WAP and Biomass Heating Appliances The installation of

WAP and Biomass Heating Appliances • The installation of renewable energy technologies is specifically authorized by 42 USC § 6865(c), et. seq. , which was passed as a part of the Energy Policy Act of 2005. • Key Considerations: – Defines biomass --any organic matter that is available on a renewable or recurring basis, including agricultural crops and trees, wood and wood wastes and residues, plants (including aquatic plants), grasses, residues, fibers, and animal wastes, municipal wastes, and other waste materials. – Biomass and geothermal furnaces or hot water heaters are explicitly listed as renewable energy technologies and are on the list of approved measures contained in Appendix A of 10 CFR 440. – Energy Conservation Measures (ECMs) installed in customers’ homes under WAP must achieve of Savings to Investment Ratio (SIR) of greater than 1. 1 | Weatherization Assistance Program: Federal Perspectives

Financial Considerations – WAP and Biomass • The statute limits expenditures for renewable energy systems to $3, 000 -- currently $3, 545 when adjusted for inflation. – Cost of system included when calculating average cost per unit. – Statutory limit is $6, 700 – currently $7, 105. • Health and Safety – WAP can fund health and safety improvements necessary to protect the integrity of the weatherization materials; i. e. , roof repair to protect insulation. – State sets an average cost per unit limit or an absolute per unit limit on the amount that can be spent on health and safety. – If the average cost per unit approach is used, subgrantees can spend a higher amount per unit and balance it out with lower spending on other homes. – Health and safety costs are included in the average cost per unit. 2 | Weatherization Assistance Program: Federal Perspectives