) will perform quality assurance reviews on at least ten percent (10%) of all completed units. If the subgrantee does not have a certified QCI on staff they will be allowed to contract with a state approved certified QCI.

To ensure the individual who is functioning as the QCI is able to consistently perform both tasks, the AEO has developed a quality assurance plan that requires the individual complete the Quality Control Inspector training at an accredited WAP Training Center and become a certified Quality Control Inspector (QCI).

Ensuring Sufficient Quality Control Inspectors (QCI)

To ensure that there are a sufficient number of certified individuals available to meet the requirements of this section, the state has developed a training and certification plan as described in section V.8.4:

The WAP has been providing Quality Control Inspector (QCI) Training for its subgrantee network since 2012. During this time there have been numerous Tier 1 trainings at our Weatherization Training Center to prepare our QCIs for certification. The QCI training ensures that all pertinent personnel will possess the Knowledge, Skills and Abilities outlined in the National Renewable Energy Laboratory (NREL) Job Task Analysis (JTA) for Quality Control Inspectors.

We have seven (7) subgrantees and the current breakdown of QCI among these seven (7) subgrantees is as follows: Three (3) agencies each have one QCI. One agency has two (2) QCIs. Three (3) agencies do not have a certified QCI.

QCI training is on-going for subgrantees whose staff has not passed or taken the test as of the date of this submission and for subgrantees who wish to have multiple employees certified. If some subgrantee's final inspectors fail to pass the QCI certification by July 1, 2015, they will be required to contract with another agency or independent QCI to complete the final inspections.

Policy & Procedures for Inadequate Inspection Practices

Effective PY 2015, Arkansas will implement policy and procedures to address situations when units are either not inspected or the QCI is not inspecting units using the standards consistent with the SWS as adopted by the state. This policy will include disciplinary action that will result in the disallowance of reimbursement for the unit until the final inspection is properly conducted by a QCI and additional monitoring by the state has occurred to ensure that state protocols are consistently followed. If state protocols are not consistently followed, the AEO may reduce the subgrantee's funding allocation and use the funds to hire a third party QCI or reallocate to another subgrantee.

Quality Assurance Inspection Form

A copy of the Quality Assurance form can be found in the attachments.

The weatherization program is administered by the Arkansas Economic Development Commission - Arkansas Energy Office (AEO), an independent state agency. Beginning with Program Year 2015, the AEO will implement a new program management system called the Energy Conservation Online System (ECOS). ECOS supports the U.S. Department of Energy's state administered Weatherization Program and will allow the AEO to combine the WAP with other state and regionally financed energy conservation programs. The ECOS software is a comprehensive management information system that extends from client selection and energy audit to final billing and monitoring of weatherization jobs. The core of ECOS is a U.S. DOE-approved residential energy audit application and integrated job-costing and management system that generates work orders in addition to providing inspection tools to capture test results and track changes as the job proceeds to completion.

ECOS provides the tools to manage all critical business processes of the weatherization program. Additionally, the software application captures and stores all critical health and safety data about a home, including moisture issues, mold issues, air quality, CO2 levels, and more. It can and will be updated to reflect program changes at the state and federal levels. The application is customizable for any state or local agency.

The State Energy Efficiency Programs Improvement Act of 1990 permits subgrantees receiving less than $350,000 in federally appropriated Low Income Weatherization Assistance Program funds to receive up to an additional five percent (5%) share of administrative funds. However, due to the federal requirement that limits administration to a maximum of ten percent (10%), the state would have to reduce its five percent (5%) share in order to allow the subgrantee network an additional amount for administration. To do so would impact the AEO's ability to administer the program and, therefore, is not an option.

To ensure quality workmanship throughout the State, the AEO implements a comprehensive project and program compliance monitoring strategy. The WAP Network of subgrantees provides access to weatherization services in each of the state's seventy-five (75) counties based on the relative need of the low-income population residing in each county of their service area.

Monitoring consists of onsite visits to subgrantees to review program administration and compliance functions as well as field visits to inspect weatherized homes. The state performs annual Program Compliance Monitoring, including a review of fiscal and administrative systems to assure compliance with all applicable rules and regulations. Program Monitors/Quality Control Inspectors conduct monitoring and technical assistance centered on monthly site visits to work sites and completed weatherized homes during several phases of project implementation.

For complete details see our Quality Management Plan, section 1.

See Grantee staff listed in section 1. Grantee staff is listed by name, title, credentials/educational levels, certifications, etc.

Program Manager will be budgeted out of the Administrative budget.

Budget Specialist will be budgeted out of the Administrative budget. The amount estimated for travel for monitoring visits is budgeted at $5,000.

Grants Analyst will be budgeted partially out of the Administrative and partially out of T&TA budgets. The amount estimated for travel for monitoring visits is budgeted at $13,590.

Grants Analyst will be budgeted out of the Administrative and T&TA budgets. The amount estimated for travel for monitoring visits is at $6,830.

AEO's Final Inspection & Assurance Statement

Beginning in Program Year 2015, the Arkansas Energy Office will require that every DOE WAP unit reported as a "completed unit" undergoes a final inspection by a certified QCI ensuring that all work meets the minimum specifications outlined in the SWS in accordance with 10 CFR 440.

Inspection of Weatherized Homes

Program monitoring consists of the inspection of recently weatherized houses. Some subgrantees will be monitored each quarter, while others are monitored more (or less) frequently depending on production and identified needs to address quality and/or health and safety concerns. The goal will be to inspect ten percent (10%) of weatherized homes for each subgrantee; however, AEO will monitor additional units in progress to ensure work quality; therefore, if deficiencies are noted, the percentage could increase.

Quality Control Monitoring

AEO Program Monitors and Quality Control Inspectors will accompany subgrantee crews and contractors as they conduct final quality control inspections. This provides the opportunity for the AEO to provide technical assistance with weatherization techniques such as CAZ (combustion area zoning) and air sealing.

File Review Monitoring

AEO Program Monitors complete an onsite file review for every weatherized home that is inspected.

Lead Safe Weatherization Site Visits

AEO Program Monitors will make periodic unannounced site visits to homes that are being weatherized to observe that the required lead-safe work practices are being used by crews and contractors. This is an opportunity to clarify and demonstrate best practices related to lead-safe weatherization.

Program Compliance Monitoring

The AEO believes monitoring is an extremely important aspect of weatherization program management. A successful monitoring program improves subgrantee operations, identifies problems early enough for corrective action, and promotes quality work. The AEO considers monitoring to be an assessment of subgrantee performance in fulfilling program objectives.

A Program Compliance Monitoring will be conducted annually with each subgrantee. Program compliance monitoring consists of a(n) review of financial and administrative policies and practices.

The financial review will include a(n):

The program administration review will include a(n):

Resolutions Strategies

Monitoring reports list recommendations and/or required actions when deficiencies, issues, and/or concerns are found. Each recommendation and required action is based on policies, procedures and/or regulations which are quoted in the left column of the monitoring letter.

Please see Subgrantee Operations Manual (pages 91-101) for how agencies receive ratings based on performance. The Subgrantees Operations Manual also outlines the steps to be taken for disciplinary action and/or removal of a subgrantee on page 104.

Continuing in Program Year 2015, the state Training Plan will require comprehensive training for all WAP workers that is aligned with the National Renewable Energy Lab (NREL) Job Task Analysis (JTA) for the position in which the worker is employed.

The Training Plan will address two distinct categories: Tier 1 and Tier 2 Training. The plan reflects feedback from the DOE field visits, Arkansas monitoring visits, and contractor analysis.