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Title 42, The Public Health and WelfareRelease 119-110

§8626a Incentive Program for Leveraging Non-federal Resources

Title 42 › CHAPTER 94 — LOW-INCOME ENERGY ASSISTANCE › SUBCHAPTER II — LOW-INCOME HOME ENERGY ASSISTANCE › § 8626a

Last updated Sep 22, 2026|Official source

Summary

Starting in fiscal year 1992, the Secretary can give extra federal money to States that bring in non‑Federal resources to help low‑income households with energy. Leveraged resources: extra benefits added to a State’s low‑income energy program that are more than what households could buy at normal prices, and that come from energy suppliers by negotiation, regulation, or competitive bidding, or that are provided or required by the State and tied into the program. The Secretary will use a formula based on each State’s prior‑year success, the State’s regular allocation, and the ratio of leveraged resources to that allocation to divide the money. A State may spend up to 0.08 percent of its allocation or $35,000 (whichever is greater) each year to build these leveraging efforts. States must calculate the dollar value of their leveraged resources using the best data, subtract any costs to get them and any costs passed to households, and send a report to the Secretary within 2 months after the fiscal year ends. The Secretary will set rules for the calculations and may ask for proof.

Full Legal Text

Title 42, §8626a

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Allotment of funds
Beginning in fiscal year 1992, the Secretary may allocate amounts appropriated under section 8621(d) of this title to provide supplementary funds to States that have acquired non-Federal leveraged resources for the program established under this subchapter.
(b)“Leveraged resources” defined
For purposes of this section, the term “leveraged resources” means the benefits made available to the low-income home energy assistance program of the State, or to federally qualified low-income households, that—
(1)represent a net addition to the total energy resources available to State and federally qualified households in excess of the amount of such resources that could be acquired by such households through the purchase of energy at commonly available household rates; and
(2)(A)result from the acquisition or development by the State program of quantifiable benefits that are obtained from energy vendors through negotiation, regulation or competitive bid; or
(B)are appropriated or mandated by the State for distribution—
(i)through the State program; or
(ii)under the plan referred to in section 8624(c)(1)(A) of this title to federally qualified low-income households and such benefits are determined by the Secretary to be integrated with the State program.
(c)Formula for distribution of amounts
(1)Distribution of amounts made available under this section shall be based on a formula developed by the Secretary that is designed to take into account the success in leveraging existing appropriations in the preceding fiscal year as measured under subsection (d). Such formula shall take into account the size of the allocation of the State under this subchapter and the ratio of leveraged resources to such allocation.
(2)A State may expend funds allocated under this subchapter as are necessary, not to exceed 0.08 percent of such allocation or $35,000 each fiscal year, whichever is greater, to identify, develop, and demonstrate leveraging programs. Funds allocated under this section shall only be used for increasing or maintaining benefits to households.
(d)Dollar value of leveraged resources
Each State shall quantify the dollar value of leveraged resources received or acquired by such State under this section by using the best available data to calculate such leveraged resources less the sum of any costs incurred by the State to leverage such resources and any cost imposed on the federally eligible low-income households in such State.
(e)Report to Secretary
Not later than 2 months after the close of the fiscal year during which the State provided leveraged resources to eligible households, as described in subsection (b), each State shall prepare and submit, to the Secretary, a report that quantifies the leveraged resources of such State in order to qualify for assistance under this section for the following fiscal year.
(f)Determination of State share; regulations; documentation
The Secretary shall determine the share of each State of the amounts made available under this section based on the formula described in subsection (c) and the State reports. The Secretary shall promulgate regulations for the calculation of the leveraged resources of the State and for the submission of supporting documentation. The Secretary may request any documentation that the Secretary determines necessary for the verification of the application of the State for assistance under this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1994—Subsec. (c)(2). Pub. L. 103–252, § 311(c)(6), substituted “0.08 percent” for “.0008 percent”. Subsec. (e). Pub. L. 103–252, § 311(a)(2), substituted “2 months after the close of the fiscal year during which the State provided leveraged resources to eligible households, as described in subsection (b) of this section” for “July 31, of each year”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–252 effective Oct. 1, 1994, see section 314 of Pub. L. 103–252, set out as a note under section 8621 of this title.

Effective Date

Section effective Oct. 1, 1990, see section 1001(a) of Pub. L. 101–501, set out as an

Effective Date

of 1990 Amendment note under section 8621 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 8626a

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110