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

LIHEAP Allotments from the FY 2007 Energy Emergency Contingency Fund-FIRST AND SECOND DISTRIBUTIONS

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2008-1, DATED 11/13/07                          
                                

TO:          LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
             GRANTEES AND OTHER INTERESTED PARTIES
             
SUBJECT:     LIHEAP Allotments from the FY 2007 Energy Emergency
             Contingency Fund-FIRST AND SECOND DISTRIBUTIONS
             
RELATED      The Revised Continuing Appropriations Resolution,
REFERENCES:  2007 (Public Law (P.L.) 110-5); the Departments of 
             Labor, Health and Human Services, and Education, and 
             Related Agencies Appropriations Act of 2006 (P.L. 
             109-149); the Department of Defense Appropriations 
             Act of 2006 (P.L. 109-148) ; 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 provide grantees with information on two
             distributions of Low Income Home Energy Assistance
             Program (LIHEAP) emergency contingency funds on
             August 29, 2007 and September 26, 2007.  These funds
             were made available to States, Territories and
             Indian tribes/tribal organizations to help them meet
             additional needs resulting from the high
             temperatures this past summer and from the expected
             high home-heating fuel prices this upcoming winter.
             
BACKGROUND:  The Human Services Amendments of 1994 (P.L. 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 [grantees]
             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(e) of the LIHEAP statute; as amended in
             1994 by P.L. 103-252 and in 1998 by the Community
             Opportunities, Accountability, and Training and
             Educational Services Act of 1998 (P.L. 105-285);
             provides that the Secretary of Health and Human
             Services may allot funds made available under
             Section 2602(e) to one or more States [grantees].
             In determining whether to make such an allotment to
             a grantee, the Secretary shall take into account the
             extent to which the grantee was affected by the
             emergency or disaster, the availability to the
             grantee of other resources under LIHEAP or any other
             program, and such other factors that are deemed
             relevant.
             
             P.L. 110-5 was signed by the President on February
             15, 2007 and included an appropriation of $181.17
             million for FY 2007 LIHEAP emergency contingency
             purposes.  P.L. 110-5 further provided that such
             funds would be available through September 30, 2007.
             
             In addition to the $181.17 million appropriated for
             FY 2007, $20.35 million in no-year emergency
             contingency funds appropriated in FY 2005 remained
             available in FY 2007.
             
             Please refer to LIHEAP-IM-2007-07, dated August 9,
             2007, for more information on FY 2007 LIHEAP
             appropriations; including details about the
             Continuing Resolution and the text of P.L. 110-5.
             
CONTENT:     Criteria for the August 29, 2007 Release
             
             On August 29, 2007, the Secretary of Health and
             Human Services released $50 million to 12 States and
             Tribal grantees within those States because of the
             unusually high temperatures that they had
             experienced in August.
             
             The method for allocating these funds provided that
             a State would have to meet both of the following
             criteria in order to be eligible to receive these
             funds:
1. The State's aggregate total of population- weighted Cooling Degree Days (CDDs) for the period starting August 05, 2007 and ending August 25, 2007 had to equal or exceed 341; and 2. The State's aggregate total of population- weighted CDD deviations from its 30-year norm for the period starting August 05, 2007 and ending August 25, 2007 had to equal or exceed 61. Funds were allocated to each eligible State based on its share of low-income households with respect to the total number of low-income households in all eligible States. You can view the State and Indian tribe/tribal organization allocations from this release in (Attachment 1). Criteria for the September 26, 2007 Release On September 26, 2007, the Secretary of Health and Human Services released $131.17 million to all, States, Indian tribes/tribal organizations, and Territories. These funds were released because of expected increases in home energy costs during the upcoming winter. Of the $131.17 million, $106.17 million of these funds were allocated to all States, Indian tribes/tribal organizations and Territories, with an additional allocation of $25 million targeted to seven (7) States (and the direct-funded Indian tribes/tribal organizations within those States). The method for allocating the $106.17 million provided that these funds be provided to all States based on their old-formula block grant allotment ratios. The method for allocating the $25 million provided that a State meet both of the following criteria in order to be eligible to receive these funds: 1. The State's population-weighted average temperature from October 1, 2006 through March 31, 2007 had to be less than 47 degrees Fahrenheit; and 2. The State's relative percentage of low-income households that use fuel oil for heat had to equal or exceed 30 percent. Funds were allocated to each eligible State based on the share of its ("old-formula") block grant allotment ratio, weighted by its relative percentage of low-income households that use fuel oil for heat, with respect to the sum of such weighted block grant ratios of all eligible States. You can view the allocations from the $131.17 million release in (Attachment 2). The direct-funded Indian tribes and tribal organizations, which are located in the 12 States that were eligible to receive funds from the August 29, 2007 release, received a share of the $50 million. All Indian tribes and tribal organizations received a share of the funds from the September 26, 2007 release of $131.17 million. The Tribal contingency awards were based on the same share of their State's contingency allocations as the tribe or tribal organization received of their State's regular LIHEAP block grant allocation. Allocations for the States, Territories and Indian tribes/tribal organizations are shown in the attachments. Provisions Related to Both Contingency Distributions The LIHEAP emergency contingency funds released in FY 2007 have no special restrictions on their use. Grantees may use these funds for any purpose authorized under LIHEAP; including heating assistance, crisis assistance, weatherization and administrative costs, subject to normal LIHEAP restrictions. Because we released these funds close to the end of FY 2007, we waived the 90 percent rule on the obligation of these funds in FY 2007, but all of the funds must be obligated no later than September 30, 2008 (i.e., before the end of FY 2008). The total $181.17 million contingency funds are not subject to the 10 percent carryover limit for regular block grant funds and may not be added to the base on which the carryover limit for regular funds is calculated. Please do not include these funds on your FY 2007 or FY 2008 carryover and reallotment reports. The $20.35 million in no-year funds from the FY 2005 appropriation were not released in FY 2007. Therefore, these funds may be released in FY 2008 and beyond, in the event of a heating or cooling emergency. The $20.35 million remains available until expended. You can view the total State, Territory and Indian tribe/tribal organization allotments for both releases in (Attachment 3). ATTACHMENTS: (1)Distribution of $50 million in FY 2007 LIHEAP energy emergency contingency fund allocations to States, and the formula for allocating these funds (2)Distribution of $131.17 million in FY 2007 LIHEAP contingency funds to States, Territories, and Indian tribes/tribal organizations; and the formula for allocating these funds (3)Total distribution of $181.17 million from the two contingency distributions to States, Territories and Indian tribes/tribal organizations _______________/s______________ Nick St. Angelo Director Division of Energy Assistance Office of Community Services