[Code of Federal Regulations]
[Title 10, Volume 3]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR440.18]

[Page 657-659]
 
                            TITLE 10--ENERGY
 
                    CHAPTER II--DEPARTMENT OF ENERGY
 
PART 440--WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS--Table of Contents
 
Sec. 440.18  Allowable expenditures.

    (a) An average of at least 40 percent of the funds provided in a 
State under this part for weatherization materials, labor, and related 
matters included in paragraphs (c)(1) through (9) of this section shall 
be spent for weatherization materials, except if DOE approves a State's 
application to waive the 40 percent requirement under Sec. 440.21(h).
    (b) The expenditure of financial assistance provided under this part 
for labor, weatherization materials, and related matters included in 
paragraphs (c)(1) through (9) and (c)(15) of this section shall not 
exceed an average of $1,600 per dwelling unit weatherized in the State, 
except as adjusted as follows:
    (1) The $1,600 average will be adjusted annually by DOE beginning in 
calendar year 1991 by increasing the limitation by an amount equal to:
    (i) The limitation amount for the previous year, multiplied by
    (ii) The lesser of:
    (A) The percentage increase in the Consumer Price Index (all items, 
United States city average) for the most recent calendar year completed 
before the beginning of the year for which the determination is being 
made, or
    (B) Three percent.
    (2) In addition to the average per-dwelling-unit limitation 
applicable in a State under this section, DOE shall, upon application by 
a State, establish a separate average per-dwelling-unit limitation for 
dwelling units in such States which conform to program requirements and, 
in addition to any other weatherization modifications, have capital-
intensive furnace or cooling efficiency modifications as defined in 
Sec. 440.3 made under this part. The average per-dwelling-unit 
limitation applicable in a State which meets these requirements shall 
not exceed an amount equal to:
    (i) The amount permitted for the expenditure of financial assistance 
for labor, weatherization materials, and related matters for dwelling 
units in such State in paragraphs (c) (1) through (9) and (c)(15) of 
this section plus
    (ii) An amount determined by the State to be the average amount that 
is appropriate for capital-intensive furnace or cooling efficiency 
modifications of dwelling units of the type assisted under this part in 
such State and approved by DOE.
    (c) Allowable expenditures under this part include only:
    (1) The cost of purchase and delivery of weatherization materials;
    (2) Labor costs, in accordance with Sec. 440.19;
    (3) Transportation of weatherization materials, tools, equipment, 
and work crews to a storage site and to the site of weatherization work;
    (4) Maintenance, operation, and insurance of vehicles used to 
transport weatherization materials;
    (5) Maintenance of tools and equipment;

[[Page 658]]

    (6) Purchase or annual lease of tools, equipment, and vehicles, 
except that any purchase of vehicles shall be referred to DOE for prior 
approval in every instance;
    (7) Employment of on-site supervisory personnel;
    (8) Storage of weatherization materials, tools, and equipment;
    (9) The cost of incidental repairs if such repairs are necessary to 
make the installation of weatherization materials effective;
    (10) The cost of liability insurance for weatherization projects for 
personal injury and for property damage;
    (11) The cost of carrying out low-cost/no-cost weatherization 
activities in accordance with Sec. 440.20;
    (12) The cost of weatherization program financial audits as required 
by Sec. 440.23(d);
    (13) Allowable administrative expenses under paragraph (d) of this 
section; and
    (14) Funds used for leveraging activities in accordance with 
Sec. 440.14(b)(9)(xiv); and
    (15) The cost of eliminating health and safety hazards elimination 
of which is necessary before, or because of, installation of 
weatherization materials.
    (d) Not more than 10 percent of any grant made to a State may be 
used by the grantee and subgrantees for administrative purposes in 
carrying out duties under this part, except that not more than 5 percent 
may be used by the State for such purposes, and not less than 5 percent 
must be made available to subgrantees by States. A State may provide in 
its annual plan for recipients of grants of less than $350,000 to use up 
to an additional 5 percent of such grants for administration if the 
State has determined that such recipient requires such additional amount 
to implement effectively the administrative requirements established by 
DOE pursuant to this part.
    (e) No grant funds awarded under this part shall be used for any of 
the following purposes:
    (1) To weatherize a dwelling unit which is designated for 
acquisition or clearance by a Federal, State, or local program within 12 
months from the date weatherization of the dwelling unit would be 
scheduled to be completed; or
    (2) To install or otherwise provide weatherization materials for a 
dwelling unit weatherized previously with grant funds under this part, 
except:
    (i) As provided under Sec. 440.20;
    (ii) If such dwelling unit has been damaged by fire, flood, or act 
of God and repair of the damage to weatherization materials is not paid 
for by insurance; or
    (iii) That dwelling units partially weatherized under this part or 
under other Federal programs during the period September 30, 1975, 
through September 30, 1985, may receive further financial assistance for 
weatherization under this part. While DOE will continue to require these 
homes to be reported separately, States may count these homes as 
completions for the purposes of compliance with the per-home expenditure 
limit in Sec. 440.18. Each dwelling unit must receive a new energy audit 
which takes into account any previous energy conservation improvements 
to the dwelling.

[58 FR 12526, Mar. 4, 1993]

    Effective Date Note: At 65 FR 77218, Dec. 8, 2000, Sec. 440.18 was 
amended by revising paragraph (a); removing the phrase ``and (c)(15)'' 
in the introductory text to paragraph (b) and in paragraph (b)(2)(i); 
adding paragraph (b)(3); revising paragraph (c)(6); and revising 
``September 30, 1985'' to read ``September 30, 1993'' in paragraph 
(e)(2)(iii), effective Jan. 8, 2001. For the convenience of the user, 
the revised and added text is set forth as follows:

Sec. 440.18  Allowable expenditures.

    (a) States must spend an average of at least 40 percent of the funds 
provided them for weatherization materials, labor and related matters 
listed in paragraphs (c)(1) through (9) of this section. DOE may approve 
a State's application to waive the 40 percent requirement under 
Sec. 440.21.

                                * * * * *

    (b) * * *
    (3) For the purposes of determining the average cost per dwelling 
limitation, costs for the purchase of vehicles or other certain types of 
equipment as defined in 10 CFR part 600 may be amortized over the useful 
life of the vehicle or equipment.

                                * * * * *

    (c) * * *

[[Page 659]]

    (6) The cost of purchasing vehicles, except that any purchase of 
vehicles must be referred to DOE for prior approval in every instance.

                                * * * * *