(a) Policy. It is the policy of the Arkansas Energy Office of the Division of Environmental Quality that subgrantees comply with the rules, regulations, or guidelines applicable to the specific Weatherization Assistance Program (WAP) funding sources as described below:

1. (1) The United States Department of Energy;
2. (2) Petroleum Violation Escrow (PVE) funds; and
3. (3) The Low Income Home Energy Assistance Program (LIHEAP).

(b) Subgrantees shall ensure that funds provided through the United States Department of Energy Weatherization Assistance Program, petroleum violation escrow funds, and Low Income Home Energy Assistance Program funds shall be used to:

1. (1) Supplement, and not supplant, state or local funds; and
2. (2) Increase, to the maximum extent practicable, the amount of funds for weatherization activities that would be available in the absence of United States Department of Energy funds.