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

Availability of FY 1997 REACH Funds

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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-97-17,
DATED 5/8/97

COPIES OF ATTACHMENTS MAY BE OBTAINED THROUGH CALLING THE LIHEAP
CLEARINGHOUSE AT (800) 445-5581.


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

SUBJECT:          Announcement of the Availability of Funds under the
                  Residential Energy Assistance Challenge Option Program
                  (REACH) for FY 1997

RELATED           Low Income Home Energy Assistance Act, Title XXVI
REFERENCES:       of the Omnibus Budget Reconciliation Act of 1981, Public Law
                  97-35, as amended; the Human Services Amendments of 1994
                  (Public Law 103-252); and program announcement for the
                  Residential Energy Assistance Challenge Option Program
                  (REACH), published in the Federal Register on May 5, 1997
                  (62 FR 24454-24482).

PURPOSE:          To advise grantees that a program announcement has been
                  published in the Federal Register requesting applications
                  for funds by July 9, 1997, under the Residential Energy
                  Assistance Challenge Option Program (REACH) for FY 1997.

BACKGROUND:       The Human Services Amendments of 1994 (Public Law 103-252)
                  amended Section 2607B of the LIHEAP statute to establish a
                  new Residential Energy Assistance Challenge Option Program
                  (REACH), funded for the first time in FY 1996.  REACH is
                  designed to help low income households reduce their energy
                  vulnerability.

                  REACH funds are available only to LIHEAP grantees (States,
                  territories, and Indian tribes/tribal organizations).
                  LIHEAP grantees that wish to receive REACH funds must submit
                  an application for those funds.  Up to 25% of the funds set
                  aside for the leveraging incentive program may be earmarked
                  for the REACH program.  In FY 1997, $25 million has been set
                  aside for leveraging incentive grant awards.

CONTENT:          On May 5, 1997, a program announcement was published in the
                  Federal Register (62 FR 24454-24482) advising that funds are
                  available to LIHEAP grantees to run demonstration programs
                  under the Residential Energy Assistance Challenge Option

                  Program (REACH).  LIHEAP grantees that wish to receive REACH
                  funds must submit an application for the funds following
                  requirements laid out in the program announcement.  These
                  applications must be received in the Office of Community
                  Services (OCS) no later than 4:30 pm, eastern time zone, on
                  July 9, 1997.  This is a receipt deadline, not a submission
                  deadline.  A postmark or express delivery receipt is not
                  acceptable.  The application must be physically in place in
                  OCS by the deadline.

                  It is expected that approximately $5,000,000 will be made
                  available for grants under the REACH program announcement,
                  including supplemental grants for energy conservation
                  education activities.  States, the District of Columbia, and
                  Puerto Rico may apply for funds under Priority 1.0 of the
                  program announcement.  Indian tribes, tribal organizations,
                  and territories other than Puerto Rico may apply for REACH
                  funds under Priority 2.0.  If insufficient numbers of
                  applications for funds are received under Priority 2.0, any
                  unused funds will be assigned to Priority 1.0.  If
                  sufficient numbers of qualified applications for REACH funds
                  are not received under Priority 1.0, unused funds will be
                  awarded under the leveraging incentive program.  See the
                  program announcement for details.

ATTACHMENT:       Program announcement for availability of funds under the
                  Residential Energy Assistance Challenge Option Program
                  (REACH), as published in the Federal Register on May 5, 1997
                  (62 FR 24454-24482).

INQUIRIES TO:     Richard Saul, Director
                  Division of Community Demonstration Programs
                  Office of Community Services, ACF, HHS
                  370 L'Enfant Promenade, S.W.
                  Washington, D.C.  20447
                  Telephone:  (202) 401-9341




                                          ____________/s_______________
                                          Janet M. Fox
                                          Director
                                          Division of Energy Assistance
                                          Office of Community Services

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