Statutory Limitations on Uses of LIHEAP Funds

The LIHEAP statute includes certain limitations on the uses of funds, as described below.

Heating, Cooling and Crisis Assistance Funds

There is no limit on the amount of funds used for heating, cooling or crisis assistance benefits. A cooling program is not required. If a grantee does not have a separate crisis assistance program, it still must have a process to handle energy crisis situations. Grantees must be able to respond to an energy crisis within 48 hours and respond to a life-threatening energy crisis within 18 hours. Grantees must also ensure that crisis application intake centers are near the population to be served and that individuals who are physically infirm have transportation to intake sites or can submit applications from their homes.

Weatherization

It is the option of the grantee to provide weatherization or other low-cost energy-related home repairs. Grantees may use up to 15 percent of funds allotted or funds available for this activity. (Funds allotted means LIHEAP grant funds issued during a fiscal year, except leveraging incentive awards, and funds available may be allotted funds, oil overcharge funds, transferred funds from other block grants, and carryover funds.) A grantee may request a waiver and use up to 25 percent of funds for weatherization and low-cost energy home repairs if the grantee meets certain criteria outlined in the block grant regulations. Leveraging incentive funds may be used for weatherization without regard to the 15 percent to 25 percent maximum, but leveraging funds cannot be added to the base (funds allotted or funds available) to compute the amount used for weatherization.

Some grantees provide weatherization and energy-related home repairs under the crisis assistance program and do not count those funds within the 15 percent to 25 percent limit on weatherization funds.

Administrative Costs

The LIHEAP statute places a limit of 10 percent on "funds payable" in a fiscal year for administrative costs. Indian tribes, however, may use more than 10 percent as described below.

An Indian tribe that receives an allotment of $20,000 or less may use up to 20 percent of "funds payable" to an Indian tribe for a fiscal year for administrative costs.

An Indian tribe that receives an allotment over $20,000 may use 10 percent of "funds payable" to the Indian tribe for a fiscal year plus $2,000 for administrative costs.

Leveraging funds may be added to the base to compute the amount to be used for administration but should not be used for administrative costs.

Carryover Funds

Up to 10 percent of "funds payable" to a grantee for a fiscal year may be carried over to the next fiscal year to be used in LIHEAP. Those LIHEAP funds carried over must be obligated in the next fiscal year or be returned to the federal government.

Leveraging award funds cannot be added to the base to compute the carryover amount, but can be carried over to the next fiscal year without regard to the 10 percent carryover limit. Leveraging award funds must be obligated in the year they are granted or, if carried over, by the end of the next year.