LIHEAP Allocations from the FY 2008 Energy Emergency Contingency Fund-$40 MILLION DISTRIBUTION on FEBRUARY 22, 2008
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION
FOR CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM
TRANSMITTAL NO. LIHEAP-IM-2008-10, DATED 4/10/08
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM
(LIHEAP) GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: LIHEAP Allocations from the FY 2008 Energy
Emergency Contingency Fund-$40 MILLION
DISTRIBUTION ON FEBRUARY 22, 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 February 22, 2008.
These funds were distributed to LIHEAP
grantees to help them meet the additional
needs that resulted from high residential fuel
oil 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), 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 additional, 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 of Health
and Human Services released $450 million for
LIHEAP emergency contingency purposes to all
States, Territories and Indian tribes/tribal
organizations. These funds were released
because of large increases in heating fuel
prices this winter-particularly for natural
gas, propane and fuel oil. (Please refer to
LIHEAP-IM-2008-9, dated April 9, 2008, for
additional details about this release). After
this release, $160,677,759 remained available
for LIHEAP emergency contingency purposes for
FY 2008.
CONTENT: On February 22, 2008, the Secretary of Health
and Human Services released $40,000,000 to 11
States, and to the Indian tribes/tribal
organizations within those States, because of
large increases in fuel oil prices this
winter. These States were the ones that had
"low-income fuel oil user percentages" that
equaled or exceeded 20 percent when rounded to
the nearest whole percentage point. In this
context, the low-income fuel oil user
percentage for a given State is the number of
low-income households that heat primarily with
fuel oil in that State divided by the total
number of low-income households in that State.
These funds were allocated to each of these
States by (1) weighting each 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 11 States; and (3)
multiplying this share by $40 million.
The Indian tribes and tribal organizations
that receive direct LIHEAP funding from the
Department of Health and Human Services
received a share of the $40 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 the States and Indian
tribes/tribal organizations are shown in
Attachment 1.
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.
Grantees must obligate, by September 30, 2008,
at least 90 percent of the total of the funds
that they are allocated from (1) this release
of LIHEAP emergency contingency funds; (2) the
release of $450 million of LIHEAP emergency
contingency funds on January 16, 2008; and (3)
the formula-based LIHEAP block grant funds
that were appropriated on December 26, 2007
and (through the continuing resolutions) on
prior dates in FY 2008. In June, ACF will
issue guidance on LIHEAP carryover and
reallotment that will assist grantees in
determining and reporting on their maximum
carryover amounts.
With the release of $40 million, $120,677,759
remain available for LIHEAP emergency
contingency purposes, including heating or
cooling crises. Of these funds, $100,327,759
remain available through September 30, 2008
and $20,350,000 remain available until
expended.
ATTACHMENTS: (1) Allocations of $40 million in FY 2008
LIHEAP emergency contingency funds to 11
States (and to the Indian tribes/tribal
organizations within these States) and the
formula for allocating these funds to these
States.
______________/s_____________
Nick St. Angelo
Director
Division of Energy Assistance
Office of Community Services
