FFY2011

1. FFY2011 EAP Annual Training Section 4 (of 6) • Presented at FFY2011 EAP Annual • Training August 11 & 12, 2010 • Section 4 contents: • Chapter 7 • Crisis • Chapter 8 • Energy Related Repairs • Chapter 9 • Reach Out For Warmth • Chapter 10 • Assurance 16 • Chapter 11 • Benefit Payments & Refunds • Chapter 12 • Client & Vendor Notification

2. Chapter 7 Crisis New Chapter Contains • Crisis Policies and Procedures • Emergency Benefit Adjustment (EBA) • Crisis Categories and Timelines • Crisis Assistance - Accessible 24/7 • Using eHEAT for Crisis

3. Chapter 7 Crisis Training Approach • There are no significant changes to the crisis program this year • An overview of the crisis program to highlight some areas requiring clarification and do betters to advance controls and promote statewide consistency • We’ve clarified the directions for the reasonable payment worksheet. You’ll find these in Chapter 10 Assurance 16.

4. Chapter 7 Crisis Training Topics Overview • HHD do not need to provide a shut off notice • HHD don’t need to deserve crisis • HHD receiving Crisis year after year should not be chastised • Working with households in crisis is difficult & can be complex, that is why it done locally • SPs are given A16 dollars to work with households to address their needs

5. Chapter 7 Crisis Background: Coordinated Responsibility Model Page 1 • The Minnesota Energy Assistance Program (EAP) has employed a “Coordinated Responsibility Model” (CRM) for heating energy payments since FFY2006. • Government responsibility includes providing heating payment supplements, case management and advocacy for households, and maintaining influence with vendors. • Vendor responsibility is to be as flexible as possible so energy payments leverage the highest possible level of service to the household. • Household responsibility is to make reasonable and planned payments for energy service, access government aid when necessary and communicate with vendors and government service providers

6. Chapter 7 Crisis Guidance - Food for thought: Our Part of the Coordinated Responsibility Model • Government (this is DOC and you the SPs) responsibility includes providing heating payment supplements, • Case management and advocacy for households, (Assurance 16 services that are essential for households) and • Maintaining influence with vendors. Build and maintain good productive working relationships with your vendors to benefit your households. • Know your vendors; maintain friendly relationships with them • Ask them for reduction in reconnection fees, etc. • Encourage them to work with households (keeping in mind data privacy issues)

7. Chapter 7 Crisis Background Page 1 A16 & Crisis Effort Definition • Intentions: • To minimize shut-offs for natural gas and electricity during the heating season • To minimize refusals to deliver • To serve the crisis population made up of households that cannot pay, not those that did not pay • To develop an A16/Crisis program that requires household payments

8. Chapter 7 Crisis Guidance - Food for thought: Page 1 • To serve the crisis population made up of households that cannot pay, not those that did not pay • We can know that they didn’t pay, but may not necessarily understand why - motives aren’t always as obvious • We at DOC understand the struggles inherent to this • There can be other things going on in the household that aren’t obvious from the information provided on the application, this is where A16 activities come in & why it is managed locally • The RPW is a tool designed to help you get a clearer picture of the household’s situation

9. Chapter 7 Crisis Guidance - Food for thought: • There are some inherent problems with crisis that have been with us forever • Grumbles among staff about households using crisis year after year, be aware of attitudes among your staff and manage them appropriately • The staff performing A16 tasks need to have a specific set of skills that not all EAP application processors will have

10. Chapter 7 Crisis Guidance – Food for thought • Please consider that for our households, especially the poorest, it is not an irrational decision for them to budget for our crisis dollars • If they don’t have enough money to pay their bills, when deciding who to pay the telephone bill or the electric bill; • “If I don’t pay my phone bill, it will be shut off and there is no help available to get it turned back on vs. if I don’t pay my electric bill, there are crisis dollars available to help.” Which would you choose? • Many HH count on crisis to help them get caught up and not get shut off • August they receive property tax or renter refunds, gives them a catch up • May not like it, but we (feds, state) set it up this way, we made the rules • Statistically speaking these are your best candidates to approach about the EBA program

11. Chapter 7 Crisis Background - Emergency Benefit Eligibility To receive EB, a household must 1. Request crisis by either • Including a bill showing an amount past due with the Energy Programs Application OR • Calling or writing to notify the Service Provider of a past due or disconnection notice and 2. Be eligible for primary heat. and 3. Need fuel or fuel bill payment by • Having a past-due bill or • Having used up Primary Heat, having less than 20 percent of fuel tank capacity remaining in their tank and being on a cash basis with the vendor or • Having a current bill, at least one member age 60 or older and an inability to pay as determined by the Reasonable Payment Worksheet.

12. Chapter 7 Crisis Guidance - Don’t need to give you a bill: • If and when a household calls and informs you they have a crisis you should address their request for crisis assistance • Service Providers should not delay payment of crisis benefits. • Households do not need to send in a copy of their bill, shut off notice or disconnection notice to receive crisis assistance. • Service Providers must verify the crisis with the energy vendor.

13. Chapter 7 Crisis Timeline - Accessible 24/7 – Accountability • Households must be able to access crisis assistance 24 hours a day, seven days a week from October 1 through May 31. SPs must have a 24-hour emergency number. Service Provider staff must be available to address a life-threatening situation within 18 hours. • Examples of 24-hour response capacity may include: • Service Provider staff can be assigned to access answering machines or voice mail on a rotating basis. Assigned staff can check for messages on a schedule, for example, every four hours. • SPs can use a beeper, cell phone or answering service for clients to contact in an emergency and assigned staff can respond to requests in a timely way. • Next generation of technology, Blackberries that receive messages, phone calls and have internet access so staff can access eHEAT wherever they are.

14. Chapter 7 Crisis Timeline - Accessible 24/7 – Accountability Page 6 Crisis has three categories, depending on the level of customer service required: • A household in a life-threatening situation needs the highest level of service. • The law requires that the threat to life be removed within 18 hours of a household requesting crisis. • Life threatening situations include: • No heat in the house • No heat distribution

15. Chapter 7 Crisis Timeline - Accessible 24/7 – Accountability Page 6 • The second level of service is for households experiencing immediate energy emergencies that are not life threatening. • For example, a household may be scheduled for a shut-off within 2 days or have less than 20% of the tank fuel capacity remaining. • EB for these households must be approved within 48 hours of the crisis request.

16. Chapter 7 Crisis Timeline - Accessible 24/7 – Accountability Page 6 • The third level of service is for households with a past due who are not in danger of disconnect or who have more than 20% of tank capacity remaining. • They can be served in the normal priority and delivery order.

17. Chapter 7 Crisis Timeline - Accessible 24/7 – Accountability • eHEAT at home –Think and train data privacy issues • Sign off of eHEAT • Be aware of your surroundings during conversations with clients and when looking at information on eHEAT. • laptop security

18. Chapter 7 Crisis The Emergency Benefit Amount • In all cases the amount of the EB is the sum of the past due and current bill or a delivery up to $500. • Each household is allowed up to two EB events, each with payments to one or more vendors. • The total of the two events cannot exceed $500. • No credit can be generated by a crisis payment. • There are step by step instructions for EB and EBA including entering into eHEAT

19. Chapter 7 Crisis Emergency Benefit Adjustment (EBA) • An Emergency Benefit Adjustment (EBA) provides an incentive to establish and maintain regular, planned payments for energy and reduces the amount still owed to the vendor. • Anyone who has tried to change their own behavior (like quitting smoking or develop healthier eating habits, or shopping less) should be able to understand this. • This is a process, and it takes time • Evaluate the success of the household by looking for progress not perfection

20. Chapter 7 Crisis From Chapter 10Assurance 16 Section Change: Reasonable Payment Plan Page 6 • RPW Worksheet hasn’t changed • There are new and improved directions for the RPW • Worksheet is appendix and can be found on the tools on the web • Can find these directions in A16 chapter 10

21. Chapter 7 Crisis From Chapter 10Assurance 16 Reasonable Payment Plan (RPP) • Use Appendix 10B - Reasonable Payment Worksheet to identify a household’s reasonable payment amount. • The Reasonable Payment Worksheet intentions are to: • Identify reasonable energy payments • Establish similar eligibility requirements for all households aspiring to EBA • Provide a basis for financial counseling Reasonable Payment Process • Following is the process to determine a household’s reasonable payments and directions for completion of the Reasonable Payment Worksheet.

22. Chapter 7 Crisis From Chapter 10Assurance 16 Reasonable Payment Worksheet, (RPW) Page 1 1. Ask the household if their income or family size has changed since their EAP application and make appropriate adjustments to the RWP 2. Ask the household if they are already on a payment plan with their vendors for their energy bills. If they are, ask the household if they can afford the payments: • If “yes” then use the existing payments for their reasonable payment plan • If “no”, work with the household and the vendor to set up a plan 3. Ask the household what they can pay and enter the stated amount in the appropriate spot on the RPW

23. Chapter 7 Crisis From Chapter 10Assurance 16 Reasonable Payment Worksheet, (RPW) 4. What to do if the “Fast Track” amount is different than what the household says they can pay: • If the “Fast Track” amount is less than what the household says they can pay, use what the household states they can pay, if it seems realistic, to set up the payment agreement. • If the “Fast Track” amount is more than what the household said they can pay, ask the household if they can pay the “Fast Track” amount: • If they agree they can pay the “Fast Track” amount, enter that amount. • If they do not agree to the “Fast Track” amount, go to page 2 of the RPW and complete it using actual (if known) or estimated amounts to determine the amount the household can reasonably pay.

24. Chapter 7 Crisis From Chapter 10Assurance 16 Reasonable Payment Worksheet, (RPW) Page 2 Page 7 1. Complete page 2 of the RPW using “estimated expenses” until you arrive at the estimated Reasonable Payment Plan (RPP) amount. Some adjustments may be appropriate to make. Other variables such as past due balance, annual consumption and EAP payments should be considered when determining an appropriate RPP amount. 2. Adjust the estimated amount the household should pay if the four payments are more than the annual energy consumption Determine a reasonable payment based on amount past due and annual consumption, less EAP payments, divided by twelve

25. Chapter 7 Crisis From Chapter 10Assurance 16 Reasonable Payment Worksheet, (RPW) Page 2 Page 7 3. When RPP amount from page 2 is different than what the household says they can pay: • If the amount the household says they can pay is high compared to the RPP amount talk to them about it and establish the agreement at a lower amount with the understanding they can pay more. • If the RPP amount is more than the household says they can pay, ask assessment questions to determine financial conditions of the household to determine a RPP. • Document the assessment used to determine the RPP. Reasonable Payment Worksheet, completing Page 1 as needed • If the formula generated amount is adjusted, the reasonable payment amount must be entered manually on page 1 • Discontinue completion of the full worksheet when you know the household can not pay – there is no need to complete the worksheet • Document in eHEAT

26. Chapter 7 Crisis From Chapter 10Assurance 16 Additional Steps to Complete the Reasonable Payment Process 1. Calculate the likelihood of a credit or a past due balance after reasonable payments are made and use the data to counsel the household regarding the likelihood of an EBA payment to their energy vendors 2. Provide a copy of the payment agreement to the household 3. Document the activity in eHEAT 4. Create a Crisis event and obligate the EBA in eHEAT.

27. Chapter Content Chapter 8 Energy Related Repairs • ERR Policies and Procedures • Time Frames for ERR Service • Assistance Limit • Procurement • Mechanical Equipment and Work Standards • Verification/Completion Certificates/Payments • Payments • ERR File Documentation • Walk Away Policy

28. Training Topics Chapter 8 Energy Related Repairs Will cover: • Addition: W-9 Form. • New Section: Walk Away Policy • Clarification: Allowable electrical wiring • Clarification: Home Ownership Guidance • ERR Documentation

29. Chapter 8 Energy Related Repairs ERR Contractor controlsare SP responsibility • Submit to Service Providers a completed W-9 Request for Taxpayer Identification Number and Certification Form, which can be downloaded from the U.S. Internal Revenue Service website • Needed for most all and any business • Already required from Energy Vendors • This is a Control • DOC will monitor

30. ERR Walk Away Policy Chapter 8 Energy Related Repairs Circumstances may arise preventing a Service Provider or contractor from visiting a home or providing ERR services. Information leading to the denial or termination of a home visit or denial of ERR services may become evident: Page 9 When Not To Provide a Home Visit or ERR Services • During a home visit to assist with application completion • During the ERR eligibility process • During an ERR contractor service call or bid preparation • After ERR work has started

31. ERR Walk Away Policy (Continued) Chapter 8 Energy Related Repairs The Service Provider must: • Document the circumstances preventing EAP activities from proceeding and submit an Incident Report to the State EAP Office at the Department of Commerce. • Inform the client of the problem in writing and how the problem relates to the decision not to continue work. • The letter must contain any or all of the following, as appropriate: • Corrective actions required before assistance at the dwelling can continue, if any • A time frame for all corrective actions • Notification of the right to appeal the decision • A copy of the letter and any other notes or communication related to the circumstances of the case must be kept in the household’s file • Attempt to refer household to services appropriate to address the issues or report accordingly

32. ERR Walk Away Policy (Continued) Chapter 8 Energy Related Repairs • Is vacant • Is condemned • Has serious structural problems or potentially hazardous health and safety conditions making ERR activities impossible, unsafe, or impractical • Is improperly connected to required utilities or does not allow sufficient access to the heating system • Owner or an occupant refuses to allow required work, diagnostic measures or safety tests The Service Provider or ERR contractor must not provide service or remain at the residence if the dwelling:

33. ERR Walk Away Policy (Continued) Chapter 8 Energy Related Repairs • There are vermin, unsanitary conditions or other health and safety problems exist on the property presenting hazards to workers or contractors • A household member or occupant is physically or verbally abusive • A household member refuses to allow proposed measure(s) • There are corrective actions the Service Provider or contractor considers necessary before providing eligible services • The household has a documented history of causing or creating inappropriate no heat situations requiring a on-site service call or mechanical services A Service Provider or ERR contractor may choose not to provide service or remainin a dwelling unit if:

34. Allowable ERR Electrical Chapter 8 Energy Related Repairs Clarification: ERR is limited to the wiring (dedicated circuit) that connects from the furnace to the service panel or from the furnace to the thermostat. A dwelling must have adequate electrical service to operate the heating system to be repaired or replaced. Page 3

35. Chapter 8 Energy Related Repairs Home Ownership Guidance • Name must match on home ownership the app name – validation • Document the variation • This is an internal control – responsible to make sure household and house ownership are valid • For ERR where applicant name does not match homeownership documents. Ask them to declare they are who they say they are (signed statement, signed by notary). • must make a reasonable explanation for the discrepancy. • proof of house payments • Don't allow if HHD can't document names being for same person

36. ERR File Documentation Chapter 8 Energy Related Repairs • Federal law is very specific about response time 18 hours to assure that household members are safe……….. • If you don’t document – you are vulnerable • 2010: $8,748,193 on ERR • Largest single grant we give

37. ERR File Documentation Chapter 8 Energy Related Repairs • Description of need: Explain the existing conditions that make the request necessary • Explain how the problem (existing condition) will be fixed so that the household has a safe and reliable source of heat. • ERR Service Information – Activity Dates ERR tracking form is mandatory Areas of concern:

38. Chapter 8 Energy Related Repairs • Appendixes

39. Chapter 8 Energy Related Repairs Inspections • EAP relies on SP to monitor and manage • Need to exercise good consistent procedure • Need to do better at filling out the (form)s • Have sound local controls • Improve Documentation • ERR Best Practice: submission of invoices within 30 days

40. ERR and eHEAT Chapter 8 Energy Related Repairs Timely Data Entry is vital • Use eHEAT and enter during event • Don’t wait until you are paying • Train your staff on this

41. Chapter 9Reach Out For Warmth Contents • Eligibility • Income Guidelines • Benefits • Matching Funds

42. Chapter 9Reach Out For Warmth EAP collaborates with ROFW on many levels: • The DOC administers ROFW at the State level • SPs administer ROFW at local level • Administrative costs are paid by EAP Admin funds • ROFW uses EAP Applications and eligibility criteria • EAP funds ROFW at 2 to 1 match to private funds

43. Chapter 9Reach Out For Warmth ROFW FFY2010 Highlights • Involvement of Pohlad Foundation • Increase in financial resources • Increase in Local Fund • Increase in State Matching Fund • Increase in number of SP participants • Increase in number of households • Increase in technical resources • eHEAT Recording and Searching • Increase in issues etc….

44. Chapter 9Reach Out For Warmth ROFW Annual Expenditures

45. Chapter 9Reach Out For Warmth ROFW SPs and Households

46. Chapter 9Reach Out For Warmth FFY 2011 ROFW Updates • Eligibility requirement for ROFW HHs remains same • HH income < 60 % of the SMI for past 3 complete months • HH must be in Crisis Situation • Income guidelines for HHs eligibility remains same • Past 3 complete months prior to signing an application and/or • Prior year Self-employment worksheet for self-employed HHs • Maximum income eligibility of the greatest of 60% SMI or 110% of poverty

47. Chapter 9Reach Out For Warmth FFY 2011 ROFW Updates (Continued) • State Median Income for HHs has increased • The maximum 3 months income eligibility for HHs has increased * 110% of poverty is greater than 60% of SMI for households of 21 or more. • ROFW Maximum Benefits remains same • $500 for Crisis and $500 for ERR benefit

48. Chapter 9Reach Out For Warmth ROFW services & EAP funds Assurance 16 • Use Assurance 16 dollars to negotiate with vendors or to assist the household with budget management issues • A16 cannot be used for ROFW fund raising EAP Administrative Funds • There are no separate administrative dollars available for ROFW activities • ROFW activities, including application & ROFW payment processing, may be charged to regular EAP administration

49. 1 2 4 3 Chapter 9Reach Out For Warmth Search in eHEAT for ROFW Recipients:

50. Chapter 9Reach Out For Warmth