
July 24, 2006 |
2006-R-0447 | |
ENERGY ASSISTANCE | ||
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By: Robin K. Cohen, Principal Analyst Kevin McCarthy, Principal Analyst | ||
You asked about energy assistance. Specifically, you wanted to know (1) about the Connecticut Energy Assistance Program (CEAP), (2) the deadline for filing for CEAP assistance and whether exceptions can be made when someone applies but his application is incomplete, (3) whether there is other government energy assistance available, and (4) if the utility companies offer assistance.
OLR Report 2006-R-0079 discusses the Venezuela subsidized heating oil program that New Haven recently joined.
SUMMARY
The state's main energy assistance program is CEAP. It is funded primarily with federal Low Income Heating and Energy Assistance Program (LIHEAP) block grants, which Congress must approve annually. States receiving LIHEAP funds must develop allocation plans, which DSS does each year and, by law, submits to the Appropriations, Energy, and Human Services committees for their approval. When sufficient funds are available, families with higher incomes who do not qualify for CEAP can receive assistance under the Contingency Heating Assistance Program (CHAP). Several towns operate fuel banks to help residents with their fuel bills.
In addition to these governmental programs, Operation Fuel provides crisis benefits during the heating season to households with incomes of between 150% and 200% of the federal poverty level who do not qualify for CEAP.
Electric and gas company customers who use these fuels for heating are also eligible for a delinquency forgiveness program administered by the companies.
CEAP
Eligibility
To qualify for basic CEAP benefits, an individual can own a home or rent. Individuals whose heat is included in their rent also can get assistance as long as they are paying more than 30% of their income towards rent. Household income is limited to 150% of the federal poverty level (FPL) ($ 24,900 for a family of three in 2006) for most families; families with elderly or disabled members can have income up to 200% of the FPL ($ 33,200 for the same family size in 2006).
Individuals with income up to 60% of state median income who do not qualify for CEAP may be able to get assistance from the Contingency Heating Assistance Program (CHAP). This program, which is currently funded but has not been historically, is available only to households who pay separately for their heat.
Applicants must also pass an asset test. For homeowners, $ 10,000 in liquid assets is disregarded. For all other households, the first $ 7,000 is disregarded. Assets above these amounts are added to the applicant's gross income for determining income eligibility.
Benefits
The basic CEAP benefit for the 2005-06 heating season is depicted in Tables 1 (homeowners) and 2 (renters). (The benefit amounts reflect the adjustments made to the plan in October. PA 05-2, October 25 Special Session, increased every household's basic CEAP benefit by $ 200. )
Table 1: Basic CEAP Benefits for Homeowners —
2005-06 Heating Season
% of Poverty Level |
Vulnerable Households (household member is over age 60, under age six, or disabled) |
Non-Vulnerable Households |
Up to 100% |
$ 675 |
$ 635 |
101%-125% |
580 |
535 |
126%-150% |
485 |
435 |
151%-200% (households with elderly and disabled members) |
400 |
NA |
Table 2: Renter Benefits — 2005-06 Heating Season
% of Poverty Level |
Renter Benefit |
Up to 100% |
$ 270 |
101%-125% |
255 |
126%-150% |
240 |
Crisis Benefits. The plan requires the state to operate a Crisis Assistance Program subject to available funds. It is meant to help households who have exhausted their primary CEAP benefits and cannot secure primary heat, causing a life-threatening situation. This is a one-time benefit of up to $ 400 for households using deliverable fuels for heat.
Safety Net. The plan also requires the state to implement a Safety Net Program, subject to available funds. This benefit of up to $ 400 is for households who exhaust both their basic and crisis benefit and are in a life-threatening situation. Vulnerable CEAP-eligible households can receive an additional $ 400. Unlike the basic and crisis benefits, the plan required the establishment of a separate, safety net fund of $ 4 million.
CHAP. For several years, the CEAP plan has included CHAP, which is available to higher income families (up to 60% of median income) when funds are available. When approved in late 2005, the CEAP plan permitted DSS to use any funds remaining after basic, crisis, and safety net benefits were paid for CHAP. PA 05-2, October 25 SS, required the plan to be amended to (1) fund CHAP to provide a basic benefit of $ 300
and (2) pay an additional crisis benefit once the basic CHAP benefit was exhausted. This crisis benefit was only for households using deliverable fuels.
Applying for Assistance; Grace Period
Although DSS is the state's lead agency for energy assistance, local community action agencies (CAA) take the applications and grant eligibility. For the 2005-06 heating season, the plan called for CAAs to start accepting applications in September 2005. The plan established April 14 as the deadline for applications but DSS stated that this date was extended to May 1, 2006.
Individuals who apply by the deadline but whose applications are incomplete typically get letters from the CAA, stating that they have an additional 10 days to get the missing information in before forfeiting their eligibility for the year.
Weatherization
Households qualifying for basic CEAP benefits are also eligible for weatherization assistance. These services are provided on a first-come, first-served basis, based on the availability of funds. Households refusing weatherization services without good cause are ineligible to receive CEAP for the remainder of the year and the following program year.
PA 05-2, October 25 Special Session, directed the DSS commissioner to increase the number of households receiving weatherization services.
Maintenance and Repair of Heating Systems
CEAP-eligible households may use a portion of their basic or crisis benefit to pay for cleaning, tuning, and testing their deliverable fuel heating system.
The 2005-06 CEAP plan also required DSS to establish a $ 500,000 set-aside to provide emergency heating system repairs and replacement of heating systems that are determined to be unsafe or inoperable. Each CAA was allocated a portion of these funds.
PA 05-2, October 25 SS, required DSS to increase the number of households receiving this type of assistance, including those ineligible for CEAP (see copy of summary, attached).
OPERATION FUEL
Operation Fuel, a non-profit organization, provides crisis benefits during the heating season to households with incomes of between 150% and 200% of the federal poverty level who do not qualify for CEAP. In most cases, the maximum benefit is a grant of $ 250 per year. Further information about this program is available at www. operationfuel. org/
DELINQUENCY FORGIVENESS PROGRAMS
Electric and gas company customers who use these fuels for heating are also eligible for a delinquency forgiveness program administered by the companies. The company must require a customer who seeks to participate in the program to:
1. apply and be eligible for benefits under CEAP;
2. authorize the company to send a copy of his monthly bill directly to any energy assistance agency for payment; and
3. enter into, and comply with, an amortization agreement consistent with the Department of Public Utilities Control's (DPUC) policies and decisions which reduce the customer's bill by the amount of benefits the company reasonably expects to receive from CEAP or other energy assistance programs.
The company must budget a customer's payments over a 12-month period, including an affordable additional amount to pay for any arrearage. The payment plan must be designed so that the customer will not lose any energy assistance benefits. When a customer authorizes the company to bill an energy assistance agency directly, the agency must pay the company directly.
If the customer meets these requirements either from the time his account becomes delinquent or from November 1 to April 30, the company must forgive an amount equal to his heating payments plus the amount paid by CEAP between November 1 and April 30. The company must forgive an additional amount equal to the customer's payment plus any payments made on his behalf if he continues to comply with the payment plan from April 30 to October 31. The benefits provided under the 2005 act cannot result in a credit balance in the customer's account. Customers cannot be denied benefits due to company errors.
If the customer fails to comply with the amortization agreement and related requirements of a DPUC decision issued in place of the agreement, the company can terminate his service. However, the termination cannot occur between November 1 and April 15 and must follow all applicable regulations. The law prohibits electric and gas utilities from terminating service for poor, unemployed, and seriously ill customers during this period.
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