1. (a) Subrecipients shall not discourage anyone from applying for CEAP assistance. Subrecipients shall provide all potential clients with ample opportunity to apply for LIHEAP programs.
2. (b) CEAP provides assistance to targeted beneficiaries being households with low incomes at or below 125% of the Federal Poverty Level, with priority given to the elderly, persons with disabilities, families with young children; households with the highest energy costs or needs in relation to income, and households with high energy consumption.
3. (c) CEAP combines activities, as defined in Assurance 16 in the LIHEAP Statute (42 U.S.C. §8624 (b)(16)); education; and financial assistance to help very low- and extremely low-income consumers reduce their utility bills to an affordable level. Services include utility payment assistance; heating and cooling system replacement, repair, and/or retrofit; energy education; and budget counseling. The Department requires subrecipients to expend a minimum of ten percent for each of the Energy Crisis Program, the Elderly and Disabled Assistance, and the Heating and Cooling System Replacement, Repair, and/or Retrofit Components. The Co-payment Component minimum expenditure is established by the subrecipient.

4. (d) Benefit sliding scale for all CEAP components:

   1. (1) Benefit determinations are based on the household's income, the household size, the energy cost and/or the need of the household, and the availability of funds. Energy bills already paid by householders may not be reimbursed by the program. Subrecipients will calculate payments based on:

      1. (A) a sliding scale benefit structure; and
      2. (B) the highest consumption months remaining in the program year.

   2. (2) To ensure that households with the lowest incomes and greatest needs receive the greatest amount of assistance to alleviate their energy needs (taking into account family size), energy assistance benefit determination will use the following sliding scale (Except Heating and Cooling System Replacement, Repair and/or Retrofit Component):

      1. (A) Households With Incomes of: 0 to 50% of Federal Poverty Guidelines are eligible for a maximum household benefit as follows household may receive an amount needed to address their energy payment shortfall not to exceed $1,200.
      2. (B) Households With Incomes of: 51% to 75% of Federal Poverty Guidelines are eligible for a maximum household benefit as follows household may receive an amount needed to address their energy payment shortfall not to exceed $1,100.
      3. (C) Households With Incomes of: 76% to 125% of Federal Poverty Guidelines are eligible for a maximum household benefit as follows household may receive an amount needed to address their energy payment shortfall not to exceed $1,000.
   3. (3) The Heating and Cooling System Replacement, Repair, and/or Retrofit Component maximum household benefit limit is $4,000.

5. (e) Benefit Limits by Program Component--Depending upon client eligibility, some or all of the following benefits may apply:

   1. (1) Co-Payment Component: minimum client service period, three months--unless client fails to meet the provisions of the client service agreement, which may result in an early termination from the program--but service period shall not exceed twelve months:

      1. (A) First payment of co-payment plan may pay 100 percent of a utility bill--including arrears--or an appropriate percentage determined by the subrecipient as detailed in the Service Delivery Plan; and
      2. (B) annual maximum household benefit $1,200.
   2. (2) Heating and Cooling Replacement, Repair, and/or Retrofit Component--Maximum annual household benefit $4,000.
   3. (3) Elderly and Disabled Assistance Component--Maximum annual household benefit $1,200.
   4. (4) Energy Crisis Program Component--Maximum annual household benefit $1,200.
   5. (5) Total maximum possible annual household benefit (all components) $7,600.
   6. (6) Subrecipient shall determine client eligibility for utility payments and/or retrofit based on the agency's household priority rating system and household's income as a percent of poverty.
   7. (7) Subrecipient shall not establish lower local limits of assistance for any component.

6. (f) Subrecipients shall provide only the following types of assistance with funds from CEAP:

   1. (1) Payment to vendors and suppliers of fuel/utilities, goods, and other services for past due or current bills related to the procurement of energy for heating and cooling needs of the residence, not to include security lights and other items.
   2. (2) Payment to vendors--only one energy bill payment per month as required by component.
   3. (3) Needs assessment and energy conservation tips, coordination of resources, and referrals to other programs.
   4. (4) Utility assistance to low-income elderly and disabled individuals most vulnerable to high cost of energy for heating and cooling needs of the residence.
   5. (5) Replacement, repair and/or retrofit of household heating and cooling systems if needed. All replacement units must comply with minimum standards for energy efficiency and must result in energy savings for the client. Heating and cooling funds may pay for zoning off a room in which the client spends a majority of time at home, incidental to the above improvements, if necessary to conserve conditioned air. In order to use heating and cooling funds for a room zone off, the household must also be receiving a repair, replacement, or retrofit of a space heating or cooling unit.
   6. (6) Assistance to a household during an energy-related crisis precipitated by extreme weather conditions and/or an energy supply shortage. A utility disconnection notice may qualify, if client demonstrates a history of good faith in paying prior utility bills.
   7. (7) Payment of water bills only when such costs include expenses from operating an evaporative water cooler unit or when the water bill is an inseparable part of a utility bill. As a part of the intake process, outreach, and coordination, the subrecipient shall confirm that a client owns an operational evaporative cooler and has used it to cool the dwelling within sixty (60) days prior to application. Payment of other utility charges such as wastewater and waste removal are allowable only if these charges are an inseparable part of a utility bill. Whenever possible, subrecipient shall negotiate with the utility providers to pay only the "home energy"--heating and cooling--portion of the bill.
   8. (8) Purchase, lease, or repair of butane or propane tanks as well as the residential lines associated with the tanks or natural gas lines of the dwelling not to exceed the household's maximum allowable assistance and only if such service ensures the flow of energy necessary for heating and or cooling the household.
   9. (9) Purchase or repair of residential electric lines, not to exceed household's maximum allowable assistance and only if such service ensures the flow of energy necessary for heating and cooling the household.
   10. (10) Payment of reconnection fees in line with the registered tariff filed with the Public Utility Commission and/or Texas Railroad Commission. Payment cannot exceed that stated tariff cost. Subrecipient shall negotiate to reduce the costs to cover the actual labor and material and to ensure that the utility does not assess a penalty for delinquency in payments.
   11. (11) Payment of security deposits only when state law requires such a payment, or if the Public Utility Commission or Texas Railroad Commission has listed such a payment as an approved cost, and where required by law, tariff, regulation, or a deferred payment agreement includes such a payment. Subrecipient shall not pay any such security deposit that the energy provider will eventually return to the client.
   12. (12) While rates and repair charges may vary from vendor to vendor, subrecipient shall negotiate for the lowest possible payment. Prior to making any payments to an energy vendor a subrecipient shall have a signed vendor agreement on file from the energy vendor receiving direct LIHEAP payments from the subrecipient.
   13. (13) Subrecipient may make payments to landlords on behalf of eligible renters who pay their utility and/or fuel bills indirectly. Subrecipient shall notify each participating household of the amount of assistance paid on its behalf. Subrecipient shall document this notification. Subrecipient shall maintain proof of utility or fuel bill payment. Subrecipient shall ensure that amount of assistance paid on behalf of client is deducted from client's rent.
   14. (14) In lieu of deposit required by an energy vendor, subrecipient may make advance payments. The Department does not allow LIHEAP expenditures to pay deposits, except as noted in paragraph (11) of this subsection. Advance payments may not exceed an estimated two months' billings.
7. (g) Funds for the Texas CEAP shall not be used to weatherize dwelling units, for medicine, food, transportation assistance (i.e., vehicle fuel), income assistance, or to pay for penalties or fines assessed to clients.

8. (h) The CEAP Energy Crisis Program Component consists of the following:

   1. (1) A bona fide energy crisis exists when extraordinary events or situations resulting from extreme weather conditions and fuel supply shortages have depleted or will deplete household financial resources and/or have created problems in meeting basic household expenses, particularly bills for energy so as to constitute a threat to the well-being of the household, particularly the elderly, the disabled, or very young children.
   2. (2) A utility disconnection notice may constitute an energy crisis, if client demonstrates a history of good faith in paying prior utility bills. A utility disconnection notice may constitute an energy crisis, if brought about by sudden or unexpected events.
   3. (3) Energy Crisis assistance for one household cannot exceed $1,200 in one year. Crisis assistance payments cannot exceed the minimum amount needed to resolve the crisis. If the client's crisis requires more than the household limit to resolve, it exceeds the scope of this program. If crisis exceeds the household limit, subrecipient may pay up to the household limit but the rest of the bill will have to be paid from other funds or the client to resolve the crisis. Payments may not exceed client's actual utility bill. The assistance must result in resolution of the crisis.

   4. (4) Where necessary to prevent undue hardships from a qualified energy crisis, subrecipients may directly issue vouchers to provide:

      1. (A) Temporary shelter not to exceed the annual household expenditure limit for the duration of the contract period in the limited instances that inoperable heating/cooling appliances or supply of power to the dwelling is disrupted--causing temporary evacuation of household members. Payments shall not be made for rent or mortgages.
      2. (B) Emergency deliveries of fuel up to 100 gallons per crisis per household, at the prevailing price. This benefit may include coverage for safety precautions--up to the maximum household benefit.

      3. (C) Purchase of portable heating/cooling units (portable electric heaters are allowable only as a last resort) not to exceed household benefit limit during the contract period. Portable air conditioning and heating units may be purchased only in situations that threaten the life of the client.

         1. (i) Subrecipient shall meet local energy crisis criteria prior to purchasing portable units for clients.
         2. (ii) Subrecipient shall maintain in the client file documentation of any special situation affecting client eligibility. For a client to qualify to receive a portable air conditioner or heater to protect life of household occupants, the subrecipient's client file must contain documentation from a medical professional, stating that a health condition of household occupant requires such climate control.
         3. (iii) Portable heating/cooling units must meet or exceed Texas DOE WAP energy efficiency ratings and standards.
   5. (5) Crisis funds, whether for emergency fuel deliveries, purchase of portable heating/cooling units, or temporary shelter, shall be considered part of the total maximum household allowable assistance.

   6. (6) When natural disasters result in energy supply shortages or other energy-related emergencies, LIHEAP will allow home energy related expenditures for the following:

      1. (A) Costs to temporarily shelter or house individuals in hotels, apartments or other living situations in which homes have been destroyed or damaged, i.e., placing people in settings to preserve health and safety and to move them away from the crisis situation;
      2. (B) Costs for transportation (such as cars, shuttles, buses) to move individuals away from the crisis area to shelters, when health and safety is endangered by loss of access to heating or cooling;
      3. (C) Utility reconnection costs;
      4. (D) Repair or replacement costs for furnaces and air conditioners;
      5. (E) Insulation repair;
      6. (F) Coats and blankets, as tangible benefits to keep individuals warm;
      7. (G) Crisis payments for utilities and utility deposits; and
      8. (H) Purchase of fans, air conditioners and generators.
   7. (7) Time Limits for Assistance--Subrecipients ensure that for clients who have already lost service or are in immediate danger of losing service, some form of assistance to resolve the energy crisis shall be provided within a 48 hour time limit (18 hours in life-threatening situations). The time limit commences upon completion of the application process. The application process is considered to be complete when an agency representative accepts an application and completes the eligibility process.
   8. (8) Subrecipients maintain written documentation in client files showing crises resolved within appropriate timeframes. The Department disallows improperly documented expenditures.
9. (i) The Heating and Cooling federal LIHEAP category includes all Texas CEAP components except Energy Crisis. The priority factors other than income eligibility for heating/cooling assistance include the degree of energy burden and household needs. Each agency establishes objective priorities to serve households based on local conditions and client needs. Equipment replacement or repair under this component must reduce energy consumption and energy burden. "Household energy need" takes into account the unique situation of such household that results from having members of vulnerable populations, including children under the age of six, disabled individuals, and older individuals. The Department defines the household's energy need as the requirement for energy used to heat and/or cool the dwelling unit, as well as energy required to heat water and refrigerate food. Inefficient appliances unnecessarily inflate energy needs. Improving energy efficiency of appliances reduces energy burden.
10. (j) Under Heating and Cooling the program pays water bills only when such costs include operating an evaporative water cooler unit or when the water bill is an inseparable part of a utility bill. LIHEAP Statute allows payment of other utility charges such as wastewater and waste removal only if inseparable from the utility bill. Through client intake, outreach and coordination processes, subrecipients confirm that a client owns an operational evaporative cooler and has used it to cool the dwelling within sixty (60) days prior to application. Whenever possible, subrecipients negotiate with the utility providers to pay only the energy portion of the bill.

11. (k) Under the Elderly and Disabled Assistance Component:

    1. (1) Elderly and disabled persons receive priority.
    2. (2) Elderly households include at least one member age 60 or above. Disabled households include least one member (age 18 or older) living with a disability. A disability prevents an individual from engaging in any substantial employment by reasons of a medically determinable physical or mental condition--expected to last for a continuous period of not less than twelve months. Documentation of disability, (i.e. Social Security, Supplemental Security Income statement, doctor's letter) kept in client file will validate eligibility.
    3. (3) Subrecipients make utility payments on behalf of elderly and disabled persons based on the previous 12 month's home energy consumption history, including allowances for cost inflation. In the absence of an available home energy consumption history, subrecipient may base payments on current program year's bill. Subrecipients note such exceptions in client files. Excess amounts over the actual bill shall be treated as a credit with the utility company for the client.
    4. (4) Subrecipient shall provide energy conservation education and referrals.
    5. (5) Elderly and/or disabled clients may receive benefits to cover up to 100 percent of four bills for four billing periods within the contract year as long as the cost does not exceed the maximum annual benefit.

12. (l) Under the Co-Payment Component:

    1. (1) The Department subrecipients use home energy payments, energy conservation tips, participation by utilities, and coordination with other services to assist low-income households to reduce their home energy needs (Assurance 16). Subrecipients establish cost burden criteria to evaluate eligibility, applicant priority, and benefit levels.
    2. (2) A household's participation in the program may last from three to twelve months. If a co-payment client's assistance period extends beyond the end of a program year, that client must re-apply for eligibility certification to continue receiving assistance.
    3. (3) Subrecipients make payments directly to vendors on behalf of participating households. Participating households make co-payments while participating in the program.
    4. (4) The case worker assists clients with application procedures and maintains required documentation in client files. Assurance 16 activities encourage and enable households to reduce their home energy needs and thereby the need for energy assistance and encourage responsible vendor and consumer behavior.

13. (m) Under the Heating and Cooling System Replacement, Repair, and/or Retrofit Component:

    1. (1) Equipment repair and replacement targets households with high energy burden, or equipment unsafe or inadequate to protect occupants from extreme temperatures. This component reduces clients' energy burden by reducing excess demand from inefficient heating and cooling appliances. Questionably high energy bills during the heating or cooling season may indicate the need for an assessment of the condition of all major heating and cooling appliances in the client's home. An energy assessment of the home demonstrates whether or not the expected savings from repair or replacement of equipment will exceed the cost and will reduce energy consumption. Appliances consuming the most energy receive highest priority. Estimated repair cost exceeding 60 percent of estimated replacement cost justifies replacement.
    2. (2) Household appliances assessed for condition (health and safety) and efficiency may include any home heating or cooling appliances and propane tanks. The Program allows replacement of evaporative coolers with refrigerated air only for substantiated medical reasons. Subrecipients shall replace appliances with Energy Star® rated equipment or must meet or exceed Texas Department of Energy Weatherization Assistance Program minimum energy efficiency ratings and standards if Energy Star® is not available.

Source Note:The provisions of this §6.208 adopted to be effective April 1, 2007, 32 TexReg 1739.