LIHEAP Service Providers Meeting

1
LIHEAP Service Providers Meeting

• ARRA Policy Updates
• Sacramento CA
• August 19, 2009

2
Presenters

• Jayson Wimbley
• Kathy Ely
• Dianna Molina
• Kim Petz
• Leslie Campanella

3
Agenda

• ARRA Updates
• Production Implementation
• Policy Directives and Changes
• Service Delivery

4
ARRA Updates

• Section will cover
• DOE Assessment Visit
• DOE Expectations
• DOE Implementation Challenges
• Davis-Bacon Update

5
DOE Assessment Visit

• Representatives from Secretary Chus office
  performed evaluation of CSD in July
• Focus of visit
• Collective readiness to administer ARRA
• Identification of issues/barriers impeding
  collective efforts
• Gather suggestions on how DOE can serve as a
  better resource
• California classified as high-risk due to high
  funding levels

6
DOE Assessment Visit

• Assessment reports to be issued to VP Biden
• Plans to visit all states
• Be prepared for similar visits in future
• Four day visit included
• Meetings with CSD management
• Meetings with Governors staff
• Conference call with the Energy Council
• On-site visits to 7 agencies

7
DOE Expectations

• Need for results by Obama administration have
  added more attention and visibility
• High expectations to create jobs and produce
  units
• Need to spend wisely and quickly
• Accountability and transparency spotlight
• Greater emphasis on quality of work

8
DOE Expectations

• Separate tracking of DOE ARRA funds
• To improve tracking, accountability and outcome
  measures
• No leveraging of ARRA and regular DOE funding
• Discouraged leveraging with any other funding
• Develop more robust state oversight and
  monitoring efforts
• Quarterly visits

9
DOE Implementation Challenges

• Challenges conveyed to DOE
• Impacts of Davis-Bacon on local job
  training/development and wx operations
• Need for timely resolution of Davis Bacon and
  reporting requirements
• Develop streamlined reporting
• Contraction between states more deliberate,
  careful planning vs. federals spend and produce

10
Davis-Bacon Update

• DOL survey conducted to establish new wage
  classification for weatherization workers
• Anticipate preliminary results from DOL by
  mid-August
• Classification will cover all general wx
  activities
• Excludes specialty work to be covered under
  existing federal or state classifications for
  each county

11
Davis-Bacon Update

• Not applicable to local government who have wx
  crews per DOE program guidance
• Subcontractors
• Must include DB language in bid solicitations and
  contracts 29CFR5.5(a)
• Must include reference to wage determinations
• Must check subcontractor status on excluded party
  list (debarment) at www.epls.gov

12
Davis-Bacon Update

• Compensation for workers
• Must be paid at least once a week
• Must be compensated at rate specified for each
  classification at time of performance
• Reporting and recordkeeping
• Required to submit certified payrolls and
  statement of compliance to CSD weekly
• Form WH-347 or equivalent will be required
• Records must be maintained for 3 years

13
Davis-Bacon Update

• Must post DB poster at worksite in prominent
  place
• Poster available online at www.dol.gov
• Wage determination must be included
• CSD seeking additional guidance and available DOL
  trainings
• www.dol.gov/esa/whd/regs/compliance/posters/fedpro
  jc.pdf

14
Production Implementation

• Section to cover
• ARRA Contract
• ARRA Local Plan
• ARRA Reporting
• Risk Assessments
• Training Update

15
ARRA Contract

• Will include provisions for direct wx service
  activity and budget augmentation for next 40
  grant funding
• Issuance contingent on
• Submission of local plan amendments
• Outcome of CSD internal risk assessment
• May include special scope of work provisions or
  other special conditions as result of risk
  assessment

16
ARRA Contract

• Delay in release of regular 2009 DOE contract
• Considering extending regular 2009 DOE contract
  term

17
ARRA Local Plan

• Purpose to obtain accurate picture of current
  planning efforts
• Expanded to capture
• Details on specific plans to achieve goals
• What progress has been made
• Will be incorporated into September production
  contract
• Due date 8/31/09

18
ARRA Local Plan

• Future revisions allowed for impacts to planning
  
• Prevailing wage classification determination
• Priority list approval
• Other reporting and program requirement changes
• 3,154 per unit cost for temporary planning
  purposes only
• DOE noted great variances of cost per unit
  between agencies

19
ARRA Reporting

• First quarterly report due October 10th to Office
  of Management and Budget (OMB)
• All agency data is submitted to CSD by the 5th
• CSD enters into California ARRA Accountability
  Tool (CAAT) and DOE WinSAGA database
• Data transferred to OMB FederalReporting.gov
  through CAAT

20
ARRA Reporting

• Reporting tools at all levels under development
• CSD awaiting direction and IT architecture from
  State Chief Information Officer (CIO) who is
  awaiting direction and architecture from OMB
• Look to future blog entries for further reporting
  data requirements and guidance

21
ARRA Reporting
22
ARRA Reporting
23
Risk Assessments

• Conducting internal and external assessments to
  identify areas of risk
• Carried out jointly by internal audits and
  program divisions
• External assessments will target all recipients
  of ARRA funding
• Additional review for agencies receiving larger
  amount of funds

24
Risk Assessments

• Includes review of
• Prior findings and corrective actions
• Performance under 2009 LIHEAP and 2008 DOE
  contracts
• Compliance with required wx measure/diagnostic
  performance standards
• Work quality
• Key staff vacancies
• Late reporting
• Use of subcontractors

25
Risk Assessments

• Follow-up by field reps to bring issues to
  closure and/or develop corrective work plan
• Consideration for corrective work plan added to
  contract
• Added deliverables, performance and compliance

26
Risk Assessments

• Example
• Significant expenditure underperformance under
  2009 LIHEAP contract
• Added special conditions to contract
• Must foster partnership with strong contractor to
  increase capacity
• Subject to stricter monitoring and additional
  reporting to gauge performance

27
Training Update

• Funding to Stockton and San Bernardino Training
  Centers to expand capacity
• Funding for establishment of CAA Butte Green
  Training Center
• Hosting CSD wx training curriculum
• Online in 30 45 days

28
Training Update

• Assessor and inspector field training
• Need names of field supervisors, assessors and
  inspectors from agencies to facilitate scheduling
• Will be provided in small regionalized groups
• Training provided over 7 weeks to facilitate
  immediate need
• Ongoing training in future

29
Training Update

• Subcontractor procurement and monitoring
• Toolkit being created for guidance
• Will include but not be limited to
• Process flowchart
• Qualification checklist
• RFQ and contract shell
• Insurance information

30
Policy Directives and Changes

• This section will cover
• Contract Advancements
• Major Purchase Advancements
• Vehicle Purchases and Leasing
• Reimbursement Reporting
• Income Eligibility

31
Contract Advancements

• Applicable to all CSD energy programs
• Limited to 25 advance with 6 month repayment
  period
• Schedule determined by mutual agreement between
  CSD and service provider
• Payback no less than 30 by 3rd month
• Payback in full by 6th month
• All advances must accompanied by full explanation
  of purpose and need

32
Major Purchase Advancements

• Special advance may be requested under all CSD
  energy programs
• Provisions include
• Limited to purchases over 5,000
• 558 process and DOE approval must be completed
• Documentation of open and competitive bid process
  included in 558 process
• Major administrative and program purchases will
  be liquidated upon 1st expenditure report period
  following date of purchase

33
Major Purchase Advancements

• Will only be granted if
• No less than 50 of initial capital advance has
  been paid back and
• Total amount of all outstanding balances never
  exceeds 25 of remaining contract balance
• Unless total of original capital advance plus
  major purchase advance request does not exceed
  25 contract advance maximum

34
Major Purchase Advancements

• More scrutiny being placed on purchases under
  LIHEAP
• Must indicate if such purchases will benefit
  LIHEAP exclusively
• If not, must allocate share of cost appropriately
  to all direct benefiting programs
• Future monitoring to include review of vehicle
  and equipment usage under all CSD programs

35
Vehicle Purchases and Leases

• Vehicle leasing encouraged over purchasing
• DOE and State Stimulus Task Force
• Due to limited term of ARRA
• Purchasing may be more cost effective under
  certain circumstances
• Exemptions offered but bar will be high
• Submit written request with complete
  justification
• Financial analysis to support benefits

36
Reimbursement Reporting

• Reporting at actual cost required in DOE and
  LIHEAP contracts
• Abolishment of fixed fee measures and approved
  labor rates
• Actual labor hours requirement remains
• Documentation in client files of time on jobsite

Timesheet
Job Schedule
Client File
37
Income Eligibility

• Federal Law Title 42 Chapter 94
• State may apply procedures/policies consistent
  with agency administering program
• Not to exceed greater of 150 of Federal poverty
  level or 60 of state median income
• Implementation of statewide methodology for
  calculating partial income
• 1 weekly paystub X 4.333
• 1 bi-weekly paystub X 2.167
• Incomes not to be annualized

38
Income Eligibility

• New exclusions to income
• Student assistance including grants and work
  study
• Income of live-in aid or amounts paid by State to
  family member for cost of services/equipment to
  keep disabled member at home
• Income from children including foster children
  under 18 years of age
• Payments for care of foster children or foster
  adults unrelated to occupant family and unable to
  live alone

39
Service Delivery

• Section to cover
• Assessments
• Energy Audit and Priority List
• Quality Assurance
• Refrigerator Replacement

40
Assessments

• New statewide assessment form under DOE and
  LIHEAP to standardize process and assure quality
• Measure installation deviating from original
  assessment must be documented
• Form not used for job costing purposes
• Assessors must be independent of installers
• Specific training requirements for all assessors
• Developed around assessment form

41
Energy Audit and Priority List

• Expanded priority list to be used
• Energy audit required after priority list
  exhausted
• Priority given to units with most
  energy-efficiency needs under ARRA
• Intake/outreach/assessment strategies must be
  modified to effectively target greater need
• Analysis of LIHEAP measures for re-prioritization

42
Quality Assurance 3rd Party

• Increase in scope and frequency of 3rd party
  inspections
• Scope expanded to include
• Issuance of customer satisfaction surveys
• Greater emphasis on evaluation of internal
  quality assurance systems
• Monitoring of subcontractor activities and work
  quality
• Expanded file reviews for compliance with WIS and
  PPs

43
Quality Assurance - Agency

• 100 post-wx inspection for all ARRA units
• 25 rate for LIHEAP and DOE regular
• Will enhance current LIHEAP post-wx inspection
  model
• Inspectors must be independent of installers
• Specific training requirements for all inspectors

44
Refrigerator Replacement

• Pending DOE approval
• Pre-1993 units
• Must be metered if not verified through database
  or other resource
• Post-1992 units and at least 10 years old
• Can be replaced only if metering determines
  inefficiency
• Metering takes at least 2 hours
• Part of assessment process
• 10 DOE metering requirement must be met