Awards of FY 2007 LIHEAP Leveraging Incentive Grants
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2007-8, DATED 8/10/07
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: Awards of FY 2007 LIHEAP Leveraging Incentive
Grants
RELATED
REFERENCES: Low Income Home Energy Assistance Act, Title XXVI
of the Omnibus Budget Reconciliation Act of 1981,
Public Law 97-35, as amended; 45 CFR Part 96,
Block Grant Programs — Final Rule, published May
1, 1995, in the Federal Register (60 FR 21332 et
seq.); and LIHEAP Action Transmittal 2004-7, dated
August 16, 2004, re: applications for FY 2006
leveraging awards.
PURPOSE: To advise grantees of FY 2007 leveraging incentive
grants to be awarded based on countable leveraging
activities carried out during FY 2006. Leveraging
awards went out in two separate distributions in
June and August.
BACKGROUND: The Augustus F. Hawkins Human Services
Reauthorization Act of 1990 (Public Law 101-501)
amended the LIHEAP statute to establish a
leveraging incentive program to reward grantees
under the Low Income Home Energy Assistance
Program (LIHEAP) that have acquired non-Federal
home energy resources for low-income households.
Leveraging incentive funds are awarded to those
grantees that use their own or other non-Federal
resources to expand the effect of the Federal
LIHEAP dollars. Leveraging activities that took
place in one fiscal year will be used to determine
leveraging incentive grant awards in the following
fiscal year. For example, FY 2007 leveraging
incentive awards are allocated to grantees based
on countable leveraged resources that were
provided to low income households in FY 2006.
The Department of Health and Human Services (HHS)
issued final implementing regulations for the
leveraging incentive program on May 1, 1995
(60 FR 21332). Leveraging requirements in the
regulations are based closely on the leveraging
requirements in section 2607A of the Low Income
Home Energy Assistance Act.
Grantees desiring leveraging incentive funds must
submit an application each year — the LIHEAP
Leveraging Report — that delineates the amount
and types of leveraging activities they carried
out during the base period. HHS then determines
whether the reported activities meet the
requirements of the statute and regulations, and,
therefore, are countable under the program for the
purpose of determining allocations of the incentive
funds. In general, we give grantees the benefit of
the doubt where we can.
CONTENT: The FY 2007 appropriations law for HHS and several
other agencies (Public Law 110-5, signed on
February 15, 2007) included funding for LIHEAP in
FY 2007. The conference report on that law
provides that, of the amount appropriated for
LIHEAP for FY 2007, $27.2 million should be set
aside for leveraging incentive grant awards. Of
this amount, the 1994 amendments to the LIHEAP
statute (Public Law 103-252) provide that up to
25% may be set aside for the Residential Energy
Assistance Challenge (REACH) Option Program. The
Department set aside $1.135 million for REACH,
leaving $26,090,000 for leveraging awards.
Applications for FY 2007 Leveraging Funds
We received applications for FY 2007 incentive
awards from 38 States, 26 tribes or tribal
organizations, and 1 territory. These 65
applications included claims for 759 separate
leveraging resources/benefits that took place in
FY 2006 with a gross claimed value totaling
$2,700,410,247. The net value of the claimed
resources is $2,699,843,431, after deducting
$566,816 for: (1) the grantees' own funds used to
identify, develop and demonstrate the activities;
(2) costs or charges to low income households to
participate in the activities; and (3) LIHEAP
funds used to identify, develop, and demonstrate
the activities (limited to the higher of $35,000
or 0.08% of a grantee's regular allotment for
State grantees, or to the higher of $100 or 2.0%
of the allotment for Indian tribes/tribal
organizations and territories).
After review by HHS, the claimed value of a number
of resources was eliminated or reduced because part
or all of the resource did not meet necessary
requirements for countability. We also made a
number of adjustments necessitated by mathematical
errors and/or revised information received from
grantees.
Overall, we reduced the claimed value of 13
resources because they are not countable in part
or there were errors in calculations. The value
of 1 resource was increased because of corrected
figures. After making these adjustments, we
approved 741 resources in whole or in part for 64
grantees (35 States, 28 tribes, and 1 territory),
for a gross value of $2,699,268,917 and a net
value of $2,698,702,101 after subtracting
offsetting costs of $566,816. Attachment 2 shows
the number and value of resources claimed by each
applicant, the amount of any adjustments to those
numbers and values made by HHS, and the final
approved number and value of countable resources
as determined by HHS.
This year, leveraging funds were distributed in
two separate allocations - $20,418,750 in June and
$5,671,250 in August. Attachment 3 shows the award
amounts for leveraging grantees under each
distribution.
Allocation of Leveraging Incentive Funds
Using the final values of leveraging activities
approved for each grantee, we calculated leveraging
grant award allocations based upon a formula that
is included in Section 96.87(c)(1) of the LIHEAP
regulations (45 CFR 96.87(c)(1)), as published in a
final rule in the Federal Register on May 1, 1995
(60 FR 21322). (See page 21364 of the regulation
and pages 21351-56 of the preamble for further
detail.)
The formula provides that one-half of the funds,
or $13,045,000 based on total available
funds of $26,090,000, is to be distributed based
on the amount of leveraging activities each
grantee carries out as a proportion of the amount
of its regular LIHEAP grant, taking into account
the amount of leveraging activities carried out by
all grantees as a proportion of their regular
grants. Because the leveraging activities took
place in FY 2006, we used allocations for FY 2006
in calculating this portion of the formula. We
included regular block grant allotments and
contingency funds allocated to leveraging
applicants in FY 2006.
The second half of the funds is to be distributed
based on the amount of leveraging activities
carried out by each grantee as a proportion of the
total amount of leveraging activities carried out
by all grantees. The amounts derived under the two
parts of the formula are then added together to
determine the final grant amount, except that no
grantee may receive more than (1) 12% of the
leveraging incentive funds available, or (2) the
lesser of the amount of its regular grant
(including any contingency and/or realloted funds
or twice the amount it leveraged.
The prohibition against receiving more than 12% of
the available leveraging incentive funds affected
only one State grantee this year (California)
limiting its grant award to $3,087,000.
The prohibition against receiving more in incentive
grant funds than the lesser of twice the amount
leveraged or the amount of the regular block grant
funds affected 11 of the tribal applicants and 1
territory this year. The tribes in general do very
well under our formula, in most cases receiving
much more in return for each leveraging dollar
invested than the States.
We redistributed the "excess funds" from the 11
tribes, 1 territory and 1 State on a proportionate
basis to the other grantees. Attachment 1 shows our
calculations, with the last column showing the
amount of the actual leveraging incentive grant
award for each applicant.
Allowable Uses of Leveraging Incentive Funds
Leveraging incentive grant awards are being made to
each grantee in the amount shown in the final
column of Attachment 1, and will be available for
drawdown shortly. They may be obligated for
eligible activities in FY 2007 and/or FY 2008.
Grantees are reminded that the leveraging incentive
funds must be used to maintain or increase benefits
to low income households as a part of the grantee's
LIHEAP program. The incentive awards may not be
used for costs of administration and planning, but
they may be counted in the base for calculating
the grantee's maximum planning and administrative
costs (but these costs must be paid from other
funds, such as regular block grant funds).
Leveraging incentive grants for FY 2007 must be
obligated by grantees no later than September 30,
2008, or the funds will revert to the Federal
government. The leveraging incentive funds are
not subject to the 10% 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. The leveraging incentive
funds also are not subject to the 15% limit on use
of funds for weatherization activities, and may
not be added to the base on which the
weatherization limit for regular funds is
calculated. Consistent with the block grant
philosophy, grantees are the primary interpreters
in determining what constitutes an "obligation"
under their own financial laws and procedures.
Next Year's Applications for Leveraging Funds
We would like to remind all grantees that the model
plan application for regular LIHEAP block grant
funding includes a place to report leveraging
activities that are coordinated with LIHEAP. You
should include the information in your plan for FY
2007 that will be necessary for activities to count
for leveraging funds to be awarded in FY 2008.
LIHEAP Leveraging Reports on leveraging activities
carried out in FY 2007 are due by November 30, 2007
in order to qualify for FY 2008 leveraging
incentive grant funds. Amendments to FY 2007
plans in order to incorporate descriptions of FY
2007 leveraging activities must be submitted no
later than September 30, 2007.
ATTACHMENTS: (1) Calculations of FY 2007 leveraging incentive
grant awards, by grantee.
(2) Listing of grantees submitting Leveraging
Report Forms on FY 2006 activities to qualify
for FY 2007 leveraging incentive grant awards,
including number and value of resources claimed,
adjustments to those claims made by HHS, and
final approved number and value of resources.
(3) Detail on two separate leveraging distributions.
INQUIRIES TO: Nick St. Angelo, Director
Division of Energy Assistance
Office of Community Services, ACF, HHS
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447
Telephone: (202) 401-9351
Fax: (202) 401-5661
E-mail: nstangelo@acf.hhs.gov
_____________/s_____________
Nick St.Angelo
Director
Division of Energy Assistance
Office of Community Services
