Non-funding of Leveraging and REACH Programs in FY 2008
THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2008-13, DATED 8/18/08
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: Non-funding of Leveraging and REACH Programs in
FY 2008
RELATED The Consolidated Appropriations Act, 2008 (Public
REFERENCES: Law (P.L.) 110-161; the Low-Income Home Energy
Assistance Act, Title XXVI of the Omnibus Budget
Reconciliation Act of 1981 (Public Law (P.L.)
97-35), as amended.
PURPOSE: To advise grantees that (1) the Leveraging
Incentive Program and the Residential Energy
Assistance Challenge Program (REACH) will not
be funded in FY 2008; and (2) the funds
previously set aside for these programs were
re-allocated to all FY 2008 grantees under the
Low Income Home Energy Assistance Program
(LIHEAP) block grant.
CONTENT: Lack of FY 2008 Authorization for Leveraging and
REACH
The Consolidated Appropriations Act, 2008,
Public Law (P.L.) 110-161 (see Attachment 1),
which appropriated FY 2008 funds for the
LIHEAP program, failed to include an
authorization to fund the Leveraging and REACH
programs in FY 2008. We uncovered this
omission during an internal document clearance
this past April. P.L. 110-161 provided
appropriations for "making payments under
section 2604(a)-(d) of the Low-Income Home
Energy Assistance Act of 1981", which doesn't
encompass the sections that authorize funding
for Leveraging and REACH (sections 2602(d),
2607A and 2607B) (see Attachment 2). In
contrast, the appropriations acts of previous
years provided a more general appropriation
for "making payments under title XXVI of the
Omnibus Budget Reconciliation Act of 1981.".
This language is much more expansive and
encompasses the whole LIHEAP Act. Because
there is no authorization for funding
Leveraging and REACH, we cannot issue grants
for these programs in FY 2008. This includes
funds to cover the administrative costs for
those States that received awards under the FY
2006 REACH program.
We returned the $26,749,379 that we originally
set aside for Leveraging and REACH to the FY
2008 regular LIHEAP block grant fund and
allocated these funds to all States, Tribes
and Territories using the statutory formula
that prescribes the allocation for these
funds. LIHEAP grantees should add the
additional block grant funds to (1) the total
of all FY 2008 block grant funds received to
date; and (2) the FY 2008 Emergency
Contingency funds received in January and
February, when determining the maximum costs
for administration, carryover, weatherization,
and Assurance 16 activities. LIHEAP grantees
must obligate at least 90 percent of the total
of all FY 2008 funds by September 30, 2008.
Note that the LIHEAP program is governed by
the "obligation", not the "expenditure", of
funds awarded.
We expect the FY 2009 appropriations for the
Department of Health and Human Services (HHS)
to include funding for LIHEAP and authorization
to fund the Leveraging and REACH programs in
FY 2009. As was the case in previous years,
grantees that wish to apply for Leveraging or
REACH funds in FY 2009 must submit a separate
application to HHS for each of these optional
programs. Grantees that desire Leveraging funds
for FY 2009 must base their applications on the
leveraging activities that they conducted in
FY 2008 and submit their applications postmarked
on or before December 1, 2008. Please see Action
Transmittal (AT)-2008-08, dated July 28, 2008
for information on submitting leveraging
applications for FY 2009. We will publish a
LIHEAP Action Transmittal on the OCS/LIHEAP
website that will contain the application
instructions and deadline for FY 2009 REACH
funds.
Re-allocation of FY 2008 Leveraging/REACH Funds
The additional $26,749,379 in LIHEAP block
grants caused the "new formula" to kick in for
FY 2008 under the Tier II provision of the
LIHEAP statute. Removing the leveraging/REACH
set-aside triggered the "new formula" because
it raised the (gross) regular FY 2008 block
grant funds available to States ($1,977,027,460)
above the "new formula's" activation threshold of
$1.975 billion. Attachment 3 shows (a) the States'
gross regular block grant allocations with
$26,749,379 set aside for Leveraging and REACH
(under the "old formula"); (b) the States'
gross regular block grant allocations with $0
set aside for Leveraging and REACH (under the
"new formula"); and (c) the difference, or
additional funds, that each State received as
a result of the $26,749,379 being added back
into the total regular block grant
appropriation.
Tribes/tribal organizations received increases
in their block grant funding in line with the
allocation methodology for receipt of all FY
2008 funds (i.e., Tribe/State agreement,
household numbers or census figures). However,
those Tribes whose Tribe/State agreements provided
for a fixed dollar amount for FY 2008 did not
receive any of these additional block grant funds.
For more details, see Attachment 3.
ATTACHMENTS: (1)A copy of the relevant portion of the
Consolidated Appropriations Act, 2008 (Public Law
110-161).
(2)Links to the relevant sections of the Low-Income
Home Energy Assistance Act of 1981 (Title XXVI
of the Omnibus Budget Reconciliation Act of 1981,
Public Law 97-35, as amended)
(3)LIHEAP allocations (gross and net allocations)
for all States and Territories for FY 2008 funds,
at the funding level of $1,980,000,351, including
the $26,749,379 set aside for leveraging
incentive grants and REACH.
______________/s_____________
Nick St. Angelo
Director
Division of Energy Assistance
Office of Community Services
Attachment 1
H.R.2764 (P.L. 110-161)
Consolidated Appropriations Act, 2008
SEC. 6. STATEMENT OF APPROPRIATIONS.
The following sums in this Act are appropriated, out of
any money in the Treasury not otherwise appropriated, for
the fiscal year ending September 30, 2008.
DIVISION G--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,
AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2008
TITLE II
DEPARTMENT OF HEALTH AND HUMAN SERVICES
LOW-INCOME HOME ENERGY ASSISTANCE
For making payments under section 2604(a)-(d) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C.
8623(a)-(d)), $2,015,206,000.
Attachment 2
Links to Relevant Sections of the Low-Income Home Energy
Assistance Act of 1981
(Title XXVI of the Omnibus Budget Reconciliation Act of
1981, Public Law 97-35, as amended)
Section 2602. Authorization of funds for Leveraging
Incentive program and the Residential Energy
Assistance Challenge Option program:
http://www.acf.hhs.gov/programs/ocs/liheap/
guidance/statute/statute.html#Sec2602.
Section 2607A. Establishment of the Leveraging Incentive
program:
http://www.acf.hhs.gov/programs/ocs/liheap/
guidance/statute/statute.html#Sec2607A.
Section 2607B. Establishment of the Residential Energy
Assistance Challenge program:
http://www.acf.hhs.gov/programs/ocs/liheap/
guidance/statute/statute.html#Sec2607B.
