ACF-OCS-LIHEAP-AT-2024-04 State-Tribe Agreements

Low Income Home Energy Assistance Program 

Action Transmittal

IM#: ACF-OCS-LIHEAP-AT- 2024-04

DATE: July 16, 2024

TO: Low Income Home Energy Assistance Program (LIHEAP) Grant Recipients

SUBJECT: LIHEAP State-Tribe Agreements

ATTACHMENT(S): Memorandum of Understanding (MOU) template agreement

Dear Colleagues,

Purpose:

The purpose of this Action Transmittal (AT) is to provide information about State-Tribe agreements on file with the Office of Community Services (OCS), affirm that the agreements are current, and allow for updates by grant recipients under the Low Income Home Energy Assistance Program (LIHEAP) 42 U.S.C. § 8621-8630, as amended.

Background:

Federally recognized tribes and tribal organizations are eligible to become a directly funded LIHEAP grant recipient. Tribes that are interested in becoming directly funded LIHEAP grant recipients should contact their assigned federal LIHEAP liaison to request assistance. The process to become a directly funded LIHEAP tribe requires submission of preliminary documentation, completion of the LIHEAP Model Plan, and establishment of a State-Tribe agreement.

42 U.S.C. 8623(d)(2) proscribes that in the absence of a State-Tribe agreement, OCS will use the U.S. Census Bureau’s American Community Survey (ACS ) to determine the number of tribal eligible households in tribal communities. This ratio of tribal LIHEAP eligible households to statewide LIHEAP eligible households is used by OCS to determine the tribal grant recipient’s allocation by multiplying it by the state grant recipient allocation (Tribal Allocation = State Allocation x Household Ratio). However, the ACS may not fully represent the tribal grant recipient’s need, leaving a tribe with a lower allocation than necessary to serve its LIHEAP-eligible households. A State-Tribe agreement gives the tribe an opportunity to negotiate an allocation that is more responsive to the needs of its community.

When there is a current State-Tribe agreement, which has been negotiated by a state grant recipient and a tribal government or tribal consortium, OCS will use it to determine how funds will be allotted to directly funded tribal grant recipients. Valid agreements should specify how funds are to be allocated. Examples of existing State-Tribe agreements and how allocations are determined include:

• The terms outlined in the State-Tribe agreement on file with OCS
• LIHEAP-eligible households documented by the tribe and the co-territorial state
• A fixed amount or percentage of funds
• The LIHEAP-eligible households as determined by the U.S. Census Bureau

The list above is not exhaustive. Any methodology mutually acceptable to the state and tribe can be used to determine the allocation as part of an agreement. 

Agreements on File:

To provide transparency to both state and tribal entities, OCS has posted all State-Tribe agreements, or documents that serve to support funding allocations, on the LIHEAP Clearinghouse. They can be found by navigating to the Tribal Contracts web page. OCS is requesting that each state and tribal grant recipient review the information on file via the web page.

Next Steps:

OCS requests that after review of the agreement(s), both the state and tribal grant recipients need to 1) affirm that the agreement is current and should continue to be used by OCS for the purposes of determining directly funded tribal grant recipient allocations, or 2) determine if any changes are necessary.

1. If the agreement on file is current and complete after review by both state and tribal entities, then send an affirmation email to your federal LIHEAP liaison by August 30, 2024 to confirm the allocation method for the first release of federal Fiscal Year 2025 (FY25) funding.

• The email should come from either the state or the tribal grant recipient with a copy to the entity’s counterpart to the agreement and should state that as of XX/XX/XX the State-Tribe agreement listed under “Intergovernmental Agreements” at Tribal Contracts is current and should be utilized for FY25 funding.

2. If any updates or changes are needed to the agreement on file, state and tribal entities must engage in negotiation to update the State-Tribe agreement. All new agreements must be agreed upon by both state and tribal entities and received by OCS by August 30, 2024 for the revised allocation method to be used by OCS for the first release of FY25 LIHEAP funding. Signed agreements with changes received after that date will be utilized in future funding releases, provided the agreement has been sent to OCS 45 days before the next funding release.

• To assist state and tribal entities in developing new agreements, OCS has provided the attached optional MOU template.
• State and tribal entities choosing to use another format or agreement other than the OCS MOU template should ensure all new agreements do, at minimum, the following:
• Identify the LIHEAP service territory (both within and outside of the tribal land or counties for those tribes without a specific geographic territory) that the tribe will be responsible for serving.
• Identify if the tribe will provide LIHEAP services to any American Indian household OR all households, both American Indian and non-Indian, residing in its geographical service area, including tribal member households.
• Use a method to prevent duplication of services with the state or other tribes in its service area.
• Ensure a mutually agreeable LIHEAP allocation for the tribe(s) in the agreement.
• Facilitate data exchange between state and tribe.
• Create a process for resolving ambiguity.

Technical Assistance

OCS is available to facilitate conversations between state and tribal entities interested in implementing changes to existing agreements or entering into new agreements. Please contact your assigned federal LIHEAP liaison to request assistance. In addition, grant recipients can find previously recorded trainings on State-Tribal agreements on the Training Resources page of the OCS website.

Thank you for your attention to these matters. OCS looks forward to continuing to provide high-quality services to OCS grant recipients.

/s/
Megan Meadows
Director
Division of Energy Assistance
Office of Community Services