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Low Income Home Energy Assistance Program assistance with heating and cooling costs

LIHEAP Allocations for FY 2008

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2008-8, DATED 4/8/08                            
                               

TO:           LOW INCOME HOME ENERGY ASSISTANCE PROGRAM 
              (LIHEAP) GRANTEES AND OTHER INTERESTED PARTIES

SUBJECT:      LIHEAP Allocations for FY 2008
              
RELATED       The Consolidated Appropriations Act, 2008
REFERENCES:   (Public Law (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 advise grantees of the FY 2008 LIHEAP
              appropriation, including $1,980,000,351 in
              regular block grant funds and $590,327,759 in
              emergency contingency funds.
              
CONTENT:      The Consolidated Appropriations Act, 2008
              (Public Law (P.L.) 110-161), which was signed
              by the President on December 26, 2007,
              appropriated FY 2008 funds for federal
              agencies including the Department of Health
              and Human Services (HHS).  P.L.110-161
              provided just over $2.6 billion for the LIHEAP
              program, including $2,015,206,000 in regular
              block grant funds and $596,379,000 in
              emergency contingency funds.  However, another
              provision of P.L. 110-161 applied a 1.747
              percent rescission to all of the regular block
              grant funds and to $346,379,000 of the
              emergency contingency funds, resulting in a
              final appropriation of $1,980,000,351 for the
              block grant and $590,327,759 for emergency
              contingencies.
              
              In addition to the $590,327,759 appropriated
              for emergency funds in FY 2008, $20.35 million
              of no-year contingency funds that had been
              appropriated in FY 2005 were carried over into
              FY 2008.  As a result, $610,677,759 in
              emergency contingency funds became available
              in FY 2008 after P.L. 110-161 was passed.
                            
              The table below contains a summary of the
              LIHEAP regular block grant and emergency
              contingency funds that are available in FY
              2008:
                                   
                                         Block Grant       Emergency
                                                           Contingency
              FY 2008 Appropriation  
              Amount Appropriated       $2,015,206,000    $596,379,000
              before Rescission                           
                Amount Subject          $2,015,206,000    $346,379,000
                to Rescission                      
                Amount Not Subject                  $0    $250,000,000
                to Rescission
                  Amount Rescinded         $35,205,649      $6,051,241
                  (=1.747 percent of
                  Amount Subject to
                  Rescission)
                Amount Appropriated     $1,980,000,351    $590,327,759
                after Rescission          
              
              Carryover of No-Year Funds         
                Amount of No-year Funds             $0     $20,350,000
                Carried Over to FY 2008
              ========================================================
              Total Amount Available     $1,980,000,351   $610,677,759
              in FY 2008               
                                                                   
              Total Block Grant and             $2,590,678,110
              Emergency Contingency Funds
              Available in FY 2008
             
              Listed below is a detailed description of the
              distribution of FY 2008 LIHEAP regular block
              grant funds.  Attachment 1 shows the FY 2008
              allocations for each State and Territorial
              LIHEAP grantee.  Attachment 2 shows the FY
              2008 allocations for each Tribal LIHEAP
              grantee.  Attachment 3 shows the statutory
              provisions of P.L. 110-161 that pertain to
              LIHEAP (and other HHS programs).              
                 
                  FY 2008 LIHEAP Block Grant Funding                                
              
              Prior to passage of P.L. 110-161, Congress
              passed a series of Continuing Resolutions
              (CRs) that provided FY 2008 funds for LIHEAP
              based on the FY 2007 appropriation level of
              $1.98 billion.  These CRs enabled us to make
              first-quarter grant awards to State, Territory
              and Tribal grantees after these grantees
              submitted complete funding applications.  In
              addition, these CRs provided enough funds to
              allow us to (1) honor the States' first-
              quarter award requests, up to 75 percent of
              their full-year allocations; and (2) award 75
              percent of the Territories' and Tribes' full-
              year allocations in the first quarter.              
              
              Shortly after P.L. 110-161 was passed, we
              recalculated the grant allocations based on
              the total appropriation level of
              $1,980,000,351 and began awarding (1) the
              remainder of States' first-quarter award
              requests and (2) the Territories' and Tribes'
              full-year allocations.  We began making
              supplemental grant awards as soon as possible
              to State LIHEAP grantees to reflect the
              additional funding.  We also began making
              supplemental grant awards to Territorial and
              Tribal LIHEAP grantees to reflect the
              additional funding and to make up the
              difference between their full-year allocations
              and their first-quarter award amounts.              
              
              We originally set aside $27,225,000 for the
              Leveraging Incentive Program and the
              Residential Energy Assistance Challenge
              Program (REACH).  The rescission reduced this
              amount to $26,749,379, of which we plan to
              award $25,275,584 for Leveraging grants and
              $1,473,795 for REACH grants.              
              
              Under the LIHEAP statute, grantees desiring
              Leveraging or REACH funds must submit a
              separate application to HHS for each program
              for the year in which they seek those funds.
              Grantees desiring Leveraging funds must base
              their applications on the leveraging
              activities that they conducted in the previous
              fiscal year; thus FY 2008 Leveraging funds
              will be allocated to grantees who submitted
              timely applications (those that were
              postmarked on or before November 30, 2007) on
              the basis of their FY 2007 leveraging
              activities.  We will publish a LIHEAP Action
              Transmittal on the OCS/LIHEAP website that
              will contain the application instructions and
              deadline for FY 2008 REACH funds.
              
              We also originally set aside $297,000 for
              Training and Technical Assistance (T&TA)
              projects.  The rescission reduced this amount
              to $291,811.  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
              formula.
              
              Below is a summary of the Leveraging, REACH
              and T&TA amounts for FY 2008:
              
                                         FY 2008 Set-  FY 2008 Set-
                                          Aside before   Aside after
                                          Rescission     Rescission
                Leveraging Incentive       $25,725,000   $25,275,584
                Program
                REACH                       $1,500,000    $1,473,795
                ====================================================
TOTAL Leveraging/REACH $27,225,000 $26,749,379 LIHEAP T&TA $297,000 $291,811 Total Leveraging/REACH $27,522,000 $27,041,190 and T&TA
LIHEAP regular block grant funds were allocated using a formula developed when LIHEAP was originally established. The LIHEAP statute requires us to use the percentages derived from that formula in any year in which the amount to the States from the regular block grant appropriation (i.e., the non- emergency contingency appropriation) is less than $1.975 billion. We used this formula even though the appropriation exceeded $1.975 billion because the set asides for Leveraging/REACH, T&TA and the Territorial allocations reduced the amount available to the States to $1,950,314,307. Attachment 1 shows the calculations of regular FY 2008 block grant allocations for States and Territories. The amount available to the States was multiplied by each State's formula share (as shown in the column marked "Allocation Percents"), to determine the State's gross allocation. The total of each State's Indian Tribe and Tribal organizations' (Tribes') grants (as shown in the column marked "Tribal Set-Aside") was deducted from each State's gross allocation to determine the State's net allocation. Pending the availability of federal funding, grant awards are made on the basis of each State's net allocation as soon as the State's plan application has been reviewed and determined complete. Attachment 2 shows the calculations of regular FY 2008 block grant allocations for Tribes that receive direct LIHEAP funding from HHS. These amounts are determined for each Tribe by either (1) multiplying the gross allocation of the State in which the Tribe is located by the percentage that that Tribe's eligible households represent of the eligible households in the State; or (2) a higher amount as specified in an agreement made between the Tribe and the State. At least 90 percent of a grantee's total regular block grant allocation for FY 2008 must be obligated for use by September 30, 2008. As a result no more than 10 percent of a grantee's total regular block grant allocation may be carried over into FY 2009. In addition, any amount carried over to FY 2009 must be obligated no later than September 30, 2009. FY 2008 LIHEAP Emergency Contingency Funds The Consolidated Appropriations Act, 2008 (P.L. 110-161) provided for an appropriation of $590,327,759 in LIHEAP emergency contingency funds. On January 16, 2008, the Secretary of Health and Human Services released $450,000,000 to all States, Territories and Tribes because of this winter's large increases in heating fuel prices. For more details about this release see LIHEAP Information Memorandum LIHEAP-IM- 2008-9, dated April 9, 2008. On February 22, 2008, HHS released another $40 million to 11 states because of the high costs for home heating oil. For more details about this release, see LIHEAP IM-2008-10, dated April 10, 2008. If all FY 2008 contingency funds are not released to States prior to the end of the fiscal year, the funds will expire on September 30, 2008. The other $20,350,000 that were appropriated by the Consolidated Appropriations Act of 2005 (P.L. 108-447) remain "available until expended" and could be used in FY 2009 if not released this year. ATTACHMENTS: (1) LIHEAP allocations (gross and net allocations) for all States and Territories for FY 2008 funds, at the funding level of $1,980,000,351, including the $26,749,379 set aside for leveraging incentive grants and REACH. (2) LIHEAP allocations for Tribes and Tribal organizations receiving direct funding from HHS for FY 2008 funds, at the funding level of $1,980,000,351. (3) A copy of the relevant portions of the Consolidated Appropriations Act, 2008 (Public Law 110-161). (4) A copy of the relevant portions of the Consolidated Appropriations Act, 2005 (Public Law 108-447). _______________/s____________ Nick St. Angelo Director Division of Energy Assistance Office of Community Services Attachment 3 H.R.2764 (P.L. 110-161) Consolidated Appropriations Act, 2008 SEC. 5. EMERGENCY DESIGNATIONS. Any designation in any division of this Act referring to this section is a designation of an amount as an emergency requirement and necessary to meet emergency needs pursuant to subsections (a) and (b) of section 204 of S. Con. Res. 21 (110th Congress), the concurrent resolution on the budget for fiscal year 2008. SEC. 6. STATEMENT OF APPROPRIATIONS. The following sums in this Act are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2008. DIVISION G--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2008 TITLE II DEPARTMENT OF HEALTH AND HUMAN SERVICES LOW-INCOME HOME ENERGY ASSISTANCE For making payments under section 2604(a)-(d) of the Low- Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(a)-(d)), $2,015,206,000. For making payments under section 2604(e) of the Low- Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), $596,379,000, notwithstanding the designation requirement of section 2602(e) of such Act: Provided, That of the amount provided by this paragraph, $250,000,000 is designated as described in section 5 (in the matter preceding division A of this consolidated Act). TITLE V GENERAL PROVISIONS SEC. 528. (a) ACROSS-THE-BOARD RESCISSIONS- There is hereby rescinded an amount equal to 1.747 percent of the fiscal year 2008 budget authority-- (1) provided for any discretionary account of this Act; and (2) provided in any advance appropriation for fiscal year 2008 for any discretionary account of this Act made available by any prior fiscal year appropriation Act. (b) PROPORTIONATE APPLICATION- Any rescission made by subsection (a) shall be applied proportionately-- (1) to each discretionary account and each item of budget authority described in such subsection; and (2) within each such account and item, to each program, project, and activity (with programs, projects, and activities as delineated in the appropriation Act, accompanying reports, or explanatory statement for fiscal year 2008 covering such account or item, or for accounts and items not included in appropriation Acts, as delineated in the most recently submitted President's budget). (c) EXCEPTIONS- This section shall not apply-- (1) to discretionary budget authority that has been designated as described in section 5 (in the matter preceding division A of this consolidated Act) Attachment 4 H.R.4818 (P.L. 108-447) Consolidated Appropriations Act, 2005 SEC. 4. STATEMENT OF APPROPRIATIONS. DIVISION F--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2005 TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES LOW-INCOME HOME ENERGY ASSISTANCE For making payments under title XXVI of the Omnibus Budget Reconciliation Act of 1981, $300,000,000, to remain available until expended: Provided, That these funds are for the unanticipated home energy assistance needs of one or more States, as authorized by section 2604(e) of the Act: Provided further, That the entire amount is designated as an emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th Congress) as made applicable to the House of Representatives by H. Res. 649 (108th Congress) and applicable to the Senate by section 14007 of Public Law 108-287. DIVISION J--OTHER MATTERS TITLE I--MISCELLANEOUS PROVISIONS AND OFFSETS SEC. 122. (a) ACROSS-THE-BOARD RESCISSIONS- There is hereby rescinded an amount equal to 0.80 percent of-- (1) the budget authority provided (or obligation limitation imposed) for fiscal year 2005 for any discretionary account in divisions A through J of this Act and in any other fiscal year 2005 appropriation Act (except any fiscal year 2005 supplemental appropriation Act, the Department of Homeland Security Appropriations Act, 2005, the Department of Defense Appropriations Act, 2005, or the Military Construction Appropriations Act, 2005); (2) the budget authority provided in any advance appropriation for fiscal year 2005 for any discretionary account in any prior fiscal year appropriation Act; and (3) the contract authority provided in fiscal year 2005 for any program subject to limitation contained in any division or appropriation Act subject to paragraph (1). (b) PROPORTIONATE APPLICATION- Any rescission made by subsection (a) shall be applied proportionately-- (1) to each discretionary account and each item of budget authority described in such subsection; and (2) within each such account and item, to each program, project, and activity (with programs, projects, and activities as delineated in the appropriation Act or accompanying reports for the relevant fiscal year covering such account or item, or for accounts and items not included in appropriation Acts, as delineated in the most recently submitted President's budget).