Section 11. Low-Income Home Energy Assistance Since 1979, the Federal Government has provided assistance to low-income households to help them deal with high energy prices. During fiscal year 1981, the Home Energy Assistance Act of 1980 (title III of Public Law 96-232, the Crude Oil Windfall Profit Tax Act of 1980) authorized a program of block grants to the States to provide energy assistance to low-income families. In fiscal year 1981, $1.85 billion was appropriated for the program. As part of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35) the Low-Income Home Energy Assistance Act of 1981 authorized the Secretary of Health and Human Services to make grants to States to assist eligible households to meet the costs of home energy. For each of the fiscal years 1982, 1983 and 1984, $1.875 billion was authorized. There is no State matching requirement. The continuing resolution adopted in December 1981 to be effective through March 1982 appropriated $1,752,500,000 for the lowincome home energy assistance program. ALLOTMENTS TO STATES AND TERRITORIES State allocations are determined on the basis of the percentage of funds each State received for fiscal year 1981 under the Home Energy Assistance Act of 1980. The law provides discretion to the Secretary of Health and Human Services to apportion between onetenth and one-half of 1 percent of the funds available in the fiscal year to the territories. As of February 1, 1982, the Secretary had not yet allocated funds to the territories. Table 1 shows the allocations to the States for fiscal years 1981 and 1982. The 1982 allocation is based upon the funds appropriated in the continuing resolution enacted in December 1981. Indian tribes can receive direct funding under a State's allocation if the Secretary of Health and Human Services determines that the tribe would be better served. Up to 25 percent of a State's allotment may be held by the State for use in the following fiscal year. The amount reserved does not change, in any way, the State's subsequent fiscal year allocation. Amounts above 25 percent that are not expended may be reallocated by the Secretary. States have the authority to transfer up to 10 percent of their allotment to one or any combination of the block grants for: community services; title XX social services; preventive health services; primary health care; and maternal and child health services. As is the case with the 25 percent carryover authority, if a State chooses to transfer up to 10 percent of its allotment to other block grants, the transfer would not affect the computation of the State's allotment under the energy assistance program. TABLE 1.-FISCAL YEARS 1981 AND 1982 ALLOCATIONS TO STATES FOR LOW-INCOME HOME ENERGY ASSISTANCE-Continued Note.-The totals are less than the total amount appropriated because funds to the territories plus Federal administrative costs are not shown. ELIGIBILITY AND TYPES OF ASSISTANCE States have considerable discretion under the program to determine eligibility criteria and the types of assistance to be provided to low-income households to deal with high energy costs. Federal funds may be used to make payments to households in which one or more individuals is receiving AFDC, food stamps, SSI or certain veterans' benefits or to households with incomes which do not exceed the greater of 150 percent of the poverty level or 60 percent of a State's median income. See table 2 for State-by-State information on 60 percent of States' median income for fiscal year 1982 for various size households. See table 1 of Appendix A for poverty level information. At the option of the State, the Social Security Administration will make direct payments to qualified SSI recipients. SSI recipients are not automatically eligible for direct assistance if they live in a medicaid institution, live in the household of another resulting in a one-third reduction in Federal benefits or are disabled or blind children living at home. The term "household" for the program means any individual or group of individuals who are living together as one economic unit and for whom residential energy is customarily purchased in common or who make undesignated payments for energy in the form of rent. States are to provide assurances that, in a manner consistent with the efficient and timely payment of benefits, that the highest level of assistance will be furnished to those households which have the lowest income and the highest energy costs in relation to income. In conducting its outreach activities under the program, States are to give priority to making households with elderly or handicapped individuals aware of the assistance available. Of the funds available in any fiscal year, States are required to reserve a reasonable amount, based on data from prior years, for energy crisis assistance. States have the option to expend up to 15 percent of the allotment for low-cost weatherization or other energy-related home repairs for low-income households. In addition to making payments directly to eligible households, a State may choose to use low-income energy assistance funds to pay home energy suppliers directly. States must provide assurances that suppliers will charge the eligible households the difference between the amount of the assistance and the actual cost of home energy. Also, States may use Federal funds to provide tax credits to energy suppliers who supply home energy to low-income households at reduced rates. Home energy assistance payments cannot be considered as the income or resources of an eligible household for any purpose under Federal or State law, specifically including any law relating to taxation, public assistance or welfare programs. A provision in the Agriculture and Food Act of 1981 (Public Law 97-98) excludes as income for the food stamp program purposes any payments or allowances made under any Federal law for the purposes of providing energy assistance. Also excluded from being counted as income under the Food Stamp program are payments or allowances made under any State or local law for energy assistance, if they are designated as energy assistance by State or local legislative body and determined by the Secretary of Agriculture to be provided on a seasonable basis, with certain exceptions, for an aggregate period not to exceed 6 months in any year. |