LIHEAP Allocations from the FY 2008 Energy Emergency Contingency Fund-$121 MILLION DISTRIBUTION on September 17, 2008
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2009-1, DATED 12/3/08
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: LIHEAP Allocations from the FY 2008 Energy Emergency
Contingency Fund-$121 MILLION DISTRIBUTION on
SEPTEMBER 17, 2008
RELATED The Consolidated Appropriations Act, 2008 (Public Law
REFERENCES: (P.L.) 110-161; The Consolidated Appropriations Act
of 2005 (Public Law 108-447); the Low-Income Home
Energy Assistance Act, Title XXVI of the Omnibus
Budget Reconciliation Act of 1981 (Public Law (P.L.)
97-35), as amended
PURPOSE: To provide grantees with information on the
distribution of LIHEAP emergency contingency funds
that took place on September 17, 2008. These funds
were distributed to LIHEAP grantees to help their
low income households cope with the anticipated
high costs for fuel this winter, particularly for
those States that are hugely dependent on heating
oil.
BACKGROUND: The Human Services Amendments of 1994 (Public Law
(P.L.) 103-252) amended Section 2602(e) of the
LIHEAP statute to provide for a permanent
authorization of an emergency contingency fund.
Under this provision, up to $600,000,000 may be
made available each fiscal year, in addition to
other funds that may be appropriated, "to meet the
additional home energy assistance needs of one or
more States arising from a natural disaster or
other emergency." Funds appropriated under this
section are considered to be emergency requirements
under the terms of Section 251(b)(2)(D) of the
Balanced Budget and Emergency Deficit Control Act
of 1985 and are to be made available only after the
President submits a formal budget request to the
Congress for all or a part of the funds
appropriated under this section, provided that the
request designates the amount requested as such an
emergency requirement.
Section 2604(e) of the LIHEAP statute; as amended
in 1994 by P.L. 103-252 and in 1998 by the
Community Opportunities, Accountability, and
Training and Educational Services Act of 1998 (P.L.
105-285); allows the Secretary of Health and Human
Services (the Secretary) to allocate any funds made
available under Section 2602(e) to one or more
grantees, taking into account the extent to which
the grantee was affected by the emergency or
disaster, the availability of other resources to
the grantees under LIHEAP or any other program, and
such other factors that are deemed relevant.
The Consolidated Appropriations Act, 2008, (P.L.
110-161), which was signed by the President on
December 26, 2007, made $590,327,759 available for
LIHEAP emergency contingency purposes for Fiscal
Year (FY) 2008. Provisions of P.L. 110-161 (1)
appropriated $596,379,000 for LIHEAP emergency
contingency purposes, as defined under Section
2602(e) of the LIHEAP statute; (2) rescinded 1.747
percent of $346,379,000 of these funds; and (3)
limited the use of the full amount of these funds
to "the fiscal year ending September 30, 2008." In
addition, $20,350,000 of no-year funds that the
Consolidated Appropriations Act of 2005 (P.L. 108-
447) made available for LIHEAP emergency
contingency purposes were carried over into FY
2008. This made $610,677,759 available for LIHEAP
emergency contingency funds in FY 2008. (Please
refer to LIHEAP-IM-2008-8, dated April 8, 2008, for
more information on FY 2008 LIHEAP appropriations,
including the relevant texts of P.L. 110-161 and
P.L. 108-447.)
On January 16, 2008, the Secretary released $450
million for LIHEAP emergency contingency purposes
to all States, Territories and Indian Tribes/Tribal
organizations because of large increases in heating
fuel prices that winter-particularly for natural
gas, propane and fuel oil. On February 22, 2008,
the Secretary released an additional $40,000,000
for LIHEAP emergency contingency purposes to 11
States and to the Indian Tribes/Tribal
organizations within those States because of
continuing large increases in prices that winter
for fuel oil. After these releases, $120,677,759
remained available for LIHEAP emergency contingency
purposes for FY 2008. (Please refer to LIHEAP-IM-
2008-9, dated April 9, 2008, and LIHEAP-IM-2008-10,
dated April 10, 2008, for additional details about
these releases).
CONTENT: On September 17, 2008, the Secretary released the
remaining $120,677,759 for LIHEAP emergency
contingency purposes to all States, Territories and
Indian Tribes/Tribal organizations. These funds
were released because of the high heating-fuel
costs that are expected during the upcoming winter,
particularly for those States that are hugely
dependent on heating oil.
We allocated $95,677,759 of these funds to all
States and Territories on the basis of their
regular ("old formula") block grant allocation
ratios. We allocated the remaining $25 million to
seven States that had "low-income fuel oil user
percentages" that equaled or exceeded 30 percent.
The $25 million was allocated by (1) weighting that
State's regular ("old formula") block grant
allocation ratio by its low-income fuel oil user
percentage; (2) determining the share that its
weighted "old formula" block grant ratio bore to
the total of the weighted "old formula" block grant
ratios of all seven States; and (3) multiplying this
share by $25 million.
The Indian Tribes and Tribal organizations that
receive direct LIHEAP funding from the Department
of Health and Human Services received a portion of
the $120,677,759. This portion was based on the
same share of the State's contingency allocation as
the Tribe or Tribal Organization received of that
State's regular LIHEAP block grant allocation.
The allocations to the States and Indian Tribes/
Tribal organizations are shown in Attachment 1.
In order to expedite the use of the funds in
emergency conditions we imposed no special
restrictions on their use. Grantees may use these
funds for any purpose authorized under LIHEAP;
including heating assistance, crisis assistance,
weatherization and administrative costs, subject to
normal LIHEAP restrictions. Because we released
these funds close to the end of FY 2008, we waived
the 90 percent rule on the obligation of these
funds in FY 2008. Grantees must, therefore,
obligate all of these funds no later than September
30, 2009 (i.e., before the end of FY 2009). The
September contingency funds are not subject to the
10 percent carryover limit for regular block grant
funds and may not be added to the base on which the
carryover limit for regular funds is calculated,
though they should be added to the regular FY 2008
block grant allocation to determine limits on
weatherization, administration and planning costs,
and Assurance 16 activities. Please do not
include these funds on your FY 2007 or FY 2008
carryover and reallotment reports.
With the release of the $120,677,759 on September
17, no additional LIHEAP contingency funds remained
from both the FY 2008 appropriation and the no-year
funds from the FY 2005 appropriation. All
available emergency contingency funds were released
to States in FY 2008.
ATTACHMENTS: (1) Allocations of $120,677,759 in LIHEAP emergency
contingency funds to all Territories, States and
Indian Tribes/Tribal organizations, and the
formula for allocating these funds to these
grantees.
______________/s_____________
Nick St. Angelo
Director
Division of Energy Assistance
Office of Community Services
