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Montana Administrative Register Notice 37-846 No. 15   08/10/2018    
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BEFORE THE DEPARTMENT OF PUBLIC

HEALTH AND HUMAN SERVICES OF THE

STATE OF MONTANA

 

In the matter of the amendment of ARM 37.71.102, 37.71.301, 37.71.401, 37.71.601, and 37.71.602, pertaining to low income weatherization assistance program (LIWAP)

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

            1. On August 30, 2018, 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 August 17, 2018, to advise us of the nature of the accommodation that you need. Please contact Todd Olson, 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 dphhslegal@mt.gov.

 

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

 

            37.71.102 ROLE OF THE LOCAL CONTRACTOR (1) The department will contract with appropriate community-based organizations in the state to provide outreach, receive and process applications, and provide weatherization services for the low income weatherization assistance program. A local contractor may provide one or all of these functions as designated by the department.

            (a) and (b) remain the same.

            (c) The designated local contractor shall see that priority is given to identifying and providing weatherization assistance to the elderly, and handicapped low income persons with a disability, and children using a computerized listing of households prioritized for service provided by the department and described in ARM 37.71.601. The computerized listing may be amended by the designated local contractor using the procedure described in ARM 37.71.601.

            (2) remains the same.

 

AUTH: 53-2-201, MCA

IMP: 90-4-201, 90-4-202, MCA

 

            37.71.301 NOTIFICATION OF ELIGIBILITY DETERMINATION (1) and (2) remain the same.

            (3) Notification of eligibility shall contain the following language:  "Because of limited funds, homes are weatherized on a priority basis with special consideration given to handicapped and the elderly, persons with a disability, and childrenYou Households will be notified when funds become available to weatherize your the applicant's home. If not notified within one year, you the applicant must reapply to be reassigned priority for service."

 

AUTH: 53-2-201, 90-4-201, MCA

IMP: 90-4-201, 90-4-202, MCA

 

            37.71.401 LOW INCOME WEATHERIZATION ASSISTANCE PROGRAM, DEFINITIONS 

            (1) remains the same.

            (2) "Child" means a person who is under age 18.

            (3) "Disability" means the same as when the term is used in Social Security law purposes and is determined by the Federal Social Security Administration (SSA) under Title II or Title XVI of the Social Security Act. Verification of disability will be demonstrated by persons showing a supplemental security income disability card, Social Security disability check, or award letter.

            (4) "Elderly" means a person who is 60 years of age or older.

            (5) "Energy burden" means the percentage of a household's income which is allocated to energy costs for the household's dwelling. The energy burden is calculated by dividing the household's actual or estimated annual heating costs by the household's annual income.

            (2) through (4) remain the same, but are renumbered (6) through (8).

 

AUTH: 53-2-201, MCA

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

 

            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 energy usage. priority according to the following: Households with the highest energy usage must be given the highest priority and households with the lowest energy usage must be given the lowest priority.

            (a) The energy usage, as defined in ARM 37.71.401, of households containing a member who is either 60 years of age or older or who has a disability as determined by the federal Social Security Administration under Title II or Title XVI of the Social Security Act will be multiplied by 1.25 for purposes of prioritization. The highest priority is given to households with the highest energy burden.

            (i) When calculating the energy burden of households containing any of the following, the energy usage shall be multiplied by 1.25:

 (A) an elderly household member;

 (B) a disabled household member; or

 (C) a household with a member who is a child.

            (b) Households with the same energy burden are prioritized by highest usage. 

            (6) If there exists a weatherization-related imminent threat to the health or safety of an eligible household, their the home may be given a higher priority than that dictated by energy usage described in (5). It is the obligation of the household to provide proof of an imminent threat to the health or safety of the household to the local contractor. The local contractor must request that the department give the household's dwelling a higher priority.

            (7) 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, 2017 2018, 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) remains the same.

            (2) Dwellings chosen to be weatherized must receive those measures determined to be cost effective as defined in 10 CFR, part 440, as amended through July 1, 2017 2018. The department adopts and incorporates by reference 10 CFR, part 440, as amended through July 1, 2017 2018. 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) remains the same.

            (4) 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, 2017 2018. 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 37.71.102, 37.71.301, 37.71.401, 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 heating costs and address health and safety issues. The department proposes to make the following changes to its administrative rules governing LIWAP.

 

ARM 37.71.102, 37.71.301, and 37.71.601

 

The department is proposing amendments to ARM 37.71.102(1)(c) and 37.71.301(3). The amendments replace the term "handicapped low-income persons" with "persons with disabilities." The preferred way of describing a person who has a condition that causes a serious impairment is now "person with a disability" rather than "handicapped person" or "disabled person." The reason for this change in terminology is to emphasize that the individual is foremost a person like anyone else although the person has a disability rather than being a person who is solely defined by his or her disability. In ARM 37.71.301(3), the department is proposing to add the word "language" to be consistent with current rule drafting styles.

 

Rule amendments to ARM 37.71.102, 37.71.301, 37.71.401, and 37.71.601(5) and (6) specify that priority for weatherization services will be based on special considerations for households with elderly members, members with a disability, households with children, energy usage, and energy burden.

 

In ARM 37.71.601(5) the proposed amendments identify appropriate members to be consistent with the proposed text amendments in ARM 37.71.102 and 37.71.301.

 

The language "households with children" in ARM 37.71.601(5)(c) is being added to ensure special consideration is given when prioritizing weatherization assistance for households with children.

 

ARM 37.71.401

 

The department is proposing amendments to clarify terms used in this rule. This is necessary to ensure defined terms are interpreted as the department intends. 

 

It is necessary to add a definition of "child" to correspond with the proposed amendments of ARM 37.71.102, 37.71.301, and 37.71.601, explaining that a child is anyone under the age of 18.

 

It is necessary to add a definition of "disability" to correspond with the proposed amendments of ARM 37.71.102, 37.71.301, and 37.71.601 explaining that a disability is as defined in 20 CFR 416.905, which is the basic definition of disability for Social Security law purposes.

 

It is necessary to add a definition of "elderly" to correspond with the proposed amendments of ARM 37.71.102, 37.71.301, and 37.71.601 explaining that an elderly person is anyone 60 years of age or older.

 

The definition of "energy burden" is being added to correspond with the proposed amendment of ARM 37.71.601, changing the way the priority list is generated to include energy burden.

 

ARM 37.71.601

 

This rule currently requires the weatherization priority list to be generated based on energy usage with special consideration for households comprised of elderly or people with disabilities, and children. It was noted that generating the priority list based on energy usage identifies and provides weatherization assistance to households with the primary heat source of electricity. In several instances these dwellings were newer and a limited number of measures were needed. The program intends to change the way the weatherization priority list is generated using energy burden; energy usage; and giving special consideration to households with children, as well as households with elderly and people with disabilities. This proposed rule change is consistent with 10 CFR 440.16, the Department of Energy's minimum program requirements, for generating a priority list. 

 

The department is proposing to amend (10) to require the circumstances that justify a deferral outlined in the July 1, 2018 Weatherization Assistance Program Policy and Procedure Manual will be used for the 2018-2019 program year. This is necessary to ensure that deferrals are processed as the department intends. 

 

ARM 37.71.602

 

The department is proposing to amend ARM 37.71.602(2) to require the use of the current edition of 10 CFR 440 amended through July 1, 2018. This is necessary to ensure the most current edition of 10 CFR 440 is utilized. The department is also correcting a citation reference by removing the word "part" when citing the Code of Federal Regulations (CFR).

 

The department is proposing to amend (4) by providing that the updated Weatherization Assistance Program Policy and Procedure Manual will be used for the 2018-2019 program year. This is necessary to ensure weatherization measures are installed as the department intends.

 

In addition, the department is proposing to further amend (4) to incorporate by reference the updated Standard Work Specifications (SWS) on the National Renewal Energy Laboratory (NREL) website, amended through July 1, 2018. 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, Department of Energy, Bonneville Power Associates are 100% federally funded. Montana Dakota Utilities, Northwestern Energy are 100% utility funds. U.S. Department of Energy funding in 2018 is based on the 2016 allocation levels and will be updated once the Federal Fiscal Year (FFY) 2018 budget is passed and the updated allocations have been issued to the State of Montana. 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. 

 

This new method of determining priority will cause some households to have a lower priority and other households to have a higher priority than under the current rules. 

 

            5. The department intends to apply ARM 37.71.601(10) and 37.71.602 retroactively to July 1, 2018. A retroactive application of these proposed rules does not result in a negative impact to any affected party.  ARM 37.71.102, 37.71.301, 37.71.401, and 37.71.601(5), (5)(a), and (6) will be effective the day after publication of the final notice.

 

            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: Todd Olson, 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 dphhslegal@mt.gov, and must be received no later than 5:00 p.m., September 7, 2018.

 

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 July 31, 2018.

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