LIHEAP Clearinghouse News Bulletin - January 2016

As many LIHEAP grantees geared up for the busiest months of their heating programs, some states faced challenges that ranged from low-income constituents already facing shutoffs all the way to legislative disputes that jeopardized supplemental funding.

In September 2015, Iowa utilities sent disconnect notices to 91,000 households. With that many households facing loss of utility service, it is not surprising that Iowa LIHEAP had plenty of applicants when its heating program started in October. By mid-November, it had already provided benefits to over 31,000 households.

"Energy is clearly unaffordable for a large segment of the population," Iowa LIHEAP Director Jerry McKim stated. "I still believe my [LIHEAP] benefit is wholly inadequate to address the energy insecurity that a lot of Iowa households experience."

Iowa bans disconnection of service between November 1 and April 1. However, it only applies to low-income households that are signed up for LIHEAP or weatherization. Therefore, an eligible low-income household that does not apply for either program could still be disconnected. Most states have policies outlining when utility service cannot be disconnected. Some prohibit disconnection during certain months of the year while others use specific temperature-based criteria. To read about these various state policies, see this table on the Clearinghouse website.

In the South, Georgia allowed the homebound and elderly to apply for heating assistance starting in December, with open enrollment for the general public commencing in January. This type of early or staggered enrollment for vulnerable populations is fairly common. At least 17 states use some form of early application for households containing elderly, disabled, or young people. Some of these states use staggered enrollment periods like Georgia, while others, like Montana and Utah, mail LIHEAP applications to households containing vulnerable members before their programs start.

There was plenty of need for energy assistance in Illinois, but a budget standoff held up the release of supplemental state funds. Early in 2015, Governor Bruce Rauner announced he wanted to use $265 million in supplemental funding for LIHEAP that is generated by a surcharge on Illinois ratepayers to help fill a $6 billion budget deficit (for more on these state funds see this overview on the Clearinghouse website). By mid-2015, the legislature had passed a budget that did not eliminate the state’s deficit. Governor Rauner responded with a list of planned cuts that would begin July 1 unless a budget addressing the deficit passed. Included in the list was the suspension of state supplemental LIHEAP funding.

This had immediate implications for low-income households. The head of the Illinois Association of Community Action Agencies said all federal LIHEAP funds had already been expended, with over 70 percent of his local agencies having run out in March. He said, without the state funds, local agencies wouldn't be able to provide energy assistance until FY 2016 LIHEAP funds arrived in October.

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Did you ever notice what happens when your car needs gas? You scan gas station signs and steer your car to the lowest priced pump. But when was the last time you drove by an oil, propane or kerosene dealer and saw their per gallon prices? The reality is that fuel dealers have a myriad of prices that never get posted on a sign.

In a state where 93 percent of LIHEAP benefits are paid directly to delivered fuel dealers, Vermont has negotiated fuel discounts for LIHEAP clients since 2001. One of the challenges has been making sense out of the myriad of prices and plans that are offered by vendors. Prices may vary based on how fuel is purchased, with different prices for cash, credit, pre-buy, budget plans, or whether the recipient is a member of a fuel buyers group. Over the last two decades, Vermont’s LIHEAP program has employed four different pricing systems for fuel oil, propane and kerosene (O/P/K) with varying degrees of success and some challenges, explained Richard Moffi, formerly Vermont's LIHEAP Director.

Low-Income Energy Publications

Weatherization Assistance Program PY 2014 Funding Survey, National Association for State Community Services Programs, August 15, 2015. According to the report, the “WAP Funding Survey provides an opportunity for Grantees to estimate the number of homes to be weatherized using various funding sources.” These sources include the U.S. Department of Energy's WAP, the U.S. Department of Health and Human Services' Low-Income Home Energy Assistance Program (LIHEAP), and other programs including utility funds. The survey reports on the number of households weatherized during the 2014 program year, as well as the amount of funding expended in each state. The report also gives a brief history of weatherization efforts and funding trends.

Energy Costs and Burdens in Vermont: Burdensome for Whom?, Vermont Low Income Trust for Electricity, Inc. May 2014. This report examines fuel burdens in Vermont and finds that households that spend more than 10 percent of their household income on energy services can generally be considered “fuel poor.”. The report goes into greater detail about the effects on health and well-being that living in a “fuel poor” environment can have on the members of a household and gives recommendations for improvements to the Vermont Legislature.

LIHEAP: Impact on Communities of Color, David Honig, Energy Equity Alliance, April 2015. The report explores the impacts of LIHEAP on low-income communities among socially-disadvantaged minority groups in the United States.

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