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WaterSense New Home Certification System
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I.     DEFINITIONS	3

II.     OVERVIEW OF CERTIFICATION PROCESS	4

III.    PROCEDURES AND REQUIREMENTS FOR PROGRAM ADMINISTRATORS	4

  A.  APPLICATION PROCEDURES FOR PROGRAM ADMINISTRATORS	4
  B.  EPA APPROVAL OF PROGRAM ADMINISTRATORS	6
  C.  RESPONSIBILITIES OF PROGRAM ADMINISTRATORS	6
  D.  ONGOING SUPPORT	8

IV.    PROCEDURES AND REQUIREMENTS FOR LICENSED CERTIFICATION
      PROVIDERS	9

  A.  PROCEDURES FOR BECOMING A LICENSED CERTIFICATION PROVIDER	9
  B.  RESPONSIBILITIES OF A LICENSED CERTIFICATION PROVIDER	11
  C.  ONGOING SUPPORT	13

V.     PROCEDURES AND REQUIREMENTS FOR WATER-EFFICIENCY HOME
      INSPECTORS	15

  A.  INSPECTOR TRAINING AND ADMINISTRATION	15
  B.  NEW HOME INSPECTION	16
  C.  NOTIFY LICENSED CERTIFICATION PROVIDER OF NEWHOME INSPECTIONS	17
  D.  ONGOING SUPPORT	17

VI.    PROCEDURES AND REQUIREMENTS FOR BUILDER PARTNERS	18

  A.  PARTNERSHIP AGREEMENTS WITH EPA	18
  B.  NEWHOME CERTIFICATION AND LABELING	18

VII.    SUSPENSION AND WITHDRAWAL OF THE WATERSENSE LABEL FROM NEW
      HOMES	19

  FIGURE 1. NEWHOME CERTIFICATION PROCESS	21
  TABLE 1. SUMMARY OF PROGRAM ADMINISTRATOR ROLES AND RESPONSIBILITIES	22
  TABLE 2. SUMMARY OF LICENSED CERTIFICATION PROVIDER ROLES AND RESPONSIBILITIES	23
  TABLES. SUMMARY OF INSPECTOR ROLES AND RESPONSIBILITIES	25
  TABLE 4. SUMMARY OF BUILDER PARTNER ROLES AND RESPONSIBILITIES	26
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     ,:r Sense
                                           WaterSense New Home Certification System
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This document, a supplement to the WaterSense Program Guidelines, outlines the
process for certification and labeling of new homes in compliance with the Water-
Efficient Single-Family New Home Specification (specification), including the general
procedures for builder application and receipt of the certificate containing the
WaterSense label. This document also describes the general application procedures and
requirements for those parties involved in training, home inspection, certification, and
issuance of the WaterSense label.
I.      Definitions

Builder Partner: A home builder who has committed to building new homes in
accordance with the specification and providing other support as specified in this
certification system. The builder must signify such commitment by signing a WaterSense
partnership agreement with EPA.

Licensed Certification Provider: An organization that commits to hire or contract with
inspectors, train inspectors, oversee new home inspections, and issue certification
decisions for inspected homes. The certification provider must signify such commitment
by signing a licensing agreement and a WaterSense partnership agreement with EPA.

Licensing Agreement: The legal document between EPA and a certification provider
that grants the certification provider access to and conditions for authorizing the use and
distribution of the WaterSense label.

Partnership Agreement: The formal agreement between EPA and the builder and
between EPA and the certification provider that delineates activities (partner pledges
and EPA commitments) to be conducted by each party, program benefits, and
exclusions.

Program Administrator: An independent organization that is approved by EPA to
oversee certification providers. The program administrator will train certification providers
in accordance with training materials  prepared by WaterSense and will approve and
oversee the certification providers'  certification process as it relates to WaterSense.

Water-Efficiency Home Inspector (Inspector): An individual who provides inspection
services for new homes in accordance with the specification. The inspector must be
trained by a licensed certification provider in accordance with training materials prepared
by WaterSense. In addition, the inspector must work for or be contracted with a licensed
certification provider.

WaterSense Label: A registered certification mark that contains the words
"WaterSense" and "Meets EPA Criteria" in a circular pattern around the WaterSense
graphic "water drop" image. To signify compliance with the specification at the time of
inspection, the WaterSense label will  be provided to the builder partner by a licensed
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certification provider in the form of a certificate, which shall contain a copy of the
WaterSense label and other relevant information to identify the certified new home.
References to the certificate are considered synonymous with the WaterSense label and
as such, the terms may be used interchangeably throughout this document.
       Overview of Certification Process

       EPA develops criteria for the inspection, labeling, and oversight of new homes for
       the WaterSense program.
       Program administrator submits memorandum of agreement (MOA) and
       supporting documentation to EPA.
       EPA evaluates and approves program administrator.
       Program administrator evaluates, trains, and approves certification providers.
       Certification provider signs partnership agreement and licensing agreement with
       EPA.
       EPA licenses certification provider and supplies the certificate template with the
       WaterSense label.
       Program administrator provides WaterSense program materials to licensed
       certification  provider.
       Licensed certification provider hires, trains, and oversees inspectors.
       Builders sign partnership agreements with EPA.
       Builder partners request certification for individual homes from licensed
       certification  provider.
       Inspector evaluates home and submits documentation to licensed certification
       provider.
       Licensed certification provider issues WaterSense label to builder partner.
       Licensed certification provider reports quarterly to EPA on number and location
       of WaterSense labeled new homes.
III.    Procedures and Requirements for Program Administrators

WaterSense will approve program administrators to evaluate, approve, and oversee
certification providers. In addition, program administrators will provide EPA ongoing
support as described in this section.

A summary of the program administrator's roles and responsibilities, as described in this
section, is provided in Table 1.

A.     Application Procedures for Program Administrators

A program administrator must submit an application to EPA to approve and oversee
certification providers for WaterSense. The application must include the following
documentation:
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       i.     A letter declaring intent to participate in the WaterSense program as
             a program administrator

       The letter must contain declarations and/or attached documentation to support
       the following requirements:

             a.    Demonstrate impartial governance

             The organization must prove impartial governance by demonstrating that
             it:
                      Does not directly inspect or certify new homes for the
                      WaterSense program or issue the WaterSense label to builder
                      partners;
                      Maintains open membership for all potential licensed certification
                      providers; and
                      Has established a governing board of directors or executive
                      committee composed of a diverse group of members
                      representing various aspects of the home building industry,
                      which may include, but is not limited to, water-efficiency and
                      home-energy experts,  architects,  engineers, landscape
                      designers, certification providers for other green building
                      programs, and/or other stakeholders as appropriate.

             b.    Demonstrate policies and procedures governing oversight of
                   certification providers

             The organization must provide documentation that its by-laws, governing
             policies, and procedures are applicable and effective for the approval and
             oversight of certification providers that provide services for the
             WaterSense program.

             The organization must provide documentation of its policies and
             procedures related to the oversight of certification providers, including:
                      A copy of its technical  standards for approval of and oversight
                      procedures for certification providers;
                      Record-keeping procedures to document and track certification
                      providers;
                      Quality control  procedures for managing certification providers,
                      including procedures for disciplining certification providers that
                      do not follow the quality control procedures;
                      Procedures to investigate the complaints, dismissal, and
                      appeals of certification providers;
                      A business code of ethics to which certification providers must
                      agree to abide;
                      A complaint resolution process for the certification provider and
                      the program administrator;
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                     Documentation of its policies and procedures for ensuring that
                      each certification provider meets the requirements specified in
                      Section Ill.C.ii.; and
                     Any other specific quality assurance steps that the program
                      administrator will undertake to ensure the quality of the
                      certification provider's work.

       ii.      Memorandum of agreement

       The application must be accompanied by a signed copy of the MOA, which
       outlines the terms and conditions for providing program administration services
       for WaterSense. Contact the WaterSense Helpline at (866) WTR-SENS (987-
       7367) or watersense@epa.gov for a copy of the MOA.

       iii.     Point of contact

       The program administrator must designate a point of contact in its application
       and must provide that individual's contact information. This point of contact will
       be responsible for communicating and disseminating information to and from
       EPA as appropriate or requested regarding the WaterSense program.

B.     EPA Approval of Program  Administrators

Upon receipt and evaluation of the application and supporting documentation, if all
criteria are satisfactorily met, EPA will notify the program administrator that it has been
approved to provide services for WaterSense and will return a signed and executed copy
of the MOA. In addition, EPA will provide the approved program administrator with the
inspector training materials, inspection guidance, and inspection forms to disseminate to
licensed certification providers.

Once approved and notified, EPA will post the program  administrator's contact
information, including the designated point of contact, on the WaterSense Web site. The
program administrator is then able to begin recruiting and approving certification
providers in accordance with this document.

C.     Responsibilities of Program Administrators

       i.       Training of certification providers

       The program administrator is required to conduct training sessions for
       certification providers, which will instruct certification providers' quality assurance
       designees how to train their  inspectors to properly conduct and document new
       home  inspections. The program administrator must inform potential licensed
       certification providers of when and where the training will be offered. The
       program administrator will supply the certification provider with documentation
       that the training requirement was fulfilled.
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       ii.     Approval of certification providers

       Upon receipt of a certification provider's application to offer services for
       WaterSense, the program administrator will evaluate the certification provider's
       capability and competence to provide training of its inspectors, oversee the
       inspections, and issue the WaterSense label. This may include, but is not limited
       to, an evaluation of the certification provider's:
                Quality assurance designee, all relevant contact information, his or
                 her minimum responsibilities outlined in Section IV.A.i. of this
                 document, and a copy of a formal agreement between the certification
                 provider and quality assurance designee;
                Documentation of the quality assurance designee(s)'s attendance at a
                 certification provider training session;
                Procedures for ensuring the inspectors' ability to perform accurate
                 inspections, including a requirement that the certification provider's
                 quality assurance designee re-inspect/co-inspect each inspector's first
                 three inspections as well as one home or 1 percent of the certified
                 homes annually thereafter, whichever is greater;
                Inspector conflict of interest disclosure, which must be accompanied
                 by an agreement to provide advanced disclosure of any conflicts to
                 the builder partner/homeowner;
                Inspection record-keeping provisions including the quality assurance
                 record for each home (copies of the documentation provided by the
                 inspectors) and a registry of all of the certification provider's
                 inspectors that have successfully completed training on the
                 WaterSense New Homes program;
                Inspector discipline provisions, which must include, at a minimum,
                 progressive discipline procedures including probation, suspension,
                 and termination;
                Inspector quality control procedures, including the minimum oversight
                 requirements as described in Section IV.C.iii.  of this document; and
                Complaint resolution process including documentation of procedures
                 to respond to and resolve complaints involving the inspections and/or
                 certifications, a requirement to inform clients of the complaint
                 resolution process, and maintenance for a minimum of three years of
                 records of all complaints received and response to complaints.

       Upon successful completion of the evaluation, the program administrator will
       supply the certification provider with documentation of approval to submit to EPA.

       iii.    Verifying partnership and licensure of approved certification
             providers

       Once EPA has licensed a certification provider to offer services for WaterSense,
       the certification provider must submit proof of both the executed  partnership and
       licensing agreements to the program administrator that originally provided its
       approval. This indicates to the program administrator that the certification
       provider has completed all of the requirements necessary to offer services for
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       WaterSense. The program administrator will then supply the certification provider
       with the inspector training materials, inspection guidance, and inspection forms.
       The program administrator shall verify the certification provider's licensure by
       checking the list of licensed certification providers that will be maintained on the
       WaterSense Web site.

D.     Ongoing Support

       i.      Maintain registry of approved licensed certification providers

       Program administrators must maintain a registry of the licensed certification
       providers they have approved to certify new homes for the WaterSense program.
       Program administrators should only add certification providers to this registry
       once the certification provider has submitted proof of EPA partnership and
       licensure. The registry should include the licensed certification provider's contact
       information.

       ii.      Oversee licensed certification providers

       The program administrator is responsible for overseeing the licensed certification
       providers in accordance with its technical standards as outlined in Section
       III.A.i.b. This may include but is not limited to:
                An annual review of files from all of the licensed certification providers
                 it approved to ensure that the proper quality assurance is being
                 conducted, including an  evaluation that the certification provider is
                 meeting its oversight responsibilities as outlined in Section IV.C.iii. of
                 this document; and
                Periodically accompanying licensed certification providers on any
                 routine field assessment of inspections conducted for the WaterSense
                 program.

       If the program administrator discovers any issues during its oversight activities,
       or otherwise, it should institute its process for disciplining licensed certification
       providers. If the discipline procedures do not result in corrective action to the
       satisfaction of the program administrator, the program administrator must contact
       EPA. EPA will investigate the  issue and determine what further action is
       necessary, including and up to termination of the certification provider's
       partnership and licensing agreements.

       iii.     Update licensed certification providers of any relevant WaterSense
              program changes

       Program administrators must maintain regular communication with its licensed
       certification providers, informing them of any changes to the program's
       requirements and any implications for the licensed certification providers'  current
       status. EPA will communicate any program changes directly to the program
       administrator.
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IV.    Procedures and Requirements for Licensed Certification
       Providers

Licensed certification providers hire or contract with inspectors and oversee the
inspection of new homes for WaterSense. Licensed certification providers also conduct
training of inspectors in accordance with training materials prepared by WaterSense.
Licensed certification providers are responsible for providing the builder partner with the
WaterSense label for each certified new home and providing EPA with ongoing support
as described in this section.

A summary of the licensed certification provider's roles and responsibilities, as described
in this section, is provided in Table 2.

A.     Procedures for Becoming a Licensed Certification Provider

       i.     Designate personnel responsible for quality assurance

       WaterSense requires each licensed certification provider to have at least one
       quality assurance designee. This person(s) must be named in the application to
       both the program administrator and the partnership agreement with EPA. The
       quality assurance designee is responsible for:
               Training the licensed certification provider's inspectors on how to
               properly conduct and document inspections and maintaining
               documentation of trainings;
               Re-inspecting/co-inspecting each inspector's first three probationary
               inspections;
               Annually re-inspecting/co-inspecting one home or 1 percent of the
               homes each inspector has inspected for WaterSense, whichever is
               greater;
               Annually conducting a comprehensive review of 10 percent of each
               inspector's files;
               Maintaining the licensed certification provider's quality assurance files;
               and
               Coordinating with the program administrator as required on all quality
               assurance activity oversight.

       The quality assurance designee must meet the following requirements:
               Must not perform quality assurance functions for WaterSense for any
               inspections that he or she conducts or in which he or she is involved;
               Must have a minimum of  one year of experience conducting inspections
               for WaterSense or another green building program; and
               Must have a formal  agreement with the  licensed certification provider
               agreeing to comply with all of the quality assurance oversight activities
               required by the program administrator.
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       ii.    Attend certification provider training session

       In order to become a licensed certification provider for WaterSense, all
       individuals responsible for quality assurance from the certification provider's
       organization must attend a training session. Training will be conducted either by
       EPA or an EPA-approved program administrator. The program administrator will
       provide the certification provider with documentation that the training requirement
       was fulfilled. This documentation must be submitted to the program administrator
       with the application to become a certification provider for WaterSense. A list of
       approved program administrators will be maintained on the WaterSense Web
       site.

       iii.   Submit application to a program administrator

       Once the quality assurance designee has completed the certification provider
       training, the certification provider must submit an application to an approved
       program administrator. Each program administrator will have its own
       requirements and approval process and should be contacted directly for more
       information. Upon successful completion of the evaluation, the program
       administrator will supply the certification provider with documentation of approval.

       iv.   Approval From  EPA

            a.    Application and agreements

            Once the certification provider is approved by the program administrator,
            the certification provider must submit a signed partnership agreement and a
            signed licensing agreement to EPA to offer services for WaterSense. The
            partnership and licensing agreements will be available on the WaterSense
            Web site. These agreements must be accompanied with documentation of
            approval from an approved program administrator. The certification provider
            must identify the quality assurance designee(s) and a point of contact on
            the partnership agreement. The point of contact may be different than the
            quality assurance designee and will be responsible for the communication
            and dissemination of information to and from EPA regarding the certification
            provider's services for the WaterSense program.

            b.    Obtaining the WaterSense label

            Once EPA receives the signed partnership and licensing agreements and
            reviews the supporting documentation, it will sign the partnership and
            licensing  agreements and return copies to the certification provider along
            with an electronic copy of the certificate template, which contains the
            WaterSense label.

            The receipt of the certificate template and copies of the executed
            agreements signifies the  approval and licensure of the certification provider.
            EPA will maintain a listing of licensed certification providers on the
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            WaterSense Web site. Builder partners will contact licensed certification
            providers directly to initiate the inspection, certification, and labeling
            process.

            c.    Obtaining materials to train inspectors

            Upon licensure to provide services for WaterSense, the certification
            provider must submit proof of the executed partnership and licensing
            agreements to the program administrator that originally provided its
            approval. This indicates to the program administrator that the licensed
            certification provider has completed all of the requirements necessary to
            offer services for WaterSense. The program administrator will then supply
            the licensed certification provider with inspector training materials,
            inspection guidance, and inspection forms. The licensed certification
            provider must use these materials to train its inspectors that wish to inspect
            new homes for WaterSense.

            Wth the receipt of the inspector training materials, inspection guidance,
            and inspection forms, the licensed certification provider can begin training
            its inspectors and offering its inspection and certification services for
            WaterSense to builder partners.
B.     Responsibilities of a Licensed Certification Provider

       i.      Inspector administration and training

       The licensed certification provider is responsible for hiring or contracting with
       inspectors to complete the inspection of new homes for the WaterSense
       program. As part of the administration of its inspectors, the licensed certification
       provider must provide training in accordance with inspector training materials
       prepared by WaterSense and provided by the program administrator. The
       licensed certification provider's quality assurance designee must keep
       documentation of all its inspectors' training and must provide records of training
       to the program administrator upon request. The licensed certification  provider
       must also provide those inspectors that completed the training with the materials
       and guidance necessary to conduct the inspections. The materials should only
       be supplied to those inspectors who have successfully completed the required
       training.

       ii.      Application and verification of builder partnership agreement with
              EPA

       The builder partner must apply for certification and the WaterSense label on an
       individual home basis. To initiate the inspection and certification process, the
       builder partner must contact a licensed certification provider and designate each
       home it intends to have certified. The licensed certification provider will provide
       the builder partner  with a list of inspectors and/or will assign the builder partner
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       an inspector to coordinate the inspection. Only inspectors who have successfully
       completed training on the WaterSense New Homes program shall be provided or
       assigned to the builder partner. The payment for certification services is not to be
       based on the home passing the inspection.

       As a condition for applying to have their home(s) certified and labeled for
       conformance to the specification, builder partners are required to have a signed
       WaterSense partnership agreement. The licensed certification provider shall
       verify that this partnership agreement  is in place (and signed by both parties)
       prior to issuing the WaterSense label.  To verify the partnership agreement, the
       licensed certification provider should check the WaterSense Web site for a
       current list of builder partners. If the builder is not listed on the WaterSense Web
       site, the licensed certification provider can verify the partnership agreement by
       contacting the WaterSense Helpline at (866) WTR-SENS (987-7367) or
       watersense@epa.gov.

       iii.     Issuing the WaterSense label

       Once the inspector has completed the inspection, he or she will submit copies of
       the inspection checklists and supporting documentation to the licensed
       certification provider. Based on the inspection documentation,  the licensed
       certification provider will make the certification decision.

       If the builder partner intends to certify  multiple homes within the same subdivision
       or planned community the licensed certification provider may offer builder
       partners the opportunity to participate  in a sampling protocol, as described in
       Section V.B.ii. of this document. If this option is exercised, the inspector will
       inform the  licensed certification provider of the homes that the relevant inspection
       covers. Based on the inspection documentation provided for the sample home,
       the licensed certification provider will make the certification decision for all of the
       homes covered by that inspection.

       Once the licensed certification provider determines that the new home(s) meets
       all of the criteria contained in the specification, the licensed certification provider
       will fill out the certificate for each certified new home, which includes:
                 A certification statement that the new home has been certified to meet
                 EPA's criteria for water-efficient new homes;
                 The name of the builder partner;
                 The names of the inspector and the licensed certification provider's
                 authorized representative;
                 The address or lot number of the certified new home; and
                 The date of inspection (for  homes included in  a sampling protocol, this
                 date shall be the date that the sample home was inspected).

       Both the inspector that conducted the  inspection and the licensed certification
       provider's authorized representative will sign the certificate and the licensed
       certification provider will supply the builder partner with an original signed copy.
       The certificate may be signed with an  electronic signature or stamp.
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       At the time the WaterSense label is issued, the licensed certification provider will
       also supply the builder partner with guidance on proper use of the label.
C.     Ongoing Support

       i.     Maintain registry of inspectors

       The licensed certification provider must maintain a registry of all of the inspectors
       it hires or contracts with that have successfully completed training to conduct
       new home inspections for WaterSense. This registry should include records of
       training and other documentation of inspectors' qualifications as appropriate.

       ii.     Collect data on certified new homes

       The licensed certification provider must report at least quarterly to EPA regarding
       the new homes that they have certified. EPA will supply the licensed certification
       provider with a WaterSense labeled new home notification form. At a minimum,
       the licensed certification provider will supply EPA with the following information
       for each builder partner that it has issued a WaterSense label:
                Builder partner's contact information;
                Number of certified new homes and cities and states (or zip codes) in
                 which the homes are built;
                Data collected for each home per the inspection checklists,
                 aggregated to provide total numbers of installed appliances and
                 systems (e.g., clothes washers, dishwashers, irrigation systems); and
                A summary of common nonconformities identified during the
                 inspection process.

       iii.    Oversee inspections and maintain records of complaints

          a.    General oversight

          The licensed certification provider's quality assurance designee will oversee
          inspectors in accordance with its own process relevant to the evaluation of
          the inspector's capability and competence to inspect new homes for
          WaterSense, including the activities outlined in Section IV.A.i.

          b.    Oversight for homes included in a sampling protocol

          Every WaterSense labeled new home, regardless of whether it was directly
          inspected or certified as part of a sampling protocol, is subject to ongoing
          surveillance conducted  by the licensed certification provider's quality
          assurance designee. If the inspector or his or her licensed certification
          provider discovers nonconformance with the specification requirements
          during any in-home re-inspection/co-inspection prior to its sale or initial
          occupancy, the licensed certification provider shall reserve the right to revoke
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          the builder partner's sampling eligibility and require a direct inspection of
          each home in addition to handling the issues in accordance with Section VII
          of this document. A builder partner can only become re-eligible for sampling
          after the inspector has directly inspected and the licensed certification
          provider has certified an additional seven homes within the subdivision or
          planned community.

          c.   Conflicts of interest disclosure

          The inspectors are required to disclose to the licensed certification provider
          any existing or potential conflicts of interest associated with a particular home
          inspection.

          The licensed certification provider shall ensure that all disclosures are
          adequately addressed by its quality control procedures. Examples of conflicts
          of interest include,  but are not limited to:
                    Providing consulting services for the home;
                    Acting as the seller of the home or the seller's agent;
                    Acting as the mortgagor for some portion of the financed
                    payments on the home; and
                    Supplying or installing products to facilitate the home meeting the
                    specification criteria.
          EPA allows the builder partner and/or homeowner to waive conflicts of
          interest after evaluation of the disclosure from the licensed certification
          provider. If the builder partner/homeowner grants a waiver, the inspector may
          inspect the home for WaterSense.

          d.   Handling complaints

          If complaints are issued and warrant a response, the  licensed  certification
          provider must follow its complaint resolution policies and procedures. This
          must include a mechanism for ensuring  and enforcing necessary corrective
          action and discipline of the affected inspector, as appropriate.  The licensed
          certification provider may  also increase the frequency of re-inspections/co-
          inspections conducted for the affected inspector.

       iv.     Allow EPA to accompany licensed certification provider on routine
              assessments of WaterSense inspections

       EPA or its designee reserves the right to conduct periodic in-home inspections of
       WaterSense labeled new homes prior to their sale or initial occupancy and
       reviews of Web and other certification references and WaterSense label  usages.
       In the case of an in-home inspection, EPA will seek permission and coordinate
       the inspection with the builder partner and the home's inspector and licensed
       certification provider, so as not to delay the  certification process. If
       nonconformities with the specification are identified,  EPA will notify the licensed
       certification provider and/or the builder partner and engage in corrective or other
       necessary action in accordance with Section VII of this document.
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       v.     Update inspectors on relevant WaterSense program changes

       Licensed certification providers must maintain regular communication with their
       inspectors, informing them of any changes to the training or inspection
       requirements that may affect their ability to perform inspections for WaterSense.
       The licensed certification provider shall communicate such changes to its
       inspectors within 30 days of notification from either EPA or the program
       administrator. Inspectors shall implement the changes within 90 days of
       notification by the licensed certification provider.
V.     Procedures and Requirements for Water-Efficiency Home
       Inspectors

Inspectors inspect new homes in accordance with the minimum criteria contained in the
specification. To provide inspection services for WaterSense, an inspector must:
          Complete the training requirements as outlined in this section;
          Work for, or contract with, a certification provider that is licensed by EPA; and
          Disclose existing or potential conflicts of interest to the licensed certification
          provider for all inspections related to WaterSense.
Other responsibilities of inspectors are also outlined in this section.

A summary of the inspector's roles and responsibilities, as described in this section, is
provided in Table 3.

A.     Inspector Training and Administration

       i.   Training of inspectors

       An inspector must demonstrate a knowledge base and skill set to conduct
       inspections of new homes for WaterSense. As part of that demonstration, the
       inspector must attend training conducted by a licensed certification provider's
       quality assurance designee.  EPA will maintain a listing of licensed certification
       providers on the WaterSense Web site.

       ii.     Employment of inspectors

       To provide inspections of new homes for WaterSense, inspectors who have
       completed the required training must work for, or contract with, a licensed
       certification  provider. A licensed certification provider should be contacted
       directly for information on becoming a water-efficiency home inspector. A list of
       licensed certification providers will be maintained on the WaterSense Web site.

       In addition, the inspector must disclose to the licensed certification provider  any
       existing or potential conflicts  of interest as described in Section IV.C.iii.c. of this
       document.
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B. New Home Inspection

       i.       General procedures

       For each new home, the inspector must evaluate the following three aspects
       against the requirements of the specification:
                 Minimum indoor water-efficiency criteria;
                 Minimum outdoor water-efficiency criteria; and
                 Builder-prepared homeowner operating manual.

       EPA has prepared inspection guidance and an inspection checklist containing
       the inspection criteria and minimum features a home must possess in order for it
       to meet the criteria contained in the specification. The licensed certification
       provider will supply these materials to the inspector. The inspector must utilize
       the inspection checklist, or other method of documentation that contains all of the
       minimum information in the inspection checklist,  to document the home's water-
       efficiency features and compliance with the specification's criteria. Prior to the
       inspection, the inspector shall provide the builder partner with copies of the forms
       and materials he or she intends to use as part of the inspection process.

       Each of the new home evaluation aspects is further described in the specification
       and Inspection Guidelines for WaterSense Labeled New Homes. If the inspector
       determines the new home does not conform in any area, and if corrective actions
       are appropriate and warranted, the inspector can work directly with the builder
       partner to ensure that the nonconformity is corrected before finalizing the
       inspection. All nonconformities and corrective actions must be noted as part of
       the inspection documentation.

       ii.      Procedures for multiple homes in a subdivision or planned
              community

       The licensed certification provider may offer builder partners the opportunity to
       participate in a sampling protocol if they intend to have multiple homes certified
       within the same subdivision or planned community. If the licensed certification
       provider offers sampling, the inspector must directly inspect and the licensed
       certification provider must certify the builder partner's first seven homes within
       the subdivision or planned community. These inspections will be conducted
       following the general procedures outlined  in Section V.B.i.

       Upon the builder partner's fulfillment of the sampling protocol eligibility
       requirement, the inspector should institute the following process for sampling:
                 Randomly select one home for sampling from every batch of seven
                 homes that are scheduled for completion within 30 days of one
                 another;
                 Inspect the sample home in accordance with the general procedures
                 described in Section V.B.i. of this document; and
                 For every home with an irrigation system installed, the inspector will
                 verify that the builder partner had the irrigation system audited by a
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                                            WaterSense New Home Certification System
                 WaterSense irrigation partner, regardless of whether the home is
                 being directly inspected or certified as part of the sampling protocol.

       If the randomly selected home does not successfully pass the inspection, the
       licensed certification provider cannot certify any additional homes for the builder
       partner using the sampling protocol until  seven new homes have been directly
       inspected and certified. All homes receiving certification through the sampling
       protocol are subject to the oversight procedures  in Section IV.C.iii.b.

C.     Notify Licensed Certification Provider of New Home Inspections

Upon inspection, the inspector will notify and supply the licensed certification provider
with a copy of all relevant paperwork documenting the new home's inspection. In the
case of homes included in a sampling protocol, the inspector will inform the licensed
certification provider of the homes that the relevant inspection covers. At a minimum, the
inspector must report the following information to the licensed certification provider for
each inspected new home:
             Builder partner contact information;
            Address (or lot number) of inspected new home (and address or lot
              number of any new homes covered by a  relevant sampling protocol);
             Documentation of the home's compliance with the requirements
              contained in the specification (i.e., a completed inspection checklist)-this
              includes any initial nonconformities identified and corrective actions
             taken;
             Name and  contact information for the inspector; and
             Inspection  date(s).

Based on the inspection documentation provided by the inspector, the licensed
certification provider will make the certification decision. If the new home has been
determined to meet all of the criteria contained in the specification, both the inspector
that conducted the inspection and the licensed certification provider's authorized
representative  will sign the certificate(s). The certificate  may be signed with an electronic
signature or stamp. The licensed  certification provider will issue the signed certificate to
the builder partner.

D.     Ongoing Support

       i.      Maintain file of inspected homes

       The inspector is responsible for maintaining a file of all of the homes he or she
       has inspected for a minimum of three years. For each home, the file must
       contain, at a minimum, the information submitted to the licensed certification
       provider and listed in Section V.C. above. The inspector must submit to an
       annual  comprehensive review of a minimum of 10 percent of his or her files by
       the licensed certification provider's quality assurance designee, as part of the
       licensed certification provider's quality assurance process.
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                                           WaterSense New Home Certification System
       ii.     Maintain status as required by licensed certification provider

       To maintain status as an inspector for WaterSense, the inspector must maintain
       any training and other requirements specified by the licensed certification
       provider.
VI.    Procedures and Requirements for Builder Partners

Builder partners construct water-efficient new homes that meet or exceed the criteria
contained in the specification.

A summary of the builder partner's roles and responsibilities, as described in this
section, is provided in Table 4.
A.     Partnership Agreements with EPA

Builders must sign a partnership agreement with EPA as described in Section IV of the
WaterSense Program Guidelines if they wish to obtain the WaterSense label for their
homes.
B.     New Home Certification and Labeling

Achieving and using the WaterSense label in conjunction with a water-efficient new
home is contingent upon inspection and certification that the home meets the minimum
criteria contained in the specification.

       i.     Application to a licensed certification provider

       The builder partner must apply for certification on an individual home basis. To
       initiate the inspection and certification process, the builder partner must contact a
       licensed certification provider, as described in  Section IV.B.ii of this document. A
       list of licensed certification providers will be maintained on the WaterSense Web
       site.

       Builder partners who intend to certify multiple homes within the same subdivision
       or planned community may be eligible to participate in a sampling protocol, as
       offered and coordinated by the licensed certification provider. If the licensed
       certification provider offers sampling, the builder partner must meet the eligibility
       requirements outlined in Section V.B.ii.

       The builder partner is  responsible for paying the licensed certification provider for
       all services and costs associated with the new home inspection,  certification, and
       issuance of the WaterSense label.
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                                           WaterSense New Home Certification System
       ii.     New home certification and labeling

       The WaterSense label indicates that the new home has been certified to conform
       to the specification. At the time the WaterSense label is issued, the licensed
       certification provider will also supply the builder partner with guidance on proper
       use of the label. The builder partner is then allowed to advertise that the new
       home conforms to the specification. Any promotion of the WaterSense label must
       be directly related to the certified new home.

       iii.    Builder partner registry

       EPA will maintain a list of builder partners who have built or plan to build
       WaterSense labeled new homes. As part of the partnership agreement with EPA,
       the builder will provide EPA with:
                Contact information;
                Company Web site, if applicable; and
                A list of states and/or localities in which they build.
       EPA will post this information on its builder partner registry.

       The registry will also include the location(s) (city, state) and number of
       WaterSense labeled new homes for each builder partner.

       iv.    Ongoing surveillance

       EPA or its designee reserves the right to conduct periodic in-home inspections of
       labeled homes  prior to their sale or initial occupancy and to periodically review
       Web and other certification references and WaterSense label usages. In the case
       of an in-home inspection, EPA will seek permission and coordinate the inspection
       with the builder partner and the home's inspector and licensed certification
       provider, so as  not to delay the certification process. If  nonconformities with the
       specification are identified, EPA will notify the licensed  certification provider
       and/or the builder partner and will engage  in corrective or other necessary action
       in accordance with Section VII of this document.
VII.   Suspension and Withdrawal of the WaterSense Label From
       New Homes

The licensed certification provider is responsible for notifying EPA of specific instances
of nonconformity. Nonconformity may include, but is not limited to:
          Failure of a certified home to pass a  re-inspection, where simple corrective
          action is unable to resolve the nonconformance;
          Receipt of formal complaints from home buyers or other interested  parties
          indicating that the certified new home was generally misrepresented (e.g.,
          multiple features do not comply with  the specification); or
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                                           WaterSense New Home Certification System
          Instances where the licensed certification provider discovers that a builder is
          fraudulently or falsely claiming that his or her homes have been certified and
          labeled in accordance with the specification and this certification system.

EPA is responsible for engaging the builder in corrective action and for determining
when the use of the WaterSense label should be suspended or withdrawn due to
nonconformance or improper use or reference to the WaterSense label.
Nonconformance may be determined through notification to EPA by the licensed
certification provider as described above. EPA may also discover nonconformance or
improper use or reference to the WaterSense label from its stakeholders, during its own
in-home inspections, or during periodic reviews of certification and  label usage. If EPA
discovers nonconformance or certification and labeling issues, it will notify the licensed
certification provider that issued the WaterSense label and will coordinate corrective
action or, if necessary, label suspension or withdrawal.

WaterSense label suspension can occur for a limited period of time as specified by EPA.
During the period of suspension, the builder partner is prohibited from using the
WaterSense label in conjunction with the home  in question and on  any new home built
after the issuance of a suspension, until such time as EPA indicates the suspension can
be removed. The licensed certification provider  will assist EPA as necessary by
removing the WaterSense label from the home  in question, determining when the terms
for suspension removal have  been  fulfilled, ensuring that no new WaterSense labels are
issued during the period of suspension, and upon EPA's approval,  reissuing the
WaterSense label to the builder partner for the home in question. The builder partner is
responsible for paying the licensed certification  provider for all services and costs
associated with the necessary corrective action or suspension and reinstatement of a
WaterSense label.

In more severe or repeated instances of nonconformity, improper use or reference to the
WaterSense label, or  failure to meet the  requirements for reinstatement of a suspended
WaterSense label, EPA will withdraw the WaterSense label from all of the builder
partner's certified new homes that have not yet  been sold. EPA will notify the builder
partner that the certification and WaterSense label are being withdrawn.  If the
WaterSense label is withdrawn for any reason,  EPA will require that the builder partner
cease to advertise the certification of his or her  homes and the label must be eliminated
immediately from new homes not already sold.  EPA will notify the licensed certification
provider to inform them that the builder partner  is no longer allowed to use or receive the
WaterSense label and will decide whether termination of the  partnership agreement or
other corrective action is  warranted. The licensed certification provider will assist EPA as
necessary by removing the WaterSense label from all  certified new homes that have not
yet been  sold and will not issue any new WaterSense  labels to the builder partner. The
builder partners are responsible for paying the licensed certification provider for all
services and costs associated with  the withdrawal of the WaterSense label.
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                                           WaterSense New Home Certification System
                    Figure 1. New Home Certification Process
EPA Program Admin Provider Inspector Home Builder

Develop
requirements/
approve program
admin.

Sign agreement

Develop provider
requirements
Provide certificate
and other materials to
approved providers
Develop training
requirements
Sign WaterSense
partnership
agreement

Develop
specification
Develop
inspection
requirements

Develop new home
notification
form/maintain registry


*


->

->





Submit application
and supporting
documentation

Sign MOA

Approve providers


Train
providers/oversee
inspector training


Oversee providers




-
->
-i




Submit agreements
and supporting
documentation

Approve inspectors/
conduct training


Verify builder's
partnership
agreement
	 1 	

1
Oversee
inspections/re-
inspect 1%

Issue certificate to
builder partner
Submit quarterly
report

->


4

-


Complete training
requirements








Inspect home
i

Notify provider of
inspection


Maintain file of
inspected homes





4



Sign WaterSense
partnership
agreement

Build homes to
specification


Submit home for
inspection
Begin advertising
homes


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                                          WaterSense New Home Certification System
     Table 1. Summary of Program Administrator Roles and Responsibilities
Role/Responsibility
Submit letter of intent and
supporting documentation to
EPA
Enter into a Memorandum of
Agreement (MOA) with EPA
Train certification provider's
quality assurance designees
Evaluate and approve trained
certification providers
Verify certification provider's
partnership and licensure by
EPA
Supply licensed certification
provider with inspector training
materials and inspection forms
and guidance
Maintain registry of approved
certification providers
Oversee licensed certification
providers
Update licensed certification
providers on relevant
WaterSense program changes
Additional Information or Resources
> Application materials may be submitted to
watersense@epa.gov
> Contact the WaterSense Helpline, watersense@epa.gov, to
obtain a copy of the MOA
> EPA will provide program administrators with certification
provider training materials
> Supply certification providers with documentation of training
> Supply certification provider with documentation of approval
> Request documentation from certification provider
> EPA will maintain a list of licensed certification providers on
the WaterSense Web site
> Contact the WaterSense Helpline, watersense@epa.gov, if
the certification provider is not listed on Web site
> EPA will provide program administrator with inspector
training materials, inspection forms and guidance
> Add certification providers to registry only upon proof of EPA
partnership and licensure
> Conduct oversight in accordance with its own technical
standards for approval and oversight
> Institute certification provider discipline procedures, as
necessary, in accordance with its own internal policies and
procedures
> EPA will communicate any changes to program administrator
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       '>'.'. "i se
                                            WaterSense New Home Certification System
Table 2. Summary of Licensed Certification Provider Roles and Responsibilities
Role/Responsibility
Attend certification provider
training conducted by EPA or
an EPA-approved program
administrator
Designate quality assurance
personnel
Submit application to program
administrator
Seek licensure and partnership
with EPA
Receive WaterSense labeled
new home certificate template
from EPA
Provide program administrator
with proof of licensure
Hire or contract with and train
inspectors
Provide inspectors with
inspection materials and
guidance
Accept applications from
builder, verify builder
partnership agreement,
provide/assign an inspector
Review inspection
documentation and make
certification decision
Fill out, sign, and issue
certificate to builder partner
Provide builder partner with
guidance on proper label use
Maintain registry of inspectors
Provide quarterly report to EPA
regarding certified new homes
Additional Information or Resources
> This requirement is applicable to certification provider's
quality assurance designee(s)
> EPA and/or program administrators will announce
opportunities for certification provider training
> EPA will maintain a list of approved program administrators
on WaterSense Web site
> Program administrator will provide documentation of training
> Name designee in application to program administrator and
partnership agreement with EPA
> EPA will maintain a list of approved program administrators
on WaterSense Web site
> Program administrator will supply certification provider with
documentation of approval
> EPA will post partnership and licensing agreements on
WaterSense Web site
> Agreements may be submitted to watersense@epa.qov
> Accompany agreements with documentation of program
administrator approval
> Template will be accompanied by executed agreements, and
a licensed certification provider tool kit
> Program administrator will supply licensed certification
provider with inspector training materials and inspection
forms and guidance
> Conduct training in accordance with materials provided by
program administrator
> Licensed certification provider's quality assurance designee
must track inspector training
> Inspection materials and guidance may be obtained from the
program administrator
> Builder partner must designate individual homes for
certification and labeling
> EPA will maintain a list of builder partners on the WaterSense
Web site
> Builder partner may correct nonconformities, provided they
are identified and corrective action is taken
> Complete WaterSense labeled new home certificate template
provided by EPA
> Inspector must also sign certificate
> EPA will supply label use guidance as part of the licensed
certification provider's tool kit
> Include inspector training records
> EPA will post a WaterSense labeled new home notification
form on the WaterSense Web site
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                                              WaterSense New Home Certification System
Role/Responsibility
Oversee inspectors
Disclose conflicts of interest,
as appropriate, to builder
partner and/or homeowner
Handle complaints that may
arise
Submit to EPA oversight of
WaterSense labeled homes
Update inspectors on relevant
WaterSense program changes
Additional Information or Resources
> Licensed certification provider must follow its own policies
and procedures for inspector oversight, which include the
minimum functions specified by EPA
> Ensure disclosures are adequately addressed by its own
internal quality control procedures
> Follow its own internal complaint resolution policies and
procedures
> EPA will coordinate in-home inspection oversight with the
inspector, licensed certification provider, and builder partner
> Program administrator will communicate any program
changes to licensed certification providers
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                                           WaterSense New Home Certification System
            Table 3. Summary of Inspector Roles and Responsibilities
Role/Responsibility
Work for or contract with a
licensed certification provider
Attend training conducted by a
licensed certification provider
Disclose to licensed certification
provider existing or potential
conflicts of interest
Coordinate inspection
assignments with licensed
certification provider
Schedule inspection and provide
builder partner with copies of
inspection materials
Evaluate new home's
conformance with specification
Work with builder partner to
correct any nonconformities
identified
Supply licensed certification
provider with a copy of
completed checklists and
supporting documentation for
each inspected home
Sign the WaterSense labeled
new home certificate
Submit to licensed certification
provider's inspection oversight
Maintain file of inspected homes
and submit to an annual file
review
Maintain status as specified by
licensed certification provider
Submit to EPA oversight of
WaterSense labeled new homes
Additional Information or Resources
> EPA will maintain list of licensed certification providers on
WaterSense Web site
> Licensed certification provider will supply inspection
materials and guidance
> Licensed certification provider will coordinate disclosure to
builder partner and/or homeowner
> Builder partner will contact licensed certification provider to
initiate inspection process
> Licensed certification provider may provide builder partner
with a list of inspectors or assign an inspector to each
project
> Licensed certification provider will supply inspection
materials to inspectors
> If irrigation system is installed, verify it was audited by a
WaterSense irrigation partner
> EPA will maintain a list of irrigation partners on WaterSense
Web site
> Note on inspection checklist any nonconformities and
corrective actions taken
> Licensed certification provider will evaluate documentation
and make certification decision
> Sign certificate after licensed certification provider has
certified the new home
> Licensed certification provider will issue certificate to builder
partner
> Licensed certification provider will follow its own oversight
process
> Licensed certification provider's quality assurance designee
will review at least 10% of the inspection files
> This could include training or other requirements
> EPA will coordinate in-home inspection oversight with the
inspector, licensed certification provider, and builder partner
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                                           WaterSense New Home Certification System
         Table 4. Summary of Builder Partner Roles and Responsibilities
Role/Responsibility
Sign a partnership agreement
with EPA
Provide EPA with information for
builder partner registry
Contact a licensed certification
provider to schedule an
inspection
Work with inspector to inspect
designated home(s) and
address any issues of
nonconformance
Properly advertise WaterSense
labeled new home(s)
Submit to licensed certification
provider's ongoing surveillance
including new home re-
inspection/co-inspection
Submit to EPA oversight of
WaterSense labeled new
homes, label use, and
advertisement
Additional Information or Resources
> EPA will post builder partnership agreement on
WaterSense Web site
> EPA will provide builder partners with a builder partner
tool kit and access to the partner Web site
> EPA will obtain initial partner registry information from
builder's partnership agreement
> EPA will update builder partner registry quarterly based
on information from licensed certification providers
> EPA will maintain a list of licensed certification
providers on WaterSense Web site
> Designate each home to be certified
> The inspector will supply builder partners with a copy of
the inspection materials
> Nonconformities and corrective actions will be noted on
inspection documentation
> Licensed certification provider will supply builder
partners with guidance on proper label use
> EPA will provide guidance on advertisement of
WaterSense labeled new homes in the builder partner
tool kit
> If nonconformities are identified, licensed certification
provider will provide an opportunity for simple corrective
action
> EPA will coordinate in-home inspection oversight with
the inspector, licensed certification provider, and builder
partner
> If nonconformities are identified EPA will provide an
opportunity for simple corrective action
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