Low Income Home Energy Assistance Program
Division of Energy Assistance/OCS/ACF
LIHEAP Allotments under the FY 2000 Energy Emergency Contingency Fund - FIFTH DISTRIBUTION
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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-2000-23, DATED 8/1/00
TO: LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
GRANTEES AND OTHER INTERESTED PARTIES
SUBJECT: LIHEAP Allotments under the FY 2000 Energy
Emergency Contingency Fund - FIFTH DISTRIBUTION
RELATED
REFERENCES: Low Income Home Energy Assistance Act, Title XXVI
of the Omnibus Budget Reconciliation Act of 1981,
Public Law 97-35, as amended; the Consolidated
Appropriations Act, 2000 (Public Law 106-113; and
the Emergency Supplemental Act of 2000 (Public Law
106-146, signed into law on July 13, 2000).
PURPOSE: To advise grantees that (1) an additional
$600 million in LIHEAP energy emergency
contingency funds have been appropriated by
Congress, and (2) a fifth distribution of $41.75
million in FY 2000 LIHEAP emergency contingency
funds has been made available to 8 States and 4
Tribes/tribal organizations to help them meet
needs resulting from an extraordinary heat wave
during the period of July 9 through 22, and to the
State of Alaska and 4 Alaskan Native organizations
to help them purchase heating oil for the coming winter.
BACKGROUND: The Human Services Amendments of 1994 (Public Law
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,
providing the request designates the amount
requested as such an emergency requirement.
Section 2604(g) of the LIHEAP statute as amended
in 1994 by Public Law 103-252 provides that the
Secretary of HHS may allot any funds made
available under Section 2602(e) to one or more
States [grantees], taking into account the extent
to which the State was affected by the emergency
or disaster, the availability of other resources
to the grantees under LIHEAP or any other program,
and such other factors that are deemed relevant.
CONTINGENCY
HISTORY-2000 The Consolidated Appropriations Act, 2000 (Public
Law 106-113) included an appropriation of
$300,000,000 for FY 2000 for LIHEAP energy
emergency contingency funds.
On October 18, 1999, the President made
$5 million in FY 2000 LIHEAP emergency contingency
funds available to the State of New Jersey to help
provide relief for energy related damage resulting
from severe flooding caused by Hurricane Floyd and
subsequent heavy rains. On January 25, 2000, the
President released $45 million in contingency
funds to 11 States and 17 tribal grantees in those
States to help them meet needs arising from
significant increases in the prices of home
heating oil and propane. On February 10, the
President released $130 million in contingency
funds to all LIHEAP grantees to help them meet
continuing significant increases in the prices of
home heating oil and propane. On February 16,
2000 the President released the remaining $120
million in FY 2000 LIHEAP energy emergency
contingency funds available at that time to 31
States and 38 tribal grantees in those States, to
enable them to take additional steps to mitigate
the effects of the oil and propane price increases
on low income households. This release of funds
exhausted the LIHEAP contingency funds that had
been appropriated to date. (See LIHEAP
Information Memorandum 2000-1 dated October 5,
1999, LIHEAP-IM-2000-7 dated February 9, 2000,
LIHEAP-IM-2000-8 dated February 15, 2000, and
LIHEAP-IM-2000-9 dated February 18, 2000,
respectively, for more information on these
releases.)
Because all available contingency funds
had been distributed as of February 2000 and
because continued price increases were projected,
the President requested the appropriation of
another $600 million in LIHEAP contingency funds
for FY 2000. The Emergency Supplemental Act of
2000 (Public Law 106-146, signed into law on July
13, 2000) appropriated an additional $600 million
in LIHEAP energy emergency contingency funds, to
be available until expended. This means that the
contingency funds could be awarded in FY 2001 or
later years, if they are not all expended before
then.
CONTENT: Much of the southern portion of the nation
experienced an extraordinary heat wave during the
period of July 9-22, 2000, resulting in many heat-
related deaths, especially among the elderly. In
addition, part of the State of Alaska has
experienced extremely poor salmon runs for at
least the 4th year in a row, resulting in severely
decreased income. As a consequence, low income
households do not have sufficient income to buy
heating oil for the coming winter. On July 25,
2000, the President notified the Congress of his
intent to make $41.75 million available to 9
States and to 8 tribal grantees in those States
that were most severely affected by the heat wave
and the poor salmon run. This is the first
release of LIHEAP contingency funds out of the
$600 million appropriated in the supplemental
appropriations law.
On July 27, 2000, the Secretary of Health
and Human Services released $41,750,000 to
those grantees. A summary of the release
of those funds follows.
In order to expedite the use of the
funds in emergency conditions, no special
restrictions were imposed on their use. The
contingency funds may be used for any purpose
authorized under LIHEAP, including cooling
assistance, crisis assistance, weatherization,
administrative costs, and carryover, subject to
normal LIHEAP restrictions. The contingency funds
should be added to the regular block grant
allocation to determine limits on weatherization,
administration and planning costs, and Assurance
16 activities.
For the cooling assistance contingency
funds, at least 90% of the combined total of
contingency funds and regular block grant funds
must be obligated by September 30, 2000, and the
remaining funds must be obligated by September 30,
2001.
For the contingency funds to Alaska and
the 4 Alaskan Native organizations, we are waiving
the 90% obligation requirement for this fiscal
year. Thus, those funds must all be obligated by
September 30, 2001.
COOLING CONTINGENCY AWARDS
Cooling contingency grant awards in the
amount of $35,000,000 were made to 8 States (and
to 4 Tribes/tribal organizations in those States)
that were most affected by the heat wave during
the period of July 9-22, 2000. Funds were awarded
to those States where the number of cooling degree
days (CDDs) for the period of July 9 through July
22, 2000, exceeded by at least 25 CDDs the 30-year
average for that time period for that State,
provided the total number of CDDs for that period
was at least 190 CDDs. These calculations were
based on data from the National Oceanic and
Atmospheric Administration (NOAA) in the
Department of Commerce. (A "cooling degree day"
is an index indicating how many degrees the State-
wide mean temperature for the 24-hour period rose
above 65 degrees Fahrenheit for the day. If the
day's mean --or average-- temperature were 80
degrees, there would be 15 cooling degree days for
that date. The number of cooling degree days for
a week is the sum of the cooling degree days for
each of the seven days.)
The contingency funds were allocated
among the 8 States based on the number of cooling
degree days in excess of the 30-year norm for that
State that exceeded 25 CDDs, weighted by the
number of households in that State at or below
125% of the poverty level. For example, the State
of Alabama had 59 excess CDDs for the period of
7/9-22/2000, with a total of 260 CDDs for the
period. For the purposes of making grant awards
we used 34 CDDs, the number of excess CDDs over 25
(that is, 59-25=34).
In the 8 States that received
contingency funds, there are 4 Indian tribes or
tribal organizations that receive direct LIHEAP
funding from the Department of Health and Human
Services. These tribes and tribal organizations
also received a share of the $35,000,000 in
contingency funds. Their contingency fund grant
awards were based on the same share of the State's
contingency allotment as the tribe or tribal
organization received of the State's regular
LIHEAP block grant allotment. Allocations for the
States and Tribes/tribal organizations are shown
in Attachment 1. The weather data used to make
the calculations are shown in Attachment 2.
For the cooling assistance contingency
funds, at least 90% of the combined total of
contingency funds and regular block grant funds
must be obligated by September 30, 2000, and the
remaining funds must be obligated by September 30,
2001.
SALMON FISHERIES CONTINGENCY FUNDS
Emergency contingency funds in the
amount of $6,750,000 were made available to the
State of Alaska and four Alaskan Native
organizations to help about 80 villages in western
and interior Alaska buy heating oil for the coming
winter. The villages are largely dependent on
salmon fishing for their livelihood, and a
disastrously low salmon run for the fourth year in
a row means there is virtually no cash to buy
heating oil for the coming winter.
The contingency funds are intended to
avert a major life-threatening disaster, and to
forestall significant price increases that would
result if the heating fuel is not purchased in the
next few weeks before the waterways freeze.
Because there are limited roads in the areas
affected, transportation of bulk products,
including fuel oil, is largely dependent upon
rivers and other waterways. Once these waterways
freeze, emergency oil supplies would have to be
flown in, at many times the current cost.
On July 27, 2000, the Secretary of
Health and Human Services released $6,750,000 to
the State of Alaska and to four Alaskan Native
organizations that receive direct LIHEAP funding
from HHS. The State will provide assistance to
any other affected Alaskan Natives, as well as
other Alaska residents affected by the fisheries
disaster. The contingency funds were allocated
among the five grantees based on estimates of need
provided by the State. The five organizations
receiving grants and the amounts are:
State of Alaska, Department of Health and
Social Services $1,093,500
Association of Village Council Presidents $3,078,000
Kuskokwim Native Association $575,000
Orutsararmuit Native Council $336,000
Tanana Chiefs Conference $1,067,500
For the contingency funds to Alaska and
the 4 Alaskan Native organizations, we are waiving
the 90% obligation requirement for this fiscal
year. Thus, those funds must all be obligated by
September 30, 2001.
ATTACHMENTS: (1) Distribution of $41.75 million in FY 2000
LIHEAP energy emergency contingency fund
allocations to States and Tribes/tribal
organizations
(2) Weather data for the period of July 9 - 22, 2000
(3) Copy of White House press release on the contingency funds
(4) Copy of HHS press release on the contingency funds
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
HHS NEWS
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
FOR IMMEDIATE RELEASE Contact: Michael Kharfen
Tuesday, July 25, 2000 (202) 401-9215
HHS RELEASES $41.75 MILLION IN EMERGENCY ENERGY ASSISTANCE
President Clinton today directed HHS Secretary Donna E.
Shalala to release $41.75 million in Low Income Home Energy
Assistance Program (LIHEAP) emergency funds for 8 states in the
South who are suffering from extremely hot weather and Alaska for
the disastrously low salmon run.
The 9 states are: Alabama, Alaska, Arkansas, Georgia,
Louisiana, Mississippi, South Carolina, Tennessee, and Texas.
"This devastating heat has taken a tragic toll in the deaths
of 24 people. Senior citizens, children and persons with
disabilities are at risk in this extreme hot weather," said
Secretary Shalala. "We are rushing this critical aid to provide
relief and support for these vulnerable households."
Shalala added, "Without fuel oil for the severe Alaskan
winter, many lives will be in danger. Vulnerable and frail
children and senior citizens are most at risk from extreme cold.
These crucial funds will supply essential heating oil now before
the waterways freeze and the cost of flying in provisions becomes
prohibitive."
States can use the funds to pay cooling bills, buy air
conditioners, or provide other means of assistance to help low-
income families and individuals. Of the $41.75 million, $35
million is allocated to the 8 states most affected by the extreme
heat, based on the severity of the heat wave and the number of
low-income households in the state, as well as consideration of
other resources available to assist in dealing with the
situation. Of the $35 million, $36,307 will go directly to 4
tribes in 2 states.
That State of Alaska will receive $6.75 million which will
be shared with several Alaskan Native organizations to help about
4,000 to 5,000 households to buy heating oil for the coming
winter. Alaskan native villages are largely dependent on salmon
fishing for their livelihood. This is the fourth year in a row
of a poor salmon run meaning there is virtually no cash to buy
heating oil for the coming winter. Also, with a limited road
system serving many of the villages, transportation of bulk fuels
and other commodities is dependent upon the system of rivers and
other waterways. Once the waterways freeze, emergency oil
supplies would have to be flown in, at many times the current
cost.
LIHEAP supports approximately 4 to 5 million households
annually. Nearly half are families with children under 18, with
senior citizens, person with disabilities and working poor
individuals as the remaining beneficiaries. Seventy percent of
the households had incomes below $8,000 per year. LIHEAP
emergency funds go to aid families in times of extreme heat or
cold, other natural disasters, or to offset abnormally high fuel
prices.
The following is the amount of funds for each state:
Alabama $5,852,502
Alaska $6,750,000
Arkansas $994,885
Georgia $4,679,843
Louisiana $4,215,913
Mississippi $2,812,167
South Carolina $1,250,024
Tennessee $826,224
Texas $14,368,442
###
THE WHITE HOUSE
Office of the Press Secretary
(Fayetteville,Arkansas)
________________________________________________________________
For Immediate Release July 25, 2000
STATEMENT BY THE PRESS SECRETARY
President Clinton today directed the Department of Health
and Human Services to release $41.75 million in Low Income Home
Energy Assistance (LIHEAP) emergency funds for eight states that
have been affected by the heat wave in the South and Southwest,
and to help with fuel costs in Alaska in light of the recent
fisheries disaster that has caused severe problems for low-income
Alaskans.
The following Southern and Southwestern states will receive
a total of $35 million: Alabama, Arkansas, Georgia, Louisiana,
Mississippi, South Carolina, Tennessee, and Texas. Temperatures
in these eight states have been much higher than normal, posing
grave risks to the elderly, the very young, the disabled and the
ill.
States can use the funds to pay cooling bills, buy air
conditioners, or provide other means of assistance to help low-
income families and individuals. The $35 million is allocated to
the eight states that have been most affected by the extreme
heat, based on the severity of the heat wave and the number of
low-income households in the state.
Today's LIHEAP release also includes $6.75 million for low-
income individuals in Alaska who have been affected by the recent
fisheries disaster. Record low salmon runs have prompted
Governor Tony Knowles to declare a disaster for parts of Western
Alaska. Low-income Alaskans living in this region depend on
salmon both for subsistence and for their primary source of
income. Because these low-income Alaskans are unable to purchase
fuel supplies in the summer season, as they normally would, the
Administration is releasing these funds today, rather than
waiting until later in the year when frozen rivers and other
transportation problems associated with extreme cold make the
cost of shipping fuel to this region far higher.
LIHEAP helps eligible families pay the costs of cooling
their homes in the summer, and heating and insulating their homes
in the winter. This is the first release of LIHEAP emergency
funds made available under the FY 2000 Emergency Supplemental
Act. The Emergency Supplemental Act replenished the emergency
fund which had been exhausted in response to oil price increases
this past winter.
The state allocations follow (these totals include funds
that HHS will provide directly to tribes in these states):
Alabama, $5,852,502; Alaska, $6,750,000; Arkansas $994,885;
Georgia, $4,679,843; Louisiana, $4,215,913; Mississippi
$2,812,167; South Carolina, $1,250,024; Tennessee, $826,224;
Texas, $14,368,442.
30-30-30
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