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(1) Sfc is the projected average retail cost per million Btu's of energy consumed within the region in which the State is located, as contained in current regional energy cost projections obtained from the Energy Information Administration.

(2) Nfc is the summation of the Sfc numerators for all States;

(3) N is the total number of eligible States;

(4) SP is the population of the State, as contained in the most recent Bureau of the Census, Department of Commerce, Official Census documents;

(5) SC is the sum of the State's heating and cooling degree days, as contained in the National Oceanic and Atmospheric Administration's most recent editions of "State, Regional and National Monthly and Seasonal Heating Degree Days, Weighted by Population;" and "State, Regional and National Monthly and Seasonal Cooling Degree Days, Weighted by Population;" and

(6) NPC is the summation of the (SP)(SC) numerators for all States.

(d) Except for the District of Columbia, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands, no allocation available to any State may be less than 0.5 percent of all amounts allocated in any grant program cycle. No State will be allocated more than 10 percent of the funds allocated in any grant program cycle.

§ 455.102 Reallocation of funds.

(a) If a State Plan has not been approved and implemented by a State by the close of the period for which allocated funds are available as set forth in the notice issued by the Secretary pursuant to § 455.100(c), funds allocated to that State for technical assistance and energy conservation meas

ures will be reallocated among all States for the next grant program cycle, if available.

(b) If a State Plan has not been approved by February 7, 1981, or within 90 days after completion of the preliminary energy audits, whichever is later, the Secretary may develop and implement a State Plan on behalf of the schools and hospitals within the State. If the Secretary does not develop a State Plan for a State, the funds reserved for that grant program cycle for schools and hospitals in that State will be reallocated for the next grant program cycle among all States for schools and hospitals.

(c) The Secretary shall reallocate the funds which remain unobligated by DOE at the end of any grant program cycle among all States in the next grant program cycle.

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20-032 0-88--11

8211 et seq.), as amended by Title V, Subtitle B of the Energy Security Act, Pub. L. 96-294, 94 Stat. 611 et seq. and of the Conservation Service Reform Act of 1986, Pub. L. 99-412; Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 et seq. (42 U.S.C. 7101 et seq.).

SOURCE: 52 FR 34143, Sept. 9, 1987, unless otherwise noted.

Subpart A-General Provisions and Definitions

§ 456.101 Purpose and scope.

This part contains the regulations of the Energy Conservation Service Program. This program is mandated by Titles II and VII of the National Energy Conservation Policy Act (NECPA), Pub. L. 95-619 as amended by Subtitle B of Title V of the Energy Security Act (ESA), Pub. L. 96-294, and by Title I of the Conservation Service Reform Act of 1986 (CSRA), Pub. L. 99-412.

§ 456.102 Petitions concerning conflicts of laws.

(a) A utility filing a petition to determine whether the utility—

(1) Is prohibited by a State or local law or regulation from taking any action required to be taken under NECPA, or

(2) Is required or permitted by a State or local law or regulation to take any action prohibited by NECPA, shall file the petition with the Assistant Secretary for Conservation and Renewable Energy, Department of Energy, 1000 Independence Avenue, SW., Washington, DC 20585. Any such petition shall contain a copy of the applicable State or local laws or regulations and a description of the action the utility believes it is prohibited from taking or is permitted or required to take under such laws or regulations.

(b) The Assistant Secretary shall give notice of the petition to the Governor, State Energy Office, and State Regulatory Authority of the applicable State, and such other persons as the Assistant Secretary deems appropriate. Any such person or entity may file comments with the Assistant Secretary with respect to such petition within 30 days of receipt of the notice.

(c) If the Assistant Secretary determines pursuant to such petition that a State or local law or regulation prohibits a utility from taking any action required to be taken under NECPA or permits or requires a utility to take any action prohibited by NECPA, the Assistant Secretary shall issue an order superseding such State or local laws or regulations to the extent the laws or regulations are inconsistent with NECPA. Such an order shall be effective with respect to all utilities otherwise subject to such State or local laws or regulations and shall moot any outstanding petitions under this section by such utilities.

§ 456.103 Appeals and other relief.

(a) Any person seeking relief from the application of this rule, except from Subparts K, L, and M of this part may submit a request for relief in accordance with Subpart R of 10 CFR Part 205. When applicable, such a request shall contain the approval of the Governor.

(b) Any person aggrieved by any order, finding, or determination made under §§ 456.102, 456.502-456.505, or 456.507 may appeal that order, finding, or determination in accordance with Subpart H of 10 CFR Part 205. Any person so aggrieved has not exhausted his administrative remedies until an appeal has been filed under Subpart H of 10 CFR Part 205 and an order granting or denying the appeal has been issued.

§ 456.104 List of covered utilities.

(a) Before the beginning of each calendar year, the Department of Energy shall publish in the FEDERAL REGISTER a list of all covered utilities for that calendar year.

(b) Not later than 60 days after publication of the list, each State Regulatory Authority shall forward to the Assistant Secretary a copy of such list with designations as to which covered utilities on the list are under the jurisdiction of that Regulatory Authority.

(c) The publication of the list is for informational purposes, and the failure to include a covered utility on the list or the failure of a State Regulatory Authority to designate a covered

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For purposes of this part

(a) Alternative State Plan. The term "alternative State plan" means a plan developed pursuant to Subpart K of this part.

(b) Assistant Secretary. The term "Assistant Secretary" means the Assistant Secretary for Conservation and Renewable Energy of the U.S. Department of Energy.

(c) Covered Utility. The term "covered utility" means in any calendar year a public utility which during the second preceding calendar year had either

(1) Sales of natural gas for purposes other than resale which exceeded 10 billion cubic feet, or

(2) Sales of electric energy for purposes other than resale which exceeded 750 million kilowatt-hours.

(d) CSRA. The term "CSRA" means Title I of the Conservation Service Reform Act of 1986, Pub. L. 99-412, which amended Part 1 of Title II of the National Energy Conservation Policy Act (NECPA).

(e) Eligible Customer. The term "eligible customer" means a person who owns or occupies a residential building or dwelling unit therein and receives a bill or bills based on individually metered energy use from a covered utility or participating home heating supplier for energy used in such residential building or individual dwelling unit, except that

(1) The owner of the common area within a residential building containing five or more dwelling units shall not be treated as an eligible customer for the purpose of the common area; and

(2) This definition shall not apply to any building which has five or more dwelling units and which does not contain an individual meter for heating or cooling energy sources used in such dwelling unit.

(f) Energy Conservation Measures. The term "energy conservation meas

ures" means the following measures in a residential building—

(1) Caulking. The term "caulking” means pliable materials used to reduce the passage of air and moisture by filling small gaps which may include (i) at fixed joints on a building, (ii) under baseboards inside a building, (iii) in exterior walls at electric outlets, (iv) around pipes and wires entering a building, and (v) around dryer vents and exhaust fans in exterior walls. Caulking includes, but is not limited to, materials commonly known as "sealants," "putty," and "glazing compounds."

(2) Weatherstripping. The term "weatherstripping" means narrow strips of material placed over or in movable joints of windows and doors to reduce the passage of air and moisture.

(3) Furnace Efficiency Modifications. The term "furnace efficiency modification" means—

(i) Replacement Furnaces or Boilers. The term "replacement furnaces or boilers" means a furnace or boiler, including a heat pump, which replaces an existing furnace or boiler of the same fuel type and which reduces the amount of fuel consumed due to an increase in combustion efficiency, improved heat generation, or reduced heat losses.

(ii) Furnace Replacement Burner (Oil). The term "furnace replacement burner (oil)" means a device which atomizes the fuel oil, mixes it with air, and ignites the fuel-air mixture, and is an integral part of an oil-fired furnace or boiler including the combustion chamber, and which, because of its design, achieves a reduction in the oil used from that used by the device which it replaces.

(iii) Flue Opening Modification (Vent Damper). The term "flue opening modification (vent damper)" means an automatically operated damper installed in a gas-fired furnace which

(A) Is installed downstream from the drafthood; and

(B) Conserves energy by substantially reducing the flow of heated air through the chimney when the furnace is not in operation.

(iv) Intermittent Pilot Ignition Devices (IID). The term "intermittent pilot ignition device (IID)" means a device which, when installed in a gasfired furnace or boiler, automatically ignites the gas burner and replaces a gas pilot light.

(4) Replacement Central Air Conditioner. The term "replacement central air conditioner" means a central air conditioner which replaces an existing central air conditioner of the same fuel type and which reduces the amount of fuel consumed due to an increase in efficiency.

(5) Ceiling Insulation. The term "ceiling insulation” means a material, primarily designed to resist heat flow, which is installed between the conditioned area of a building and an unconditioned attic. Where the conditioned area of a building extends to the roof, the term "ceiling insulation" also applies to such material used between the underside and upperside of the roof. The term "ceiling insulation" also includes such material installed on the exterior of the roof.

(6) Wall Insulation. The term "wall insulation" means a material, primarily designed to resist heat flow, which is installed within or on the walls between conditioned areas of a building and unconditioned areas of a building or the outside.

(7) Floor Insulation. The term "floor insulation" means a material, primarily designed to resist heat flow which is installed between the first level conditioned area of a building and an unconditioned basement, a crawl space, or the outside beneath it. Where the first level conditioned area of a building is on a ground level concrete slab, the term "floor insulation" also means such material installed around the perimeter of or on the slab. In the case of mobile homes, the term "floor insulation" also means skirting to enclose the space between the building and the ground.

(8) Duct Insulation. The term "duct insulation" means a material, primarily designed to resist heat flow, which is installed on a heating or cooling duct in an unconditioned area of a building.

(9) Pipe Insulation. The term "pipe insulation" means a material, primari

ly designed to resist heat flow, which is installed on a heating or cooling pipe in an unconditioned area of a building.

(10) Water Heater Insulation. The term "water heater insulation" means a material, primarily designed to resist heat flow, which is suitable for wrapping around the exterior surface of the water heater casing.

(11) Storm Window. The term "storm window" means a window or glazing material placed outside or inside an ordinary or prime window, creating an air space, to provide greater resistance to heat flow than the prime window alone.

(12) Thermal Window. The term "thermal window" means a window unit with improved thermal performance through the use of two or more sheets of glazing material affixed to a window frame to create one or more insulated air spaces. It may also have an insulating frame and sash.

(13) Storm Door. The term "storm door" means a second door, installed outside or inside a prime door, creating an insulating air space.

(14) Thermal Door. The term thermal door" means

(i) A door with enhanced resistance to heat flow through the glass area by affixing two or more sheets of glazing material; or

(ii) A prime exterior door with an Rvalue of at least 2.

(15) Heat Reflective and Heat Absorbing Window or Door Material. The term "heat reflective and heat absorbing window or door material" means a window or door glazing material with exceptional heat reflecting or heat absorbing properties; or reflective or absorptive films and coatings applied to an existing window or door which thereby result in exceptional heat reflecting or heat absorbing properties.

(16) Devices Associated with Electric Load Management Techniques. The term "devices associated with electric load management techniques" means devices that reduce the maximum kilowatt demand on an electric utility and which are either

(i) Part of a radio, ripple or other utility controlled load switching system on the customer's premises;

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