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LIHEAP IM 2012-8 Leveraging Grant Awards for FY 2012

Published: October 4, 2012
Audience:
Low Income Home Energy Assistance Program (LIHEAP)
Category:
Guidance, Policies, Procedures, Information Memorandums (IM)

Transmittal No.  LIHEAP-IM-2012-8                        Date:  October 4, 2012

TO:   LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) GRANTEES AND OTHER INTERESTED PARTIES

SUBJECT:         Grant Awards for the FY 2012 Leveraging Incentive Program

GUIDANCE
INTENDED FOR:                 ___X___ STATES

                                                 X___ TRIBES

                                           ___X___ TERRITORIES

REFERENCES:    Low Income Home Energy Assistance Act, Title XXVI of the Omnibus Budget Reconciliation Act of 1981, Public Law 97-35, as amended; Final Rule published in the Federal Register on May 1, 1995 (60 FR 21322 et seq.), 45 C.F.R. § 96.87 in the U.S. Department of Health and Human Services (HHS) block grant regulations.

PURPOSE:   To inform LIHEAP grantees of the FY 2012 leveraging incentive grants awarded based on countable leveraging activities carried out during FY 2010. 

BACKGROUND:    The Augustus F. Hawkins Human Services Reauthorization Act of 1990 (Public Law 101-501) amended the LIHEAP statute to establish a leveraging incentive program to reward grantees under LIHEAP that have acquired non-Federal home energy resources for low-income households. Leveraging incentive funds are awarded to those grantees that use their own or other non-Federal resources to expand the effect of the Federal LIHEAP dollars. Leveraging activities that took place in one fiscal year will be used to determine leveraging incentive grant awards in the following fiscal year. 

HHS issued final implementing regulations for the leveraging incentive program on May 1, 1995 (60 FR 21332).  Leveraging requirements in the regulations are based closely on the leveraging requirements in section 2607A of the Low Income Home Energy Assistance Act [42 U.S.C. § 8626a].

Grantees desiring leveraging incentive funds must submit an application each year — the LIHEAP Leveraging Report — that delineates the amount and types of leveraging activities they carried out during the base period.  HHS then determines whether the reported activities meet the requirements of the statute and regulations, and, therefore, are countable under the program for the purpose of determining allocations of the incentive funds. 

CONTENT:   The Consolidated Appropriations Act, 2012 (P.L. 112-74) authorized HHS to set aside $30 million of the total LIHEAP appropriation for the leveraging incentive program and the Residential Energy Assistance Challenge (REACH) program.  Of the total, $25,500,000 was set aside for leveraging incentive grants.

Leveraging reports were solicited for FY 2010 activities in anticipation of funds in FY 2011.  However, no funds were appropriated for the leveraging incentive program in FY 2011.  Therefore, the FY 2012 leveraging incentive grants detailed in Attachment 1 are based on the reports submitted in FY 2011 for FY 2010 leveraging activities.  We received complete reports from 35 States and 22 Tribes.  Tribes and Territories leveraged resources with a net value of over $6 million, and States leveraged resources with a net value of nearly $3 billion.

Using the final values of leveraging activities approved for each grantee, we calculated leveraging grant award allocations based upon a formula that is included in the LIHEAP regulations (45 C.F.R. § 96.87(c)(1)), as published in a final rule in the Federal Register on May 1, 1995 (60 FR 21322).  (See pages 21364 and 21351-56 for further detail.)

The formula provides that one-half of the fund is to be distributed based on the amount of leveraging activities each grantee carries out as a proportion of the amount of its regular LIHEAP grant, taking into account the amount of leveraging activities carried out by all grantees as a proportion of their regular grants.  Because the leveraging activities took place in FY 2010, we used allocations for FY 2010 in calculating this portion of the formula. We included regular block grant allotments and contingency funds allocated in FY 2010 to leveraging applicants.

The second half of the funds is to be distributed based on the amount of leveraging activities carried out by each grantee as a proportion of the total amount of leveraging activities carried out by all grantees.  The amounts derived under the two parts of the formula are then added together to determine the final grant amount, except that no grantee may receive more than (1) 12% of the leveraging incentive funds available, or (2) the lesser of the amount of its regular grant (including any contingency and/or reallotted funds or twice the amount it leveraged.

  • Obligation period:  Leveraging incentive grant awards are being made to each grantee in the amount shown in the final column of Attachment 1.  They may be obligated for eligible activities in FY 2012 and FY 2013.  The funds must be obligated by September 30, 2013.
  • Grantees are reminded that the leveraging incentive funds must be used to maintain or increase benefits to low income households as a part of the grantee's LIHEAP program. 
  • No administrative costs:  The incentive awards may not be used for costs of administration and planning, but they may be counted in the base for calculating the grantee's maximum planning and administrative costs (but these costs must be paid from other funds, such as regular block grant funds).
  • No impact on carryover:  The leveraging incentive funds are not subject to the 10% carryover limit for regular block grant funds, and must not be added to the base on which the carryover limit for regular funds is calculated.  These awards do not affect the 2012 Carryover and Reallotment Reports.
  • Weatherization:  The leveraging incentive funds may be used for weatherization.  These funds are not subject to the 15% limit on use of funds for weatherization activities; however, these funds must not be added to the base on which the weatherization limit for regular funds is calculated. 

INQUIRIES:   Questions may be directed to Nick St. Angelo at nick.stangelo@acf.hhs.gov or 202-401-9351.

ATTACHMENTS:   (1)  List of leveraging incentive grantees and funding for FY 2012

                              (2) Leveraging Resources

 

__________/s__________________
Jeannie L. Chaffin
Director
Office of Community Services