Rule-making#: / 08-6-10-1
Program: LEAP / Rule Author: Darlene Campbell / Phone: 303-861-4199
STATEMENT OF BASIS AND PURPOSE
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 2008-2009 LEAP program year that begins on November 1, 2008.
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.
Sections are being edited or revised to correct errors in definitions, remunerating, removing outdated materials, and to revise terms, provide clarity, understanding and consistency to the rules.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: 26110,7 C.R.S. (2007) - State Board to promulgate rules; 26-1-109, C.R.S. (2007) - State Board rules to coordinate with federal programs; 261111, C.R.S. (2007)- State Board to promulgate rules for public assistance and welfare activities.
Program Authority: (give federal and/or state cite and a summary of the language authorizing the rule-making)
40-8.5-105, C.R.S. (2007) – The Colorado Department of Human Services shall promulgate rules establishing eligibility criteria for Low-Income Energy Assistance;
42USC 8621 (a); 42 USC 8624 (b), (c), (d)
______
Yes / X / NoYes / X / No
Does the rule incorporate material by reference?
Does this rule repeat language found in statute?
If yes, please explain.
Initial Review / 08/01/2008 / Final Adoption / 09/05/2008Proposed Effective Date / 11/01/2008 / EMERGENCY Adoption / n/a
DOCUMENT 9
STATEMENT OF BASIS AND PURPOSE (continued)
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, Governor’s Energy Office, Colorado Rural Electric Association and Colorado Cross-Disability Coalition.
Attachments:
Regulatory Analysis
Overview of Proposed Rule
Stakeholder Comment Summary
Rule-making Form SBA-3a (6/02)
Title of Proposed Rule: / 2008-09 Low-Income Energy Assistance Program (LEAP) Basic Program and Crisis Intervention (CIP) Updates.Rule-making#: / 08-6-10-1
Program: LEAP / Rule Author: Darlene Campbell / Phone: 303-861-4199
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 (LEAP). 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 2008-2009 program year (November through April), LEAP provided assistance to 92,360 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 FY 2008, Colorado received $31,375,096 in Block Grant funding. In addition, the state received $8,059,412 in Federal Contingency funding. FY 2009 funding is still under debate in Congress; consequently the amount of the 2009 Federal Block grant is unknown at this time. There is no guarantee of any emergency funding.
Because of the above, benefit levels for 2008-2009 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 2008 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 $21,200 according to the Federal Poverty Index. We base our figures on a monthly amount. This amount is divided by 12 months ($1,766) times 185%, therefore, the maximum monthly income for a household size of four is $3,267.
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 alternative options considered was to not update and 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: / 2008-09 Low-Income Energy Assistance Program (LEAP) Basic Program and Crisis Intervention (CIP) Updates.Rule-making#: / 08-6-10-1
Program: LEAP / Rule Author: Darlene Campbell / Phone: (303) 861-4199
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 / Clarifies “Date of Application; revises definition of “Disabled or Handicapped“; streamlines the “Emergency/Expedited Applicant” timeframe to match the data system; revise “Household” definition. / __ / Yes / X / No3.751.43 / Requires County departments to notify the State LEAP office within (7) days upon receipt of a request for a state level hearing. / Add reference to State level fair hearing citations. / __ / Yes / X / No
3.751.54 / Establishment of Recovery / Grammatical change of wording from “which” to “that”. / __ / Yes / X / No
3.751.61 / Reporting of recoveries. / Added timeframe for reporting. / __ / Yes / X / No
3.752.1 / Application Period / Adding language to clarify the effective date of the program. / __ / Yes / X / No
3.752.22, A / Income and Household Size Criteria / Delete the redundant language. / __ / Yes / X / No
3.752.22, C / Maximum gross income limits / Increase limits. / __ / Yes / X / No
3.752.23, B / Income exclusions / Add new criteria, “Financial Aid from educational loans and grants. / __ / Yes / X / No
3.754.1, D / Reasons for denial of assistance / Update rule reference. / __ / Yes / X / No
3.755.13, G / The case record shall contain copies of written notices. / Clarifies the notices required in the case file. / __ / Yes /
X
/ NoSection Numbers / Current Regulation / Proposed Change /
Stakeholder Comment
3.755.21, A, C, E & I / Adequate verification of income / Clarified unearned income verification requirements; deleted obsolete language for verification social security gross income; and verification of public assistance income; added new appropriate method. Also, clarified use of business-related receipts for self-employment income. / __ / Yes / X No3.755.41 / Evidence of Vulnerability / Added language regarding disconnect notice as insufficient proof of vulnerability. / __ / Yes / X No
3.755.43 / Wood Permits / Delete section entirely. / __ / Yes / X No
3.756.12 / Application Processing / Added language “received within the eligibility period”. / __ / Yes / X No
3.756.16 / County of Residence / Revise wording. / __ / Yes / X No
3.756.18 / Withdrawn Application / Add language “in writing”. Remove CIP language. / __ / Yes / X No
3.756.19 / Unlocated Applicant and Heating Crisis Assistance / Deleted paragraph. / __ / Yes / X No
3.756.2 / Expedited eligibility determinations / Revise title. Delete 1st sentence and change the word “payment(s)” with “benefit”. / __ / Yes / X No
3.756.2, C / Documentation for advance payment due to emergency / Add “Eviction notice that clearly states heat is included” / __ / Yes / X No
3.758.42 / Advance Payment of the Basic Program Payment / Deleted / __ / Yes / X No
3.758.47 / Methodology for Calculating Basic Program Benefits / Rewriting this section to more accurately reflect the steps in calculating a LEAP benefit. / __ / Yes / X No
3.758.47, Steps A-E / Flat rate chart and standard amount for heat in rent chart / Updates charts to reflect new flat rates for 2008-2009 & rewrite section. / __ / Yes / X No
3.758.48 / Adjustments / Remove adjustment section. / __ / Yes / X No
3.760.11 / CIP Overview, Federal Funds / Change wording from “ a broken furnace, to “the primary heating system” / __ / Yes / X No
3.760.12 / Purpose of CIP / Add language regarding routine maintenance”. / __ / Yes / X No
3.760.14 / CIP eligibility / Clarifying CIP eligibility. / __ / Yes / X No
3.760.43 / CIP denial codes / Remove the following and re-enumerate: A, B, D, M and Q; add three new CIP denial codes. / __ / Yes / X No
STAKEHOLDER 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)
Colorado Cross-Disability Coalition (CCDC)
Colorado Rural Electric Association
Comments were received from stakeholders on the proposed rule-making:
Yes / X / NoIf "yes", please summarize and/or attach the feedback you received; provide proof of agreement or ongoing issues with a letter or public testimony by the stakeholder.
Rule-making Form SBA-3c (6/02)
9 CCR 2503-1
OTHER ASSISTANCE PROGRAMS 3.751.1 – Cont.
3.751.1 DEFINITIONS (continued)
“Date of Application”: For purposes of the LowIncome Energy Assistance Programs, the date of application shall be the date aAN signed application form that contains a legible name and address is received by the county department.
“Disabled or Handicapped”: For purposes of the LowIncome Energy Assistance Programs, the term disabled or handicapped means persons who receive vocational rehabilitation assistance; SUCH AS 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. This definition may be different for other public assistance programs.
“Elderly”: For the purposes of these rules, the term elderly means aged 60 or over.
“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 an 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.
“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 FOURTEEN CALENDAR 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.
“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.
"Heat Related Arrearage": Any past due amounts for the primary heating fuel and/or supportive fuel.
“Home Heating Costs”: Charges related directly to the primary heating source used in a residential dwelling.
THIS REVISION: / III-07-6 / LAST REVISION: / III-06-5 / REVISION NUMBERAdopted: / 10/5/2007 / Adopted: / 9/8/2006 / 18
Effective Date: / 12/1/2007 / Effective Date: / 11/1/2006
COLORADO DEPARTMENT OF HUMAN SERVICES
STAFF MANUAL VOLUME 3
INCOME MAINTENANCE
9 CCR 2503-1
OTHER ASSISTANCE PROGRAMS 3.751.1 – Cont.
3.751.1 DEFINITIONS (continued)
“Household”: The term "household" shall mean any individual or group of individuals who are living together as one economic unit for whom residential energy PRIMARY HEATING FUEL is customarily purchased in common or who make undesignated payments for energy HEAT in the form of rent.
Any individual considered as part of an approved household cannot subsequently be considered as part of another household during the same eligibility period.