DOE Weatherization Assistance Program — Energy Efficiency for Low-Income Households

More than 40 million low-income households in the United States live in homes that are poorly insulated, have leaky windows, or run on inefficient heating and cooling equipment — conditions that drive energy bills disproportionately high relative to household income. The Weatherization Assistance Program (WAP), the nation's largest residential energy efficiency program for low-income households, addresses this directly: a federal block grant flows from the Department of Energy to state governments, which contract with local Community Action Agencies (CAAs) and other nonprofits to install insulation, seal air leaks, upgrade heating systems, and implement other energy efficiency measures in eligible homes. 10 CFR Part 440 implements the WAP, which has weatherized over 7 million homes since its creation in 1976.

Legal Authority

• 42 U.S.C. §§ 6851–6872 — Energy Conservation in Existing Buildings Act of 1976 (Subchapter III of EPCA): authorizes the Weatherization Assistance Program; directs DOE to provide financial assistance to states for weatherization of dwellings occupied by low-income persons
• 10 CFR Part 440 — DOE regulations implementing WAP; establishes eligibility, state plan requirements, allowable measures, per-unit spending caps, audit requirements, and health and safety standards

Key Mechanics

WAP operates as a formula block grant: DOE allocates funds to states based on a statutory formula weighting low-income population, heating/cooling degree days, and residential energy expenditures; states then sub-grant to local Community Action Agencies (CAAs) that perform the actual work. The program is distinctive in its use of standardized energy audits — before weatherizing any home, a trained auditor uses DOE-approved software to model energy consumption and rank potential improvements by Savings-to-Investment Ratio (SIR ≥ 1.0 required for installation). The per-unit average spending cap ($6,500) limits the extent of improvement per home; health and safety measures (carbon monoxide detectors, electrical safety) are also eligible costs that do not count against the cap. Davis-Bacon prevailing wage requirements apply to construction activities. The American Recovery and Reinvestment Act of 2009 provided $5 billion in WAP funding — dramatically expanding the program and creating capacity challenges in state delivery networks.

Current Rule (2026)

What This Rule Does

The WAP is a block grant program: Congress appropriates funds to DOE; DOE allocates them to 50 states, the District of Columbia, and Native American tribal entities based on a formula that weighs each state's low-income population, heating and cooling degree days, and residential energy expenditures. Each state then subgrants most of its allocation to local Community Action Agencies — the network of ~900 nonprofit organizations established under the Economic Opportunity Act of 1964 that serve as the primary delivery mechanism for anti-poverty programs at the local level. CAA crews and contractors physically perform the weatherization work on individual homes.

The rule's core innovation is using a standardized energy audit to prioritize interventions: before a home is weatherized, a trained energy auditor uses DOE-approved software to model the home's energy consumption and predict the energy savings from different possible improvements. Measures are ranked by their Savings-to-Investment Ratio (SIR) — investments that save more than they cost (SIR ≥ 1.0) are approved for installation. This data-driven approach distinguishes WAP from simple insulation grants — it ensures that program funds flow to the improvements with the highest energy impact in each specific building.

Typical WAP measures include: ceiling/wall/floor/basement insulation; air sealing (caulking, weatherstripping, blower-door-guided infiltration reduction); furnace or boiler replacement; water heater replacement; window or door repair or replacement; lighting upgrades; and renewable energy systems (where cost-effective). Health and safety measures (carbon monoxide detectors, addressing combustion safety hazards) are allowable expenses even if their SIR is below 1.0 because DOE policy permits weatherization of homes that would otherwise present hazards — a home with a cracked heat exchanger leaking CO must be made safe before energy efficiency work proceeds.

Key Provisions

• § 440.10 — Allocation of funds: DOE allocates program funds to each state annually based on a formula weighted by (1) the state's low-income population relative to the national total; (2) the state's climatic conditions (heating and cooling degree days); and (3) the state's residential energy expenditures per household; state allocations must be at least $35,000; the formula ensures that cold-weather states and states with high energy burdens receive proportionately more funding; DOE publishes the annual allocation formula and per-state amounts in the program year's State Plan guidance

• § 440.11 — Native Americans: when a state's service delivery to tribal members is inadequate, the DOE Regional Support Office may directly award WAP funds to a tribal organization; tribes may also receive funds from their state's allocation; tribal weatherization programs operate under the same technical standards as state programs; the Native American set-aside authority recognizes that tribes may be better positioned than states to reach tribal members in rural or reservation communities

• § 440.12 — State application: states must submit an annual application to DOE within 60 days of DOE's notice to apply; the application includes a State Plan describing how funds will be used, which subgrantees will receive allocations, the state's program administration approach, and the quality control and monitoring systems the state will use; DOE reviews the plan for consistency with program requirements and approves or requests modifications

• § 440.14 — State plan public hearing: before submitting its application, each state must hold at least one public hearing with 10 days' notice — informing prospective subgrantees (CAAs and other nonprofits) of the opportunity to comment on the state plan; the public hearing requirement reflects WAP's origins in the community action framework, which emphasized community participation in anti-poverty programs

• § 440.15 — Subgrantees: the state must ensure each subgrantee is a Community Action Agency or other public or nonprofit entity; subgrantees are selected through a public comment process and must demonstrate experience and performance in weatherization; DOE requires states to use a competitive or performance-based selection process; a CAA that fails to meet performance targets (dwelling units weatherized per dollar, quality control audit results) may be replaced by the state; subgrantees must enter a signed agreement with the state specifying the program requirements, reporting obligations, and the number of units to be weatherized

• § 440.16 — Minimum program requirements: no dwelling may be weatherized without documentation of eligibility (income verification); priority must be given to the elderly, persons with disabilities, and families with children; the grantee must implement a quality control system with regular inspections of completed work; each subgrantee must maintain an inventory of all weatherization materials and equipment; the state must ensure that work is performed by workers paid at least the prevailing wage for weatherization activities in the area (the Davis-Bacon wage requirement applies to federally assisted construction)

• § 440.18 — Allowable expenditures and per-unit cap: the program spends an average of no more than $6,500 per dwelling unit across the grantee's program (the cap is adjusted periodically by DOE for inflation; DOE may approve higher caps for specific states based on demonstrated need — Alaska, Hawaii, and high-cost urban areas have received cap waivers); allowable expenditures include: (a) weatherization materials and equipment; (b) labor; (c) weatherization program support (training, technical assistance, quality control); (d) liability insurance; (e) administrative costs (capped at 5% of the program year's allocation); the per-unit cap applies as an average — some units may cost more, others less, as long as the grantee's aggregate program expenditure per unit stays within the cap

• § 440.20 — Low-cost/no-cost weatherization: a subgrantee may weatherize dwellings with very inexpensive measures (weatherstripping, outlet gaskets, showerhead aerators, water heater insulation wraps) without counting against the per-unit cap, provided inexpensive materials are used and the labor cost is minimal; this provision allows programs to serve a larger number of households with basic measures while reserving cap-constrained resources for more comprehensive retrofits in severely deficient homes

• § 440.21 — Weatherization materials standards and energy audit procedures: all materials installed must meet applicable DOE or federal standards (ENERGY STAR specifications for appliances, ASHRAE standards for HVAC, state building codes for insulation R-values); energy audits must use a DOE-approved audit tool or the DOE-prescribed Priority List method — which ranks measures by SIR using local climate data, energy prices, and occupancy patterns; health and safety measures (combustion safety testing, CO detection, electrical repair to prevent fire hazards, moisture control) are allowable without meeting the SIR threshold because they are prerequisites to safe weatherization

• § 440.22 — Eligible dwelling units: a dwelling unit is eligible if it is occupied by a family whose income is at or below 200% of the federal poverty level (as determined by HHS) OR whose income is at or below the state's annual median income — whichever is higher; eligibility also extends to recipients of LIHEAP, SSI, SNAP (food stamps), TANF, or certain other means-tested federal benefits (automatically eligible regardless of the 200% poverty standard); renters are eligible — the rule requires owner permission before weatherizing a rental unit, but tenants may apply; mobile homes and manufactured housing are eligible

• § 440.23 — Oversight, training, and technical assistance: DOE monitors state programs through on-site inspections, data reviews, and financial audits; DOE provides technical assistance (training workshops, online resources, the IHAP audit software suite) and publishes technical guidance through the Weatherization Assistance Program Technical Assistance Center (WAPTAC); the National Renewable Energy Laboratory (NREL) and Oak Ridge National Laboratory (ORNL) provide technical support to DOE and states on advanced diagnostic tools and emerging weatherization technologies

How It Affects You

If you are a low-income household: you may apply for free weatherization services through your local Community Action Agency; find your local agency through the DoE's WAP contact directory or by calling the state energy office listed in your state's WAP program directory; eligibility requires documentation of household income (tax returns, pay stubs, benefit statements) or proof of receipt of qualifying benefits (LIHEAP, SNAP, SSI); if your home is a rental unit, your landlord must consent; services are provided at no cost to the household; a typical weatherization job reduces energy bills by $250–$450 per year on average, with the investment paying back in 8-12 years in energy savings; health and safety improvements (CO detectors, fixing cracked heat exchangers) are included

If you are a Community Action Agency or nonprofit: WAP subgrant funding comes through your state energy office; contact your state's WAP manager to learn about subgrantee selection processes in your service territory; subgrantees must maintain a trained weatherization workforce (DOE's Weatherization Assistance Program Standardized Work Specifications guide the required training and certification); quality control audits of completed work (post-installation inspections) are required; subgrantees must maintain financial records for 3 years after the grant period closes

If you are a state energy office administrator: DOE's WAP State Plan requirements specify the content, public hearing, and submission timeline; the program includes a 5% administrative cost cap; Health and Safety (H&S) expenditures may be funded up to 20% of the program year allocation for a subgrantee if DOE approves; training and technical assistance activities (§ 440.23) are separately fundable from weatherization funds; NASCSP (National Association for State Community Services Programs) is the national association representing state WAP managers

If you are a weatherization contractor or installer: WAP work is prevailing wage work subject to the Davis-Bacon Act; you must be licensed in your state for the relevant trades (HVAC, electrical, insulation); CAAs contract with private weatherization contractors in many states alongside their in-house crews; installer credentials (BPI Building Analyst, RESNET HERS rater, DOE WAP certification) may be required depending on state program requirements; the DOE's WAPTAC training portal offers curriculum resources

Statutory Authority

This rule implements:

• 42 U.S.C. §§ 6861–6872 — Weatherization Assistance for Low-Income Persons (Energy Conservation in Existing Buildings Act of 1976, Title IV, Part A); establishes the program, the eligibility criteria, the delivery structure, and the eligible measures
• 42 U.S.C. § 6851 — Congressional findings: declares that residential energy use accounts for a significant portion of U.S. energy consumption and that low-income persons bear a disproportionately high energy burden; establishes energy conservation and low-income energy assistance as national priorities

Recent Rulemakings

• 81 FR 48578 (July 2016) — comprehensive update to Part 440, the most significant revision in decades; updated weatherization materials standards, strengthened health and safety provisions, revised the energy audit requirements (permitting more advanced diagnostic audit tools alongside the Priority List), updated the eligible dwelling unit income test, and clarified procedures for manufactured housing and rental units
• 88 FR 20726 (April 2023) — amendments implementing provisions of the Infrastructure Investment and Jobs Act (IIJA, Pub. L. 117-58), which provided a one-time supplemental appropriation of $3.5 billion to WAP over 5 years (the largest single-year funding increase in WAP history); DOE issued guidance on spending the IIJA supplemental funds, including expanded per-unit caps and streamlined state plan amendments for programs scaling up operations rapidly

State Energy Program — A Companion DOE Energy Block Grant

The State Energy Program (SEP), implemented by 10 CFR Part 420 and authorized by 42 U.S.C. § 6321 et seq. (Energy Policy and Conservation Act, Part D), is the DOE block grant that funds broad-based state energy planning and conservation activities — the broader companion program to WAP's targeted low-income weatherization funding.

Where WAP funds physical weatherization work on specific homes, SEP funds state energy office operations — energy efficiency program development, renewable energy deployment, transportation energy planning, building codes support, energy data collection, and public education. SEP is a formula grant with a 20% state matching contribution requirement (§ 420.12); states must provide cash or in-kind contributions equal to at least 20% of the federal allocation. This matching requirement distinguishes SEP from WAP, which requires no match.

Key Part 420 provisions:

• § 420.10–420.11 — Formula grant allocation: DOE allocates funds to each state annually based on a formula weighting population, energy consumption per capita, and heating/cooling degree days; states apply to their DOE Regional Office with a State Energy Plan and annual application
• § 420.12 — State matching contribution: at least 20% match is required; cash contributions and in-kind contributions both count; states that use federal funds to satisfy matching requirements for other federal programs may not use the same expenditures for SEP match
• § 420.13–420.14 — Annual applications and approval: states submit annual applications that describe proposed activities, budget, and planned outcomes; DOE Regional Offices review applications for consistency with the state's approved Energy Plan and provide conditional or unconditional approvals; amendments to state plans are reviewed on a 60-day timeline
• §§ 420.30–420.36 — Special projects: DOE may fund competitive special project grants to states for activities that address specific national energy priorities (grid modernization, building decarbonization, clean transportation); special project grants go beyond formula allocations and are subject to individual project agreements

SEP and WAP often work in tandem at the state level: the state energy office (funded partly by SEP) designs and manages the weatherization program, trains WAP subgrantees, conducts quality control, and links WAP-eligible households to other energy efficiency programs (LIHEAP energy efficiency components, utility rebate programs, state-funded weatherization supplements). A household receiving WAP services may also benefit from utility rebates coordinated through SEP-funded outreach. States with robust SEP programs typically stretch WAP dollars further by leveraging SEP funds for training, technical assistance, and administrative infrastructure that WAP's 5% administrative cap would otherwise constrain.

Pending Action