Rule Impact Statement
To: Programs Administrator
Legal Services - Policy
From: Sondra Shelby, Adult and Family Services (AFS) Director
Adult and Family Services
Date: May 12, 2025
Re: Chapter 20. Low Income Home Energy Assistance Program
Subchapter 1. Low Income Home Energy Assistance Program
340:20-1-3 [AMENDED]
340:20-1-10 through 340:20-1-14 [AMENDED]
340:20-1-17 [AMENDED]
340:20-1-19 [AMENDED]
340:20-1-20 [AMENDED]
(Reference WF 26-20)
Contact: Caleb Turner, Programs Manager V, 405-982-3685
A. Brief description of the purpose of the proposed rule:
(i) Purpose.
The proposed amendments to Chapter 20, Subchapter 1 amend the rules to: (1) establish procedures for handling applications for whom Oklahoma Human Services (OKDHS) has received applications; and (2) remove resources from consideration when determining eligibility for Low Income Home Energy Assistance Program (LIHEAP) components.
(I) Rule classification
The proposed amendments are classified as non-major rules as they will not exceed one million dollars over the initial five-year period following the promulgation of the proposed rule.
(II) A determination whether the proposed rule is mandated by federal law, or as a requirement for participation in or implementation of a federally subsidized or assisted program.
The proposed changes are allowed but not mandated by federal law.
(III) A determination whether the proposed rule exceeds the requirements of the applicable federal law.
OKDHS is eliminating requirements it had placed on LIHEAP applicants and recipients that were not in federal law. It is also exercising its authority under the law to improve program operation. OKDHS has not exceeded its rulemaking authority.
(IV) A summary and preliminary comparison of any existing or proposed federal regulations that are intended to address the activities to be regulated by the proposed rule.
LIHEAP governing law is in Sections 8621 to 8630 of Title 42 of the United States Code [42 U.S.C. §§ 8621-8630]; Sections 96.1 to 96.137 of Title 45 of the Code of Federal Regulations [45 C.F.R. §§ 96.1-96.137], and 45 C.F.R. §§ 75.1-75.2, 75.100-75.113, 75.202, and 75.351-75.353. In 45 C.F.R. § 96.50, the federal regulations indicate, "States are primarily responsible for interpreting the governing statutory provisions" and "may reach different interpretations for the same statutory provisions[,]" so during a federal audit, "the Department will defer to a State's interpretation of its assurances and the provisions of the block grant statutes unless the interpretation is clearly erroneous."
Per 42 U.S.C. 8624(b)(2), federal law requires OKDHS to ensure a household meets an income standard between 110 percent and 150 percent of the federal poverty guideline (FPG) or between 110 percent of the FPG and 60 percent of the state median income or be categorically eligible. Temporary Assistance for Needy Families, Supplemental Security Income, Supplemental Nutrition Assistance Program, and payees under 38 U.S.C. §§ 415, 521, 541, or 542 or under section 306 of the Veterans' and Survivors' Pension Improvement Act may be categorically eligible. OKDHS has not elected to grant categorical eligibility.
Per 42 U.S.C. § 8624(j), LIHEAP may adopt income verification procedures from "programs under part A of title IV of the Social Security Act, under title XX of the Social Security Act, under subtitle B of title VI of this Act (relating to community services block grant program), under any other provision of law which carries out programs which were administered under the Economic Opportunity Act of 1964 before the date of the enactment of this Act, or under other income assistance or service programs (as determined by the State)."
Federal law at Section 8624(b) and (c) of Title 42 (42 U.S.C. § 8624(b) and (c)) identifies "energy crisis invention" as one of the uses of LIHEAP funds and requires states to reserve a "reasonable amount based on data from prior years . . . until March 15 of each program year . . . for energy crisis intervention." It defines an "energy crisis" at 42 U.S.C. § 8622(3) as "weather-related and supply shortage emergencies and other household energy-related emergencies." Per 42 U.S.C. § 8623(c)(2), states must, "not later than 18 hours after a household applies for crisis benefits, provide some form of assistance that will resolve the energy crisis if the household is eligible to receive such benefits and is in a life-threatening situation." Federal law does not further define a "life-threatening situation."
Federal law at 42 U.S.C. § 8624(b)(5) requires OKDHS to provide "the highest level of assistance will be furnished to those households which have the lowest incomes and the highest energy costs or needs in relation to income, taking into account family size."
Federal law does not reuire OKDHS EA to determine resource eligibility, consider a household that pays its energy costs with a loan as not vulnerable, or make no exceptions to the battery backup.
Strategic Plan Impact.
The proposed amendments achieve OKDHS goals by: (1) communicating updated eligibility information to applicants, recipients, OKDHS staff, and contracted partners; (2) ensuring effective and efficient program administration; (3) complying with federal law; (4) exercising available state options to better administer LIHEAP funds; (5) removing unnecessary barriers to eligibility; and (6) clarifying the policy's intent.
Substantive changes.
Subchapter 1. Low Income Home Energy Assistance Program
Oklahoma Administrative Code (OAC) 340:20-1-3 is amended to: (1) update a citation; (2) update language; (3) outline the OKDHS LIHEAP budget process; (4) remove references to www.okdhslive.org and "county" offices; (5) establish OKDHS LIHEAP denies all applications for which it does not have funding; and (6) establish how OKDHS prioritizes applications when it does not have funding to pay all the applications it has received.
OAC 340:20-1-10 is amended to: (1) update a citation; (2) remove resources from consideration when determining eligibility for LIHEAP components; (3) allow households that take out a loan to pay energy bills to qualify as vulnerable; (4) establish OKDHS LIHEAP denies all applications for which it does not have funding; and (5) establish how OKDHS prioritizes applications when it does not have funding to pay all the applications it has received.
OAC 340:20-1-11 is amended to: (1) update a citation; (2) remove resources from consideration when determining eligibility for LIHEAP components; and (3) update language.
OAC 340:20-1-12 is amended to: (1) indicate the preauthorization process is dependent on having adequate funding; and (2) remove resources from consideration when determining eligibility for LIHEAP components.
OAC 340:20-1-13 is amended to: (1) remove resources from consideration when determining eligibility for LIHEAP components; (2) update language; and (3) clarify LIHEAP components verify income for the application month.
OAC 340:20-1-14 is amended to: (1) remove resources from consideration when determining eligibility for LIHEAP components; (2) reorganize the section; (3) correct a citation; (4) establish a denial when the available funding has already been obligated; and (5) remove Form 08LH003E, Notice of Eligibility for Energy Assistance.
OAC 340:20-1-17 is amended to: (1) clarify the Energy Crisis Assistance Program does not always begin in, or operate during, March; (2) remove resources from consideration when determining eligibility for LIHEAP components; (3) update language; and (4) establish an exception to the rule that life-saving medical equipment may not have a battery backup.
OAC 340:20-1-19 through 340:20-1-20 is amended to: (1) remove the preauthorization criteria from this section; and (2) correct citations.
Reasons.
OKDHS Energy Assistance (EA) requests permanent rulemaking to ensure it has the flexibility to adapt to changes in the federal budget. During the pandemic, federal funding for LIHEAP increased and allowed OKDHS EA to serve additional households. The system identifies preauthorized households based on the households approved the previous year. With more eligible households, the number of preauthorized households has increased. Serving these households when the federal funding for LIHEAP has returned to pre-pandemic levels requires additional program flexibilities. OKDHS EA establishes a budget that ensures it does not accept more applications than it can potentially approve, but with a larger share of its budget devoted to preauthorizations, OKDHS EA wants to ensure it can stay within its budget should its projection prove inaccurate.
OKDHS EA also seeks to eliminate unnecessary barriers to eligibility. OKDHS EA has reviewed the federal statutes and regulations that govern LIHEAP. Federal law does not require OKDHS EA to determine resource eligibility, consider a household that pays its energy costs with a loan as not vulnerable, or make no exceptions to the battery backup. OKDHS EA believes modifying these rules will permit deserving Oklahoma households to be eligible for LIHEAP.
OKDHS EA requests the remaining changes to eliminate outdated practices, fix errors, and clearly communicate its intent.
Repercussions.
If the proposed amendments are not implemented: (1) OKDHS EA will not be able to implement program changes that ensure it can adjust to changes in the federal funding; (2) OKDHS will not eliminate the eligibility barriers presented by the resource eligibility, vulnerability rules that deny LIHEAP to households that take out a loan to pay their energy costs, and the battery backup rules that make no reasonable exceptions; and (3) OKDHS EA rules will include outdated practices, errors, and confusing language.
Legal authority.
Director of Human Services; Section 162 of Title 56 of the Oklahoma Statutes; 42 U.S.C. §§ 8622, 8623, and 8624; and 45 C.F.R. § 96.50.
Permanent rulemaking approval is requested.
B. A comprehensive analysis of the rule's economic impact on the Agency, including but not limited to, full-time employee count and any costs or benefits. The analysis includes a detailed explanation of the methodology and assumptions used to determine the economic impact, including, whenever possible, the dollar amounts calculated. The proposed amendments are not expected to have an economic impact on OKDHS, so no comprehensive analysis of impact is needed at this time.
C. A comprehensive analysis of the rule's economic impact outside the Agency, including a detailed quantification of implementation and compliance costs on the affected businesses, business sectors, public utility ratepayers, individuals, state or local government units, and on the state economy. The analysis includes a detailed explanation of the methodology and assumptions used to determine the economic impact, including, whenever possible, the dollar amounts calculated, as well as a list of fee changes with a separate justification for each fee change: There are no known costs outside the agency.
D. 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 privateor public entities: The class of persons most likely to be affected by the proposed amendments are OKDHS staff, contracted provider staff, LIHEAP applicants, and LIHEAP recipients.
E. A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are OKDHS staff, contracted provider staff, LIHEAP applicants, and LIHEAP recipients.
F. 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 fee change: The proposed amendments do not have an economic impact on the affected persons or political subdivisions. There are no fee changes associated with the revised rules.
G. 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 amendments neither have an economic impact on any political subdivision nor require the cooperation of any political subdivisions in implementation or enforcement of the rules.
H. 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 businesses as provided by the Oklahoma Small Business Regulatory Flexibility Act.
I. A description of any measure taken by the Agency to minimize the cost and impact of the proposed rule on business and economic development in this state, local government units of this state, and individuals: There are no projected costs. The rules anticipate reducing unnecessary barriers to eligibility and offering OKDHS better control of its budget.
J. 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: OKDHS does not anticipate the rules to reduce significant risks to the public health, safety, and environment.
K. A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: If the proposed amendments are not implemented, there are no expected detrimental effects on public health, safety, and environment.
L. An analysis of alternatives to adopting the rule: There are no alternatives to adopting a rule that will accomplish the purposes of the rulemaking.
M. Estimates of the amount of time that would be spent by state employees to develop the rule and of the amount of other resources that would be utilized to develop the rule: Following final adoption of the rule, OKDHS anticipates three hours will be spent to develop the rule.
N. The date the rule impact statement was prepared and, if modified, the date modified: Prepared May 12, 2024; modified August 22, 2025
