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

LIHEAP Allotments for FY 2007

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2007-7, DATED 8/9/07
                              

TO:            LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) 
               GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: LIHEAP Allotments for FY 2007 RELATED REFERENCES: The Revised Continuing Appropriations Resolution, 2007 (Public Law 110-5); 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 2007 regular LIHEAP block grant funds based on the funding level of $1.98 billion, as well as an additional $181.17 million in emergency contingency funds. CONTENT: The Revised Continuing Appropriations Resolution, 2007 (Public Law 110-5) was signed by the President on February 15, 2007. This law appropriated FY 2007 funds for federal agencies including the Department of Health and Human Services (HHS). Public Law (P.L.) 110-5 provided $1,980,000,000 in regular block grant funds for the LIHEAP program. It includes a provision for an additional $181,170,000 in LIHEAP emergency contingency funds. Listed below is a detailed description of the distribution of FY 2007 LIHEAP block grant funds. Charts showing FY 2007 allotments for each State, Territory and Tribal grantee are attached. Also attached is a copy of the relevant statutory provisions of P.L. 110-5 related to HHS programs, including 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 and grants to states is less than $1.975 billion. While the appropriation exceeded $1.975 billion, the new formula did not kick in since grants to states were below this level, after set asides for leveraging and training and technical assistance (T&TA) were determined. FY 2007 LIHEAP Block Grant Funding The Revised Continuing Appropriations Resolution, 2007 (P.L. 110-5) was signed by the President on February 15, 2007. It appropriated FY 2007 funds for HHS programs, including $1,980,000,000 for LIHEAP. Since October 1, 2006, a series of continuing resolutions (CRs) were passed by Congress, which provided a percentage of funds for the LIHEAP program based on the FY 2006 appropriation level. The FY 2007 funds available under the CRs enabled us to make normal first quarter grant awards to States, Territories and 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 2007 appropriations bill was passed on February 15, we recalculated grant allocations based on the total appropriation level of $1.98 billion, and began making supplemental grant awards as soon as possible to all LIHEAP grantees to reflect the additional funding. We began making the supplemental grants on March 15 and provided States, Territories and Tribal grantees with their remaining block grant funds for FY 2007 (i.e., their full-year allocations at the $1.98 billion level). P.L. 110-5 was passed on February 15, 2007 and provides for a year-long CR in which most federal programs are to be funded at their FY 2006 appropriation levels. The Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act of 2006 (P.L. 109-149) appropriated $2 billion to the LIHEAP block grant fund and $183 million to the LIHEAP emergency contingency fund. The Department of Defense Appropriations Act of 2006 (P.L. 109-148) applied a 1 percent rescission that affected many government programs, resulting in net appropriations of $1.98 billion for the LIHEAP block grant and $181.17 million for the emergency contingency fund. The FY 2007 LIHEAP appropriation reflects these funding amounts. At least 90 percent of a grantee's total regular block grant allotment for FY 2007 must be obligated for use by September 30, 2007. No more than 10 percent of this total may be carried over to FY 2008, and those carryover funds must be obligated no later than September 30, 2008. Of the $1.98 billion appropriated for FY 2007, $27,225,000 is earmarked for the leveraging incentive program grant awards, including funds for the REACH program. We originally set aside $1,500,000 for REACH. Subsequently, we awarded $1.135 million in REACH grants and $26,090,000 in leveraging incentive grants. (Please refer to LIHEAP Information Memoranda #8 and #9 for more details on REACH and leveraging awards.) Under the LIHEAP statute, grantees desiring leveraging incentive funds or REACH funds must submit a separate application to HHS each year. Applications for FY 2007 leveraging incentive award funds (based on leveraging activities carried out during FY 2006), must have been postmarked no later than November 30, 2006. An Action Transmittal (AT) was issued on April 30, 2007 (AT-2007-2) with instructions on applying for FY 2007 REACH funds. The deadline for REACH applications was June 1, 2007. In addition, we set aside the full $297,000 of FY 2007 funds allowed for training and technical assistance (T&TA) projects. If we later determine that less money is needed for this purpose, we will redistribute the unused funds to LIHEAP grantees under the regular block grant. Attachment 1 shows the calculation of regular block grant allotments for FY 2007 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 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 Tribe-State 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 Tribal set-asides. Pending the availability of federal funding, grant awards are made as soon as grantees submit completed applications. Attachment 2 shows a breakout of the FY 2007 allocations for individual 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 2007 LIHEAP Emergency Contingency Funds P.L. 110-5, the Revised Continuing Appropriations Resolution, 2007, provided for an appropriation of $181.17 million in LIHEAP emergency contingency funds. These funds will expire on September 30, 2007 if not released in FY 2007. In addition to the $181.17 million in emergency contingency funds that were appropriated in February, $20.35 million of emergency contingency funds that were not released in FY 2006 were carried over to FY 2007. The Consolidated Appropriations Act of 2005 (P.L. 108-447) designated FY 2005 emergency contingency funds as "no-year" funds. As a result, a total of $201.52 million of emergency contingency funds are available for release in FY 2007. ATTACHMENTS: (1) LIHEAP allocations (gross and net allotments) for all States and Territories for FY 2007 funds, at the funding level of $1.98 billion, including $27,225,000 earmarked for leveraging incentive grants and REACH (2) LIHEAP allocations for Tribes and Tribal organizations receiving direct funding from HHS for FY 2007 funds, at the funding level of $1.98 billion (3) A copy of relevant portions of the Revised Continuing Appropriations Resolution, 2007 (Public Law 110-5) _____________/s_____________ Nick St. Angelo Director Division of Energy Assistance Office of Community Services Attachment 3 H.J. RES. 20 (P.L. 110-5) Revised Continuing Appropriations Resolution, 2007 (Enrolled as Agreed to or Passed by Both House and Senate) Making further continuing appropriations for the fiscal year 2007, and for other purposes. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That this joint resolution may be cited as the `Revised Continuing Appropriations Resolution, 2007'. Sec. 2. The Continuing Appropriations Resolution, 2007 (Public Law 109-289, division B), as amended by Public Laws 109-369 and 109-383, is amended to read as follows: DIVISION B--CONTINUING APPROPRIATIONS RESOLUTION, 2007 The following sums are hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units of Government for fiscal year 2007, and for other purposes, namely: TITLE I--FULL-YEAR CONTINUING APPROPRIATIONS Sec. 101. (a) Such amounts as may be necessary, at the level specified in subsection (c) and under the authority and conditions provided in the applicable appropriations Act for fiscal year 2006, for projects or activities (including the costs of direct loans and loan guarantees) that are not otherwise provided for and for which appropriations, funds, or other authority were made available in the following appropriations Acts: (1) The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2006. (2) The Energy and Water Development Appropriations Act, 2006. (3) The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2006. (4) The Department of the Interior, Environment, and Related Agencies Appropriations Act, 2006. (5) The Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2006. (6) The Legislative Branch Appropriations Act, 2006. (7) The Military Quality of Life and Veterans Affairs Appropriations Act, 2006. (8) The Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006. (9) The Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act, 2006. (b) For purposes of this division, the term `level' means an amount. (c) The level referred to in subsection (a) shall be the amounts appropriated in the appropriations Acts referred to in such subsection, including transfers and obligation limitations, except that-- (1) such level shall not include any amount designated as an emergency requirement, or to be for overseas contingency operations, pursuant to section 402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on the budget for fiscal year 2006; and (2) such level shall be calculated without regard to any rescission or cancellation of funds or contract authority, other than-- (A) the 1 percent government-wide rescission made by section 3801 of division B of Public Law 109- 148;