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

LIHEAP Allotments for FY 2005

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2005-3, DATED 2/9/05
                             
TO:            LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) 
               GRANTEES AND OTHER INTERESTED PARTIES


SUBJECT:       LIHEAP Allotments for FY 2005


RELATED
REFERENCES:    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 97-35), as
               amended.


PURPOSE:       To advise grantees of allocations for FY 2005
               regular LIHEAP block grant funds based on the
               funding level of $1.9 billion, as well as an
               additional $300 million in emergency contingency
               funds.


CONTENT:       The Consolidated Appropriations Act of 2005
               (Public Law 108-447) was signed by the President
               on December 8, 2004.  This law appropriated
               FY 2005 funds for federal agencies including the 
               Department of Health and Human Services.  Public 
               Law (P.L.) 108-447 provided $1.9 billion in regular 
               block grant funds for the LIHEAP program.  It 
               includes a provision for an additional $300 million
               in LIHEAP emergency contingency funds.

               Several key provisions of P.L. 108-447 had a direct 
               effect on the final LIHEAP appropriation for FY 2005.
               In summary, the law provided:


                 ·    $1.9 billion in regular LIHEAP block grant 
                      funds;
                 ·    An additional $300 million in LIHEAP 
                      emergency contingency funds; and
                 ·    A 0.8 percent rescission and an additional 
                      $1,000 rescission were applied to the $1.9 
                      billion total that resulted in the final
                      appropriation of $1,884,799,008 for the LIHEAP
                      block grant for FY 2005.

               Listed below is a detailed description
               of the distribution of FY 2005 LIHEAP block grant
               funds.  Charts showing FY 2005 allotments for each
               State, territory and tribal grantee are attached.
               Also attached is a copy of the relevant statutory
               provisions of P.L. 108-447 related to LIHEAP.

               The 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 when the block 
               grant (i.e., non-contingency) appropriation is less 
               than $1.975 billion.

                         FY 2005 LIHEAP Block Grant Funding

               The Consolidated Appropriations Act of
               2005 (P.L. 108-447) was signed by the President on
               December 8, 2004.  It appropriated funds for HHS
               programs, including an appropriation of
               $1,900,000,000 for LIHEAP in FY 2005, which began
               on October 1, 2004 and ends on September 30, 2005.
               Since October 1, 2004, a series of continuing
               resolutions (CRs) were passed by Congress, which
               provided a percentage of funds for the LIHEAP
               program based on the FY 2004 appropriation level.

               The FY 2005 funds available under the CRs enabled
               us to make normal first quarter grant awards to
               States and to tribal grantees after they submitted
               complete funding applications.  Also, sufficient
               funds were available under the CRs to allow us to
               honor up to 90 percent of the States' first and
               second quarter allocation percentage requests.
               Shortly after the FY 2005 appropriations bill was
               passed on December 8, we recalculated grant
               allocations based on the revised appropriation
               level of $1.9 billion, and began making
               supplemental grant awards as soon as possible to
               all LIHEAP grantees to reflect the additional
               funding.  We began making second quarter grants on
               January 3.
               
               The FY 2005 LIHEAP appropriation reflects $1.9
               billion in regular block grant funds, plus an
               additional $300 million in emergency contingency
               funds.  Finally, another provision of P.L. 108-447
               provided for a 0.8 percent across the board
               rescission for most federal programs, including
               the LIHEAP program.  The rescission of 0.8 percent
               (plus an additional rescission of $1,000) was
               assessed against the total $1.9 billion, which
               resulted in the final figure of $1,884,799.008.
               In summary, the appropriation and contingency fund
               amounts are as follows:
               
                                                             FY 2005 Amount
                                             Appropriation   With Rescission
               Regular Block Appropriation   $1,900,000,000  $1,884,799,008
               Emergency Contingency Funds      300,000,000     297,600,000
                        TOTAL                $2,200,000,000  $2,182,399,008

               At least 90 percent of a grantee's total regular
               block grant allotment for FY 2005 must be
               obligated for use by September 30, 2005.  No more
               than 10 percent of this total may be carried over
               to FY 2006, and those carryover funds must be
               obligated no later than September 30, 2006.

               In addition, P.L. 108-447 required that the
               rescission be applied proportionately among the
               individual budget authorities within each federal
               program. For LIHEAP, the 0.8 percent was applied
               to the leveraging incentive fund grants, the
               Residential Energy Assistance Challenge Option
               Program (REACH) funds, and the amount available
               for LIHEAP training and technical assistance
               (T&TA) projects.   In summary, the appropriation
               and rescission amounts for those categories are as
               follows:

                                                         FY 2004 Amount
Appropriation With Rescission
Leveraging Program $ 20,625,000 $ 20,460,000
REACH 6,875,000 6,820,000
TOTAL Leveraging/REACH $ 27,500,000 $ 27,280,000

LIHEAP T&TA $ 300,000 $ 296,608 Of the $1.885 billion appropriated for FY 2005, $27,280,000 is earmarked for the leveraging program grant awards, including leveraging incentive fund grants and funds for the REACH program. As allowed by the LIHEAP statute, we are setting aside the full 25 percent of leveraging funds permitted for the REACH program. This means that $20,460,000 will be available for leveraging incentive awards and $6,820,000 will be available for REACH grants in FY 2005. Under the LIHEAP statute, grantees desiring leveraging incentive funds or REACH funds must submit a separate application to HHS each year. Applications for FY 2005 leveraging incentive award funds (based on leveraging activities carried out during FY 2004), must have been postmarked no later than November 30, 2004. Information on applying for FY 2005 REACH funds will be forthcoming. In addition, we set aside the full $296,608 of FY 2005 funds allowed for training and technical assistance projects. If we later determine that less money is needed for this purpose, we will redistribute the unused funds to the grantees. Attachment (1) shows the calculation of regular block grant allotments for FY 2005 for States and territories, with each State's formula share in the column marked "Allocation Percents". Using these percents, we calculated each State's Gross Allotment, which appears in the next column. Grants to Indian tribes and tribal organizations were deducted from their State's share (gross allotment) and were determined either by calculating each tribe's number of eligible households as a percentage of the number of eligible households in the State(s) in which it is located, or by awarding a higher amount specified in a State-Tribe agreement. Total tribal grantee allotments (or tribal set-aside) for each State are shown in the following column. The final column shows each State's Net Allotment, that is, the amount of the gross allotment available to the States after deducting the Indian tribal set-asides. Grant awards are made as soon as grantees submit completed applications. Attachment (2) shows a breakout of the FY 2005 allocations for individual Indian tribes and tribal organizations that are directly funded by HHS. These amounts, in some cases, may increase if States and tribes enter into or modify agreements to provide additional funding. FY 2005 LIHEAP Emergency Contingency Funds P.L. 108-447, the Consolidated Appropriations Act of 2005, provided for a LIHEAP appropriation (after rescission) of $297.6 million in emergency contingency funds and specified that these funds are available until expended. HHS released $200 million of the emergency funds-the first release of $100 million on December 23, 2004 and a second release of $100 million on January 31, 2005. These funds were distributed to all States based on much higher prices for heating fuels this winter. A total of $97.6 million in contingency funds remains available for any future heating or cooling crises. (Please see LIHEAP-IM-2005-4, dated February 11, 2005, for more information on the two releases of LIHEAP emergency funds.) ATTACHMENTS: (1) LIHEAP Allocations (gross and net allotments) for all States and Territories for FY 2005 funds, at the funding level of $1,884,799,008 including $27,280,000 earmarked for leveraging incentive grants and REACH (2) LIHEAP Allocations for Indian Tribes and Tribal organizations receiving direct funding from HHS for FY 2005 funds, at the funding level of $1,884,799,008 (3) A copy of relevant portions of the Consolidated Appropriations Act of 2005, P.L. 108-447 ______________/s_____________ Nick St. Angelo Director Division of Energy Assistance Office of Community Services Attachment 3 H.R. 4818 (P.L. 108-447) Consolidated Appropriations Act, 2005 (Enrolled as Agreed to or Passed by Both House and Senate) LOW-INCOME HOME ENERGY ASSISTANCE For making payments under title XXVI of the Omnibus Budget Reconciliation Act of 1981, $1,900,000,000. 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).