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Program Components


The LIHEAP statute, Section 2605(b)(1) establishes a framework for how states spend their LIHEAP funds. Briefly, they are authorized to:

a) conduct outreach and provide assistance to households in meeting their home energy costs particularly those with the lowest incomes that pay a high proportion of household income for home energy. (Home energy is defined in the statute as "a source of heating or cooling in residential dwellings.")
b) intervene in energy crisis situations
c) provide low-cost weatherization and other cost-effective energy-related home repair
d) plan, develop and administer program, including leveraging programs

In practice, all states provide either heating or cooling assistance or both, and all states intervene in crisis situations. Most have a separate crisis component, but it is not required as long as they respond to crises as required in the statute. (See table for state crisis definitions.) The following are materials related to state grantee crisis programs:

Regarding weatherization, states aren't required to spend any of their funding on low-cost weatherization or cost-effective energy-related home repair; in fact, the statute [Section 2605 (k)(1)] limits them to spending 15 percent of their funding for weatherization or up to 25 percent with a waiver [Section 2605 (k)(1)(B)].


Weatherization Program Information

States have the flexibility to allocate up to 15 percent of LIHEAP funds (25 percent after receiving a waiver) to energy conservation measures. In the majority of the states, the same agency that administers LIHEAP also administers the Department of Energy Weatherization Assistance Program. Generally, in these states the local agencies that administer LIHEAP also administer weatherization. (View a list of these states). Additionally, the majority of the states (47) and the District of Columbia set aside a portion of their LIHEAP grant for weatherization purposes. (View a breakdown). During PY 2014, the last year for which statistics are available, an estimated $397.7 million in LIHEAP funds was spent on weatherization.

In states where the LIHEAP administering agency does not administer weatherization, the LIHEAP agency typically transfers its weatherization allocation to another state agency and stipulates how the other agency will spend the money, how much it can use for administration, what policies and procedures it must follow, etc., through a Memorandum of Understanding (MOU), contract or agreement, or award letter.

Following are examples of MOUs and contracts:

Weatherization Program Information