DOE provides weatherization grants to states, which in turn provide grants to non-profit sub-grantees. These sub-grantees fall into one of three categories: 1. The sub-grantee uses its own employees to perform all the weatherization services in the home, 2. The sub-grantee uses a combination of its own employees and contractors to perform weatherization services, or 3. The sub-grantee has no employees that perform weatherization services; instead, every service is performed by a hired contractor. Must these sub-grantees be RRP-certified firms?
Answer: Beginning April 22, 2010, no firm may perform, offer, or claim to perform renovations covered by the RRP Rule without certification from EPA. Sub-grantees that use their own employees to perform any or all of the weatherization services in the home, such as the sub-grantees in the first two categories, must be RRP certified firms.
As to the sub-grantee in the third category, the need for certification depends on whether the sub-grantee offers, through the grant proposal, to renovate the property of a specific homeowner or other third-party. In this case, the sub-grantee is an offeror and grant money is “compensation” for RRP purposes. Once the offer is accepted (i.e., the grant is issued) a contract is formed under which the sub-grantee is obligated to perform the renovation. Even if the sub-grantee chooses to fulfill its obligation to perform the renovation by contracting out the work, the sub-grantee is “offering to perform a renovation” for purposes of the RRP rule. Accordingly, the sub-grantee must be a certified firm and comply with all other applicable RRP requirements.
Conversely, if the sub-grantee does not “perform, offer, or claim to perform” a renovation - through a grant proposal or otherwise - the sub-grantee need not be certified. For example, a grant proposal would not constitute an “offer” if the issuance of the grant would not obligate the sub-grantee to renovate the property of a specific third-party. If the grant proposal is not a legally binding offer, the sub-grantee becomes a mere purchaser of renovation services when it uses the grant money to hire a renovation firm. In such a case, only the renovation firm – the offeror - must be certified
Question Number: 23002-15340
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