LIHEAP Appropriation for FY 2009-Allocation and Distribution of Block and Contingency Funds
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2009-2, DATED 12/15/08
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: LIHEAP Appropriation for FY 2009-Allocation and
Distribution of Block and Contingency Funds
RELATED The Consolidated Security, Disaster Assistance, and
REFERENCES: Continuing Appropriations Act, 2009 (Public Law
(P.L.) 110-329); the Low-Income Home Energy
Assistance Act, Title XXVI of the Omnibus Budget
Reconciliation Act of 1981, as amended (P.L. 97-35).
PURPOSE: (1) To provide grantees with information about the
$5.1 billion LIHEAP appropriation for FY 2009;
and
(2) To advise grantees about the distributions of
these funds on October 16, 2008, which included
$4.5 billion in regular Block Grant funds and
$590 million in Emergency Contingency funds.
CONTENT: On September 30, 2008, the President signed The
Consolidated Security, Disaster Assistance, and
Continuing Appropriations Act, 2009 (P.L. 110-329).
This law provided Federal agencies with new or
continuing appropriations for Fiscal Year (FY) 2009
and included an appropriation of $5.1 billion for
the Low Income Home Energy Assistance Program
(LIHEAP). The LIHEAP appropriation consisted of
$4,509,672,000 for the regular Block Grant fund and
$590,328,000 for the Emergency Contingency fund.
Of the $4.5 billion appropriated for the regular
Block Grant fund, the Administration for Children
and Families (ACF) set aside (a) $26.9 million for
the Leveraging Incentive Program (Leveraging), (b)
$100,000 for the Residential Energy Assistance
Challenge Program (REACH), and (c) $300,000 for
Training and Technical Assistance (T & TA)
activities.
This Information Memorandum addresses the FY 2009
LIHEAP appropriation and the allocation of these
funds to LIHEAP grantees in October.
Special Provisions Affecting FY 2009 LIHEAP Funds
P.L. 110-329 contained three provisions that
superseded current law on the allocation, award and
obligation of FY 2009 LIHEAP funds. These
provisions apply only to funds that were
appropriated and available for obligation in FY
2009.
Provision One (from Sec. 155(a)) required ACF to
allocate the $4.5 billion in regular Block Grant
funds in the following fashion:
• $3,669,880,000 were to be allocated according
to the formula that normally takes effect when
the regular Block Grant fund's appropriation
falls below $1.975 million (the Old Formula);
and
• $839,792,000 were to be allocated according to
the formula that normally takes effect when the
regular Block Grant fund's appropriation
exceeds $1.975 million (the New Formula).
Provision Two (from Sec. 155(b)) allowed grantees
the option to set their income eligibility maximum
at or below 75 percent of State median income
(SMI). For FY 2009, States can set their income
maximums at the higher of 150 percent of the HHS
poverty guidelines or 75 percent of State median
income instead of 60 percent of SMI. This
provision applies only to (1) LIHEAP funds that
are appropriated for FY 2009; and (2) LIHEAP funds
that were appropriated for a fiscal year prior to
FY 2009 but that remain available in FY 2009 (such
as the $121 million contingency funds released in
September 2008).
Provision Three (Sec. 155(c)) required ACF to award
the entire $5.1 billion to States within 30 days
of the enactment of the CR (i.e., by October 30,
2008).
See Attachment 1 for the portion of P.L. 110-329
that appropriates FY 2009 funds for the LIHEAP
program and delineates the special provisions on
the award and use of these funds.
Regular Block Grant Allocations
Provision One of P.L. 110-329 required ACF to
allocate regular Block Grant funds in a way other
than what is provided under the current LIHEAP
statute. Normally, current law would have required
ACF to allocate the $4.5 billion entirely by the
New Formula (with an appropriation above $1.975
billion). Instead, Provision One required ACF to
allocate $839,792,000 of these funds under the New
Formula and the remainder ($3,669,880,000) under
the Old Formula; after setting aside funds for
Leveraging, REACH and T&TA.
A table summarizing FY 2009 LIHEAP funds is shown
below. For a summary of all LIHEAP grantee
allocations, see Attachment 5.
FY 2009 LIHEAP Regular Emergency
APPROPRIATION Block Grant Contingency
Amount Appropriated $4,509,672,000 $590,328,000
Leveraging Awards $26,900,000
REACH Administration $100,000
Funds
T & TA Activities $300,000
Total --Leveraging, $27,300,000
REACH and T & TA
____________________________________________________
Amount Allocated to $4,482,372,000 $590,328,000
Grantees in FY 2009
Total FY 2009 Funds $5.0727 billion
Allocated to Grantees
Total FY 2009 Funds $5.1 billion
Appropriated
____________________________________________________
ACF allocated the $839,792,000 by (1) adding to
that figure the amount that triggers the New
Formula ($1.975 billion); (2) determining, through
the New Formula, the hypothetical State and
Territorial allocations under an appropriation at
this level ($2,814,792,000); (3) determining,
through the New Formula, the hypothetical State and
Territorial allocations under an appropriation of
$1.975 billion; and (4) subtracting the State and
Territorial allocations of $1.975 billion from the
State and Territorial allocations of
$2,814,792,000.
ACF allocated regular Block Grant funds to each
direct-funded Tribe and Tribal Organization by
deducting (setting aside) such funds from the gross
allocation(s) of the State(s) in which the Tribe's
low income households reside.
Provision Three of P.L. 110-329 required ACF to
award all funds, including the regular Block Grant
funds, to States by October 30, 2008. As a result,
on October 16, 2008, ACF issued awards that covered
grantees' full FY 2009 regular Block Grant fund
allocations, rather than awarding the funds to
States in accordance with their quarterly requests.
ACF awarded these funds to all State grantees that
submitted complete plans for FY 2009.
See Attachment 2 for the details of the Regular
Block Grant allocations.
Emergency Contingency Fund Allocations
The Human Services Amendments of 1994 (Public Law
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."
P.L. 110-329 appropriated $590,328,000 in Emergency
Contingency Funds to be distributed to all State,
Tribal and Territorial grantees. On October 16,
2008, the Secretary awarded the contingency funds
in conjunction with the Block Grant awards. All
States shared in a portion of the $590 million
contingency release. These funds were allocated to
States to enable them to help low income households
cope with the anticipated high costs for fuel this
winter, particularly for those States that are
hugely dependent on heating oil.
Of the $590,328,000, an amount of $490,328,000 was
distributed to all States based on their regular
block grant allocation formula percentage. An
additional $100 million was directed to those
States with 30 percent or more of its low income
households using heating oil for heat. The $100
million was allocated to the seven States that
qualified for this portion, based on their regular
block grant allocation formula percentage weighted
by the relative number of low income households in
each State that use heating oil. The seven States
that received the additional $100 million are
Alaska, Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont.
ACF allocated Emergency Contingency funds to each
Tribe by setting aside such funds from the gross
allocation(s) of the State(s) in which the Tribe's
low-income households reside. Tribal allocations
were based on the same share of the State's
contingency allocation as the Tribe or Tribal
organization received of the State's regular LIHEAP
block grant allocation.
With the release of $590,328,000, no funds remain
available for FY 2009 LIHEAP Emergency Contingency
purposes. The details of the Emergency Contingency
allocations are shown in Attachment 3.
Uses of FY 2009 Block Grant and Emergency
Contingency Funds
With the exception of Provision Two, which allows
grantees to raise their income eligibility maximum
to a level at or below 75 percent of SMI, the
normal LIHEAP rules apply to both the Block Grant
and Emergency Contingency Funds. No special
restrictions were placed on the use of the
Emergency Contingency funds. Grantees may use the
block and contingency funds for any purpose
authorized under the LIHEAP statute (including
heating assistance, crisis assistance,
weatherization, administrative costs, Assurance 16
activities, and carryover).
Grantees must obligate at least 90 percent of the
total of regular Block Grant and Emergency
Contingency funds by the end of FY 2009, no later
than September 30, 2009. Grantees may carry over
up to 10 percent of these funds into FY 2010. The
Emergency Contingency funds should be added to the
regular Block Grant funds to determine limits on
carryover, weatherization, administration and
planning costs, and Assurance 16 activities.
Leveraging, REACH and T & TA
The FY 2008 HHS appropriation, enacted on December
26, 2007 (P.L. 110-161), did not authorize FY 2008
funding for the LIHEAP Leveraging Incentive Program
and for REACH. As a result, we could not make FY
2008 awards for these two programs. LIHEAP grantees
had already submitted FY 2008 leveraging applications
(due November 30, 2007) before the omission in the
FY 2008 appropriation was revealed.
The provisions of P.L. 110-329 indicated that all of
the $5.1 billion in FY 2009 LIHEAP funds had to be
released to States within 30 days of the bill's
enactment. We set aside $27 million for leveraging
and REACH in FY 2009, but the 30-day requirement
would impact our ability to award funds for these
programs in FY 2009. The applications for FY 2009
leveraging funds were not due until November 30,
2008, and an Action Transmittal on FY 2009 REACH
applications (due March 30, 2009) had yet to be
released.
Therefore, ACF issued FY 2009 leveraging funds on
October 16, 2008 (in conjunction with the Block and
Contingency awards) based on the grantee submitted
last year, but were not awarded because leveraging
(and REACH) were not authorized for funding under
the FY 2008 appropriation. A total of $26.9 million
was awarded to the 40 States, 25 Tribes/Tribal
Organizations, and one Territory that submitted FY
2008 leveraging applications. We informed grantees
in October not to submit FY 2009 leveraging
applications that were to be due on November 30,
2008.
FY 2009 REACH applications will be due on March 30,
2009. Please see Action Transmittal (AT) 2009-03,
dated December 5, 2008, for additional information
and instructions to apply for FY 2009 REACH funds.
While we don't expect to have additional FY 2009
funds for REACH awards this year, we will instead
issue awards for the FY 2009 applications soon
after the start of FY 2010, with a special set
aside of FY 2010 funds for this purpose.
Note that we set aside $100,000 under the REACH
program for FY 2009. Under the former rules
governing REACH through FY 2006, States had 3-year
REACH programs in which they could receive funds
for administration costs in the 2nd and 3rd years
of their programs. Since we were unable to issue
REACH funds in FY 2008, we awarded $25,000 in REACH
administration grants to the four State grantees
(Illinois, Montana, Ohio and DC) that received FY
2006 REACH awards.
The normal two-year obligation rule governing
leveraging funds will apply. Grantees may obligate
these funds in FY 2009 and/or FY 2010-but the
leveraging funds must be fully obligated by
September 30, 2010. The REACH administration
grants are one-year funds that the four States must
fully obligate in FY 2009 (i.e., no later than
September 30, 2009).
As previously mentioned, LIHEAP grantees did not
submit leveraging applications that were to have
been due on November 30, 2008. These applications
would have included the leveraging activities
grantees conducted in FY 2008. Essentially, there
will be no future leveraging award based on FY 2008
activities. In FY 2009, we awarded the $26.9
million in leveraging funds based on activities
conducted in FY 2007. We will resume the normal
schedule for FY 2010 when grantees will submit
leveraging applications, based on FY 2009
leveraging activities, due November 30, 2009.
Also, as mentioned, we will set aside FY 2010 funds
to award REACH grants for the applications submitted
by March 30, 2009. This will in effect be the "first
round" of FY 2010 REACH awards. We will then resume
the normal schedule for FY 2010 REACH applications
that will be due March 30, 2010-and then issue a
"second round" of FY 2010 REACH awards later that
spring.
The grantee allocations forleveraging funds are
shown in Attachment 4.
We have set aside the total $300,000 allowed for T&TA
activities. If we later determine that less money is
needed for this purpose, we will redistribute the
unused funds to LIHEAP grantees under the regular
block grant.
ATTACHMENTS: (1) A copy of the relevant portions of the
Consolidated Security, Disaster Assistance,
and Continuing Appropriations Act, 2009
(P.L. 110-329).
(2) Regular LIHEAP Block Grant allocations of
$4,509,672,000 to States, Territories and
Indian Tribes/Tribal Organizations.
(3) LIHEAP Emergency Contingency allocations of
$590,328,000 to States, Territories and Indian
Tribes/Tribal Organizations.
(4) LIHEAP Leveraging Incentive Awards of $26.9
million for FY 2009, based on leveraging
activities performed in FY 2007.
(5) Total LIHEAP allocations of $5.1 billion
from (P.L. 110-329).
______________/s______________
Nick St. Angelo
Director
Division of Energy Assistance
Office of Community Services
Attachment 1
H.R.2638 (P.L. 110-329)
Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act, 2009
DIVISION A--CONTINUING APPROPRIATIONS RESOLUTION, 2009
The following sums are hereby appropriated, out of any money
in the Treasury not otherwise appropriated, and out of
applicable corporate or other revenues, receipts, and funds,
for the several departments, agencies, corporations, and other
organizational units of Government for fiscal year 2009, and
for other purposes, namely:
SEC. 155. (a) In lieu of the amount otherwise provided by
section 101 for `Department of Health and Human Services--
Administration for Children and Families--Low-Income Home
Energy Assistance', there is appropriated for such account for
making payments under the Low-Income Home Energy Assistance
Act of 1981, $5,100,000,000, which shall remain available
through September 30, 2009. Of such amount, $4,509,672,000 is
for payments under subsections (b) and (d) of section 2602 of
such Act and $590,328,000 is for payments under subsection (e)
of such section. All but $839,792,000 of the amount provided
by this section for such subsections (b) and (d) shall be
allocated as though the total appropriation for such payments
for fiscal year 2009 was less than $1,975,000,000.
(b) Notwithstanding section 2605(b)(2)(B)(ii) of such Act, a
State may use any amount of an allotment from prior
appropriations Acts that is available to that State for
providing assistance in fiscal year 2009, and any allotment
from funds appropriated in this section or in any other
appropriations Act for fiscal year 2009, to provide assistance
to households whose income does not exceed 75 percent of the
State median income.
(c) The amount provided by this section shall be obligated to
States within 30 calendar days from the date of enactment of
this joint resolution.
(d) Of the amount provided by this section, $2,779,672,000 is
designated as an emergency requirement and necessary to meet
emergency needs pursuant to section 204(a) of S. Con. Res. 21
(110th Congress) and section 301(b)(2) of S. Con. Res. 70
(110th Congress), the concurrent resolutions on the budget for
fiscal years 2008 and 2009.
(e) The provisions of this section shall apply notwithstanding
any other provision of this joint resolution.
