[Code of Federal Regulations]
[Title 10, Volume 3]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 10CFR440.18]

[Page 456-457]
 
                            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) 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:
    (1) The limitation amount for the previous year, multiplied by
    (2) The lesser of:
    (i) 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
    (ii) Three percent.
    (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) 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;
    (6) The cost of purchasing vehicles, except that any purchase of 
vehicles must 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

[[Page 457]]

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, 1993, 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, as amended at 65 FR 77218, Dec. 8, 2000; 66 
FR 58366, Nov. 21, 2001]