Department of Energy Washington, DC December 22, Dear Messrs: Scheppach, Borut, Naake, O'Neill, Pound, Cochran, and Adkins:

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1 Department of Energy Washington, DC December 22, 2009 Re: American Recovery and Reinvestment Act Implementation Dear Messrs: Scheppach, Borut, Naake, O'Neill, Pound, Cochran, and Adkins: Thank you for your December 18, 2009, letter regarding the American Recovery and Reinvestment Act (Recovery Act) implementation, and for working with the Department of Energy (DOE) to deploy Recovery Act funds quickly and responsibly. My goal, like yours, is to support grant recipients in helping them effectively create jobs and achieve energy benefits. DOE obligated 10% of Recovery Act funding for the Weatherization Assistance Program (WAP) and the State Energy Program (SEP) by April 2009, 50% by August 2009, and obligated the remaining funds by the end of September. Additionally, DOE has obligated 80% of the Energy Efficiency and Conservation Block Grant Program funds to date. These obligations should provide each of the grant recipients with the resources necessary to move forward and deliver high impact projects on a timely basis. We are excited about the level of innovation and initiative in many States, counties, and cities. Those leading the charge will have invested more than 20% of their total obligated funds by the end of the calendar year, and in so doing will have launched exceptional projects that will make a meaningful down payment on the Nation's energy and environmental future. I appreciate your efforts to gather and provide feedback, and your summary of specific programmatic requests. We believe that our ongoing dialogue with your organizations will help ensure that there is clarity in awarding Recovery Act funds to appropriate projects. A list of EECBG Program, SEP, and WAP information with corresponding web-links is provided in the enclosure to this letter. Much of this guidance was posted beginning in August In addition, DOE will soon issue program guidance regarding historic preservation and other areas that may be of concern. Below is a brief update of some of the new program guidance and information that we have shared with the public including organizations like yours: 1) Measuring progress and success: In order to ensure that Recovery Act money is being invested properly and on a timely basis on behalf of taxpayers, we are changing certain reporting requirements from quarterly to monthly reports. This requirement is intended to support managerial accountability, enabling DOE and your elected representatives to make sure these projects are progressing appropriately. This enhanced reporting will help the Administration track Recovery Act progress and measure success without a significant impact to awardees. *Printed with soy ink on recycled paper

2 2) Davis-Bacon Act requirements for SEP and EECBG Program: Program guidance for EECBG Program Davis-Bacon Act requirements is enclosed. We anticipate issuing SEP Davis-Bacon Act guidance by December 30, ) NEPA "Categorical Exclusions" (CXs) for SEP and EECBG Program: DOE issued NEPA Guidance for the EECBG Program and SEP with an effective date of December 17, It is enclosed with this letter and consolidates guidance and templates previously provided directly to the grant applicants and recipients starting in August ) Buy America provisions and waivers: This guidance was issued with an effective date ofdecember 17,2009, and is enclosed with this letter. 5) Use of SEP funds for manufacturing retooling: DOE has been working directly with States on this issue. General guidance is being issued today, and is enclosed with this letter. 6) Single guidance document for EECBG Program: Comprehensive information and guidance has been published online to rapidly address questions as they arise at and other important information will be compiled into a single guidance document, consolidating and updating much of the material already available. Our combined efforts are invaluable as we work toward a common goal - supporting awardees in deploying Recovery Act funds to provide the greatest possible economic and energy benefits. I am counting on your continued assistance in this effort, and I welcome your feedback so that we can resolve issues as they arise. Thank you for your continued cooperation in implementing DOE Recovery Act programs. Please contact me if you have any additional concerns. Sincerely, Cathy Zoi Assistant Se etary Energy Efficiency and Renewable Energy

3 Enclosure A State Energy Program (SEP) Program main page: energy program! Recovery Act program main page: energy program/recovery act.cfm Recovery Act allocations: energy program/recovery act awards.cfm DOE guidelines and Federal regulations: energy program/doe guidelines.cfm Recovery Act program guidance: energy program/recovery act program guidance.cfm SEP NEPA SEP Retooling DOE Non-ARRA Guidance Documents: I.eere.energy.gov/state energy program/grant guidance.cfm Frequently asked questions: (FAQ): energy program/recovery act fags.cfm Davis Bacon Act FAQs: energy program/davis bacon fags.cfm Davis Bacon Act clauses as approved by DOL: energy program/pdfs/dba clauses.pdf NEPA guidance: I.eere.energy.gov/state energy program/doe guidelines nepa.cfm NEPA compliance project officers: energy program/doe guidelines nepa.cfm Revolving Loan Funds: energy program/pdfs/sep rlf.pdf Recovery Act SEP Funding Opportunity Announcement: arra foa.pdf

4 Energy Efficiency and Conservation Block Grant Program (EECBGl Program homepage: Program guidance page: guidance.html EECBG Contracting Officer Approval of Sub-grants and Loans Under EECBG - Formula EECBG Revolving Loan Funds under the Energy Efficiency Conservation Block Grant Program - Formula and Competitive EECBG National Environmental Policy Act NEPA EECBG Davis Bacon Act NEPA Guidance Including: energy program/doe guidelines nepa.cfm Frequently Asked Questions: Formula post-award procurement questions: Award Questions pdf Formula methodology: Federal Register Notice p df Formula Funding Opportunity Announcement: FOA Amendment pdf State and local formula allocations: Tribal formula allocations: Formula appeal decisions: Competitive grants main page: grants.html Competitive grants frequently asked questions: grant faq.html Competitive Funding Opportunity Announcement: Competitive FOA148 Amendment3. pm Archived webcasts:

5 Weatherization Assistance Proe:ram (WAP) Program main page: Recovery Act frequently asked questions: l.eere.energy. goy/weatherization/recovery act faqs.cfm Davis Bacon Act guidelines: DOL prevailing wage determinations for weatherization: wage determination.cfm Davis Bacon Act frequently asked questions: bacon faqs.cfm Recovery Act allocations: act awards.cfm\ Training and Technical Assistance Plan: Program guidelines and procedures: guide.cfm DOE guidelines for Weatherization: guidelines.cfm Program guidance documents : regulations guidance Weatherization Federal regulations: regs.cfm EECBG, SEP, and WAP Weatherization and Intergovernmental Program main page: EERE Recovery Act homepage: Buy American provision homepage for EERE: american provision.html

6 Buy American provision instructions for waiver requests: Buy American provision frequently asked questions: DOE monitoring plan for Recovery Act: I.eere.energy.gov/wip/pdfs/monitoring plan.pdf Energy Empowers success stories main page: Recovery Act clearinghouse: Enclosures