WF 09-27

COMMENT DUE DATE:

February 2, 2010

DATE:

January 20, 2010

Laura Brown FSSD (405) 521-4396

Dena Thayer PMU Manager (405) 521-4326

Pat McCracken PMU Specialist (405) 522-1017

RE:

APA WF 09-27

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org.

The proposed policy is Permanent . This proposal will go to the Commission meeting on

CHAPTER 20. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM

Subchapter 1. Low Income Home Energy Assistance Program

OAC 340:20-1-1 [AMENDED]

OAC 340:20-1-3 [AMENDED]

OAC 340:20-1-10 through 340:20-1-12 [AMENDED]

OAC 340:20-1-13 [INSTRUCTIONS TO STAFF REVISED]

OAC 340:20-1-17 [AMENDED]

OAC 340:20-1-19 through 340:20-1-20 [NEW]

(Reference APA WF 09-27)

SUMMARY: The proposed revisions to Subchapter 1 of Chapter 20 amend the rules to:(1) update language to current terminology; (2) clarify the different programs within the Low Income Home Energy Assistance Program (LIHEAP); (3) move specific information about the summer cooling and winter heating programs to their own new Sections for greater clarity; (4) remove outdated language regarding the uncertainty of running a summer cooling or Energy Crisis Assistance Program (ECAP) as funds for these programs are now budgeted each year; (5) clarify that the benefit level for the different LIHEAP programs is determined yearly;(6) explain how income is calculated to determine eligibility; (7) add clarifying information about how to consider educational assistance; (8) remove work related expenses and the Medicare Buy-In as income disregards as these are deductions; (9) add income deductions to follow Supplemental Nutrition Assistance Program (SNAP) rules; (10) add language regarding how to compute self-employment income to follow SNAP rules; (11) clarify which application form is used for LIHEAP depending on whether the household currently receives certain other benefits or those who do not for the various programs under LIHEAP; (12) clarify how pre-authorized households are handled; (13) give time frames for when applications are automatically mailed to certain households; (14) remove outdated language; (15) clarify when the ECAP program is available; (16) clarify that households may receive up to the maximum benefit allowed for ECAP rather than a one time payment; (17) add information about which households are preauthorized for winter heating; and (18) add information about households who can now be pre-authorized for summer cooling.

340:20-1-1 is amended to update language to current terminology.

340:20-1-3 is amended to clarify: (1) the different programs within the Low Income Home Energy Assistance Program (LIHEAP); and (2) remove specific information about winter heating in order to move it to its own section.

340:20-1-10 is amended to: (1) remove outdated language regarding the uncertainty of running a summer cooling or Energy Crisis Assistance Program (ECAP) as funds for these programs are now budgeted each year; and (2) clarify that the benefit level for the different LIHEAP programs is determined yearly.

340:20-1-11 is amended to: (1) explain how income is calculated to determine eligibility; (2) add clarifying information about how to consider educational assistance; (3) remove work related expenses and the Medicare Buy-In as income disregards as these are deductions; (4) add income deductions to follow Supplemental Nutrition Assistance Program (SNAP) rules; (5) add language regarding how to compute self-employment income to follow SNAP rules; and (6) update language to current terminology.

340:20-1-12 is amended to (1) clarify which application form is used for LIHEAP depending on whether the household currently receives certain other benefits or those who do not for the various programs under LIHEAP; (2) explain how pre-authorized households are handled; (3) give time frames for when applications are automatically mailed to certain households; (4) update language to current terminology and to remove outdated language; and (5) add clarifying information.

340:20-1-13 Instructions to Staff is revised to clarify verification time frames.

340:20-1-17 is amended to: (1) clarify when the ECAP program is available; (2) remove outdated language about garnishment of income; (3) clarify that households may receive up to the maximum benefit allowed for ECAP rather than a one time payment; and (4) remove information about the cooling program as it is being moved to its own section.

340:20-1-19 is issued to:(1) create a separate section for the winter heating portion of LIHEAP that has been moved from another section to provide greater clarity; and (2) add information about which households are preauthorized for winter heating.

340:20-1-20 is issued to:(1) create a separate section for the summer cooling portion of LIHEAP that has been moved from other sections to provide greater clarity; and (2) add information about households who can now be pre-authorized for summer cooling.

PERMANENT RULEMAKING APPROVAL IS REQUESTED.

LEGAL AUTHORITY:Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 96.80 through 96.89 of Title 45 of the Code of Federal Regulations and Public Law 109-58, as amended.

OKLAHOMA DEPARTMENT OF HUMAN SERVICES

Rule Impact Statement

To:Dena Thayer, Programs Administrator

Policy Management Unit

From:Mary Stalnaker, Division Director

Family Support Services Division

Date:January 16, 2010

Re:CHAPTER 20. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM

Subchapter 1. Low Income Home Energy Assistance Program

OAC 340:20-1-1 [AMENDED]

OAC 340:20-1-3 [AMENDED]

OAC 340:20-1-10 through 340:20-1-12 [AMENDED]

OAC 340:20-1-17 [AMENDED]

OAC 340:20-1-19 through 340:20-1-20 [NEW]

OAC 340:20-1-20 [NEW]

(Reference APA WF 09-27)

Contact:Laura Brown, 405-521-4396

A.Brief description of the purpose of the proposed rule:

Purpose.The proposed revisions to Subchapter 1 of Chapter 20 amend the rules to:(1) update language to current terminology; (2) clarify the different programs within the Low Income Home Energy Assistance Program (LIHEAP); (3) move specific information about the summer cooling and winter heating programs to their own new Sections for greater clarity; (4) remove outdated language regarding the uncertainty of running a summer cooling or Energy Crisis Assistance Program (ECAP) as funds for these programs are now budgeted each year; (5) clarify that the benefit level for the different LIHEAP programs is determined yearly;(6) explain how income is calculated to determine eligibility; (7) add clarifying information about how to consider educational assistance; (8) remove work related expenses and the Medicare Buy-In as income disregards as these are deductions; (9) add income deductions to follow Supplemental Nutrition Assistance Program (SNAP) rules; (10) add language regarding how to compute self-employment income to follow SNAP rules; (11) clarify which application form is used for LIHEAP depending on whether the household currently receives certain other benefits or those who do not for the various programs under LIHEAP; (12) clarify how pre-authorized households are handled; (13) give time frames for when applications are automatically mailed to certain households; (14) remove outdated language; (15) clarify when the ECAP program is available; (16) clarify that households may receive up to the maximum benefit allowed for ECAP rather than a one time payment; (17) add information about which households are preauthorized for winter heating; and (18) add information about households who can now be pre-authorized for summer cooling.

Strategic Plan impact.The proposed rules achieve the Oklahoma Department of Human Services (OKDHS) goals by continuously improving systems and processes to achieve OKDHS efficiency.

Substantive changes.

340:20-1-1 is amended to update language to current terminology.

Reasons.The proposed revisions provide OKDHS staff with clear and concise rules to facilitate the accurate delivery of benefits and services to persons who are in need and to remove outdated information.Rearranging the rules so rules specific to the winter heating and summer cooling programs are grouped together will make it easier for staff to find specific information.Changing rules regarding deductions and how to consider self-employment income to match SNAP rules will make rules more uniform between programs.Preauthorizing households for summer cooling is a new feature of the summer cooling program.

Repercussions. The proposed rules will make rules easier to understand for both OKDHS staff and the public. If the proposed revisions are not implemented staff may not properly process and maintain cases which could cause clients to receive an incorrect level of benefits and may cause errors if cases are audited.

Legal authority. Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 96.80 through 96.89 of Title 45 of the Code of Federal Regulations and Public Law 109-58, as amended.

Permanent rulemaking approval is requested.

B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed rules are households eligible for LIHEAP.The affected classes of persons will bear no costs associated with implementation of the rules.

C.A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are households eligible for LIHEAP and OKDHS staff.

D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each: The revised rules do not have an economic impact on the affected entities. There are no fee changes associated with the revised rules.

E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20. The revised rules will result in enhanced delivery of services for households eligible for LIHEAP.

F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.

G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.

H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule.

I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rules will have a positive impact on the health, safety, and well-being of LIHEAP households by facilitating the delivery of benefits and services to individuals who are in need.

J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: If the proposed rules are not implemented, staff may not process benefits correctly which could lead to a detrimental effect on the public health, safety, and environment.

K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared December 3, 2009. Modified December 10, 2009

SUBCHAPTER 1. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM

340:20-1-1. Purpose

Revised ~~12-1-94~~ 6-1-10

The purpose of this Chapter is to outline the rules governing the ~~Department's~~ ~~home energy assistance program~~ Oklahoma Department of Human Services (OKDHS) Low Income Home Energy Assistance Program (LIHEAP).The intent of the program is to provide assistance to eligible households to meet the costs of home energy that are excessive in relation to household income.As administered by ~~the Department~~ OKDHS, those households most affected by these costs are the elderly, ~~handicapped~~ disabled, homebound, young children, low-income families, migrants, and those who are isolated from service programs by geographical conditions or language barriers.

340:20-1-3. Scope

Revised ~~6-1-08~~ 6-1-10

(a) The operation of the Low Income Home Energy Assistance Program (LIHEAP) is contingent upon the receipt of federal funds.Delay in federal funding can cause changes in planned time frames for the program.

(b) ~~Selected households already approved for other benefits administered by the Family Support Services Division (FSSD) are normally pre-authorized during October.¢ 1All other households must complete an application.~~

~~(1) The heating assistance part of LIHEAP normally begins the first working day in December, and applications are taken for a month or less.~~

(2) After certification, one payment is made directly to the designated supplier of the primary source of home heating on behalf of approved households responsible for their own utilities unless a situation arises which may necessitate two or more payments. Examples of situations that may necessitate two or more payments include a delay in federal funding, release of contingency funds by the President, and similar situations.

~~(3) Payments are made weekly for the duration of the program.~~

(c) The same payment schedule in (b) of this Section is used for unsubsidized renters and roomers with utilities included in their rent and for households whose energy source is wood, coal, heating oil, or kerosene, except that payments are made directly to approved households.

~~(d) Primary sources of home energy include natural gas, electricity, propane, firewood, kerosene, coal, or butane.~~

(1) LIHEAP payments are made for utility expenses, deposits, and reconnect charges applicable to the household's primary source of home energy.If both the client and OKDHS paid reconnect charges or deposits, the utility supplier must reimburse the client for those charges.

(2) When other utilities are included with the fuel bill and the amount for the primary source of home energy cannot be identified, or when the fuel vendor only accepts payment for the combined amount, the combined amount may be paid through LIHEAP.

(e) Payments are not made for blankets, emergency repair on the home, new or additional heating equipment, or heating appliances.Propane tank rental and delivery charges are not covered, if they are identifiable.

LIHEAP consists of four components:

(1) heating assistance, which is the benefits paid to vendors and clients beginning in December each year as approved;

(2) Energy Crisis Assistance Program (ECAP) beginning in March each year and any time there is a medical crisis;

(3) summer cooling assistance beginning in July each year; and

(4) weatherization assistance, which is administered year round by the Oklahoma Department of Commerce with LIHEAP funds allocated to them by OKDHS. Various local Community Action Agencies provide actual weatherization services.

~~INSTRUCTIONS TO STAFF 340:20-1-3~~

~~Issued 6-1-08~~

1.Households preapproved for the Low Income Home Energy Assistance Program (LIHEAP) are those who received benefits all 12 months of the previous year and met all the criteria shown in (1) through (4).

~~(1) The household received LIHEAP the previous year.~~

~~(2) The address remained the same.~~

~~(3) The household size remained the same.~~

~~(4) The income did not change during the year.~~

340:20-1-10. Program factors

Revised ~~6-1-09~~ 6-1-10

(a) Home energy.Home energy refers to a household's source of energy used for heating or cooling in a residential dwelling.

(b) Primary energy source.

(1) The primary energy source during winter months is the fuel used by the household for heating.

(2) ~~If a cooling program is implemented~~ The primary energy source during the summer months~~, the fuel type used for cooling~~ is the ~~primary energy source~~ fuel used by the household for cooling.

~~(3) In the event funds are available to assist with cooling through the Energy Crisis Assistance Program (ECAP), the primary energy source becomes the fuel used by the household for cooling.~~

(43) ~~If an interim period is implemented between heating and cooling programs or as part of ECAP, the client~~ The household may choose the primary energy source during the Energy Crisis Assistance Program (ECAP) application period between heating and cooling programs.

(c) Household.The term household refers to any person or group of persons who are living together as one economic unit and for whom residential energy is customarily purchased in common, or who make undesignated payments for energy in the form of rent.There is one authorization for heating or cooling assistance per household.

(d) Subsidized household.A subsidized household is a household that receives assistance through a utility allowance to cover all or part of their energy cost, and/or which receives assistance in paying their rent or house payment on a regular basis.The assistance can be from a government agency, such as a local housing authority, or a private person, usually a relative, who helps a person or family pay their utility bills, or the rent or house payment, or allows them to live rent free.Eligible subsidized households with out-of-pocket utility expenses receive the same heating assistance benefit as unsubsidized households.

(e) Vulnerability.A household is vulnerable if it is responsible, either totally or partially, for the cost of home energy.A vulnerable household includes a household whose source of home energy has been temporarily discontinued.

(1) Apartment rental rates.If apartment rental rates in college or university-owned apartment complexes are deliberately set lower than other apartments in the community in order to help the student, the household is considered a subsidized household.¢ 1

(2) Non-vulnerability.Non-vulnerable households are those that do not bear any of the expense of home energy.

(A) Examples of non-vulnerable living arrangements include:

(i) congregate or domiciliary facilities, such as nursing facilities and college or university dormitory, fraternity, or sorority housing;

(ii) households whose primary energy source is totally paid by someone other than a household member; and

(iii) subsidized households whose heating costs are included in their rent.

(B) Some subsidized households may be assessed an energy surcharge during the operation of the Low Income Home Energy Assistance Program (LIHEAP).These households might be eligible for heating assistance if they can document assessment of the surcharge.

(f) Eligible households.All households must:

(1) be vulnerable by being totally or partially responsible for the cost of home energy;¢ 2

(2) not exceed the income and resource standards as shown on Oklahoma Department of Human Services (OKDHS) Appendix C-7, Low Income Home Energy Assistance Program Income and Resource Level by Household Size; and

(3) include at least one citizen or legal alien as defined in OAC 340:20-1-8 and may include an illegal alien.

(g) Benefit amount. The household benefit amount is based upon the household's size, income, and type of fuel.The benefit amount is not changed during the program year due to changes in household composition, income, or fuel type.It is adjusted after the end of the heating application period if the total number of households finally approved for heating assistance in relation to the total federal funding available for heating assistance payments requires an adjustment.¢ 3 There is no difference in the benefit levels between subsidized and unsubsidized households.The benefit level for heating, cooling, and ECAP is determined once a year by the Family Support Services Division LIHEAP Section staff.Workers are notified of the benefit level for each program at the start of the application period for that program.

INSTRUCTIONS TO STAFF 340:20-1-10

Revised 6-1-09

1.The worker may need to contact the campus housing office(s) to determine whether rental rates have been set lower for college or university-owned apartments.

2.Subsidized households whose heating costs are included in their rent are not vulnerable unless assessed a surcharge.Refer to OAC 340:20-1-10(e)(2).

3.(a) If the worker discovers that an incorrect benefit level was approved prior to the benefit being issued, the worker must contact the Supplemental Nutrition Assistance Program (SNAP)/Low Income Home Energy Assistance Program (LIHEAP) Section in Family Support Services Division (FSSD) to provide the corrected information.The worker may contact the FSSD SNAP/LIHEAP Section by:

(1) e-mail at LIHEAP2@okdhs.org;

(2) telephone; or

(3) memo.

(b) After a payment has been made, if the worker discovers that the household received a higher benefit level than it was eligible to receive, the worker must write a memo explaining the reason for the overpayment, and submit it to the SNAP/LIHEAP Section.

340:20-1-11. Income and liquid resources

Revised ~~6-1-09~~ 6-1-10

(a) Income.All gross earned and unearned income received by the household is considered in determining financial eligibility except for those income sources shown at (b) of this Section.Eligible households must meet the income standard less the earned income deduction as shown on Oklahoma Department of Human Services (OKDHS) Appendix C-7, Low Income Home Energy Assistance Program Income and Resource Level by Household Size.

(1) Income that is received on an annual basis is prorated over 12 months to arrive at the average monthly income.

(2) If the income is not received on a regular monthly basis, refer to OAC 340:10‑3‑31.

(3) Total income is rounded to the nearest dollar.

(4) When a person's income is reduced due to recoupment of an overpayment or garnishment, the gross amount before the recoupment or garnishment is considered.

(5) The countable earned income is computed as outlined in (A) through (D) of this paragraph.

(A) For each employed household member, subtract the earned income deduction as shown on OKDHS Appendix C-7.

(B) Add the unearned income of all household members.

(D) The remaining amount is the amount considered available to the household members eligible for the Low Income Home Energy Assistance Program (LIHEAP).

(56) When an ~~illegal~~ undocumented alien is part of an eligible household, the countable portion of his or her income is computed as outlined in (A) through (E) of this ~~subsection~~ paragraph.

(A) For each employed household member, subtract the earned income deduction as shown on OKDHS Appendix C-7.

(B) Add the unearned income of the ~~illegal~~ undocumented alien.

(C) Subtract the need standard on OKDHS Appendix C-1, Schedule of Maximum Income, Resource, and Payment Standards Schedule IX, for the appropriate number of persons.Persons counted for the need standard are the ~~illegal~~ undocumented alien and his or her ~~illegal~~ undocumented alien dependents who:

(i) are claimable for federal personal income taxes;

(ii) live in the same household; and

(iii) are not included in determining the Low Income Home Energy Assistance Program (LIHEAP) benefit level because they are ~~illegal~~ undocumented aliens.

(D) Subtract ~~the actual amounts paid by the illegal alien to dependents not living in the household as well as actual child support and alimony payments to non-household members~~ all applicable deductions as shown in (c) of this Section.

(E) The remaining amount is the amount considered available to the household members eligible for LIHEAP.

(b) Income disregards.In determining income, disregard:

(1) the food benefit amount under the Food and Nutrition Act of 2008;

(2) any payment received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

(3) educational assistance including grants, ~~including~~ work study, or scholarships, ~~that are~~ fellowships, educational loans on which payment is deferred, veteran's education benefits, and the like are exempt if receipt is contingent upon the student regularly attending school and the money received is intended to offset the costs of education and expenses as identified by the institution, school, program, or other grantor.¢ 1If the money is not intended to be a reimbursement and is a gain to the client, it is considered income.¢ 2The student's classification, whether graduate or undergraduate, is not a factor;

(4) loans, regardless of use, if a bona fide debt or obligation to pay can be established.

(A) Criteria to establish a loan as bona fide includes an acknowledgment of obligation to repay or evidence that the loan is from a person or financial institution in the loan business.

(B) If the loan is from a person(s) not in the loan business, the borrower's acknowledgment of obligation to repay, with or without interest, is required to indicate that the loan is bona fide;

(5) Indian payments including judgment funds or funds held in trust and distributed per capita by the Secretary of the Interior Bureau of Indian Affairs (BIA) or distributed by the tribe subject to approval by the Secretary of the Interior.Also, disregard any interest or investment income accrued on such funds while held in trust or any purchases made with judgment funds, trust funds, interest, or investment income accrued on such funds.Any per capita payments, for example, headrights of Osage tribe, income from mineral leases, or other tribal business ventures, are disregarded as long as they meet the distribution requirements as stated in this paragraph.Any interest or income derived from the principal or produced by purchases made with the funds after distribution is considered as any other income;

(6) special allowance for school expenses made available upon petition in writing from trust funds of the student;

(7) benefits from State and Community Programs on Aging [Title III].Income from the Older American Community Service Employment Act [Title V], including American Association of Retired Persons (AARP) and Green Thumb organizations as well as employment positions allocated at the discretion of the Governor of Oklahoma, is counted as earned income;

(8) unearned income received by a child receiving Temporary Assistance for Needy Families (TANF), such as a needs based payment, cash assistance, compensation in lieu of wages, or allowance, from a program funded by the Workforce Investment Act (WIA) including Job Corps income, and WIA earned income received as wages, not to exceed six months in any calendar year;

(9) payments for supportive services or reimbursement for out-of-pocket expenses made to individual volunteers serving as foster grandparents, senior health aides, or senior companions, and to persons serving in the Service Corps of Retired Executives (SCORE) and Active Corps of Executives (ACE);

(10) payments to volunteers under the Domestic Volunteer Service Act of 1973, Volunteers in Service to America (VISTA), unless the gross amount of VISTA payments equals or exceeds the state or federal minimum wage, whichever is greater;

(11) the value of supplemental food assistance received under the Child Nutrition Act or the special food service program for children under the National School Lunch Act;

(12) any portion of payments, made under the Alaska Native Claims Settlement Act to an Alaska native, which are exempt from taxation under the Settlement Act;

(13) Experimental Housing Allowance Program (EHAP) payments made under Annual Contributions Contracts entered into prior to January 1, 1975, under Section 23 of the U.S. Housing Act of 1937, as amended;

(14) earnings of a minor dependent child who is a full-time student;

(15) rental or housing subsidies by governmental agencies, for example, United States Department of Housing and Urban Development (HUD), received in-kind or in cash for rent, mortgage payments, or utilities;

(16) reimbursements from an employer for out-of-pocket expenditures and allowances for travel or training to the extent the funds are used for expenses directly related to such travel or training.Uniform allowances are disregarded if the uniform is uniquely identified with company name or logo;

(17) advance payments of Earned Income Tax Credit (EITC) or refunds of EITC as a result of filing a federal income tax return;

(18) refunds of state EITC as a result of filing a state income tax return;

(19) payments made from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the IN RE Agent Orange Product Liability Litigation, M.D.L. No. 381 (E.D.N.Y.) are not considered as income or as a resource in determining eligibility for or the amount of the benefit;

(20) payments received for Emergency Assistance to Needy Families with Children;

~~(21) Medicare buy-in premium;~~

~~(22) work related expenses that are applicable under the TANF Program;~~

(2321) payments made by others on the household's behalf;

(2422) in-kind benefits received by an employee from an employer in lieu of wages or in conjunction with wages;

(2523) payments made under the Radiation Exposure Compensation Act (P.L. 101-426) enacted October 15, 1990;

(2624) federal major disaster and emergency assistance provided under the Disaster Relief Act of 1974, and comparable disaster assistance provided by states, local governments, and disaster assistance organizations;

(2725) interests of individual Native Americans in trust or restricted lands;

(2826) income up to $2,000 per year received by individual Native Americans, which is derived from leases or other uses of individually-owned trust or restricted lands.Any remaining disbursements from the trust or the restricted lands are considered as income;

(2927) payments made to persons because of their status as victims of Nazi persecution; and

(3028) monetary allowances as described in Section 1823(c) of Title 38 of the United States Code (USC) provided to certain persons who are children of Vietnam War veterans.

(1) out-of-pocket non-reimbursed medical expenses paid by persons age 60 and older or persons considered disabled according to the Social Security Administration rules per OAC 340:50-5-4;

(2) legally binding child support paid by a household member to or for a non-household member, including payments made to a third party on behalf of the non-household member; and

(3) the earned income deduction as shown on OKDHS Appendix C-7 for each employed household member.In addition, if a household member is self-employed, see (e) of this Section for self-employment deductions.

(cd) Resources.Liquid resources, such as cash on hand, checking or savings accounts, certificates of deposits, stocks or bonds, cannot exceed the allowable resource level as shown on OKDHS Appendix C-7.The applicant's statement is accepted as verification unless the information received is inconsistent or questionable.

(e) Self-employment.When a household member is self-employed the net income as shown on the tax return is used as the income for this person.

(1) When the household did not file an income tax return on its self-employment income for the most recent year, the worker uses (A) through (C) to determine the net monthly self-employment income.

(A) The gross self-employment income, including capital gains, is computed using the client's self-employment business records.

(B) If the client declares they incurred business expenses, the worker then subtracts 50% of the gross self-employment income as business expenses. If the household did not incur business expenses, a business expense deduction is not given.

(2) The monthly net self-employment income is added to all other earned income received by the household.

Instructions TO Staff 340:20-1-11

Issued 6-1-10

1.Exempt student income includes:

(1) any money from Title IV of the Higher Education Act including federal or state work study;

(2) educational assistance funded through the Veterans Administration (VA) such as the Montgomery GI Bill;

(3) grants;

(4) scholarships;

(5) subsidized and unsubsidized Stafford loans;

(6) federal PLUS loans;

(7) TRIO grants;

(8) Robert C. Byrd Honors Scholarship Program;

(9) Bureau of Indian Affairs (BIA) student assistance;

(10) money from the Carl D. Perkins Vocational Education Act; and

(11) Workforce Investment Act (WIA).

2.Student income that is not exempt includes:

(1) money that is paid directly to the student and not sent through the bursar’s account other than funds listed in Instructions to Staff #1 of these Instructions;

(2) institutional work study; or

(3) money intended as an incentive for school attendance or grades rather than the school expenses.

340:20-1-12. Applications

Revised ~~6-1-03~~ 6-1-10

~~Computer-generated~~ Households apply for the Low Income Home Energy Assistance Program (LIHEAP) using computer-generated Form ~~LIHEAP-1-A~~ 08LH001E, Application for Low Income Home Energy Assistance (Heating), or Form ~~LIHEAP-1-B~~ 08LH002E, Application for Low Income Home Energy Assistance – Walk-In Application, ~~is completed for every request for home energy assistance,~~ with the exception of ~~A, B, C, D, and S~~ ~~cases~~ households that have been pre-authorized.¢ 1

(1) Form ~~LIHEAP-1-A~~ 08LH001E is automatically mailed in November of each year for winter heating and June of each year for summer cooling to ~~payees in selected active A, B, C, D, or S cases certified prior to December~~ households receiving Supplemental Nutrition Assistance Program (SNAP) benefits, Temporary Assistance to Needy Families (TANF), and State Supplemental Payment (SSP) at the time of the mailing.The application shows the case number and case name and continues with the same case number regardless of A, B, C, D, or S case status after the energy case has been certified. The computer-generated Form LIHEAP-1-Ais returned to the county office when completed by the applicant to be processed for application The household must complete, sign, and return the application prior to approval or denial.¢ 2 1

(2) Households making an initial application for ~~Low Income Home Energy Assistance Program (~~LIHEAP~~) and not containing a payee-recipient or applicant of an A, B, C, D, or S case~~ who are not receiving another benefit, require an "N" number.Households requiring an "N" number must apply for LIHEAP through their ~~county office~~ local human services center (HSC) using Form ~~LIHEAP-1-B~~ 08LH002E.¢ 1

(3) Households applying for the Energy Crisis Assistance Program (ECAP), must complete, sign, and return Form 08LH002E regardless of whether the household is receiving other benefits.

(4) Certain households may be pre-authorized for the LIHEAP winter heating or summer cooling programs without filing an application.Prior to pre-authorizing benefits, the system checks the household's eligibility using pre-authorization guidelines at OAC 340:20-1-19.

(35) A new application is not necessary when a worker is notified of a change of "service" address.The worker updates the address and vendor information on the case.

(46) In order to ensure that payments are made to the correct energy supplier for gas and electricity, ~~it is necessary to know~~ the household must provide the account name and ~~the account~~ number ~~of the client~~ for the appropriate utility bill.~~Therefore, for~~ For households using gas or electricity, it is necessary to see the household's most recent paid or unpaid bill or to obtain verification from the utility supplier.¢ 32

INSTRUCTIONS TO STAFF 340-20-1-12

Revised ~~6-1-03~~ 6-1-10

1.The original or imaged copy of Form ~~LIHEAP-1-B~~ 08LH001E, Application for Low Income Home Energy Assistance ~~– Walk-In~~ (Heating), or Form 08LH002E, Low Income Energy Assistance – Walk-In Application, is filed in the ~~county~~ case record and a copy is given to the applicant upon request.

~~2.The original Form LIHEAP-1-A is filed in the county case record and a copy is given to the applicant upon request.~~

32.A copy of the bill is filed or imaged in the case record, or verification from the energy supplier is recorded in the case record.

340:20-1-13. Verification [INSTRUCTIONS TO STAFF ONLY REVISED]

Revised 6-1-08

(a) Income and resources eligibility.Income is verified for the Low Income Home Energy Assistance Program (LIHEAP) using the same procedures as for Temporary Assistance for Needy Families (TANF) at OAC 340:10-3.

(1) If all members of the household are included in TANF, State Supplemental Payment, or food benefits, verification of income and resources is established by that case record.

(2) All other applications have eligibility determination based on current month's income and resources of the total household.¢ 1

(b) Vulnerability determination. To determine vulnerability, a household must show that it is subject to the expense of home energy.

(1) A household which pays energy costs directly to suppliers establishes vulnerability by billing information on the utility statement.

(2) A household whose energy cost is included in the shelter payment must provide proof it is subject to the expense of home energy.Proof may include a statement from the landlord or a rent receipt designating inclusion of fuel cost.¢ 2

(3) Subsidized households whose heating costs are included in their rent but are assessed an energy surcharge must provide documentation of the assessed surcharge.These households are then considered partially vulnerable and are eligible for LIHEAP, if they meet other eligibility criteria.

INSTRUCTIONS TO STAFF 340:20-1-13

Revised ~~6-1-08~~ 6-1-10

1.~~The client's statement regarding income and liquid resources is acceptable unless questionable.~~When verification is needed, the worker issues Form 08AD092E, Client Contact and Information Request, giving the household ten calendar days to provide necessary documentation.The ten calendar days is allowed regardless of when staff are instructed to stop taking applications.When verification is provided within the ten day period and the household is eligible for benefits, the worker approves the application.Income determination may be made by:

(1) case record;

(2) SDX;

(3) award letters; and

(4) similar data.

2.If the required verification is already included in the case record, the worker uses that verification to determine vulnerability.

340:20-1-17. Energy crisis assistance

Revised ~~6-1-08~~ 6-1-10

(a) Energy crisis assistance.Energy crisis situations are handled ~~during the regular heating assistance program, and through the Energy Crisis Assistance Program (ECAP) in March~~ year round on a case-by-case basis for households with a 72-hour cut-off notice and a verified life-threatening medical situation.Clients in a crisis situation must make application by contacting the local human services center (HSC).Family Support Services Division (FSSD) Low Income Home Energy Assistance (LIHEAP) ~~section~~ Section staff approves applications for life threatening situations outside the normal application period for Energy Crisis Assistance Program (ECAP) and when the heating or cooling program cannot be used to pay the bill.¢ 1

(1) If a household is approved for assistance to resolve the crisis situation, the application is processed within 48 hours from the time the HSC receives the application.¢ 2

(2) When the crisis situation is verified by a designated authority as life-threatening and the household qualifies for assistance, the application must be processed so that assistance is provided to resolve the crisis situation within 18 hours following receipt of the application.¢ 2Authority for designating a crisis situation as life-threatening is limited to a:

(A) physician;

(B) public health official;

(D) HSC county director.

(b) Energy Crisis Assistance Program (ECAP).Based upon previous years' program experience, reasonable funds are reserved until March 15 of each year for ECAP.All ECAP applications must be made on Form 08LH002E, ~~Application for~~ Low Income Home Energy Assistance – Walk-In Application.

(1) Eligibility criteria.

(A) Households with an energy crisis must not exceed the income and liquid resource standards on Oklahoma Department of Human Services (OKDHS) Appendix C-7, Low Income Home Energy Assistance Program Income and Resource Level by Household Size.Income and resource criteria for ECAP are the same as for heating and cooling assistance found in OAC 340:20-1-11 ~~with the exception of garnishment or recoupment of an overpayment~~.~~For ECAP, the garnishment or recoupment amount of income, other than OKDHS benefits, is subtracted to arrive at net income.~~

(B) The household must have had service discontinued or terminated by the seasonal primary energy supplier, or received:

(i) notice of a scheduled cut-off within 72 hours;

(ii) notice of a refusal to provide additional energy needs by the supplier when supply of fuel willbe depleted within 72 hours or less; or

(iii) information regarding fee for a new connection.

(C) For a household to be eligible for ECAP, some precipitating factor must exist which caused the household's inability to pay their energy bill.The worker must ascertain why the energy bill has not been paid.¢ 3Factors preventing payment of the energy bill include, but are not limited to, situations causing the household to make a choice between paying the energy bill and:

(i) purchasing sufficient food for the household;

(ii) paying for emergency situations such as medical expenses or disaster recovery; or

(iii) providing clothing for children in the household.

(D) The worker must verify that the energy crisis need cannot be met by available income and liquid resources, even if income and liquid resources are equal to or below the standard.

(E) If the energy supplier refuses to establish or restore service for the amount of the ECAP payment, combined with whatever other resource is available or can be developed, the ECAP payment cannot be authorized.

(F) In instances where the maximum amount of ECAP and other available emergency programs do not meet the crisis, the case must be documented as having a feasible plan for maintaining or restoring service before an ECAP payment can be authorized.

(2) Administrative procedures.

(A) The authorized benefit for ECAP is limited to ~~a one-time-only payment for~~ the amount necessary to connect, restore, or maintain energy service to the household up to the established maximum for the program year.¢ 4

(B) OKDHS makes payments for crisis assistance directly to energy suppliers with rare exceptions.¢ 5

(D) Payment may only be authorized for the seasonal primary source of energy, although it is possible for the primary energy source to change in some situations.If an interim period of ECAP assistance is implemented, the client may choose the primary energy source.

~~(E) If a cooling program is implemented, payment is only authorized for the primary energy source for cooling.[OAC 340:20-1-10(b)]~~

INSTRUCTIONS TO STAFF 340:20-1-17

Revised 6-1-08

1.Verification of crisis situations is recorded in the case record.All Low Income Home Energy Assistance (LIHEAP) forms are filed in chronological order in the LIHEAP section of the case record.

2.Following verification of the crisis and determination of eligibility, the certifying worker:

(1) contacts the fuel supplier as soon as possible to request delivery of fuel;

(2) completes Form 08LH003E, Notice of Eligibility For Energy Crisis Assistance, listing the appropriate benefit amount from the Estimated Benefit Level Matrix;

(3) e-mails or faxes the completed Form 08LH003E to the supplier; and

(4) documents in detail the life-threatening decision in the case record.

3.Human services center (HSC) staff must use discretion in determining what constitutes good cause for a household not paying the utility bill.Any practical reason is acceptable.The Family Support Services Division (FSSD) Low Income Home Energy Assistance Program (LIHEAP) Section is available for consultation when HSC staff need assistance regarding good cause.

4.The worker advises the client and the energy supplier this is the only payment Oklahoma Department of Human Services (OKDHS) will make for this household for heating assistance.

5.For example, if no reliable wood supplier is available, it is permissible to send the payment directly to the eligible household by entering the client's name and Social Security number as that of the vendor.Such situations occur infrequently.The worker must use judgment in determining whether the client is a more reliable payee than any supplier available.

340:20-1-19 Winter heating

Issued 6-1-10

(a) Selected households already approved for other benefits administered by the Family Support Services Division (FSSD) are normally pre-authorized during October of each year.¢ 1Households pre-approved for the Low Income Home Energy Assistance Program (LIHEAP) are those who received a State Supplemental Payment (SSP), Temporary Assistance for Needy Families (TANF), or Supplemental Nutrition Assistance Program (SNAP) benefits all 12 months of the previous year and met all the criteria shown in (1) through (3).

(1) The household received LIHEAP the previous year.

(2) The address remained the same.

(3) The income did not exceed eligibility guidelines for household size during the year.

(b) Households who do not meet preauthorization criteria must complete an application.

(c) The heating assistance part of the LIHEAP normally begins the first working day in December, and applications are taken until allocated funds are expended.

(d) After certification, one payment is made directly to the designated supplier of the primary source of home heating on behalf of approved households responsible for their own utilities unless a situation arises which may necessitate two or more payments. Examples of situations that may necessitate two or more payments include a delay in federal funding, release of contingency funds by the President, and similar situations.

(e) Payments are made weekly for the duration of the program.

(f) The same payment schedule is used for unsubsidized renters and roomers with utilities included in their rent and for households whose energy source is wood, coal, heating oil, or kerosene, except that payments are made directly to approved households.

(g) Primary sources of home energy include natural gas, electricity, propane, firewood, kerosene, coal, or butane.

(1) LIHEAP payments are made for utility expenses, deposits, and reconnect charges applicable to the household's primary source of home energy.If both the client and Oklahoma Department of Human Services (OKDHS) paid reconnect charges or deposits, the utility supplier must reimburse the client for those charges.

(h) Payments are not made for blankets, emergency repair on the home, new or additional heating equipment, or heating appliances.Propane tank rental and delivery charges are not covered, if they are identifiable.

340:20-1-20 Summer cooling

Issued 6-1-10

(a) Selected households already approved for other benefits administered by the Family Support Services Division (FSSD) are normally pre-authorized during June of each year.Households pre-approved for the Low Income Home Energy Assistance Program (LIHEAP) are those who received a State Supplemental Payment (SSP), Temporary Assistance for Needy Families (TANF), or Supplemental Nutrition Assistance Program (SNAP) benefits all 12 months of the previous year and met all the criteria shown in (1) through (3).

(1) The household received LIHEAP the previous year.

(2) The address remained the same.

(3) The household size remained the same.

(b) All other households must complete an application.

(c) The cooling assistance part of the Low Income Home Energy Assistance Program (LIHEAP) normally begins mid July, and applications are taken until allocated funds are expended.

(d) After certification, one payment is made directly to the designated electricity supplier for the home on behalf of approved households responsible for their own utilities unless a situation arises which may necessitate two or more payments. Examples of situations that may necessitate two or more payments include a delay in federal funding, release of contingency funds by the President, and similar situations.

(e) Payments are made weekly for the duration of the program.

(f) The same payment schedule is used for unsubsidized renters and roomers with utilities included in their rent except that payments are made directly to approved households.