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

FY 2009 Applications for the Residential Energy Assistance Challenge Program (REACH)

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP ACTION TRANSMITTAL NO. LIHEAP-
AT-2009-3, DATED 12/5/08
                              

TO:            LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) 
               GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: FY 2009 Applications for the Residential Energy Assistance Challenge Program (REACH) RELATED REFERENCES: Low Income Home Energy Assistance Act (LIHEAP), Title XXVI of the Omnibus Budget Reconciliation Act of 1981, Public Law (P.L.) 97-35, the Human Services Amendments of 1994 (P.L. 103-252); and the Energy Policy Act of 2005 (P.L. 109-58). DUE DATE: March 30, 2009 - Grantee applications for REACH awards MUST be postmarked on or before this date. No late applications will be considered (no exceptions). PURPOSE: To (a) inform LIHEAP grantees that applications are being requested under the FY 2009 REACH Program, (b) provide a copy of the OMB approved REACH Model Plan format that may be used to apply for REACH funds each year, and (c) provide that successful FY 2009 REACH grantees will receive their awards from the FY 2010 LIHEAP appropriation. BACKGROUND: The Human Services Amendments of 1994 (P.L. 103-252) amended the LIHEAP statute to add Section 2607B, which established the REACH Program. REACH was funded for the first time in FY 1996 and is intended to: (1) Minimize health and safety risks that result from high energy burdens on low-income Americans; (2) Reduce home energy vulnerability and prevent homelessness as a result of inability to pay energy bills; (3) Increase the efficiency of energy usage by low- income families, helping them achieve energy self- sufficiency; and (4) Target energy assistance to individuals who are most in need. Substantial changes were made to the REACH program in FY 2007. REACH was refocused to emphasize the health and safety of vulnerable households (i.e., households with elderly members, small children and disabled individuals). Application requirements and the information necessary for grantees to receive REACH funds were reduced. The public health and safety aspects of LIHEAP were underscored in the Energy Policy Act of 2005, enacted on August 8, 2005 (P.L. 109-58). Section 1804 of Title XVIII of the Energy Policy Act required the U.S. Department of Health and Human Services (HHS) to submit a report to Congress on how LIHEAP could be used more effectively to prevent loss of life from extreme temperatures. On February 15, 2007, the Department submitted its LIHEAP Report to Congress, Preventing Loss of Life Due to Extreme Indoor Temperatures. REACH funds are available only to LIHEAP grantees. However, States, the District of Columbia, and Puerto Rico must coordinate REACH efforts with community-based organizations (CBOs) to assure that REACH services are implemented and operated by these entities. Tribes/ Tribal Organizations and Insular Areas (other than Puerto Rico) may administer their programs without sub-contracting or sub-granting to a CBO. The LIHEAP statute provides that up to $50 million of the LIHEAP block grant appropriation may be used to support a Leveraging Incentive Program. The 1994 amendments to the LIHEAP statute provide that a portion of the leveraging funds (up to 25 percent) may be set aside for REACH awards. The FY 2008 HHS appropriation, enacted on December 26, 2007 (P.L. 110-161), did not authorize FY 2008 funding for the LIHEAP leveraging incentive program and for REACH. As a result, we could not make FY 2008 awards for these two programs. The FY 2008 leveraging/REACH set aside of $26 million was returned to States under the regular block grant formula. CONTENT: As a follow-up to the Department's Congressional Report, the HHS Office of Community Services has decided to focus REACH grants on promoting innovative LIHEAP initiatives that address energy-related health and safety issues and "home energy vulnerability" (i.e., the risk to personal health and safety that is associated with home energy affordability.) REACH funds are available to LIHEAP grantees to plan and implement innovative programs. LIHEAP grantees that wish to receive FY 2009 REACH awards must submit an application for these funds following the requirements listed in Section 2607B of the LIHEAP statute and as outlined in this Action Transmittal. Special Provisions for FY 2009 The LIHEAP program received $5.1 billion from the FY 2009 continuing resolution (CR) enacted on September 30, 2008 (P.L. 110-329). The CR contained special provisions governing the use and allocation of the LIHEAP funds. Of the $5.1 billion, $4.5 billion were to be released as block grants and $590 million as emergency contingency funds. In addition, the CR provided that the entire $5.1 billion had to be awarded to States within 30 days of the enactment of the CR (i.e., by October 30, 2008). The block grant and contingency funds were awarded on October 16, 2008. The 30-day rule would have impacted our ability to award leveraging funds this year, since the applications for leveraging were not due until November 30, 2008. Leveraging awards are normally issued to States in the spring. However, we issued FY 2009 leveraging funds in October based on grantee leveraging applications submitted last year, but were not awarded then because leveraging and REACH were not authorized for funding in FY 2008. As a result, no additional FY 2009 funds are available for REACH awards this year. We will instead issue awards for the FY 2009 applications soon after the start of FY 2010, with a special set aside of FY 2010 funds for this purpose. This will in effect be the "first round" of FY 2010 REACH awards. We will then resume the normal schedule for FY 2010 REACH applications to be due on March 30, 2010, and then issue a "second round" of FY 2010 REACH awards later that spring. Main REACH Requirements Please review the attached guidance (Attachment 1), which explains the REACH requirements in detail. The major highlights are: REACH funds are awarded for one year programs. Therefore, funds must be obligated in the year of award and/or the following year. NOTE: Funds for the successful FY 2009 REACH grantees will be awarded in FY 2010. Therefore, the funds must be fully obligated by September 30, 2011. Only REACH applications that focus on innovative health and safety practices will be considered. Examples of these practices would include partnerships with health departments, utilities or organizations that serve frail elderly, disabled and/or households with young children. Strong preference will be given to States, Tribes/ Tribal Organizations and Insular Areas that have not received REACH grants in the past. Successful FY 2009 REACH grantees must submit their evaluation reports within six months following the end of the two-year obligation period. NOTE: Funds for the successful FY 2009 REACH grantees will be awarded in FY 2010. Therefore, the evaluation report is due no later than March 30, 2012. Grantees are ineligible for future REACH funds until the objective evaluation report is received. States are not required to contract for an outside evaluator. If approved, States, Tribes/Tribal Organizations and Insular Areas will receive funds for their basic REACH programs, but additional funds may be awarded for applications that include an approved Energy Efficiency Education Services (EEES) plan that contains health and safety components. An EEES plan is optional and not required as part of the REACH application. (More details on funding are included in Attachment 1.) REACH Application Instructions Attached is the REACH Model Plan format (Attachment 2) that you may use in developing your FY 2009 REACH plans. The REACH application process has been standardized in an OMB approved form similar to the Model Plan for block grant funds. REACH applications now have a set annual deadline of March 30. You are not required to use the Model Plan format. You may submit your REACH application in any format you wish, as long as it includes all the information required under the statute. As with regular block grant fund assurances, LIHEAP grantees applying for REACH funds must provide the appropriate signature to the REACH Assurances (Section 2607B(e)(2)(A) through (M) of the LIHEAP Act), and furnish descriptions where required. See the REACH Model Plan for certification statement and the signature block. The assurances printed at the beginning of the REACH Model Plan are from the LIHEAP statute. Grantees who choose not to use the Model Plan still may wish to use these pages. Please be sure that (1) the Governor or Tribal Chairperson signs the assurances or (2) the person who signs the assurances has specifically delegated authority to sign the REACH assurances (and include a copy of that delegation with your REACH application). We will set aside no more than $1.5 million to award grants to two States and four Tribes/Insular Areas under the REACH program. (Insular Areas that consolidate their LIHEAP funds under another HHS block grant are not eligible for REACH funds.) If a sufficient number of qualified applications for REACH funds are not received, unused funds will be awarded under the Leveraging Incentive Program, or held over for the second round of REACH applications due on March 30, 2010. To be considered for funding, REACH plan applications must be submitted to the address listed below and postmarked on or before the March 30, 2009 due date. The Office of Community Services (OCS) will not consider applications postmarked after this date and no exceptions will be granted. Applications may also be hand delivered to our offices by 4:30 PM, Eastern Time on March 30, 2009. ACF cannot accommodate transmission of applications by facsimile or email. We strongly recommend that applicants use an overnight/express delivery service, such as Federal Express or United Parcel Service, to submit REACH applications, especially if the application is mailed close to the due date.
ATTACHMENTS: (1) REACH Program Guidance and Policy (2) REACH Model Plan
SUBMISSIONS TO: Nick St. Angelo, Director Division of Energy Assistance Office of Community Services 370 L'Enfant Promenade, S.W. Washington, D.C. 20447 Fax: (202) 401-5661 E-mail: nstangelo@acf.hhs.gov ______________/s______________ Yolanda J. Butler, Ph.D. Acting Director Office of Community Services