
October 31, 2005 |
2005-R-0790 | |
ENERGY ASSISTANCE PROGRAMS | ||
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By: Kevin E. McCarthy, Principal Analyst | ||
You asked for brief descriptions of federal and state energy assistance programs, including the Low Income Home Energy Assistance Program (LIHEAP), the Connecticut Energy Assistance Program (CEAP), and the State Appropriated Fuel Assistance (SAFA) program. You also wanted to know the federal poverty guidelines and 150% and 250% of this level.
SUMMARY
LIHEAP is a federally funded program, which provides grants to states to helps eligible low-income households pay their home heating bills. States can use part of the funds to weatherize the housing of eligible households.
LIHEAP provides the vast majority of the funding for CEAP. The program provides a basic benefit to households whose income is up to 150% of the federal poverty guidelines (200% of this level for households with a disabled or elderly member). CEAP also provides, under certain circumstances, additional crisis and safety net benefits to households who use heating oil and other deliverable fuels. SB 2100, adopted in the October Special Session, increases the CEAP basic benefit for all eligible households. It also provides benefits to moderate income households under the Contingency Heating Assistance Program (CHAP) component of CEAP.
SAFA has not been funded since FY 02. Historically, this program provided heating assistance benefits to households with incomes between 150% and 200% of the federal poverty guidelines that had a disabled or elderly member. In FY 02, SAFA provided a basic benefit of $ 200 per heating season for eligible households. These households are currently eligible for CEAP.
The federal poverty guidelines for two, three, and four person households in 2005 are $ 12,830, $ 16,090, and $ 19,350, respectively (higher levels apply in Alaska and Hawaii). One hundred and fifty percent of these levels are $ 19,245, $ 24,135, and $ 29,025, respectively. Two hundred and fifty percent of these levels are $ 32,075, $ 40,225, and $ 48,375, respectively.
LIHEAP
LIHEAP is an annual block grant to states, which they primarily use to provide financial assistance to low-income households to help pay their heating bills. The funding can also be used to help households pay their air conditioning costs, although Connecticut has not used the program for this purpose. Households are eligible under federal standards if their incomes do not exceed 150% of the poverty guideline or 60% of the state median income, whichever is higher. However, states may set income limits as low as 110% of the poverty level. Federal law requires benefits to be targeted to households with the highest energy costs in relation to income and household size.
States may allocate up to 15% of their basic grant allocation for low-cost residential weatherization or other energy-related home repairs. They can allocate up to 25% if they meet certain conditions and obtain a waiver from the federal Department of Health and Human Services.
Further information about the program, in English and Spanish, is available at http: //www. acf. hhs. gov/programs/liheap/.
CEAP
Eligibility
The Department of Social Services (DSS) administers CEAP under an annual plan that is approved by the legislative committees of cognizance. Under the 2005-06 plan, the program provides assistance to households who have incomes of up to 150% of the federal poverty guidelines (200% of this level for households that have a disabled member or a member who is 60 or older). A DSS Website, http: //www. dss. state. ct. us/svcs/energy/chart. htm, has income limits for the program for households of various sizes. Households are also subject to an assets test. For homeowners, the first $ 10,000 in liquid assets, and for other households, the first $ 7,000 in liquid assets, is disregarded. Any amount over that limit is added to the household’s gross income in determining whether they are eligible for the program.
Benefits
Low Income Households. This heating season, CEAP provides a basic benefit of up to $ 475 for “vulnerable” homeowners and renters who pay separately for heat. A household is considered vulnerable if it contains one or more persons who is over 60, disabled, or under age 6. The program provides a basic benefit of up to $ 435 for other eligible households. The exact level of basic benefits is determined by the household's income and size. Households with lower income levels and more members are eligible for higher benefits. Renters whose heat is included in their rent and who pay more than 30% of their gross income toward rent are eligible for a benefit of $ 40 to $ 70, depending on household income. SB 2100, adopted in the October special session, increases the benefit for all eligible households by $ 200 per household.
Subject to the availability of funds, the state will provide benefits as part of CEAP to address the heating needs of households who have exhausted their basic benefits and cannot secure primary heat, causing a life-threatening situation. Specifically, a one-time crisis assistance benefit of up to $ 400 is available to deliverable fuel households (primarily those using heating oil, as distinct from natural gas or electricity) with incomes up to 150% of the federal poverty guidelines and to elderly or disabled households with incomes up to 200% of the federal poverty guidelines that meet the criteria. A household faces a crisis when it is out of its primary heating fuel or within one week of running out, such as having an oil supply below either 70 gallons or one-quarter of a tank.
Subject to the availability of funds, the state will also address the heating needs of deliverable fuel heated households who have exhausted their basic and crisis assistance benefits and are in a life-threatening situation. Such households may be eligible to receive up to $ 400 in safety net benefits. Finally, an additional $ 400 in safety net benefits may be available to CEAP eligible, vulnerable households. Households requesting safety net benefits are interviewed by a case manager and must complete a risk assessment determination. This process involves a
review of the household’s income, liquid assets, and expenditures. If the case manager determines that the household has insufficient resources to cover the cost of the fuel delivery on its own, then efforts will be made to assist the household in obtaining shelter with adequate heat and, as a last resort, emergency fuel delivery may be authorized.
Moderate Income Households. SB 2100 requires that DSS amend its 2005-06 plan to provide a $ 300 basic benefit to moderate income households under CHAP. It also requires DSS to make those households who (1) use a deliverable fuel, (2) have exhausted their basic CHAP benefit and (3) are facing a life threatening situation eligible for an additional $ 200 crisis assistance benefit.
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