Rule-making#: / 07-6-28-1
Program: Office of Self Sufficiency/LEAP / Rule Author: Scott Barnette; Herb Betts / Phone: 303-861-0325
STATEMENT OF BASIS AND PURPOSE
Summary of the basis and purpose for the rule or rule change.
The proposed rules raise the income ceilings to current federal levels, adjust flat rate heating costs and standard amounts for heat-in-rent according to recent consumption and price levels. These changes are necessary in order to bring these areas up to date for the 2007-2008 program year which begins on November 1, 2007.
Clarification to the program benefit adjustment methodology has been added this year to address Administrative Law Judge decisions that negatively impacted the state and county LEAP operations. The Appeals Section of the Boards and Commissions Division provided guidance in addressing this issue in rule.
The Electric Diversion program has been eliminated. This program did not serve the applicant population well. It was a voluntary program to be determined on a county by county basis. There are only a few counties that offered the program. The most populous counties such as Denver, Jefferson and El Paso counties do not offer the program. The program did not effectively assist the applicants. By diverting some of the LEAP benefit from the primary heating fuel provider to a secondary agency, the applicant would in most cases not receive a 60-day no shut-off hold because some of the benefit was “diverted” to the electric utility provider. In addition, most of the secondary electric fuel providers in the state are not authorized LEAP vendors; therefore, the “diverted” benefit was paid as a cash benefit and in most cases was not used to pay for the electricity.
Sections are being edited or revised to correct errors in definitions, remunerated, to remove outdated materials, and/or to revise terms, and to provide clarity, understanding and consistency in the rules.
An emergency rule-making (which waives the initial APA noticing requirements) is necessary:
to comply with state/federal law and/orto preserve of the public health, safety and welfare
Explain:
Authority for Rule:
State Board Authority: 261107 C.R.S. (2006) - State Board to promulgate rules; 26-1-109, C.R.S. (2006) - State Board rules to coordinate with federal programs; 261111, C.R.S. (2006)- State Board to promulgate rules for public assistance and welfare activities. (continued)
Initial Review / 09/07/2007 / Final Adoption / 10/05/2007Proposed Effective Date / 12/01/2007 / EMERGENCY Adoption / n/a
DOCUMENT 12
STATEMENT OF BASIS AND PURPOSE (continued)
Program Authority: (give federal and/or state cite and a summary of the language authorizing the rule-making)
42 USC 8621(a); 42 USC 8624(b), (c), (d);
40-8.5-105, C.R.S. (2006) – the Colorado Department of Human Services shall promulgate rules establishing eligibility criteria for Low-Income Energy Assistance.
Yes / X / NoYes / X / No
Does the rule incorporate material by reference?
Does this rule repeat language found in statute?
If yes, please explain.
State Board Administration will send this rule-making package to CCI, OSPB and the JBC. The program has sent this rule-packet to which stakeholders?
Colorado Legal Services, Office of Self-Sufficiency Policy Advisory Committee (PAC), Energy Outreach Colorado, and Governor’s Energy Office
Attachments:
Regulatory Analysis
Overview of Proposed Rule
Stakeholder Comment Summary
Rule-making Form SBA-3a (6/02)
Title of Proposed Rule: / 2007-2008 Low-Income Energy Assistance Program (LEAP) Basic Program and Crisis Intervention Program (CIP)Rule-making#: / 07-6-28-1
Program: Office of Self Sufficiency/LEAP / Rule Author: Scott Barnette; Herb Betts / Phone: 303-861-0325
REGULATORY ANALYSIS
(complete each question;answers may take more than the space provided)
1. List of groups impacted by this rule
Which groups of persons will benefit, bear the burdens or be adversely impacted by this rule?
Those affected are individuals and families eligible for the Low-Income Energy Assistance Program. This includes needy households at or below 185% of the federal poverty index requiring assistance in paying winter home heating costs. These households will be impacted by increased income limits according to new poverty figures. Costs will be borne by LEAP, which is federally, state, and privately funded.
2. Describe the qualitative and quantitative impact
How will this rule-making impact those groups listed above? How many people will be impacted? What are the short-term and long-term consequences of this rule?
Flat rate and standard amount for heat-in-rent figures have been adjusted to reflect current market costs; therefore, benefits will be based on current need. Eligibility criteria will remain the same. However the benefit level amount will change.
For the 2006-2007 program year (November through April), LEAP provided assistance to 93,359 households.
3. Fiscal Impact
For each of the categories listed below explain the distribution of dollars; please identify the costs, revenues, matches or any changes in the distribution of funds even if such change has a total zero effect for any entity that falls within the category. If this rule-making requires one of the categories listed below to devote resources without receiving additional funding, please explain why the rule-making is required and what consultation has occurred with those who will need to devote resources.
State Fiscal Impact (Identify all state agencies with a fiscal impact)
Cost neutral
County Fiscal Impact
None
Federal Fiscal Impact
The federal budget has not been finalized at this time. In FY2007 Colorado received $31,349,072 in Block grant funding. Though still under debate in Congress and requiring the President's approval, Colorado could receive an appropriation as high as $36,051,432, which would be an increase of $4,702,860. There is no guarantee of any emergency funding.
Because of the above, benefit levels for 2007-2008 will be set conservatively. Once exact funding is known, adjustments will be made accordingly.
REGULATORY ANALYSIS(continued)
Other Fiscal Impact (such as providers, local governments, etc.)
Energy Outreach Colorado may contribute funds for the program, but the amount is unknown at this time.
4. Data Description
List and explain any data, such as studies, federal announcements, or questionnaires, you relied upon when developing this rule?
U.S. Department of Health and Human Services 2007 Poverty Guidelines were used to set income maximums at 185% of Federal Poverty Index.
For example, the maximum annual income for a household size of four is $20,650 according to the Federal Poverty Index. We base our figures on a monthly amount. This amount is divided by 12 months ($1,720.83) times 185%; therefore, the maximum monthly income for a household size of four is $3,184.
Flat rate and standard amount for heat-in-rent figures are based on actual home heating costs from the prior heating season as recorded in the LEAP automated computer system.
5. Alternatives to this Rule-making
Describe any alternatives that were seriously considered. Are there any less costly or less intrusive ways to accomplish the purpose(s) of this rule? Explain why the program chose this rule-making rather than taking no action or using one of the listed alternatives.
By not adjusting the income maximums there would be fewer households eligible for assistance.
The other option considered was to not update. Failure to adjust them would result in inaccurate benefits based on past, not current costs.
Rule-making Form SBA-3a (6/02)
Title of Proposed Rule: / 2007-2008 Low-Income Energy Assistance Program (LEAP) Basic Program and Crisis Intervention Program (CIP)Rule-making#: / 07-6-28-1
Program: Office of Self Sufficiency/LEAP / Rule Author: Scott Barnette; Herb Betts / Phone: 303-861-0325
OVERVIEW OF PROPOSED RULE
Compare and/or contrast the content of the current regulation and the proposed change.
Section Numbers / Current Regulation / Proposed Change /Stakeholder Comment
3.751.1 / Definitions / Adds definitions of “Applicant” as it relates to the LEAP Program, “non-“traditional dwelling”; revises “eligibility period”; primary heating fuel; and “program year” / __ / Yes / X / No3.751.43 / Describes notice of Hearings / Requires county LEAP to notify State LEAP office upon receipt of a request of a state-level fair hearing by an applicant / __ / Yes / X / No
3.751.71 / Describes reimbursement to the county / Defines that the county LEAP offices can be reimbursed up to 100% for allowable costs to operate the LEAP program / __ / Yes / X / No
3.752.1 / Describes LEAP application period / Extends the deadline to apply for LEAP from April 30th of each year, to the next business day if April 30th should land on a weekend / __ / Yes / X / No
3.752.22, C / Designates income maximum of federal poverty index / Shows update of federal poverty level as adjusted in maximum gross income limits by family size / __ / Yes / X / No
3.752.22, E / Factors for consideration on application / Adds lawful presence requirement / __ / Yes / X / No
3.752.25, A, 5 / Describes vulnerability / Adds a requirement that any applicant must have a physical address in order to be eligible for LEAP / X / Yes / __ / No
3.752.25, B, 5 / Describes vulnerability / Adds that any applicant that is homeless including, living in non-traditional dwellings such as a tent or vehicle, is not eligible for LEAP / X / Yes / __ / No
3.752.28, C, 5 / Describes mandatory weatherization by GEO / Adds that any GEO agency that performs CIP work to any LEAP eligible household, that the GEO agency must complete any CIP work in accordance with CIP Rules / __ / Yes / X / No
3.754.1, D / Describes factors for denial of LEAP / Adds clarification of duplicate household / __ / Yes /
X
/ No3.755.13, G / Describes what each LEAP case record must contain / Moves subparagraph G to the Verifying Income section 3.755.2, I / __ / Yes / X / No
3.755.21, B / Describes verifying income / Adds guidance on verifying child support income / __ / Yes / X / No
3.755.41 / Describes evidence of vulnerability / Requires that when a rent receipt is provided as proof of vulnerability, that the receipt specifically notate that heat is included in the rent / __ / Yes / X / No
3.756.12 / Describes procedures for processing LEAP applications / Requires the county LEAP offices to data-enter all LEAP applications within 15 days from the date of receipt. Includes that all LEAP applications must be added by June 19th of every LEAP program year. Also requires that any correspondence sent to a LEAP applicant must be generated through the LEAP database system / __ / Yes / X / No
3.756.18 / Describes procedures for processing LEAP applications / Requires a letter from any applicants who voluntarily withdraws their LEAP application(s) / __ / Yes / X / No
3.756.2 / New / Defines difference between advance and expedited LEAP payments / __ / Yes / X / No
3.758.14 / Describes payment policies / Adds rule reference. / __ / Yes /
X
/ No3.758.16 / Advance Payments / Moving to 3.758.21 / ___ / Yes /
X
/ No3.758.17-18 / Electric Diversions / Deletes the electric diversion provision and minimum payment clause. / __ / Yes / X / No
3.758.41 / Describes basic program payments / Changes the responsibility from the county to the state LEAP office to provide vendor contracts to potential fuel vendors / __ / Yes /
X
/ No3.758.43 / Electric Diversions / Deletes the electric diversion provision / __ / Yes / X / No
3.758.45 / Describes direct payments / Deletes this provision. / __ / Yes / X / No
3.758.46 / Describes vendor payment procedures / Deletes vendor agreement from process and adds a statement which refers to the State approved vendor agreement for terms and conditions / X / Yes / __ / No
3.758.47, Step A / Flat rate chart and standard amount for heat in rent chart / Updates charts to reflect new flat rates for 2007-2008. Also removes non-eligible, or non vulnerable dwellings / __ / Yes /
X
/ No3.758.48 / Describes the methodology of calculating a LEAP benefit / Adds language to better describe how the program adjusts benefits based on anticipated funding and applicant levels / X / Yes / __ / No
3.759.13 / Describes program outreach activities / Removes the requirement of county offices to contract with outside agencies to perform outreach activities / __ / Yes /
X
/ No3.759.15 / Describes county office responsibilities / Removes the requirement for counties to provide agencies with LEAP applications / __ / Yes /
X
/ No3.760.13 / Describes the method of processing CIP applications / Requires that the LEAP office manage all CIP-related emergencies including providing temporary heat if necessary. In addition, there is not a requirement for a bidding process / __ / Yes /
X
/ No3.760.14, D / Describes CIP eligibility / Requires that a CIP application must be denied if another person or agency covers the entire cost of the CIP / __ / Yes /
X
/ No3.760.16 / Describes CIP applications / Clarifies the responsibilities of the LEAP staff to process CIP applications / __ / Yes /
X
/ No3.760.21 / Describes benefit coverage / Corrects an error in definition of heating crisis. / __ / Yes /
X
/ No3.760.21, E / Describes home heating related crisis / Removes provision for providing electric benefits for persons on life support / _ / Yes /
X
/ No3.760.32 / Describes CIP payment policy / Requires that any CIP that has been completed and paid for by a LEAP applicant, that proof of that payment to the provider must be made available to LEAP before a cash benefit is paid to the applicant as a reimbursement under CIP rules / __ / Yes /
X
/ No3.760.43 / Factors for denial / Adds a denial code for this instance. / __ / Yes /
X
/ No3.760.53 / Describes CIP documentation / Requires the agency responsible for processing the CIP application to secure a scope of work from the provider before authorizing any work to be done under CIP / __ / Yes /
X
/ No3.770 / Describes allocations for administration and outreach / Adds “C” which sets dates for the state to consider county requests for additional funds / __ / Yes /
X
/ NoSTAKEHOLDER COMMENT SUMMARY
The following individuals and/or entities were contacted and informed that this rule-making was proposed:
Colorado Legal Services
Office of Self-Sufficiency Policy Advisory Committee (PAC)
Energy Outreach Colorado (EOC)
Governor’s Energy Office (GEO)
Comments were received from stakeholders on the proposed rule-making:
X / Yes / NoIf “yes”, please summarize and/or attach the feedback you received:
EOC requested that LEAP include qualified residents of nursing homes and assisted living facilities in eligibility guidelines in Section 3.752.25, B.
GEO requested that the LEAP income eligibility be expanded to include individuals that fall under the 60% State Median Income.
Rule-making Form SBA-3c (6/02)
9 CCR 2503-1
OTHER ASSISTANCE PROGRAMS 3.750 3.751.1
3.750LOWINCOME ENERGY ASSISTANCE PROGRAMS
3.750.1AUTHORITY
3.750.11Programs authorized under the LowIncome Home Energy Assistance Act include a
Rev. eff.Basic Program and a Crisis Intervention Program.
11/1/84
3.750.12The Basic Program is intended to help meet winter home heating costs of households
Rev. eff.composed of lowincome families and individuals.
11/1/93
3.750.13The Crisis Intervention Program is intended to assist households composed of
Rev. eff.lowincome families and individuals who are in home heating crisis situations.
11/1/99
3.750.14State authority for the programs is contained in the Governor's Executive Order and in
Rev. eff.accordance with rules adopted by the State Board of Human Services. This program
11/1/95is contingent on the availability of federal funds.
3.750.15This program is federally and privately funded and is subject to and contingent upon the
Rev. eff.continued availability of those funds. If said funds are increased, decreased or become
11/1/93unavailable, the services provided herein shall be increased, decreased or terminated accordingly.
3.751GENERAL PROVISIONS
3.751.1DEFINITIONS
“APPLICANT” THE PERSON WHO COMPLETES AND SIGNS THE BASIC LEAP APPLICATION FORM. THIS IS ALSO THE ONLY HOUSEHOLD MEMBER WHO IS REQUIRED TO PROVIDE PROOF OF LAWFUL PRESENCE AS DEFINED IN THESE RULES.
Rev. eff.A “Bulk Fuel”
11/1/06
Bulk fuel is an energy source for home heating which may be purchased in quantity from a fuel supplier and stored by the household to be used as needed. Normally, bulk fuel includes wood, propane, kerosene, coal and fuel oil.
B “Completed Application”
An A BASIC LEAP application shall be considered to be a completed application when:
A. 1.The applicant has provided an adequate response to all application questions which are necessary to determine eligibility and payment level;
B. 2.The applicant has provided all required verification;
C. 3.The application is signed;
D. 4.The applicant has provided proof of lawful presence in the United States (see Section 3.140.11).
THIS REVISION: / III-06-5 / LAST REVISION: / III-00-4 / REVISION NUMBERAdopted: / 9/8/2006 / Adopted: / 8/4/2000 / 12
Effective Date: / 11/1/2006 / Effective Date: / 10/1/2000
COLORADO DEPARTMENT OF HUMAN SERVICES
STAFF MANUAL VOLUME 3
INCOME MAINTENANCE
9 CCR 2503-1
OTHER ASSISTANCE PROGRAMS 3.751.1 – Cont.
3.751.1DEFINITIONS (continued)
C “Date of Application”
For purposes of the LowIncome Energy Assistance Programs, the date of application shall be the date a signed application form that contains a legible name and address is received by the county department.
D “Disabled or Handicapped”
The term disabled or handicapped means persons who receive vocational rehabilitation assistance, Social Security disability, SSI, AB, AND, or veterans 100% disability payments or who provide a physician's statement which indicates incapacity to engage in gainful employment.
E “Elderly”
For the purposes of these rules, the term elderly means aged 60 or over.
F “Eligibility Period”
There shall be one eligibility period for the Basic LowIncome Energy Assistance Programs from November 1st through April30th. IF APRIL 30TH FOR A PARTICULAR CALENDAR YEAR ENDS ON A HOLIDAY OR WEEKEND, THEN THE ELIGIBILITY PERIODS SHALL BE EXTENDED UNTIL THE NEXT BUSINESS DAY. The furnace repair/replacement component of the Crisis Intervention Program shall operate year round. All other components of the Crisis Intervention Program shall operate from November 1 through April 30. These programs are contingent upon the continued availability of funds IN ACCORDANCE WITH SECTIONS 3.750.15 AND 3.758.48.
G “Emergency/Expedited Applicant “
This is a household which has had heat service discontinued or is threatened with discontinuance, or is out of fuel or will run out of fuel within ten days. Applications for households in these situations shall be processed expeditiously and the emergency addressed within ten working days of notification of the emergency by the applicant to the county department.
H “Estimated Home Heating Costs”
The amount of the heating costs incurred during the previous heating season for THE APPLICANT’S address at THE time of application to be used as an estimate, or projection, of the anticipated heating costs for the current heating season (November 1st through April 30th). Such estimated heating costs shall not include payment arrearages, investigative charges, reconnection fees, or other such charges not related to residential fuel prices and consumption levels.