Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF PUBLIC

HEALTH AND HUMAN SERVICES OF THE

STATE OF MONTANA

In the matter of the amendment of ARM 37.71.601 and 37.71.602 pertaining to low income weatherization assistance program (LIWAP)

)

NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

TO: All Concerned Persons

1. On April 19, 2019, at 11:00 a.m., the Department of Public Health and Human Services will hold a public hearing in Room 207 of the Department of Public Health and Human Services Building, 111 North Sanders, Helena, Montana, to consider the proposed amendment of the above-stated rules.

2. The Department of Public Health and Human Services will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Public Health and Human Services no later than 5:00 p.m. on April 3, 2019, to advise us of the nature of the accommodation that you need. Please contact Gwen Knight, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; telephone (406) 444-4094; fax (406) 444-9744; or e-mail [email protected].

3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

37.71.601 ELIGIBILITY FOR WEATHERIZATION SERVICE: PRIORITIES

(1) through (4) remain the same.

(5) In determining which eligible households will receive weatherization services and in what order, households in each of the governor's substate planning districts will be ranked ~~according to~~ by priority according to the following:

(a) through (9) remain the same.

(10) When a dwelling is prioritized high enough to be scheduled for weatherization work, the delivery of services will be deferred until a later date if providing the services would pose a threat to the health or safety of either the weatherization installers or any other person. In such cases the delivery of services will be postponed until the conditions that pose a threat to health or safety have been resolved. The department adopts and incorporates by reference the department's Weatherization Assistance Program (WAP) Policy Manual effective July 1, ~~2018~~ 2019, which outlines the circumstances that justify a deferral of weatherization services. The WAP Policy Manual is located at the department's web site at http://dphhs.mt.gov/hcsd/energyassistance.aspx or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620.

AUTH: 53-2-201, 90-4-201, MCA

IMP: 53-2-201, 90-4-201, 90-4-202, MCA

37.71.602 DETERMINING LOW INCOME WEATHERIZATION ASSISTANCE (1) Weatherization assistance will be made to eligible households in accordance with the ~~state standard of~~ prioritized measures ~~for sample dwellings~~ as ~~established in (4)~~ determined by the State's Computerized Energy Audit (CEA) system.

(2) Dwellings chosen to be weatherized must receive those measures determined to be cost effective as defined in 10 CFR 440, as amended through July 1, ~~2018~~ 2019. The department adopts and incorporates by reference 10 CFR 440, as amended through July 1, ~~2018~~ 2019. A copy of these federal regulations may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, 111 N. Jackson St., P.O. Box 202925, Helena, MT 59620-2925.

~~(3) The designated local contractor may reorder a standard for any of the following reasons:~~

(a) A local contractor completes the department approved energy audit and the audit reveals the cost-benefit ratio would be higher by reordering the standards as prioritized in (4). It must be noted in the client file that the reordering is the most appropriate cost-effective measure in this case and signed off by the weatherization coordinator.

~~(b) Material to complete the prioritized standard is not commercially available or fails to meet the materials standards as prescribed by DOE.~~

~~(4)~~ (3) The department adopts and incorporates by reference the department's Weatherization Assistance Program (WAP) Policy Manual and National Renewable Energy Laboratory (NREL) Standard Work Specifications effective July 1, ~~2018~~ 2019. The WAP Policy Manual is located at the department's web site at http://dphhs.mt.gov/hcsd/energyassistance.aspx or a copy may be obtained from the Department of Public Health and Human Services, Human and Community Services Division, Intergovernmental Human Services Bureau, P.O. Box 202956, Helena, MT 59620. The NREL Standard Work Specifications are located at the NREL web site at https://sws.nrel.gov/.

AUTH: 53-2-201, 90-4-201, MCA

IMP: 53-2-201, 90-4-201, 90-4-202, MCA

4. STATEMENT OF REASONABLE NECESSITY

The Department of Public Health and Human Services (department) is proposing the amendment of ARM 37.71.601 and 37.71.602 pertaining to the Low Income Weatherization Assistance Program (LIWAP). LIWAP is a program to help low income households save home and heating costs and address health and safety issues. The department proposes to make the following changes to its administrative rules governing LIWAP.

ARM 37.71.601

In ARM 37.71.601(5) the department is taking the opportunity to clear up a grammatical error by removing the words "according to."

The department is proposing to amend ARM 37.71.601(10) to update the date of the Weatherization Assistance Program Policy and Procedure Manual to the July 1, 2019 Weatherization Assistance Program Policy and Procedure Manual which will be used for the 2019-2020 program year. This is necessary to ensure that readers are reviewing the appropriate policy.

ARM 37.71.602

The department is proposing to amend (1) to clarify the process used requiring energy conservation measures to be prioritized by cost-effectiveness as determined using the State's DOE-approved Computerized Energy Audit (CEA) system.

The department is proposing to amend (2) to require the use of the current edition of 10 CFR 440 amended through July 1, 2019. This is necessary to ensure the most current edition of 10 CFR 440 is utilized.

The department is proposing to strike (3) because this section refers to a previous system for prioritization of weatherization measures which have not been a method approved by DOE in the MT DOE State Plan for several years. The current section does not correctly describe the Savings-to-Investment (SIR) driven weatherization prioritization system used by the DOE-approved, MT site-specific audit software.

This proposed amendment will renumber the old (4) to (3). The department is also proposing to amend the date of the policy manual to ensure the updated Weatherization Assistance Program Policy and Procedure Manual will be used for the 2019-2020 Program Year.

In addition, the department is proposing to further amend (3) to incorporate by reference the updated Standard Work Specifications (SWS) on the National Renewal Energy Laboratory (NREL) website, as amended through July 1, 2019. The amendment also provides the link to the NREL website where the Standard Work Specifications are stored. This is necessary to ensure the most current weatherization standards are utilized.

Fiscal Impact

The Low Income Energy Assistance Program, the U.S. Department of Energy, and Bonneville Power Associates are 100% federally funded. Montana Dakota Utilities and Northwestern Energy are 100% utility funds. The department estimates that Montana will receive the same amount in utility funds, compared to last heating season. It is estimated that 20,000 households will qualify for weatherization benefits this year which is comparable to last year.

5. The department intends to apply the proposed amendments to ARM 37.71.601 and 37.71.602 effective July 1, 2019.

6. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Gwen Knight, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; fax (406) 444-9744; or e-mail [email protected], and must be received no later than 5:00 p.m., April 26, 2019.

7. The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 6 above or may be made by completing a request form at any rules hearing held by the department.

9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

10. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.

/s/ Jennifer C. Kaleczyc /s/ Sheila Hogan

Jennifer C. Kaleczyc Sheila Hogan, Director

Rule Reviewer Public Health and Human Services

Certified to the Secretary of State March 19, 2019.