Low Income Home Energy Assistance Program
Division of Energy Assistance/OCS/ACF

LIHEAP Allotments for FY 2000 and for Advance FY 2001 Appropriations

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THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR CHILDREN AND
FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL NO. LIHEAP-IM-2000-6,
DATED 2/4/2000


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

SUBJECT:         LIHEAP Allotments for FY 2000 and for Advance FY 2001
                 Appropriations

RELATED
REFERENCES:      Public Law 105-277, Omnibus Consolidated and Emergency
                 Appropriations Act of 1999; Public Law 106-113, the
                 Consolidated Appropriations Act, 2000; and 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 2000 regular
                 LIHEAP block grant funding of $1.1 billion, and for advance
                 FY 2001 funding of $1.1 billion.

CONTENT:         The Omnibus Consolidated and Emergency Appropriations Act
                 of 1999 (Public Law 105-277) was signed by the President on
                 October 21, 1998.  In addition to appropriating funds for
                 FY 1999, it appropriated advance FY 2000 block grant funds
                 of $1,100,000,000 for LIHEAP.  Public Law 105-277 did not
                 provide advance FY 2000 appropriations for LIHEAP emergency
                 contingency funds.

                 The Consolidated Appropriations Act, 2000 (Public Law
                 106-113) was signed by the President on November 29, 1999.
                 That law appropriates FY 2000 funds for the Department of
                 Health and Human Services and several other agencies.
                 Public Law 106-113 designates the $1,100,000,000
                 appropriated in advance for LIHEAP for FY 2000 as a part of
                 the FY 1999 appropriations law as an emergency under the
                 Budget Act.  It also appropriates emergency contingency
                 funds of $300,000,000 for LIHEAP for FY 2000 and advance
                 funding of $1,100,000,000 for LIHEAP for FY 2001.

                 Listed below is a detailed description of the FY 2000 and
                 the advance FY 2001 appropriations.  Charts showing
                 allotments for each State, territory and tribal grantee for
                 FY 2000 are attached, along with a chart showing estimated
                 gross allotments for States and territories for the advance
                 FY 2001 funding.  Also attached are copies of the relevant
                 statute and committee reports.  The funds were allocated
                 using a formula developed when the program was originally
                 established and which by statute is to be used in any year
                 when the appropriation is less than $1.975 billion.

                 FY 2000 LIHEAP Funding

                 The FY 1999 HHS appropriations law (Public Law 105-277),
                 signed by the President on October 21, 1998, appropriated
                 funds for HHS programs for FY 1999 and also included an
                 advance appropriation for LIHEAP regular block grant funds
                 of $1,100,000,000 for FY 2000, which began on October 1,
                 1999 and ends on September 30, 2000.  The FY 1999 HHS
                 appropriations law did not include an advance appropriation
                 for LIHEAP energy emergency contingency funds.

                 The Consolidated Appropriations Act, 2000 (Public Law
                 106-113, signed on November 29, 1999) designated the entire
                 FY 2000 advance appropriation of $1.1 billion as an
                 emergency requirement under Section 251(b)(2)(A) of the
                 Balanced Budget and Emergency Deficit Control Act of 1985,
                 but provided that these funds would only be available if
                 the President submitted an official budget request for $1.1
                 billion that designated these funds as an emergency
                 requirement under the provisions of that act.  On December
                 6, 1999, the President sent such an official budget request
                 to the Congress for LIHEAP and several other programs that
                 were subject to similar requirements.  Another provision of
                 Public Law 106-113 provided for a rescission of 0.38% of FY
                 2000 appropriations for discretionary grant programs.  None
                 of that rescission was assessed against the LIHEAP program.
                 Accordingly, the full $1.1 billion is now available to make
                 grant awards.

                 At least 90% of a grantee's regular block grant allotment
                 for FY 1999 must be obligated for use by September 30,
                 2000.  No more than 10% may be carried over to the next
                 funding period, and those carryover funds must be obligated
                 no later than September 30, 2001.

                 Of the amount appropriated for FY 2000, $27,500,000 is
                 earmarked for leveraging incentive program grant awards,
                 including funds for the Residential Energy Assistance
                 Challenge Option Program (REACH).  As allowed by the LIHEAP
                 statute, we are setting aside the full 25% of leveraging
                 incentive funds permitted for the REACH program.  This
                 means that $20,625,000 will be available for leveraging
                 incentive awards and $6,875,000 will be available for REACH
                 grants in FY 2000.

                 Under the LIHEAP statute, grantees desiring leveraging
                 incentive funds or REACH funds must submit a separate
                 application to HHS each year.  Applications for FY 2000
                 leveraging incentive award funds (based on leveraging
                 activities carried out during FY 1999), must have been
                 postmarked no later than November 30, 1999.  Applications
                 for FY 2000 REACH funds must be postmarked no later than
                 March 31, 2000 (See LIHEAP Action Transmittal 2000-3, dated
                 December 20, 1999 for more information).

                 In addition, we set aside out of the FY 2000 funds the full
                 $300,000 allowed for training and technical assistance
                 projects.  If we later determine that less money is needed
                 for this purpose, we will redistribute the unused funds to
                 the grantees.

                 Attachment (1) shows the calculation of regular block grant
                 allotments for FY 2000 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 Indian tribes and tribal organizations are
                 deducted from their State's share 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 agreed to in a State-Tribe
                 agreement.  The Indian tribal set-asides are shown in the
                 following column.  The final column shows each State's Net
                 Allotments, that is, the amount of the gross allotment
                 available to the States after deducting the Indian tribal
                 set-asides.  Grant awards are being made as soon as
                 grantees submit completed applications.

                 Attachment (2) shows a breakout of the FY 2000 allocations
                 for individual Indian 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.

                 Public Law 106-113, the Consolidated Appropriations Act,
                 2000, provides an appropriation for FY 2000 of $300,000,000
                 for energy emergency contingency purposes, to be made
                 availabll only if the President submits a formal budget
                 request to the Congress that designates the entire amount
                 of the request as an emergency requirement under the
                 Balanced Budget and Emergency Deficit Control Act of 1985.
                 Under the terms of the contingency fund provision, the
                 President could request all, part or none of the
                 $300,000,000 for FY 1999.  If the President decides to
                 release any of the funds, the Secretary of HHS may allot
                 them to one or more than one grantee affected by the
                 emergency or disaster taking into account, among other
                 things, the availability of other resources to the affected
                 grantee or other factors as she determines to be relevant.
                 On October 18, 1999, the President released $5,000,000 in
                 FY 2000 contingency funds to New Jersey to deal with flood
                 damage resulting from Hurricane Floyd (see LIHEAP
                 Information Memorandum 2000-3, dated October 21, 1999 for
                 more information).  On January 25, 2000, the President
                 released an additional $45 million in FY 2000 contingency
                 funds to 11 States (and 17 tribal grantees in those States)
                 to deal with the effects of significant increases in the
                 prices of home heating oil and propane (see LIHEAP
                 Information Memorandum 2000-7, dated February 8, 2000 for
                 more information).  We will advise you if the President
                 decides to release any more of these funds.

                Advance FY 2001 Funding

                 Public Law 106-113, the Consolidated Appropriations Act,
                 2000, provides advance FY 2001 funding of $1,100,000,000 to
                 operate LIHEAP during the federal fiscal year of October 1,
                 2000 to September 30, 2001.  Of this amount, $27,500,000 is
                 earmarked for the leveraging incentive program, including
                 the Residential Energy Assistance Challenge program
                 (REACH).

                 We are setting aside at this time out of the advance FY
                 2001 funds the full $300,000 allowed for training and
                 technical assistance projects.  If we later determine that
                 less money is needed for this purpose, we will redistribute
                 the unused funds to the grantees.

                 Public Law 106-113 did not include any advance
                 appropriations for FY 2001 for energy emergency contingency
                 funds.

                 Attachment (3) shows the calculation of State and
                 territorial gross allotments for the advance FY 2001 funds.
                 Each State's formula share in the column marked "Allocation
                 Percents" was used to calculate the State's Gross
                 Allotment.  We do not yet know which Indian tribes or
                 tribal organizations will apply for direct funding for FY
                 2001, or what the funding levels will be for the
                 tribes/tribal organizations that do apply, so we have not
                 calculated the Indian tribal set-asides or the Net
                 Allotments for the States.

                 We would like to emphasize that the amounts for FY 2001
                 could change at some point in the future before the funds
                 are actually made available to grantees.  At this time, the
                 figures in the attached tables are our best estimate under
                 current law of the gross allotments that will actually be
                 available to States and territories for FY 2001.  States
                 with Indian tribes/tribal organizations that receive direct
                 LIHEAP grants from HHS will have their gross allotments
                 reduced by the amount set aside for the tribes.

ATTACHMENTS:     (1)  LIHEAP Allocations (Gross and Net Allotments) for all
                 States and Territories for FY 2000 funds at the funding level
                 of $1,100,000,000, including $27.5 million earmarked for
                 leveraging incentive grants and REACH

                 (2)  LIHEAP Allocations for Indian tribes and tribal
                 organizations receiving direct funding from HHS for FY 2000
                 funds at the funding level of $1,100,000,000, including
                 $27.5 million earmarked for leveraging incentive grants and
                 REACH

                 (3)  LIHEAP Allocations (Gross Allotments) for all States
                 and Territories for advance FY 2001 funds at the funding
                 level of $1,100,000,000, including $27.5 million earmarked
                 for leveraging incentive grants and REACH

                 (4)  Copies of relevant portions of Public Law 106-113 and
                 Congressional committee reports on it and its predecessor
                 bills (not available electronically)

INQUIRIES TO:    Janet M. Fox, Director
                 Division of Energy Assistance
                 Office of Community Services, ACF, HHS
                 370 L'Enfant Promenade, S.W.
                 Washington, D.C.  20447
                 Telephone:  (202) 401-9351
                 Fax:  (202) 401-5718
                 E-mail:  jmfox@acf.dhhs.gov





                                                   /s
                                       Janet M. Fox
                                       Director
                                       Division of Energy Assistance
                                       Office Of Community Services

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