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LIHEAP: Program and Funding

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. The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Libby Perl Specialist in Housing Policy February 4November 23, 2011 Congressional Research Service 7-5700 www.crs.gov RL31865 CRS Report for Congress Prepared for Members and Committees of Congress c11173008 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Summary The Low Income Home Energy Assistance program (LIHEAP), established in 1981 as part of the Omnibus Budget Reconciliation Act (P.L. 97-35), is a block grant program under which the federal government makes annual grants to states, tribes, and territories to operate home energy assistance programs for low-income households. The LIHEAP statute authorizes two types of funds: regular funds (sometimes referred to as formula or block grant funds), which are allocated to all states using a statutory formula, and emergency contingency funds, which are allocated to one or more states at the discretion of the Administration in cases of emergency as defined by the LIHEAP LIHEAP statute. States may use LIHEAP funds to help households pay for heating and cooling costs, for crisis assistance, weatherization assistance, and services (such as counseling) to reduce the need for energy assistance. According to the most recent data available from the Department of Health and Human Services (HHS), in FY2007, 52.8FY2008, 53.3% of funds went to pay for heating assistance, 3.41% was used for cooling aid, 17.919.0% of funds went to crisis assistance, and 10.1% was used for weatherization. The LIHEAP statute establishes federal eligibility for households with incomes at or below 150% of poverty or 60% of state median income, whichever is higher, although states may set lower limits. However, inIn both the FY2009 and FY2010 appropriations acts, Congress gave states the authority to raise their LIHEAP eligibility standards to 75% of state median income. In FY2008 FY2009, the most recent year for which HHS data are available, an estimated 33.5 million 35 million households were eligible for LIHEAP under the federal statutory guidelines (45 million were eligible based on the appropriations provision). According to HHS, 7. According to HHS, 5.4 million households received heating or winter crisis assistance and approximately 600 900,000 households received cooling assistance that same year. For FY2011, LIHEAP is funded through March 4, 2011, as part of the Continuing Appropriations and Surface Transportation Extensions Act (P.L. 111-322), which was enacted on December 22, 2010, and amends the Continuing Appropriations Act enacted on September 30, 2010 (P.L. 111242). Pursuant to P.L. 111-322 (the CR), HHS is required to obligate to states, tribes, and territories the same amount of LIHEAP regular funds as was obligated during the comparable time period in FY2010 (i.e., through March 4, 2010). States request their share of LIHEAP formula grants quarterly, and may request as much as 100% of their grants in the first quarter of the fiscal year. State allocations under the CR therefore depend on the amount of funds that each state requested in the first two quarters of FY2010, when the total amount appropriated for regular funds was $4.5 billion. On January 13, 2011, HHS issued a press release announcing how formula funds would be distributed, and on January 24, 2011, it announced the distribution of $200 million in emergency contingency funds to all states, tribes, and territories. See columns (a) and (b) of Table A-1 for these distributions cooling assistance that same year. The President’s budget for LIHEAP in FY2012 proposed to provide $1.98 billion in regular funds and to fund emergency contingency funds at $590 million. This would constitute a total reduction of about $2.1 billion compared to FY2011, when $4.5 billion was appropriated for regular funds and $200 million for emergency contingency funds. The amount proposed by the President would bring regular funds back to the levels that were last appropriated in FY2007 and FY2008; since FY2009, approximately $4.5 billion has been appropriated for regular funds. The Senate Appropriations Committee-passed bill for FY2012 (S. 1599) would increase LIHEAP funding over the President’s request by approximately $1 billion, but it would reduce funding from the FY2011 level by $1.1 billion. The bill would provide $3.40 billion for regular funds, all distributed according to the proportions of the “old” LIHEAP formula, and retain the same level of emergency contingency funding from FY2011—$200 million. The Departments of Labor, Health and Human Services, and Education Appropriations bill introduced in the House (H.R. 3070) would appropriate $3.39 billion for regular funds, with state distributions made according to the statutory LIHEAP formula, and would provide no emergency contingency funds. This report describes LIHEAP funding, program rules, and eligibility. It will be updated as events warrant. Congressional Research Service . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Contents Introduction ................................................................................................................................1 LIHEAP Funding .......................................... 1 LIHEAP Funding.....................................................................................1 LIHEAP Funding Under the FY2011 Continuing Resolutions ...............................................1 Regular Funds................... 1 Proposed FY2012 LIHEAP Funding..............................................................................................1 Emergency Contingency Funds . 1 Funding Under the FY2012 Continuing Resolutions......................................................................................3 Proposals to Fund LIHEAP in FY2011 Prior to Enactment of the Continuing Resolutions .............. 2 FY2011 LIHEAP Funding..........................................................................................................3 FY2010 Funding ......... 3 FY2011 Emergency Contingency Funds..........................................................................................................5 Distribution of FY2010 LIHEAP Contingency Funds ......................................................6 3 Program Rules and Benefits ........................................................................................................7.... 4 Federal Eligibility Standards and Grantee Responsibility.......................................................7.. 5 Kinds of Energy Assistance Available....................................................................................... 58 Use of Funds.............................................................................................................................. 68 Households Served ..................................................................................................................8.. 6 Benefit Levels............................................................................................................................ 79 Funds and Their Distribution ..................................................................................................... 12.... 10 Regular Funds.......................................................................................................................... 10 12 Tier I.................................................................................................................................. 10 12 Tier II ........................................................................................................................... 13...... 11 Tier III ............................................................................................................................... 11 Contingency Funds..... 13 Contingency Funds ............................................................................................................. 1311 Leveraging Incentive and REACH Funds ............................................................................... 12 14 Other Funds ........................................................................................................................ 14..... 12 Legislative History.................................................................................................................... 14..... 12 Tables Table 1. FY2010 and FY2011 EnactedFY2011 Proposed LIHEAP Funding ........and FY2012 Proposed Funding............. 4 Table 2. LIHEAP Heating/Winter Crisis Aid for Select Years.........................................................5 Table 2. LIHEAP Heating/Winter Crisis Aid for Select Years 9 Table A-1. FY2012 LIHEAP Regular Fund Allotments to States, Tribes, and Territories Under the Continuing Resolutions..................................................... 11 Table A-1. FY2011 LIHEAP Regular and Contingency Fund Allotments to States, Tribes, and Territories Under the FY2011 Continuing Resolution (P.L. 111-322) ......................................... 1815 Table A-2. FY2010FY2011 LIHEAP Regular and Contingency Fund Allotments to States, Tribes, and Territories ............................................................................................................................. 2017 Table A-3. LIHEAP Funding by State FY2006 to FY2010 ........................................................... 2319 Table A-4. LIHEAP Funding: FY1982 to FY2011 FY2012........................................................................ 2622 Appendixes Appendix. Tables Showing LIHEAP Funding Levels ................................................................. 16 Congressional Research Service . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding.. 14 Contacts Author Contact Information ........................................................................................................ 28... 24 Congressional Research Service . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Introduction The Low Income Home Energy Assistance program (LIHEAP), established by Title XXVI of the Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35), is a block grant program under which the federal government gives states, tribes, and territories annual grants to operate home energy assistance programs for low-income households. The LIHEAP statute provides for two types of program funding: regular funds (sometimes referred to in this report as “formula funds”) and emergency contingency funds (sometimes referred to in this report as “contingency funds”). Regular funds are allotted to states according to a formula prescribed by the LIHEAP statute.1 Contingency funds may be released and allotted to one or more states at the discretion of the President and the Secretary of Health and Human Services (HHS). The first section of this report describes proposed funding for LIHEAP in FY2011FY2012 and enacted funding in FY2010FY2011. The second section of this report discusses LIHEAP rules, including household eligibility and how funds may be used, and presents the most recent data available from HHS regarding household characteristics and benefit levels. Finally, theThe third section discusses how each category of LIHEAP funds is distributed to states, as well as a breakdown of funds to the states during the last several fiscal years. LIHEAP Funding LIHEAP Funding Under the FY2011 Continuing Resolutions In FY2011, LIHEAP has been funded by a series of continuing resolutions (CRs), each of which funded most government programs at FY2010 levels—in the case of LIHEAP, this means $4.5 billion in regular funds. However, due to language in the CRs, combined with the proposed funding level in the Senate Appropriations Committee-passed bill for FY2011 (S. 3686), as of the date of this report states have not received the exact allocations that they would receive at an appropriation of $4.5 billion. This is explained below. Regular Funds The First Three Continuing Resolutions (Through December 21, 2010) Pursuant to the first three CRs (P.L. 111-242, P.L. 111-290, and P.L. 111-317), which extended funding for most federal programs at FY2010 levels through December 21, 2010, LIHEAP grantees were not able to receive their full allocations of regular funds at the $4.5 billion level. This was due to a standard provision in continuing resolutions that states the following: For those programs that would otherwise have high initial rates of operation or complete distribution of appropriations at the beginning of fiscal year 2011 because of distributions of funding to States, foreign countries, grantees, or others, such high initial rates of operation or 1 See Section 2604(a)-(d) of the Low Income Home Energy Assistance Act (Title XXVI of P.L. 97-35), as amended. The section is codified at 42 U.S.C. § 8623(a)-(d). Congressional Research Service 1 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding complete distribution shall not be made, and no grants shall be awarded for such programs funded by this Act that would impinge on final funding prerogatives.2 The provision is meant to ensure that funds for a program that are released under a CR do not exceed the amount that Congress ultimately appropriates for it. Typically, states are eligible to receive their entire LIHEAP formula allocations in the first quarter of the fiscal year if they so choose, qualifying as a program “that would otherwise have high initial rate of operation or complete distribution of appropriations” at the beginning of FY2011 as stipulated in the CR. Further, the Senate Appropriations Committee-passed FY2011 Departments of Labor, Health and Human Services, and Education Appropriations bill (S. 3686) raised the possibility that Congress might appropriate less funding for LIHEAP in FY2011 than it did in FY2010 (S. 3686 would have appropriated $2.7 billion in LIHEAP regular funds). If HHS had released regular fund allocations at the $4.5 billion level, and the appropriation level in the Senate Committee proposal of $2.7 billion had ultimately been enacted, then states would have received higher allocations than the amount to which they would have been entitled under the final appropriation, impinging on “final funding prerogatives.” As a result, due to the difference in the level of formula funding for LIHEAP in FY2010 compared to the amount proposed by the Senate Appropriations Committee bill for FY2011, until mid-December 2010 HHS limited LIHEAP state allocations to 75% of the amount they would have received if the Senate Committee-passed appropriations bill was enacted. 3 On December 10, 2010, due to concerns that states did not have sufficient funds to assist applicants, HHS announced that states could receive 100% of their allocations at this $2.7 billion regular fund level. 4 The Fourth Continuing Resolution Most recently, a fourth CR, the Continuing Appropriations and Surface Transportation Extensions Act (P.L. 111-322), was enacted on December 22, 2010, and increased the amount of LIHEAP regular funds that states may receive for FY2011. P.L. 111-322, which amends P.L. 111-242, is effective through March 4, 2010, and requires that HHS “obligate the same amount during the period covered by this continuing resolution as was obligated for such purpose during the comparable period during fiscal year 2010.”5 The amount that each state receives pursuant to this provision therefore depends on the amount of funding that each state requested in the first two quarters of FY2010 based on a regular fund level of $4.5 billion. On January 12, 2011, HHS announced the distribution of funds under the fourth CR.6 Most states did not receive exactly the amount that was obligated to them in FY2010 because funds had to be prorated to account for three states (California, North Carolina, and Tennessee) that had requested greater percentage allocations in the first quarter of FY2011 than they had in FY2010 and had therefore already received more in FY2011 under the first three CRs than was obligated to them 2 See Section 109 of P.L. 111-242. For state allocations at this rate, see http://www.acf.hhs.gov/programs/ocs/liheap/2011_cr_state_allocations.xls. 4 U.S. Department of Health and Human Services, “HHS Makes Available More Than $670 Million in Additional LIHEAP Funding,” press release, December 10, 2010, http://www.hhs.gov/news/press/2010pres/12/20101210b.html. 5 See Section 162 of P.L. 111-322. 6 U.S. Department of Health and Human Services, “HHS increases total LIHEAP funding available to help low-income families to $3.9 billion,” press release, January 12, 2011, http://www.hhs.gov/news/press/2011pres/01/20110112a.html. 3 Congressional Research Service 2 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding in the first two quarters of FY2010. For example, in FY2010 California requested 25% of its regular fund allocation in the first quarter; in the first quarter of FY2011, it requested 100% of its allocation at $2.7 billion, or $119 million, which exceeded the amount obligated through March 4, 2010 (approximately $100 million). For the distribution of regular funds to states under the fourth CR, see Table A-1, column (a). Emergency Contingency Funds On January 24, 2011, HHS announced that it would release $200 million in FY2011 emergency contingency funds. All states, the District of Columbia, tribes, and territories received funding. HHS based allocations on each state’s “old” LIHEAP formula percentage (84% of the distribution) as well as the percentage of low-income households in each state that use heating oil or propane to heat their homes (16% of the distribution). For the distributions of funds to the states, see column (b) of Table A-1. Proposals to Fund LIHEAP in FY2011 Prior to Enactment of the Continuing Resolutions The President’s budget proposed to provide $2.51 billion for LIHEAP regular funds and $790 million in emergency contingency funds, for a total of $3.3 billion in discretionary spending. While this represented an increase over the President’s FY2010 request for regular and contingency funds (by $100 million), it would have been a decrease from FY2010 funding levels, in which Congress provided a total of $5.1 billion for LIHEAP—$4.51 billion in regular funds and $590 million in contingency funds. However, as in FY2010, the President proposed a new trigger mechanism for releasing LIHEAP funds. According to the budget, additional funds were to be released “in response to energy price spikes as well as changes in the number of households in poverty.”7 The budget estimated that the trigger would have resulted in mandatory budget authority of $2 billion in FY2011. The proposal in the FY2011 budget differed from the FY2010 proposal, which would have triggered increased assistance only in response to energy price increases and did not include an increase in the number of households in poverty as a basis for additional funds to be released. According to HHS budget documents, FY2011 fund releases would have been triggered if certain benchmarks were met:8 • For oil and natural gas, if quarterly prices were at least 15% higher than in the previous year’s quarter in either the third or fourth quarters of the calendar year (from July through September and October through December, respectively). Specifically, (1) at a 15% price increase, funds would have been distributed by multiplying the percentage change in price by the greater of $250 million or 10% of the previous year’s regular fund appropriation; (2) at a price increase of 30% or greater, funds would have been distributed by multiplying the percentage 7 U.S. Office of Management and Budget, FY2011 Budget Appendix, February 2010, p. 494, http://www.whitehouse.gov/omb/budget/fy2011/assets/hhs.pdf. 8 U.S. Department of Health and Human Services, Administration for Children and Families, FY2011 Congressional Justification, pp. 31-32, http://www.acf.hhs.gov/programs/olab/budget/2011/LIHEAP.pdf. Congressional Research Service 3 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding increase in price by the greater of $300 million or 15% of the previous year’s regular fund appropriation. • For electricity, if quarterly prices were at least 10% higher than in the previous year’s quarter for any of the four quarters of the calendar year. The amount of funds released would have been the product of the percentage increase in price multiplied by the greater of $250 million or 10% of the previous year’s regular fund appropriation. • In the case of poverty, if the ratio of the average number of participants in the Supplemental Nutrition Assistance Program (SNAP, formerly known as Food Stamps) to the U.S. population in a fiscal year was at least 30% greater than the ratio of participants for FY2008. The amount of funds released would have been the product of any percentage increase over 30% and $6.25 billion. For example, an increase of 50% would have resulted in the release of $1.25 billion (20% * $6.25 billion). Under the proposal, funds would have been distributed within 30 days of the time when the requirements of the applicable trigger were met unless there were extenuating circumstances.9 In determining how funds would be distributed to states, the Administration would have been required to take into account the price increases or SNAP participation that caused the funds to be released as well as the number of low-income households in each state. In addition, the Administration would have had the discretion to use funds to respond to “extreme heat or cold, energy supply disruptions, or a variety of other energy-related emergencies.”10 The Senate Appropriations Committee proposed to appropriate $3.3 billion for LIHEAP in FY2011. The bill, S. 3686, was reported on August 2, 2010, and would have provided $2.7 billion in regular funds. It would have maintained the proportional split between “old” and “new” formula funds that was implemented in FY2009. Specifically, approximately 20% of regular funds, $505 million, would have been distributed according to the “new” LIHEAP formula. The remaining $2.2 billion would have been distributed according to the proportions of the “old” formula. S. 3686 would have appropriated the same level of funding for emergency contingency funds as was appropriated in FY2009 and FY2010—$590 million. In addition, the Senate Appropriations Committee Report, S.Rept. 111-243, stated that “[t]he Committee recommendation assumes enactment of [the President’s trigger] proposal.” However, neither S. 3686 nor S.Rept. 111-243 contained language to authorize the trigger. The House Appropriations Subcommittee for the Departments of Labor, Health and Human Services, and Education recommended $5.1 billion for LIHEAP in FY2011; however, the specifics of the proposal were not provided. 11 9 Ibid., p. 32. Ibid. 11 See the Subcommittee Summary Table, available on its website at http://appropriations.house.gov/images/stories/pdf/ lhhse/FY2011_LHHS_Summary_Tabel-07.15.2010.pdf. 10 Congressional Research Service 4 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table 1. FY2011 Proposed LIHEAP Funding (dollars in millions) Type of Funding LIHEAP Regular Fundsb Leveraging Incentive/ REACH Grants Contingency Funds Total Discretionary Funds LIHEAP “Trigger”e Total FY2011 House Subcommittee Passed Billa FY2011 Senate CommitteePassed Bill: S. 3686 FY2010 Enacted: P.L. 111-117 FY2011 President’s Request 4,510 2,510 — 2,710 27c — not specified 590 790 — 590 5,100 3,300 — 3,300 0 2,000 — f 5,100 5,300 5,100 3,300 27d Sources: The FY2010 Consolidated Appropriations Act (P.L. 111-117), the FY2011 budget appendix, the FY2011 Department of Health and Human Services (HHS) Congressional Budget Justifications, the FY2011 Departments of Labor, Health and Human Services, and Education (LHE) appropriations bill (S. 3686), and the House LHE Appropriations Subcommittee Summary Table. a. As of the date of this report, details about the House Appropriations Subcommittee-passed bill had not been released. b. In addition to the set-aside for Leveraging Incentive and REACH grants, the LIHEAP statute gives the HHS Secretary authority to set aside up to $300,000 from the regular fund appropriation for training and technical assistance. 42 U.S.C. § 8628a. c. The amount proposed to be set aside for leveraging incentive grants in FY2011 was noted in the HHS Congressional Budget Justifications and did not appear in the budget appendix. d. P.L. 111-117 specified that not more than $27 million be used for leveraging incentive grants in FY2010. e. In FY2010 and FY2011, the President’s budget proposed that a trigger mechanism be created whereby funds would be released if energy price increases were to exceed certain levels or, as proposed in FY2011, if participation in the Supplemental Nutrition Assistance Program was to increase above a specified level. In each case, the additional budget authority under the trigger would be mandatory funding. f. Regarding the President’s proposed LIHEAP trigger, S.Rept. 111-243 stated that the “Committee recommendation assumes enactment of this proposal.” However, neither S. 3686 nor S.Rept. 111-243 contained language that would authorize the trigger proposal. FY2010 Funding The FY2010 Consolidated Appropriations Act (P.L. 111-117), enacted on December 16, 2009, provided $5.1 billion for LIHEAP, the same amount that was appropriated in FY2009.12 The law also maintained the same division of funds as in FY2009, with $4.51 billion allocated to LIHEAP regular funds and approximately $590 million to emergency contingency funds. However, unlike the FY2009 appropriation, which specified that the contingency funds be released within 30 days of the law’s enactment, under the FY2010 law there was no time frame for releasing the 12 Prior to enactment of P.L. 111-117, LIHEAP was funded under two continuing resolutions (CRs): P.L. 111-68 and P.L. 111-88. Under the two CRs, states were eligible to receive up to 75% of their regular fund allocations at an appropriation of $4.51 billion (the FY2009 level). Congressional Research Service 5 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding contingency funds. Regarding the regular funds, P.L. 111-117 distributed funds to the states in the same way as FY2009, as follows: • Approximately $840 million was distributed according to the “new” LIHEAP formula. The new formula was enacted in 1984 and allocates funds to states on the basis of the heating and cooling costs of low-income households. For more information about the LIHEAP formula, see the section of this report entitled “Funds and Their Distribution” or, for greater detail, see CRS Report RL33275, The LIHEAP Formula: Legislative History and Current Law, by Libby Perl. • The remaining $3.67 billion was distributed according to the proportion of funds that states received under the “old” LIHEAP formula, which existed prior to the enactment of the new formula in 1984. See column (a) of Table A-2, at the end of this report, for the distribution of FY2010 LIHEAP regular funds to the states, tribes, and territories. In addition, P.L. 111-117 gave states the authority to raise eligibility guidelines for LIHEAP to 75% of state median income, a provision that was also included in the FY2009 appropriations act. Ordinarily, states may set eligibility for LIHEAP assistance at the greater of 60% of state median income or 150% of poverty.13 The amount for LIHEAP in P.L. 111-117 exceeded the President’s request for LIHEAP regular and contingency funds by $1.9 billion; the President had proposed to provide $2.41 billion for regular funds and $790 million for emergency contingency funds. In addition, P.L. 111-117 did not include the President’s proposal for a new LIHEAP trigger whereby additional funds would have been released “whenever there is a spike in energy costs.”14 The budget estimated that the trigger would have resulted in mandatory budget authority of $450 million in FY2010. Distribution of FY2010 LIHEAP Contingency Funds The FY2010 Consolidated Appropriations Act (P.L. 111-117) provided $590 million for LIHEAP contingency funds, the same amount that was appropriated in FY2009. However, unlike FY2009, where the appropriations act required funds to be released within 30 days of the law’s enactment, FY2010 did not require the release of contingency funds within a certain time frame. The Administration distributed FY2010 contingency funds on two occasions. First, the Administration announced the release of approximately $490 million of the FY2010 contingency funds on January 20, 2010. • Of the total, $450 million was released to all states, tribes, and territories. Each state’s allocation was based on their share of formula funds received in FY2010 weighted by their three-month unemployment rate from September 2009 through November 2009. The allotment to territories was based on their share of formula grants. 13 42 U.S.C. § 8624(b)(2)(B). Office of Management and Budget, A New Era of Responsibility, Renewing America’s Promise, p. 70, http://www.whitehouse.gov/omb/assets/fy2010_new_era/A_New_Era_of_Responsibility2.pdf. 14 Congressional Research Service 6 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding • The remaining $40 million was released to 14 states where the number of heating degree days (HDDs) from November 1, 2009, through January 9, 2010, exceeded the 30-year norm for the same time period by at least 5%. (HDDs measure the extent to which a day’s average temperature falls below 65° Fahrenheit. For example, a day with an average temperature of 50° F results in a measure of 15 heating degree days.) These states then received amounts based on a ratio of the product of total HDDs, the number of households at or below 125% of poverty, and the unemployment rate to the sum of the products for all 14 states. The second contingency fund distribution was announced on September 20, 2010. The remaining funds—approximately $101 million—were distributed to all 50 states, the District of Columbia, and the territories based on the proportions of the “old” LIHEAP formula. Columns (b) and (c) of Table A-2, at the end of this report, show the amount of emergency contingency funds distributed to each state in FY2010. Program Rules and Benefits Federal LIHEAP requirements are minimal and leave most important program decisions to the states, the District of Columbia, the territories, and Indian tribes and tribal organizations (collectively referred to as grantees) who receive federal funds. The federal government (HHS) may not dictate how grantees implement “assurances” that they will comply with general federal guidelines. Finally, the Appendix contains tables showing recent LIHEAP allocations to the states, as well as appropriations for the program since its inception. LIHEAP Funding Proposed FY2012 LIHEAP Funding The funding cycle for FY2012 got underway when the President released his budget on February 14, 2011. The President proposed to provide a total of $2.57 billion for LIHEAP in FY2012— $1.98 billion for regular funds and $590 million for emergency contingency funds. The proposed amount would be a reduction of about $2.5 billion from the FY2011 regular fund level of $4.5 billion, while emergency contingency funds would increase by about $400 million over the FY2011 level of $200 million. The proposal would bring the LIHEAP regular fund level in line with appropriations levels prior to FY2009; Congress appropriated $1.98 billion for regular funds in both FY2007 and FY2008. According to HHS budget documents, the reason for the proposed reduction was that the Administration did not expect energy prices to be as high in FY2012 as they were in FY2008.2 Another proposed change in the budget was to increase the amount of funding for LIHEAP training and technical assistance from the $300,000 that has been set aside for this purpose to $3 million.3 The Senate Appropriations Committee approved a funding bill for the Departments of Labor, Health and Human Services, and Education on September 22, 2011 (S. 1599), which includes 1 See Section 2604(a)-(d) of the Low Income Home Energy Assistance Act (Title XXVI of P.L. 97-35), as amended. The section is codified at 42 U.S.C. § 8623(a)-(d). 2 U.S. Department of Health and Human Services, Administration for Children and Families, FY2012 Congressional Justification, p. 31, http://www.acf.hhs.gov/programs/olab/budget/2012/cj/LIHEAP.pdf. Historical energy prices, as well as predictions for the next year, are available from the Energy Information Administration. See the Short Term Energy Outlook, http://www.eia.doe.gov/EMEU/steo/realprices/index.cfm. 3 The $300,000 set-aside is authorized at 42 U.S.C. § 8628a. Congressional Research Service 1 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding proposed funding for LIHEAP. The bill would increase LIHEAP regular funds over the amount proposed by the President, but reduce them compared to FY2011. The bill proposes $3.4 billion for regular funds, all distributed according to the provisions of the “old” LIHEAP formula. (For more information on how funds would be distributed to the states, see Table C-1 of CRS Report RL33275, The LIHEAP Formula: Legislative History and Current Law, by Libby Perl). Of the total appropriated for regular funds, S. 1599 would set aside the same amounts for training and technical assistance and leveraging incentive/REACH grants that were proposed by the President: $3 million and $27 million, respectively. Regarding emergency contingency funds, S. 1599 would provide the same level as was appropriated in FY2011—$200 million—which is almost $400 million less than was proposed in the President’s budget. The version of the Departments of Labor, Health and Human Services, and Education appropriations bill introduced in the House (H.R. 3070) would appropriate $3.39 billion for LIHEAP regular funds, all of which would be distributed according to the statutory LIHEAP formula. The bill proposes that $2 million be set aside from regular funds for training and technical assistance. H.R. 3070 would not provide funding for emergency contingency funds. Funding Under the FY2012 Continuing Resolutions As of the date of this report, LIHEAP, like many federal programs, was funded as part of a continuing resolution (CR) that maintains funding at FY2011 levels through December 16, 2011 (P.L. 112-55).4 However, states have not received the same amount of LIHEAP funding that they received in FY2011 due to a standard provision in continuing resolutions that states the following: For those programs that would otherwise have high initial rates of operation or complete distribution of appropriations at the beginning of fiscal year 2012 because of distributions of funding to States, foreign countries, grantees, or others, such high initial rates of operation or complete distribution shall not be made, and no grants shall be awarded for such programs funded by this Act that would impinge on final funding prerogatives.5 The provision is meant to ensure that funds for a program that are released under a CR do not exceed the amount that Congress ultimately appropriates for it. Typically, states are eligible to receive their entire LIHEAP formula allocations in the first quarter of the fiscal year if they so choose, qualifying as a program “that would otherwise have high initial rates of operation or complete distribution of appropriations” at the beginning of FY2012 as stipulated in the CR. Both the Senate Appropriations Committee-passed bill (S. 1599) and the bill introduced in the House propose lower LIHEAP funding levels for FY2012 compared to FY2011 ($3.40 billion and $3.39 billion, respectively). If HHS were to release regular fund allocations at the FY2011 level of $4.50 billion, and one of the proposed appropriations levels ultimately was enacted, then states would receive higher allocations than the amount to which they would be entitled under the final appropriation, impinging on “final funding prerogatives.” Further, although the proposed regular fund levels in the Senate and the House are nearly identical to each other, the allocations to the 4 Prior to enactment of P.L. 112-55, LIHEAP had been funded by two other continuing resolutions, P.L. 112-33 (through October 4, 2011) and P.L. 112-36 (through November 18, 2011). 5 See Section 109 of P.L. 112-36. Congressional Research Service 2 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding states under each proposal would be different, which could also impinge on final funding prerogatives. On October 28, 2011, HHS announced that it would base the first-quarter distribution of LIHEAP funds on the President’s funding proposal of $1.98 billion. States were eligible to receive up to 95% of their first quarter allocation at this level, resulting in a distribution of approximately $1.7 billion. For the amounts distributed to the states, tribes, and territories, see Table A-1. FY2011 LIHEAP Funding In FY2011, LIHEAP was funded by a series of seven continuing resolutions (CRs) through April 14, 2011, prior to enactment of the full-year funding bill. On April 15, 2011, the President signed the full-year appropriations law, the Department of Defense and Full-Year Continuing Appropriations Act (P.L. 112-10), which provided a total of $4.71 billion for LIHEAP. Of this amount, $4.51 billion was allocated to regular funds and $200 million to emergency contingency funds. The appropriation for LIHEAP was also subject to an across-the-board rescission of 0.2% applied to all discretionary accounts, bringing the total for the program to about $4.70 billion. In distributing the regular funds to states, tribes, and territories, HHS did not reserve funds for leveraging incentive and REACH grants (which had been $27 million in FY2010). As a result, after reducing the total regular funds for the across-the-board rescission ($9 million) and subtracting funds for training and technical assistance ($300,000), approximately $4.50 billion was distributed to states, tribes, and territories. In addition, $200 million in emergency contingency funds was distributed to all grantees in January. For the total amounts of LIHEAP funds distributed to grantees, see Table A-2. FY2011 Emergency Contingency Funds On January 24, 2011, HHS announced that it would release $200 million in FY2011 emergency contingency funds. All states, the District of Columbia, tribes, and territories received funding. HHS based allocations on each state’s “old” LIHEAP formula percentage (84% of the distribution) as well as the percentage of low-income households in each state that use heating oil or propane to heat their homes (16% of the distribution). For the distributions of funds to the states, see column (b) of Table A-2. Congressional Research Service 3 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table 1. FY2010 and FY2011 Enacted LIHEAP Funding and FY2012 Proposed Funding (dollars in millions) Type of Funding FY2010 Enacted: P.L. 111-117 LIHEAP Regular Funds FY2011 Enacted: P.L. 112-10a FY2012 President’s Request FY2012 Senate Committee -Passed LHE Bill S. 1599 FY2012 LHE Bill Introduced in the House H.R. 3070 4,510 4,501 1,980 3,401 3,392 Training and Technical Assistance 0.3b 0.3b 3 3 2 Leveraging Incentive/ REACH Grants 27c —d 27e 27f —g 590 200 590 200 0 5,100 4,701 2,570 3,601 3,392 Contingency Funds Total Sources: The FY2010 Consolidated Appropriations Act (P.L. 111-117), the FY2011 Department of Defense and Full-Year Continuing Appropriations Act (P.L. 112-10), the HHS FY2011 Operating Plan for the Administration for Children and Families, the FY2012 budget appendix, the FY2012 HHS Congressional Budget Justifications, the Senate Committee-passed version of the FY2012 Departments of Labor, Health and Human Services, and Education (LHE) Appropriations bill (S. 1599), and the version of the LHE bill introduced in the House (H.R. 3070). a. P.L. 112-10 imposed an across-the-board rescission of 0.2% on discretionary accounts. HHS reduced the regular fund distribution by the amount of the rescission (approximately $9 million) to bring the total from $4.51 billion to $4.50 billion. b. The LIHEAP statute gives the HHS Secretary authority to set aside up to $300,000 from the regular fund appropriation for training and technical assistance. 42 U.S.C. § 8628a. c. P.L. 111-117 specified that not more than $27 million be used for leveraging incentive and REACH grants in FY2010. d. HHS did not reserve funds for leveraging incentive and REACH grants in FY2011. e. The amount proposed to be set aside for leveraging incentive and REACH grants in FY2012 was noted in the HHS Congressional Budget Justifications and did not appear in the budget appendix. f. The amount proposed for leveraging incentive and REACH grants appears in the Senate Appropriations Committee Report, S.Rept. 112-84. g. H.R. 3070 does not specify a funding level for leveraging incentive and REACH grants. Program Rules and Benefits Federal LIHEAP requirements are minimal and leave most important program decisions to the states, the District of Columbia, the territories, and Indian tribes and tribal organizations (collectively referred to as grantees) that receive federal funds. The federal government (HHS) may not dictate how grantees implement “assurances” that they will comply with general federal guidelines. Congressional Research Service 4 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Federal Eligibility Standards and Grantee Responsibility Federal law limits LIHEAP eligibility to households with incomes up to 150% of the federal poverty income guidelines (or, if greater, 60% of the state median income). States may adopt lower income limits, but no household with income below 110% of the poverty guidelines may be considered ineligible. States may separately choose to make eligible for LIHEAP assistance any household of which at least one member is a recipient of Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Food Stamps, or certain needs-tested veterans’ programs. LIHEAP assistance does not reduce eligibility or benefits under other aid programs. Within these limits, grantees decide which, if any, assistance categories to include, what income limits to use, and whether to impose other eligibility tests. The statute gives priority for aid to households with the greatest energy needs or cost burdens, especially those that include disabled individuals, frail older individuals, or young children. Federal standards require grantees to treat owners and renters “equitably,” to adjust benefits for household income and home energy costs, and to have a system of “crisis intervention” assistance for those in immediate need. The LIHEAP definition of “energy crisis” leaves room for each state to define the term slightly differently, although generally, crisis assistance is provided to households that are in danger of losing their heating or cooling due to problems with equipment, receipt of a utility shutoff notice, or exhaustion of a fuel supply. 156 Federal rules also require outreach activities, coordination with the 15 The LIHEAP statute defines an energy crisis as “weather-related and supply shortage emergencies and other household energy-related emergencies.” 42 U.S.C. § 8622(3). For the state definitions of “crisis” see the HHS LIHEAP (continued...) Congressional Research Service 7 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Department of Energy’s Weatherization Assistance Program, annual audits and appropriate fiscal controls, and fair hearings for those aggrieved. Grantees decide the mix and dollar range of benefits, choose how benefits are provided, and decide what agencies will administer the program. 167 Kinds of Energy Assistance Available Funds are available for four types of energy assistance to eligible households: • help paying heating or cooling bills; • low-cost weatherization projects (e.g., window replacement or other homeenergy related repair; limited to 15% of allotment unless a grantee has a waiver for up to 25%); • services to reduce need for energy assistance (e.g., needs assessment, counseling on how to reduce energy consumption; limited to 5% of allotment); and • help with energy-related emergencies (winter or summer crisis aid). 6 The LIHEAP statute defines an energy crisis as “weather-related and supply shortage emergencies and other household energy-related emergencies.” 42 U.S.C. § 8622(3). For the state definitions of “crisis” see the HHS LIHEAP Networker FY2007 compilation of definitions, available at http://www.liheap.ncat.org/tables/FY2007/ CrisisDef2007.doc. 7 Information regarding state LIHEAP program characteristics and contacts is available at http://www.liheap.ncat.org/ sp.htm. Congressional Research Service 5 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Use of Funds The greatest share of LIHEAP funding is used to offset home heating costs. In FY2007FY2008, approximately 52.853.3% of all LIHEAP funds was used to provide heating assistance; all states (including the District of Columbia) provided some heating assistance.178 Nearly all states also offered crisis assistance, most of which is used for heating needs. In FY2007, 17.9FY2008, 19.0% of LIHEAP funds was used to provide winter/year-round crisis assistance in 48 states and summer crisis assistance in six states.189 Also in FY2007, 3.4FY2008, 3.1% of funds went for cooling aid (offered by 15 states); 10.1% of total LIHEAP funds was used for weatherization services (provided by 4544 states); 7.88.4% of available funds went for administration and planning purposes (51 states), and 1.32% of the FY2007FY2008 funds was used to offer services to reduce the need for energy assistance (provided by 2423 states).1910 Households Served In FY2008FY2009, it is estimated that 57.4 million households received LIHEAP heating and/or winter crisis assistance. 20 This estimate attempts to remove duplication among households that received (...continued) Networker FY2007 compilation of definitions, available at http://www.liheap.ncat.org/tables/FY2007/ CrisisDef2007.doc. 16 Information regarding state LIHEAP program characteristics and contacts is available at http://www.liheap.ncat.org/ sp.htm. 17 Based on state-reported total LIHEAP obligations for FY2007 of $2.5 billion. U.S. Department of Health and Human Services, Administration for Children and Families, Low Income Home Energy Assistance Program Report to Congress for Fiscal Year 2007, November 22, 2010, p. 19 (hereinafter, FY2007 LIHEAP Report to Congress). 18 Ibid., Table III-5, pp. 40-41. 19 Ibid., p. 19. 20 U.S. Department of Health and Human Services, Administration for Children and Families, LIHEAP Home Energy Notebook for Fiscal Year 2008, May 2010, p. 30 (hereinafter, FY2008 LIHEAP Home Energy Notebook). Congressional Research Service 8 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding both heating and winter crisis assistance. The number of households receiving heating and/or winter crisis assistance in FY2008 increased from FY2007, when an estimated 5.3 million households were served. Shortly after LIHEAP began, in FY1983, approximately 6.8 million households received heating and/or winter crisis assistance. Since that time, the number of households receiving assistance declined generally until FY2000, reaching a low of 3.6 million recipients in FY1999. After FY2000, the number of recipient households began increasing again to the current level. (See 11 This estimate attempts to remove duplication among households that received both heating and winter crisis assistance. The number of households receiving heating and/or winter crisis assistance in FY2009 increased by 2 million compared to FY2008, when an estimated 5.4 million households were served. This was due to an increase in LIHEAP funding that occurred in FY2009, with Congress appropriating $5.10 billion, compared to $2.59 billion in FY2008. This represents the largest number of households served since the program was enacted. Shortly after LIHEAP began, in FY1983, approximately 6.8 million households received heating and/or winter crisis assistance. Since that time, the number of households receiving assistance declined generally until FY2000, reaching a low of 3.6 million recipients in FY1999. After FY2000, the number of recipient households began increasing again to the current level. (See Table 2.) The same trend can be seen in the percentage of federally eligible households that receive heating and/or winter crisis assistance. In FY1983, the 6.8 million households that received funds represented 31% of federally eligible households. By FY1999, the number of federally eligible households receiving LIHEAP heating and/or winter crisis assistance had dropped to 12%. Since FY2003, the percentage of federally eligible households receiving assistance has hovered between 14% and 16%, settling at 16% for the last three fiscal years for which data are available (FY2006 through FY2008). The number of households receiving cooling and/or summer crisis assistance reached a high point of 700,000 recipients in both FY2002 and FY2006. However, in FY2007 and FY2008, cooling/summer crisis assistance nearly reached this level, with approximately 600,000 beneficiaries in each year.21 HHS estimates that of all households receiving LIHEAP heating assistance, about 32% had at least one member 60 years of age or older; about 31% had at least one member with a disability; and some 22% included at least one child five years of age or younger. 22hovered between 14% and 16%, settling at 16% for FY2006 through FY2008. However, in FY2009, with increased funding for LIHEAP, 21% of those households statutorily eligible for LIHEAP were served. Note that due to a provision in the FY2009 appropriations bill (P.L. 110-329) that allowed states to increase household eligibility to 75% of state median income, only 16% of those federally eligible were served in FY2009.12 8 Based on state-reported total LIHEAP obligations for FY2008 of $2.7 billion. U.S. Department of Health and Human Services, Administration for Children and Families, Low Income Home Energy Assistance Program Report to Congress for Fiscal Year 2008, September 6, 2011, p. 16 (hereinafter, FY2008 LIHEAP Report to Congress). 9 Ibid., Table I-8, pp. 17-19 and Table III-11, pp. 45-46. 10 Ibid., p. 16. 11 U.S. Department of Health and Human Services, Administration for Children and Families, LIHEAP Home Energy Notebook for Fiscal Year 2009, September 2011, p. 30 (hereinafter, FY2009 LIHEAP Home Energy Notebook). 12 Ibid. Congressional Research Service 6 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Prior to FY2009, the number of households receiving cooling and/or summer crisis assistance reached a high point of 700,000 recipients in FY2006. In FY2009, with increased funding, 900,000 households received cooling assistance.13 HHS estimates that of all households receiving LIHEAP heating assistance in FY2008, about 32% had at least one member 60 years of age or older; about 32% had at least one member with a disability; and some 21% included at least one child five years of age or younger.14 Benefit Levels Apart from federal funding levels, a variety of factors help determine to what extent LIHEAP is able to meet its stated goal of assisting low-income households in meeting their home energy needs. These include the following: • the cost of energy for a given household (influenced by energy price fluctuations and variation in kinds of fuels used); • the amount of energy consumed (influenced by severity of the weather, energy efficiency of housing, and expected standards of comfort); and • the number of eligible households (influenced by population size and health of the economy). In FY2008FY2009, the constant dollar value of the average LIHEAP heating and winter crisis benefit increased by about $1258 from the previous year, FY2007. Measured in constant 1981 dollars (the year in which LIHEAP was enacted), the average LIHEAP benefit per household in FY2008 was $151, up from $139.23 However $209, up from $151 in FY2008.15 Until FY2009, when funding for the program increased by more than $2 billion compared to the previous fiscal year, the general trend in the constant dollar value of LIHEAP benefits since the program’s beginning hashad been aone of decline. In FY1983, the average heating and winter crisis benefit, measured in constant 1981 dollars, was $209. By FY1998, it had declined to $117, 21 See the FY2008 LIHEAP Home Energy Notebook, p. 30 and the FY2007 LIHEAP Home Energy Notebook, p. 30. FY2007 LIHEAP Report to Congress, p. 55. 23 FY2008 LIHEAP Home Energy Notebook, p. 32. 22 Congressional Research Service 9 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding declined to $117, and although the average benefit reached $187 in FY2001, it generally declined again thereafter, with the exception of $171 in FY2006, when funding was higher than in the immediately immediately preceding and subsequent years. (See Table 2.) LIHEAP also covers a Through FY2008 (prior to the FY2009 increase in funding), LIHEAP has generally covered a smaller portion of home heating bills than in earlier years. In FY2007FY2008, the LIHEAP benefit covered 4543% of the heating costs of LIHEAP-recipient households, compared to 54% in 1981.24 16 Between FY1990 and FY2007FY2008, the percentage of home heating bills covered by the average LIHEAP benefit has ranged from 40% to 73% (a high reached in FY2000). The constant dollar value of the cooling and summer crisis benefit, which is available to a more limited number of households in far fewer states, has fluctuated over the years. While the average benefit in 1981 was $129, in the years that followed the average benefit in constant 1981 dollars declined as low as $57 in FY1983 and $49 in FY1990. However, the average benefit grew from FY1990 levels, and by FY2000 and FY2001 the average benefit had reached $107. In recent years, between FY2004 and FY2008, the constant dollar value has ranged from $91 (in FY2004 and FY2005) up to $105 in FY2006, and then down to $74 and $72 in FY2007 and FY2008 respectively. 25 24 25 FY2007 LIHEAP Report to Congress, p. 42. For the most recent constant dollar value funding levels, see the FY2008 LIHEAP Home Energy Notebook, p. 32. Congressional Research Service 1013 See the FY2009 LIHEAP Home Energy Notebook, p. 31, and the FY2006 LIHEAP Home Energy Notebook, p. 30. FY2008 LIHEAP Report to Congress, p. 49. 15 FY2009 LIHEAP Home Energy Notebook, p. 33. 16 FY2008 LIHEAP Report to Congress, p. 38. 14 Congressional Research Service 7 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding years, between FY2004 and FY2008, the constant dollar value has ranged from $72 (in FY2008) to $105 (in FY2006). In FY2009, when funding for LIHEAP increased significantly, the constant dollar value of cooling benefits rose to $142.17 17 FY2009 LIHEAP Home Energy Notebook, p. 33. Congressional Research Service 8 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table 2. LIHEAP Heating/Winter Crisis Aid for Select Years Fiscal Years 1983 1990 1993 1998 1999 2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2004 2005 2006 2007 6.8 5.8 5.6 3.9 3.6 3.9 4.8 4.4 4.8 5.0 5.3 5.5 5.3 5.4 Number federally eligible (millions) 22.2 25.4 28.4 29.1 29.0 29.4 30.4 32.7 34.5 35.4 34.8 34.4 33.6 33.5 Federally eligible and receiving aid 31% 23% 20% 13% 12% 13% 16% 13% 14% 14% 15% 16% 16% 16% Households Number receiving aid (millions) Benefit Levels Average benefit (nominal $) $225 $209 $201 $213 $237 $270 $364 $291 $312 $277 $304 $385 $320 $362 Average benefit (constant 1981 $)ab $209 $147 $129 $117 $128 $140 2008 2009 5.3 5.5 5.3 5.4 7.4 35.4 34.8 34.4 33.6 33.5 35.0a 14% 14% 15% 16% 16% 16% 21% $291 $312 $277 $304 $385 $320 $362 $502 $187 $147 $154 $132 $140 $171 $139 $151 $209 Households Number receiving aid (millions) Benefit Levels LIHEAP Coverage LIHEAP household heating expenditures 7.0% as a percentage of income of income 7.0% 5.2% 7.1% 5.2% 5.2% 5.2% 7.4% 6.2% 8.6% 8.4% 9.4% 11.2% 6.5% 7.1% Percentage of heating costs offset by 6.9% Percentage of heating costs offset by LIHEAP benefit 54% 51% 49% —bc —b 73% 68% 64% 48% 43% 40% 45% —c LIHEAP Coverage 54% 42% Source: Data on the percentage of heating costs offset and the annual heating costs of LIHEAP households for FY1983, FY1990, and FY1993 come from the LIHEAP Reports to Congress for FY1983 through FY2007. Data regarding benefit levels, average heating expenditures, and annual heating expenditures for FY2000 to the present are drawn from the LIHEAP Home Energy Notebooks for FY1998 through FY2008. ac 73% 68% 64% 48% 43% 40% 45% 43% —d 42% Source: Data regarding households assisted, benefit levels, and heating expenditures as a percentage of income for FY2000 to the present are drawn from the LIHEAP Home Energy Notebooks for FY1998 through FY2009. Data for FY1983, FY1990, and FY1993 come from the LIHEAP Reports to Congress. a. In FY2009, the appropriations bill (P.L. 110-329) gave states the option of increasing LIHEAP household eligibility to 75% of state median income. This meant that approximately 45 million households were eligible for LIHEAP in FY2009. However, for the sake of comparison, this table includes only those households federally eligible under the LIHEAP statute (those with incomes at or below the greater of 150% of poverty or 60% of state median income). b. The constant dollars are based on the 1981 value of the benefit (using the CPI-U index). bc. CRS does not have data for heating costs offset in FY1998 and FY1999. c. HHS has not yet released a report to Congress for FY2008d. As of the date of this report, HHS had not released the FY2009 LIHEAP Report to Congress, the source for heating costs offset by the LIHEAP benefit. Congressional Research Service 119 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Funds and Their Distribution The LIHEAP statute authorizes regular funds appropriations, which are allocated to all states on the basis of a statutory formula, and contingency fund appropriations, which are allocated to one or more states at the discretion of the Administration. The statute also authorizes a smaller amount of funds for incentive grants to states that leverage non-federal resources for their energy assistance programs. Regular Funds Regular funds are distributed to states according to a three-tier formula in the LIHEAP statute and based on the level of funds appropriated in a given fiscal year.2618 The three-tier formula is the result of changes to the LIHEAP statute in 1984 through the Human Services Reauthorization Act (P.L. 98-558). Prior to the changes in P.L. 98-558, LIHEAP allotments to the states were based largely on home heating needs with minimal consideration of cooling costs, and did not provide for the use of updated data, including population and energy costs. The new distribution formula provides that in determining state allotments the Department of Health and Human Services shall use “the most recent satisfactory data available” and consider home energy costs of low-income households (not simply all households, as was previously the case). These changes to the calculation of state allotments mean that some states will receive a smaller percentage share of regular funds, while some will receive a larger share. In order to offset the losses to certain states resulting from the formula change, and “prevent severe disruption to programs,”2719 Congress implemented two “hold harmless” provisions in P.L. 98-558 to prevent states from losing too much funding. This resulted in the three-tier current law formula, which is described in more detail below. Tier I The Tier I formula is used to allocate funds when the total LIHEAP regular fund appropriation is less than $1.975 billion. Neither hold harmless provision applies at the Tier I level, and HHS allocates funds according to the allotment percentages used under the pre-1984 formula. The old formula is used because the amount of appropriated funds required to trigger the new formula is $1.975 billion. The LIHEAP statute stipulates that for FY1986 and succeeding years, no state shall receive less money than it would have received in FY1984 had the LIHEAP funding in that year been $1.975 billion. 2820 According to HHS, then, the LIHEAP statute requires use of the old allotment percentages when funding is less than $1.975 billion.2921 Until FY2006, funding levels 2618 States are defined to include the District of Columbia. Indian tribes receive funds out of state allotments that are proportionate to their share of LIHEAP-eligible households in the state. Before state allotments are made, the statute provides that at least one-tenth (but not more than one-half) of 1% of the total appropriation must be set aside for energy assistance in American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. 2719 Report of the Committee on Energy and Commerce (H.Rept. 98-139, Part 2), to accompany H.R. 2439, May 15, 1984, p. 13. 2820 42 U.S.C. § 8623(a)(2)(A). 2921 U.S. Department of Health and Human Services, Low Income Home Energy Assistance Program: Report to Congress for FY1987, p. 133. The statutory provision that provides for use of the old formula is 42 U.S.C. § 8623(a)(3). Congressional Research Service 1210 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding for LIHEAP only twice exceeded the $1.975 billion level, in FY1985 and FY1986. Thus, from FY1987 through FY2005, states continued to receive the same allotment percentages they received under the previous LIHEAP formula. Tier II For appropriations above $1.975 billion and up to $2.25 billion, the Tier II rate applies, and HHS uses the formula enacted in 1984 to calculate state allotments. Under the Tier II formula, a hold harmless level applies, and no state may receive less funding than it would have received under the Tier I distribution rate as it was in effect for FY1984, assuming a $1.975 billion appropriation.3022 State allotment percentages may be different, however. To ensure that states receive their hold harmless levels of funding, those states that gain the most funding under the new formula must have their percentage share of funds ratably reduced to bring other states up to the hold harmless level. 3123 Tier III The Tier III formula applies to funding levels at or above $2.25 billion. The Tier III rate uses the Tier II methodology to distribute funds, but adds a second hold-harmless requirement, a hold harmless rate. States that would receive less than 1% of a $2.25 billion appropriation must have their funds allocated using the rate that would have been used at a hypothetical $2.14 billion appropriation (if this rate is greater than the calculated rate at $2.25 billion). In both the Tier II and Tier III rates, a state will not be allocated less funds than the state received under the Tier I distribution as it was in effect in FY1984 (had the appropriation level been $1.975 billion). Contingency Funds The statute currently provides an annual authorization of $600 million for LIHEAP contingency funds (contingency funds are authorized indefinitely).3224 Appropriated contingency funds may only be released at the discretion of HHS and may be allocated to one or more states according to their needs. The statute authorizes the appropriation of contingency funds “to meet the additional home energy assistance needs of one or more states arising from a natural disaster or other emergency.” The term “emergency” is defined in the LIHEAP statute to include a natural disaster; a significant home energy supply shortage or disruption; significant increases in the cost of home energy, home energy disconnections, participation in public benefit programs, or unemployment; or an “event meeting such criteria as the [HHS] Secretary may determine to be appropriate.” 3022 Since this language was enacted, Congress further provided that HHS could use regular LIHEAP funds appropriations for Training and Technical Assistance (P.L. 99-425). It also authorized Leveraging Incentive Grants (P.L. 101-501) and the REACH option (P.L. 103-252)—both of which it generally funds out of regular LIHEAP funds. These debits on the regular funds account were not in place for FY1984. Because they affect the level of regular funds available for state grant allotments by a little more than $25 million, it is possible but not certain that HHS would not implement the newer formula before a regular funds appropriation level of approximately $2.0028 billion. 3123 42 U.S.C. § 8623(a)(3). 3224 42 U.S.C. § 8621(e). Congressional Research Service 1311 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Leveraging Incentive and REACH Funds In 1990, P.L. 101-501 amended the program statute to provide a separate funding authorization of $50 million ($30 million if regular funds appropriated are under $1.4 billion) for incentive grants to states that leverage non-federal resources for their LIHEAP programs.3325 Such resources might include negotiated lower energy rates for low-income households or separate state funds. States are awarded incentive funds in a given fiscal year on the basis of a formula that takes into account their previous fiscal year success in securing non-federal resources for their energy assistance program. In 1994 (P.L. 103-252) the statute was further amended to provide that of any incentive funds appropriated, up to 25% may be set aside for the Residential Energy Assistance Challenge Option (REACH). Under the REACH option states may be awarded competitive grants for their efforts to increase efficiency of energy usage among low-income families and to reduce those families’ vulnerability to homelessness and other health and safety risks due to high energy costs. The funding authorization for Leveraging Incentive and REACH grants is separate from regular funds, and the programs were not reauthorized in P.L. 109-58. In practice, however, Congress has funded these initiatives at $22 million to $30 million with dollars set-aside out of annual regular fund appropriations. Other Funds States are allowed to carry over unused funds from a previous fiscal year (limited to 10% of funds awarded a state). A diminishing amount of money may also be available from previously settled claims of price control violation by oil companies. 3426 In addition, the Social Services Block Grant program allows states to transfer up to 10% of funds to provide low-income home energy assistance, 3527 while the Temporary Assistance for Needy Families program gives states the discretion to use funds for home heating and cooling costs.3628 Legislative History Since it was created by the Low Income Home Energy Assistance Act of 1981 (Title XXVI of P.L. 97-35), the LIHEAP program has been reauthorized or amended seven times. The legislation and some of the significant changes made are briefly discussed in the following paragraphs. In 1984, P.L. 98-558, established a new formula by which regular LIHEAP funds are to be distributed in every year (after FY1985) in which regular appropriations exceed $1.975 billion. This level of funding was exceeded in FY1986 and again in FY2006. In 1986, P.L. 99-425 extended the program with few changes. In 1990, P.L. 101-501 created the Incentive Program for Leveraging Non-Federal Resources and authorized a July to June program year (or forward funding) for LIHEAP to allow state program directors to plan for the fall/winter heating season with knowledge of available money. This program year language was 3325 42 U.S.C. § 8621(d). FY2004 LIHEAP Report to Congress, p. 11. For FY2004, $2 million in oil overcharge funds was available to one state. 3527 42 U.S.C. § 1397a(d). 3628 42 U.S.C. § 604(a)(1). 3426 Congressional Research Service 1412 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding subsequently removed, although the statute now states that money appropriated in a given fiscal year is to be made available for obligation in the following fiscal year. Congress last provided advance appropriations for LIHEAP in the FY2000 appropriations cycle. In 1993, P.L. 103-43 extended the authorization of LIHEAP for one year but made no other changes. In 1994 (P.L. 103-252) Congress stipulated that LIHEAP benefits and outreach activities target households with the greatest home energy needs (and costs), and it enacted a separate and permanent contingency funding authorization of $600 million for each fiscal year. The 1994 law also established the competitive REACH grant option. In 1998, P.L. 105-285 authorized annual regular funding for each of FY2002-FY2004 at $2 billion and made explicit a wide variety of situations under which HHS is authorized to release LIHEAP contingency funds. In 2005, the Energy Policy Act (P.L. 109-58) reauthorized the program and raised the LIHEAP regular funds authorization level for FY2005 through FY2007 to $5.1 billion. It also explicitly permitted the purchase of renewable fuels as part of providing LIHEAP assistance; required the Department of Energy to report on use of renewable fuels in provision of LIHEAP aid; and required HHS to report (within one year of the legislation’s enactment) on ways that the program could more effectively prevent loss of life due to extreme temperatures. The law also allowed the Secretary of the Interior, when disposing of royalty-in-kind oil and gas taken as payment from lessees using federal land, to grant a preference for the purpose of providing additional resources to support federal low-income energy assistance programs. (Lessees of federal land may pay royalties to the U.S. government in oil and natural gas rather than cash payments.) However, the Government Accountability Office issued a decision determining that the law did not give the Interior Department sufficient authority to grant such a preference. 3729 Because of a provision in existing law that the Interior Department cannot sell oil and gas obtained as in-kind royalties for less than market price,3830 the provision in P.L. 109-58 does not allow a price preference. 37 29 U.S. Government Accountability Office, Department of Interior—Royalty-in-Kind Oil and Gas Preferences, B307767, November 13, 2006, available at http://www.gao.gov/decisions/appro/307767.pdf. 3830 42 U.S.C. § 15902(b)(3)(A). Congressional Research Service 1513 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Appendix. Tables Showing LIHEAP Funding Levels In this Appendix are fourappendix are three tables that show how LIHEAP funds have been distributed to the states, tribes, and territories during the last severalrecent fiscal years, as well as a table showing historical funding levels from the time the program was created to the present. Table A-1 shows how LIHEAP regular funds have been distributed thus far under a series of FY2011 Continuing Resolutions (CRs). For a more comprehensive discussion of FY2011 funding levels, see the section of this report entitled “LIHEAP Funding Under the FY2011 Continuing Resolutions.” • Column (a) of Table A-1 shows the amount of regular funds that states and tribes received as of January 2011. In column (a), thefirst-quarter regular fund distributions to states, tribes, and territories under the FY2012 continuing resolutions. The first number shows the total amount of regular funds distributed to each state and the tribes within the state, while the second number, in parenthesis and italics, breaks out the amount set aside for tribes within each state. Tribes may operate their own LIHEAP programs if they wish. Their allotments are taken from the state’s award of LIHEAP regular and contingency funds based on the number of LIHEAP-eligible households in the tribe. Not all states have funds set aside for tribes. • Column (b) shows the amount of emergency contingency funds allocated to each state and tribe on January 24, 2011, when HHS announced the release of $200 million. • Column (c) shows total FY2011 funding to the states as of the date of this report. • Finally, allocations to Allocations for the territories are in the next-to-last row, after the states. Table A-2 provides a specific breakdown of LIHEAP funds distributed in FY2010. • As described for Table A-1, column (a) of Table A-2 shows the FY2010 regular fund distributions to states and to tribes within those states. The first number represents total funds distributed to the state (including tribal funds), while the second number breaks out the amount set aside for the tribes within the states (if any). • Columns (b) shows the January 2010 contingency fund distribution of $490 million to states and tribes. The first number shows the total amount of contingency funds distributed to states and the tribes within the states, while the second number, in parenthesis and italics, breaks out the total amount of contingency funds set aside for tribes in each state. • Column (c) shows the total amount of contingency funds distributed to states and tribes in September 2010—approximately $101 million. • Column (d) shows total funds, regular and contingency, distributed to the states in FY2010 Table A-2 shows how LIHEAP regular funds and emergency contingency funds were distributed in FY2011. • Column (a) of Table A-2 shows the amount of regular funds distributed to states and tribes within the states. • Column (b) shows the amount of emergency contingency funds allocated to each state and tribe on January 24, 2011, when HHS announced the release of $200 million. • Column (c) shows total FY2011 funding to the states. • Finally, allocations to the territories are in the next-to-last row, after the states. Table A-3 shows the total amount of LIHEAP regular and contingency funds distributed to each state from FY2006 through FY2010; the totals include funds distributed to tribes within the states. Congressional Research Service 16 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table A-4 provides historic funding levels for LIHEAP from the time the program was initially funded, in FY1982, through FY2011. The table shows authorization levels for LIHEAP regular funds, Administration budget requests for both regular and contingency funds, the total amount of regular and contingency funds appropriated in each fiscal year, and the total amount of contingency funds distributed. Congressional Research Service 1714 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table A-1. FY2011FY2012 LIHEAP Regular and Contingency Fund Allotments to States,Tribes, and Territories Under the FY2011 Continuing Resolution (P.L. 111-322)Continuing Resolutions (dollars in millions) State Regular Funds Emergency Contingency Funds Total State & Tribal Regular Fund Allotments: $3.95 billion (tribal set-aside, if any) (a) January 2011: Regular Funds State Alabama Total State & Tribal ContingencyRegular Fund Allotments: $200 million (tribal set-aside, if any) (b) Total Funds Distributed: $4.15 Billion (c) Alabama 52.352 (0.360) 2.151 (0.015) 54.503 Alaska 22.463 (8.771) 1.060 (0.414) 23.524 Arizona 16.789 (1.371) 0.923 (0.075) 17.712 Arkansas 34.868 California 119.615 Colorado 50.855 2.896 53.751 Connecticut 95.903 4.665 100.569 Delaware 13.524 0.682 14.206 District of Columbia 13.842 0.590 14.433 Florida 98.255 Georgia 84.971 2.697 87.668 Hawaii 3.031 0.208 3.239 Idaho 23.986 Illinois 230.370 Indiana 82.429 Iowa 67.076 3.452 70.528 Kansas 41.310 1.597 42.908 Kentucky 57.124 2.776 59.900 Louisiana 46.183 1.731 47.914 Maine 53.294 Maryland 77.067 Massachusetts 173.644 Michigan 1.416 (1.018) (0.025) (1.164) 8.711 3.069 1.147 36.283 (0.074) (0.001) (0.056) 10.228 (0.007) (1.948) 4.834 3.002 101.324 25.132 240.599 a (0.110) 3.403 87.264 56.297 80.470 8.676 (0.003) 182.320 184.922 10.131 (0.058) 195.054 Minnesota 142.979 7.318 Mississippi 38.702 Missouri 70.677 Montana 31.260 Nebraska 39.149 Congressional Research Service (0.069) 128.326 (0.073) 1.801 150.297 (0.003) 4.597 (5.464) 1.342 1.708 40.503 75.275 (0.235) 32.601 40.858 18 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding State Regular Funds Emergency Contingency Funds Total State & Tribal Regular Fund Allotments: $3.95 billion (tribal set-aside, if any) (a) January 2011: Total State & Tribal Contingency Fund Allotments: $200 million (tribal set-aside, if any) (b) Total Funds Distributed: $4.15 Billion (c) Nevada 15.427 0.406 15.833 New Hampshire 33.747 1.795 35.542 New Jersey 175.298 7.801 183.098 New Mexico 22.115 (1.761) 1.094 (0.087) 23.210 474.119 (0.253) 26.125 (0.014) 500.243 North Carolina 73.733 (1.311) 4.942 (0.088) 78.675 North Dakota 34.325 (7.414) 1.467 (0.317) 35.792 New York Ohio 110.359 9.477 119.836 Oklahoma 42.696 (3.910) 1.661 (0.152) 44.357 Oregon 44.873 (0.711) 2.282 (0.036) 47.156 Pennsylvania 268.085 14.008 Rhode Island 29.348 South Carolina 23.402 South Dakota 27.028 Tennessee 40.787 2.796 43.582 Texas 178.793 5.001 183.795 Utah 28.603 Vermont 22.765 1.284 24.049 Virginia 75.830 4.375 80.205 Washington 73.804 West Virginia 38.467 1.739 40.207 Wisconsin 128.702 6.652 135.354 Wyoming 12.804 (0.083) 1.484 282.093 (0.004) 1.740 (4.806) (0.472) (3.003) (0.411) 1.265 1.309 3.717 30.832 25.142 (0.225) (0.022) (0.151) 28.293 29.912 77.521 0.540 (0.018) 13.344 199.772 (2.158) 4,141.525 Subtotal to states 3,941.753 Territories 5.573 0.211 5.784 3,947.326 200.000 4,147.310 Total (45.461) Source: Funding levels are from the U.S. Department of Health and Human Services (HHS), Administration for Children and Families. a. The tribal allotment for Indiana was less than $1,000. Congressional Research Service 19 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table A-2. FY2010 LIHEAP Regular and Contingency Fund Allotments to States,Tribes, and Territories (dollars in millions) Contingency Funds Regular Funds State Total State & Tribal Regular Fund Allotments: $4.48 Billion (tribal set-aside, if any)a (a) January 2010: State & Tribal Contingency Funds: $490 Millionb (tribal set-aside, if any) (b) September 2010: State & Tribal Contingency Funds: $101 Millionc (tribal set-aside, if any) (c) Total Funds Distributed: $5.073 Billion (d) Alabama 58.799 (0.340) 9.353 (0.064) 0.865 (0.006) 69.016 Alaska 25.308 (9.025) 2.322 (0.828) 0.552 (0.197) 28.182 Arizona 33.729 (2.558) 3.275 (0.248) 0.418 (0.032) 37.422 Arkansas 35.773 California 202.749 Colorado 64.257 4.800 1.617 70.675 Connecticut 96.942 8.793 2.110 107.845 Delaware 15.189 1.378 0.280 16.847 District of Columbia 13.992 1.747 0.328 16.067 3.568 (1.720) (0.028) 26.827 (0.228) 234.215 129.014 Georgia 87.252 13.758 1.082 102.091 Hawaii 6.023 0.456 0.109 6.589 Idaho 26.939 Illinois 232.865 Indiana 104.151 (0.126) 26.837 (0.007) 10.780 1.368 (0.039) 110.354 2.587 (0.004) 4.639 40.000 Florida (1.307) 17.292 0.660 0.631 d (0.031) 5.840 (0.001) 4.848 2.644 30.158 265.542 d Iowa 67.803 Kansas 41.757 Kentucky 57.742 8.714 1.376 67.832 Louisiana 51.870 6.299 0.884 59.054 Maine 54.309 Maryland 82.002 (0.079) (1.985) 3.644 4.752 1.874 117.575 (0.007) (0.174) 6.388 0.861 1.367 74.524 (0.002) (0.050) 1.616 46.262 60.428 90.005 Massachusetts 175.524 (0.070) 16.857 (0.007) 4.221 (0.002) 196.602 Michigan 233.524 (1.202) 37.379 (0.192) 5.545 (0.029) 276.447 Minnesota 144.528 Mississippi 39.661 Missouri 95.257 Montana 31.598 (5.524) 2.192 (0.383) 0.740 (0.129) 34.530 Nebraska 39.573 (0.040) 2.393 (0.002) 0.927 (0.001) 42.893 Nevada 15.841 11.567 (0.075) 6.248 3.995 (0.012) 9.555 Congressional Research Service 2.181 0.741 160.089 (0.001) 2.333 0.196 46.650 107.145 18.218 20 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Regular Funds Total State & Tribal Regular Fund Allotments: $4.48 Billion (tribal set-aside, if any)a (a) State New Hampshire Contingency Funds January 2010: State & Tribal Contingency Funds: $490 Millionb (tribal set-aside, if any) (b) September 2010: State & Tribal Contingency Funds: $101 Millionc (tribal set-aside, if any) (c) Total Funds Distributed: $5.073 Billion (d) 34.112 2.512 0.799 37.423 New Jersey 177.196 18.341 3.918 199.455 New Mexico 22.355 (1.780) 1.861 (0.148) 0.524 (0.042) 24.739 New York 479.526 (0.255) 45.029 (0.024) 12.794 (0.014) 537.348 North Carolina 109.339 (1.945) 15.893 (0.283) 1.907 (0.034) 127.139 North Dakota 34.325 (7.026) 1.538 (0.315) 0.804 (0.165) 36.668 Ohio 223.108 24.760 5.166 253.035 Oklahoma 47.902 (4.336) 4.493 (0.414) 0.795 (0.073) 53.190 Oregon 45.355 (0.715) 5.421 (0.085) 1.254 (0.020) 52.029 Pennsylvania 282.279 Rhode Island 29.666 South Carolina 47.311 South Dakota 27.878 Tennessee 72.092 11.413 1.394 84.899 Texas 183.593 26.938 2.276 212.807 Utah 32.094 Vermont 25.568 1.773 0.599 27.941 100.856 7.103 1.968 109.927 Virginia 26.206 (0.084) 4.084 6.872 (0.012) 8.234 (4.957) (0.499) 2.158 0.687 (0.259) (0.034) 0.752 (0.116) (0.012) 35.003 3.568 0.911 43.363 Wisconsin 130.096 11.522 3.596 145.214 Wyoming 12.850 Territories Total 0.974 (0.219) 0.301 489.391 (4.367) 100.542 (0.084) 29.989 38.884 (48.800) 2.062 56.232 West Virginia 4,476.302 (0.298) 0.653 34.444 74.603 (0.210) 7.324 (0.002) Washington Subtotal to States and Tribes (3.035) 1.458 0.695 315.357 (0.003) 1.082 83.989 14.124 5,066.234 6.070 0.609 0.136 6.816 4,482.372 490.000 100.678 5,073.050 Source: Compiled by the Congressional Research Service (CRS) using U.S. Department of Health and Human Services (HHS) data. a. Tribes may operate their own LIHEAP programs if they wish. Their allotments are taken from the state’s award of LIHEAP regular and contingency funds based on the number of LIHEAP-eligible household in the tribe. In columns (a), (b), and (c) of this table, the first number represents the total amount of regular or contingency funds awarded to each state, including any amounts for tribes, while the number in parenthesis is the total amount allotted to a tribe or tribes within the state. b. In January 2010, HHS awarded $450 million in contingency funds to all states, tribes, and territories based on their share of FY2010 formula grants weighted by the unemployment rate. Also in January 2010, HHS Congressional Research Service 21 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding awarded $40 million in contingency funds to 14 states where the number of heating degree days (HDDs) from November 1, 2009, through January 9, 2010, exceeded the 30-year norm by at least 5%. These states then received amounts based on the ratio of the product of total HDDs, the number of households at or below 125% of poverty, and the unemployment rate to the sum of the products for all 14 states. c. In September 2010, HHS awarded $101 million to all states, tribes, and territories based on the proportions of the “old” LIHEAP formula. d. Tribes in Florida and Indiana received funding of less than $1,000. Congressional Research Service 221.72 billion (tribal set-aside, if any) 7.594 (0.110) Alaska 10.156 (3.966) Arizona 2.488 (0.628) Arkansas 9.585 California 85.357 Colorado 29.761 Connecticut 36.781 Delaware 4.340 District of Columbia 6.030 (0.726) Florida 23.851 Georgia 18.858 Hawaii 0.528 Idaho 7.539 Illinois 107.460 Indiana 48.655 Iowa 32.667 Kansas 15.836 Kentucky 23.987 Louisiana 15.410 Maine 23.877 Maryland 29.727 Massachusetts 77.662 (0.031) Michigan 70.052 (0.782) Minnesota 73.502 Mississippi 12.924 Missouri 42.924 Montana 12.434 Nebraska 15.258 Nevada (0.563) (0.006) (0.919) (0.026) (2.380) 3.614 New Hampshire 14.700 New Jersey 72.097 Congressional Research Service (0.006) 15 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Regular Funds State New Mexico Total State & Tribal Regular Fund Allotments: $1.72 billion (tribal set-aside, if any) 9.633 (0.767) 235.408 (0.125) North Carolina 35.083 (0.624) North Dakota 14.792 (3.195) Ohio 75.051 Oklahoma 13.927 (1.359) Oregon 23.066 (0.539) New York Pennsylvania 113.138 Rhode Island 12.784 South Carolina 6.651 South Dakota 11.493 Tennessee 21.599 Texas 37.475 Utah 8.829 Vermont 11.018 Virginia 24.776 Washington 37.941 West Virginia 14.110 Wisconsin 66.162 Wyoming 5.537 Subtotal to states Territories Total 1,714.124 (0.036) (2.136) (0.256) (1.547) (0.173) (20.901) 2.509 1,716.633 Source: Funding levels are from the U.S. Department of Health and Human Services (HHS), Administration for Children and Families. Note: The table does not include approximately $36,000 in recovered no-year funds that were released at the same time as FY2012 first-quarter funds. Congressional Research Service 16 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table A-2. FY2011 LIHEAP Regular and Contingency Fund Allotments to States, Tribes, and Territories (dollars in millions) State Regular Funds Emergency Contingency Funds Total State & Tribal Regular Fund Allotments: $4.50 billion (tribal set-aside, if any) (a) January 2011: Total State & Tribal Contingency Fund Allotments: $200 million (tribal set-aside, if any) (b) Total Funds Distributed: $4.70 Billion (c) Alabama 59.419 (0.409) 2.151 (0.015) 61.570 Alaska 23.667 (9.340) 1.060 (0.414) 24.727 Arizona 32.922 (2.707) 0.923 (0.075) 33.844 Arkansas 34.985 California 202.843 Colorado 62.139 2.896 65.035 Connecticut 98.254 4.665 102.919 Delaware 15.172 0.682 15.854 District of Columbia 14.051 0.590 14.641 1.416 (1.726) (0.028) 8.711 (0.074) 107.714 Georgia 85.164 2.697 87.862 Hawaii 6.027 0.208 6.235 Idaho 27.052 Illinois 238.712 Indiana 102.749 1.147 (0.001) 211.554 Florida (1.316) 3.069 36.401 (0.056) 10.228 (0.007) 4.834 110.783 28.199 248.941 a 107.584 Iowa 68.137 3.452 71.589 Kansas 42.327 1.597 43.924 Kentucky 58.335 2.776 61.111 Louisiana 53.164 1.731 54.895 Maine 53.539 Maryland 85.523 (2.074) 3.002 (0.110) 3.403 56.541 88.926 Massachusetts 175.178 (0.074) 8.676 (0.003) 183.854 Michigan 228.294 (1.186) 10.131 (0.058) 238.425 Minnesota 145.241 Mississippi 38.834 Missouri 95.596 Montana 31.730 Nebraska 39.738 1.708 41.447 Nevada 15.462 0.406 15.868 Congressional Research Service 7.318 (0.078) 1.801 152.559 (0.003) 4.597 (5.819) 1.342 40.635 100.193 (0.235) 33.072 17 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding State Regular Funds Emergency Contingency Funds Total State & Tribal Regular Fund Allotments: $4.50 billion (tribal set-aside, if any) (a) January 2011: Total State & Tribal Contingency Fund Allotments: $200 million (tribal set-aside, if any) (b) Total Funds Distributed: $4.70 Billion (c) New Hampshire 34.255 1.795 36.050 New Jersey 180.991 7.801 188.792 New Mexico 22.448 (1.875) 1.094 (0.087) 23.543 New York 495.801 (0.269) 26.125 (0.014) 521.925 North Carolina 111.263 (1.979) 4.942 (0.088) 116.205 34.469 (7.895) 1.467 (0.317) 35.936 North Dakota Ohio 225.398 9.477 234.875 Oklahoma 47.717 (4.378) 1.661 (0.152) 49.378 Oregon 45.579 (0.732) 2.282 (0.036) 47.861 Pennsylvania 280.478 Rhode Island 29.790 South Carolina 46.909 South Dakota 27.995 Tennessee 71.595 2.796 74.390 Texas 179.200 5.001 184.201 Utah 32.228 Vermont 25.675 1.284 26.959 102.839 4.375 107.215 Virginia 14.008 (0.089) 1.484 294.486 (0.004) 1.740 (5.117) (0.521) (3.197) 1.265 1.309 48.649 (0.225) (0.022) (0.151) 29.259 33.537 Washington 74.971 West Virginia 39.047 1.739 40.786 Wisconsin 130.738 6.652 137.390 Wyoming 12.904 (0.438) 3.717 31.274 78.688 0.540 (0.018) 13.444 199.772 (2.158) 4,694.030 Subtotal to states 4,494.258 Territories 6.095 0.228 6.322 4,500.353 200.000 4,700.353 Total (51.252) Source: Funding levels are from the U.S. Department of Health and Human Services (HHS), Administration for Children and Families. a. The tribal allotment for Indiana was less than $1,000. Congressional Research Service 18 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table A-3. LIHEAP Funding by State FY2006 to FY2010 (dollars in millions) State (includes tribal allotments) Total Funds Distributeda (regular and contingency) FY2006 FY2007 FY2008 FY2009 FY2010 Alabama 31.972 22.205 19.221 64.274 69.016 Alaska 18.473 12.454 16.856 30.928 28.182 Arizona 15.399 8.551 9.296 31.084 37.422 Arkansas 23.336 15.749 14.667 39.711 40.000 California 157.626 94.855 103.117 248.487 234.215 Colorado 44.842 33.073 41.326 71.352 70.675 Connecticut 71.106 48.102 65.618 125.887 107.845 Delaware 10.954 5.727 6.929 18.748 16.847 8.165 6.700 7.284 16.249 16.067 Florida 49.798 27.977 30.414 101.701 129.014 Georgia 40.026 28.564 24.047 80.410 102.091 Hawaii 2.567 2.228 2.403 5.182 6.589 Idaho 14.772 12.901 13.916 30.012 30.158 Illinois 193.814 119.418 149.216 265.679 265.542 Indiana 75.336 54.069 67.561 116.487 117.575 Iowa 52.054 38.319 47.881 76.929 74.524 Kansas 27.722 19.746 22.137 49.541 46.262 Kentucky 45.320 32.010 30.588 75.055 67.832 Louisiana 32.671 22.499 19.651 61.502 59.054 Maine 45.146 33.719 46.536 79.187 60.428 Maryland 61.889 33.036 35.913 109.164 90.005 Massachusetts 126.476 93.795 126.492 213.500 196.602 Michigan 154.671 113.377 141.667 249.416 276.447 Minnesota 110.849 81.681 102.063 163.982 160.089 Mississippi 27.467 17.871 16.479 42.622 46.650 Missouri 78.220 52.645 59.603 114.902 107.145 Montana 22.789 15.132 18.907 35.202 34.530 Nebraska 28.643 18.950 23.679 44.086 42.893 7.247 4.016 4.366 14.599 18.218 27.740 18.769 25.635 47.737 37.423 New Jersey 115.046 80.120 108.707 185.773 199.455 New Mexico 12.491 10.705 11.638 27.451 24.739 District of Columbia Nevada New Hampshire Congressional Research Service 2319 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding State (includes tribal allotments) Total Funds Distributeda (regular and contingency) FY2006 New York FY2007 FY2008 FY2009 FY2010 382.251 261.604 359.628 538.243 537.348 North Carolina 72.413 45.974 42.383 132.528 127.139 North Dakota 24.680 16.438 20.539 38.240 36.668 164.226 105.643 132.004 245.750 253.035 Oklahoma 29.543 19.282 17.668 52.878 53.190 Oregon 25.116 25.633 27.650 51.460 52.029 Pennsylvania 202.324 140.520 191.759 308.394 315.357 Rhode Island 23.131 15.471 20.875 38.653 34.444 South Carolina 25.279 17.636 15.266 51.047 56.232 South Dakota 20.117 13.350 16.681 31.058 29.989 Tennessee 47.139 33.568 30.985 80.512 84.899 Texas 84.005 46.545 50.599 169.196 212.807 Utah 23.285 15.369 19.204 35.755 35.003 Vermont 20.903 14.162 19.370 36.156 27.941 Virginia 75.053 40.241 43.746 127.668 109.927 Washington 41.226 42.163 45.481 84.645 83.989 West Virginia 24.543 18.621 20.157 45.019 43.363 Wisconsin 99.837 73.525 91.872 147.608 145.214 Wyoming 9.284 6.153 7.689 14.315 14.124 3,128.981 2,130.860 2,587.373 5,065.966 5,066.234 3.456 2.788 3.014 6.734 6.816 Leveraging/REACHc 27.225 27.225 —d 27.000 27.000 Training/tech. asst.e 0.297 0.297 0.292 0.300 0.300 Total 3,160 2,161 2,591 5,100 5,100.350 New York Ohio Subtotal to states and tribes Territoriesb Source: Compiled by the Congressional Research Service (CRS) using U.S. Department of Health and Human Services (HHS) data. a. The totals shown in these columns include regular fund allocations to states and tribes, and any contingency funds awarded to states and tribes in that year. b. The statute provides that HHS must set aside not less then one-tenth of 1% and not more than one-half of 1% for use in the territories (American Samoa, Guam, Puerto Rico, Northern Mariana Islands, and the U.S. Virgin Islands). c. The statute provides a separate funding authorization for competitive grants under the leveraging incentive program (designed to encourage states to increase non-federal support for energy assistance). It also provides that up to 25% of any leveraging funds made available may be reserved for competitive REACH grants (for state efforts to increase efficient use of energy among low-income households and to reduce their vulnerability to homelessness and other problems due to high energy costs). Congress has in recent years stipulated that a certain portion of the LIHEAP regular funds be set aside for leveraging grants and, of this amount, HHS has reserved 25% for REACH grants. Congressional Research Service 2420 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding d. The FY2008 Consolidated Appropriations Act (P.L. 110-161) did not specify funds for leveraging incentive and REACH grants. e. The statute provides that HHS may reserve up to $300,000 for making grants or entering into contracts with states, public agencies, or private nonprofits that provide training and technical assistance related to achieving the purposes of the LIHEAP program. Congressional Research Service 2521 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Table A-4. LIHEAP Funding: FY1982 to FY2011FY2012 (dollars in thousands) Regular Funds Contingency Fundsa Fiscal Year Authorized President’s Request Appropriated President’s Request Appropriated Distributed Total Distributed 1982 1,875,000 1,400,000 1,875,000 — — — 1,875,000 1983 1,875,000 1,300,000 1,975,000 — — — 1,975,000 1984 1,875,000 1,300,000 2,075,000 — — — 2,075,000 1985 2,140,000 1,875,000 2,100,000 — — — 2,100,000 1986 2,275,000 2,097,765 2,100,000 — — — 2,100,000 1987 2,050,000 2,097,642 1,825,000 — — — 1,825,000 1988 2,132,000 1,237,000 1,531,840 — — — 1,531,840 1989 2,218,000 1,187,000 1,383,200 — — — 1,383,200 1990 2,307,000 1,100,000 1,443,000 — — — 1,443,000 1991 2,150,000 1,050,000 1,415,055 NAb 195,180 195,180 1,610,235 1992 2,230,000 925,000 1,500,000 100,000 300,000 0 1,500,000 1993 ssanc 1,065,000 1,346,030 0 595,200 0 1,346,030 1994 ssanc 1,507,408 1,437,402 0 600,000 300,000 1,737,402 1995 2,000,000 1,475,000 1,319,202 d 600,000 100,000 1,419,202 1996 2,000,000 1,319,204 900,000 e 180,000 180,000 1,080,000 1997 2,000,000 1,000,000 1,000,000 300,000 420,000 215,000 1,215,000 1998 2,000,000 1,000,000 1,000,000 300,000 300,000 160,000 1,160,000 1999 2,000,000 1,000,000 1,100,000 300,000 300,000 175,299 1,275,299 2000 ssanc 1,100,000 1,100,000 300,000 900,000 744,350f 1,844350f 2001 ssanc 1,100,000 1,400,000 300,000 600,000g 455,650h 1,855,650 2002 2,000,000 1,400,000 1,700,000 300,000 300,000 100,000i 1,800,000 300,000 0 200,000k 1,988,300 2003 2,000,000 1,400,000 1,788,300j 2004 2,000,000 1,700,000 1,789,380 300,000 99,410 99,410 1,888,790 2005 5,100,000 1,900,500l,m 1,884,799 200,000 297,600 277,250 2,162,050 2006 5,100,000 1,800,000l 2,480,000 200,000 681,000 679,960 3,160,000 2007 5,100,000 1,782,000 1,980,000 0 181,000 181,000 2,161,000 2008 —n 1,500,000 1,980,000 282,000 590,328 610,678o 2,590,678 2009 —n 1,700,000 4,509,672 300,000 590,328 590,328 5,100,000 2010 —n 2,410,000p 4,509,672 790,000 590,328 590,678 5,100,350 20112011q —n 2,510,000q —000r 4,500,653 790,000 —200,000 200,000r 4,147,310r000 4,700,653 2012 —n 1,980,000 — 590,000 — — — 2005 Source: Prepared by the Congressional Research Service (CRS) on the basis of HHS data. Congressional Research Service 22 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding a. In 1994, Congress enacted a permanent $600 million annual authorization for contingency funding. As shown, however, before this authorization contingency funds were sometimes made available. Congressional Research Service 26 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding b. Congress first allocated emergency contingency funds in January of 1991 due to the price of home heating oil (P.L. 101-517). Funds were not requested in the President’s budget until FY1992. c. Such sums as necessary. d. The President’s FY1995 request would have made the unallocated contingency funds that were appropriated in FY1994 (P.L. 103-112) available until expended. e. The President’s FY1996 request would have made the unallocated contingency funds that were appropriated in FY1995 (P.L. 103-333) available until expended. f. The Administration released $400 million of the FY2000 contingency funds in late September 2000, making them effectively available to states in FY2001. g. The initial contingency fund appropriation for FY2001was $300 million (P.L. 106-554). The Administration released the entire amount by December 30, 2000. On July 24, 2001, the 2001 Supplemental Appropriations Act (P.L. 107-20) provided an additional $300 million in contingency funds. h. The distributed contingency funds in FY2001 included the $300 million appropriated in P.L. 106-554 and the amount remaining from FY2000 (approximately $156 million). The $300 million that was appropriated as part of P.L. 107-20 was made available until expended; a portion was distributed in FY2003 and the remainder was converted to regular funds that same year. i. The FY2002 contingency funds were distributed out of the total FY2002 contingency appropriation (P.L. 107-116). With the end of FY2002, the remainder of the contingency funds expired ($200 million). j. The FY2003 appropriations act (P.L. 108-7) included $1.688 billion in new regular funds and converted into regular funds $100 million of remaining contingency funds originally appropriated in FY2001 (P.L. 107-20). k. FY2003 contingency funds were distributed out of contingency dollars appropriated as part of the FY2001 supplemental (P.L. 107-20). l. Of the amounts requested by the President in FY2005 and FY2006, $500,000 was to be set aside for a national evaluation. m. In FY2005, the President’s initial budget request for LIHEAP regular funds was $1,800,000,500. However, on November 14, 2004, the President submitted a budget amendment to Congress, requesting $1,900,000,500 for LIHEAP regular funds. n. LIHEAP haswas not been authorized in FY2008, FY2009, FY2010, and FY2011or FY2010 and has not been authorized for FY2011 or FY2012. o. Of the contingency funds distributed in FY2008, $20 million came from funds appropriated in the FY2005 Departments of Labor, Health and Human Services, and Education Appropriations Act (P.L. 108-447). Contingency funds in P.L. 108-447 were made available until expended. p. In FY2010, the President proposed that a mechanism be created whereby additional LIHEAP funds would be released when energy price increases reached certain levels; the proposal was not adopted by Congress. The Administration estimated that this “trigger” would have resulted in mandatory budget authority of $450 million. This estimate is not included in the table. q. P.L. 112-10 imposed an across-the-board rescission of 0.2% on discretionary accounts. As a result, the regular fund allocation was reduced from approximately $4.51 billion to $4.50 billion. r. In FY2011, the President again proposed a trigger to release additional LIHEAP funds. In addition to proposing that funds be released when energy prices increase, the FY2011 proposal would release funds have released funds when participation in SNAP (formerly known as Food Stamps) increasesincreased above a certain level. The Administration estimatesestimated that this trigger would resulthave resulted in mandatory budget authority of $2 billion. This estimate is not included in the table. r. As of the date of this report, Congress had not enacted a year-long appropriation bill for LIHEAP (or most federal programs). However, under the continuing resolutions HHS has distributed $200 million in emergency contingency funds and approximately $3.95 billion in regular funds This estimate is not included in the table. Congressional Research Service 2723 . The Low Income Home Energy Assistance Program (LIHEAP): Program and Funding Author Contact Information Libby Perl Specialist in Housing Policy eperl@crs.loc.gov, 7-7806 Congressional Research Service 2824