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

LIHEAP Allocations from the FY 2008 Energy Emergency Contingency Fund-$450 MILLION DISTRIBUTION on JANUARY 16, 2008

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2008-9, DATED 4/9/08
                              

TO:           LOW INCOME HOME ENERGY ASSISTANCE PROGRAM
              (LIHEAP) GRANTEES AND OTHER INTERESTED PARTIES
              
SUBJECT:      LIHEAP Allocations from the FY 2008 Energy
              Emergency Contingency Fund-$450 MILLION
              DISTRIBUTION ON JANUARY 16, 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 provide grantees with information on the
              distribution of LIHEAP emergency contingency
              funds that took place on January 16, 2008.
              These funds were distributed to LIHEAP
              grantees to help them meet the additional
              needs that resulted from high home heating
              fuel prices this winter.
              
BACKGROUND:   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." 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(g) of the LIHEAP statute, as
              amended in 1994 by Public Law 103-252, allows
              the Secretary of Health and Human Services 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
              (Public Law (P.L.) 110-161) was signed by the
              President on December 26, 2007.  It included
              an appropriation of $596,379,000 for LIHEAP
              emergency contingency purposes.  Another
              provision of P.L. 110-161 provided for a 1.747
              percent rescission to $346,379,000 of these
              funds, thereby reducing the total amount
              appropriated for LIHEAP emergency contingency
              purposes to $590,327,759.  P.L. 110-161 also
              provided that these funds were appropriated
              "for the fiscal year ending September 30,
              2008."
              
              In addition to the $590,327,759 of Fiscal Year
              (FY) 2008 funds that were appropriated for
              LIHEAP emergency contingency purposes in FY
              2008, $20,350,000 of no-year funds that were
              appropriated for LIHEAP emergency contingency
              purposes in FY 2005 were carried over to FY
              2008.  A total of $610,677,759 is available in
              LIHEAP emergency contingency funds in FY 2008.
              
CONTENT:      On January 16, 2008, the Secretary of Health
              and Human Services released $450,000,000 to
              all States, Territories and Indian
              tribes/tribal organizations.  The funds were
              released to all LIHEAP grantees because of
              large increases in heating fuel prices this
              winter, particularly for natural gas, propane
              and fuel oil.

              The $450 million were allocated to all
              grantees under the following method:

               33 percent, or $150 million, were allocated to 
                all Territories and States based on their 
                regular "old formula" block grant allocation 
                ratio;
               
               56 percent, or $250 million, were allocated to 
                the 26 States that met both of the following 
                criteria: (1) the number of the State's low-
                income households that used fuel oil, natural 
                gas or propane as a primary heating fuel 
                equaled or exceeded 60 percent of the total 
                number of the State's low-income households; 
                and (2) the State's population-weighted 
                temperature from November, 2006 through 
                March, 2007 equaled or exceeded 39 degrees 
                Fahrenheit.  These funds were allocated to 
                each of these States based on the share that 
                the State's regular ("old formula") block
                grant allocation ratio bore to the total of 
                the "old formula" block grant allocation 
                ratios of all these States.

               11 percent, or $50 million, were allocated to 
                the 11 States in which the number of State's 
                low-income households that used fuel oil as a 
                primary heating fuel equaled or exceeded 20 
                percent of the total number of State's low-
                income households.  These funds were allocated 
                to each of these States based on the share 
                that the State's regular ("old formula") block 
                grant allocation ratio bore to the total of 
                the "old formula" block grant allocation 
                ratios of all these States.

               The Indian tribes and tribal organizations 
                that receive direct LIHEAP funding from the 
                Department of Health and Human Services 
                received a share of the $450 million.  Their
                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.

              The allocations to all the States, Territories
              and Indian tribes/tribal organizations are
              shown in Attachment 1.
             
              Along with regular block grant funds, grantees
              must obligate at least 90 percent of the $450
              million in emergency contingency funds by
              September 30, 2008.
              
              In order to expedite the use of the funds in
              emergency conditions, no special restrictions
              were imposed on their use.  The contingency
              funds may be used for any purpose authorized
              under LIHEAP, including heating assistance,
              crisis assistance, weatherization,
              administrative costs, and carryover, subject
              to normal LIHEAP restrictions.  The
              contingency funds should be added to the
              regular FY 2008 block grant allocation to
              determine limits on weatherization,
              administration and planning costs, and
              Assurance 16 activities.

              With the release of $450 million, $160,677,759
              in emergency contingency funds remain
              available for potential heating or cooling
              crises.  Of this total, $140,327,759 is
              available through September 30, 2008 and
              $20,350,000 from the FY 2005 appropriation
              remains available until expended.

ATTACHMENTS:  (1) Distribution of $450 million in FY 2008 
                  LIHEAP energy emergency contingency fund 
                  allocations to States, Territories and 
                  Indian tribes/tribal organizations, and the
                  formula for allocating these funds.
                 
              (2) A copy of the relevant portions of the
                  Consolidated Appropriations Act, 2008 (P.L.
                  110-161)

              (3) A copy of relevant portions of the 
                  Consolidated Appropriations Act, 2005 (P.L.
                  108-447)               
                              
                             
                              
                                                            
                              
                              ______________/s_____________
                              Nick St. Angelo
                              Director
                              Division of Energy Assistance
                              Office of Community Services



                                                  Attachment 2


                  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(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 3

                  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.