DPSS ePolicy

Revision of existing policy and/or form(s)

This Administrative Release (AR) provides staff with the change in the State Utility Assistance Subsidy (SUAS) program in the CalFresh eligibility determination.

What changed?

• Eligibility to SUAS payment becomes limited to households (HH) with an elderly or disabled member.
• CF 1 - Notice to CalFresh Recipients has been revised to reflect the policy change.

Note: Changes are shown highlighted in grey throughout the document.
 

The State Utility Assistance Subsidy program provides a $20.01 cash benefit to those CalFresh households (HHs) that did not qualify to receive the Standard Utility Allowance (SUA) based on their HH utility costs. The SUAS payment ($20.01) is only to be provided to those HHs who will receive additional CalFresh benefits as a result of receiving the SUA deduction based on SUAS payment, who are otherwise not eligible for SUA as they are not paying for heating or cooling expenses separate from their rent or mortgage, and are not already receiving the maximum benefit amount for their HH size. 

With the H.R. 1 Act, the SUAS payment ($20.01) will be limited to HHs that meet the following criteria:

• Are not otherwise eligible for the SUA,
• Are not already receiving the maximum CalFresh allotment for their HH size, and
• Contain an elderly (60 years of age and older) or disabled HH member.
   

CalFresh HHs that meet the new criteria listed above may continue to receive the homeless shelter deduction when the Homeless Standard Shelter Allowance (HSSA) results in a higher benefit amount than allowing the SUA based on SUAS payment. As a reminder, a CalFresh HH cannot receive both the HSSA and SUA.

When the homeless HH is entitled to the HSSA and HSSA gives more CalFresh benefits than the SUA deduction, HSSA must be granted, and HH is not entitled to the SUAS payment. When there is no change in the CalFresh benefit allotment, HSSA must be used, if applicable.  The system is programmed to do a calculation of the CalFresh benefit to determine which deduction would provide more benefits to the HH.

There will be an automatic SUAS-based SUA allowance in the CalFresh benefit calculation, if the HH has been evaluated and entitled to the $20.01 SUAS payment at Intake and every 12 months after initial application is approved, and the participant reports they will not be paying or are not paying heating and cooling. However, the SUA cannot be conferred based on the anticipated receipt of $20.01 unless the HH is scheduled to receive the payment in the current month. 

The SUAS payment is not included in the CalFresh budget for benefit determination.  The $20.01 cash payment will not be included in the computation of over-issuances. 

A HH that includes an elderly or disabled member is eligible for SUA allowance if they live in a multi-unit or individual unit dwelling and receive a qualifying weatherization program payment. Weatherization programs increase a home’s energy efficiency, lower energy costs, and make homes healthier and safer. A weatherization payment must be greater than $20.00 and received in the current month or immediately preceding 12 months.

Qualifying weatherization payments made to the landlord of a multi-unit dwelling are considered a payment made on behalf of the HH and qualify residing CalFresh HHs for the SUA allowance. To determine whether a weatherization payment made to a landlord or building manager of a multi-unit dwelling confers eligibility, the Eligibility staff should divide the total value of the weatherization payment by the number of units in the multi-unit dwelling. If the resulting amount is greater than $20.00, it is a qualifying weatherization payment.

HHs who receive SUAS payment and then change address or split into multiple HHs maintain their SUA eligibility. The HHs who receive their prorated qualifying energy assistance payment will qualify for more than one heating or cooling season, given that the payment was received within the last 12 months, or the proration period covered at least one month in the previous 12 months.
 

An initiative under Assembly Bill (AB) 6, which became effective on January 1, 2013, required the California Department of Social Services (CDSS), in conjunction with the Department of Community Services and Development (DCSD), to implement the Low-Income Home Energy Assistance Program (LIHEAP). The LIHEAP, also called the “Heat and Eat” program, allowed the issuance of a nominal benefit amount of $0.10 to all CalFresh HHs. The receipt of or expected receipt of the cash benefit of $0.10 entitled the HHs to receive the SUA deduction when calculating the CalFresh benefits.

On July 1, 2014, Senate Bill (SB) 855, canceled provisions on the LIHEAP-based Heat and Eat and established the SUAS program, a state-funded Energy Assistance Program that provides eligible CalFresh HHs a SUAS payment of $20.01 once per year for SUA entitlement. The SUAS payment provided to certain HHs will entitle the HH to receive additional CalFresh benefits or become eligible for CalFresh because of the SUAS payment and SUA Allowance deduction.  

On November 18, 2024, Food and Nutrition Service (FNS) published the Final Rule that amended the regulations for calculating the standard utility allowances, including the heating and cooling Standard Utility Allowance (SUA), Limited Utility Allowance (LUA), and Telephone  Utility Allowance (TUA).  It also updated how to treat the payment under the LIHEAP or other similar energy assistance program payments, such as SUAS in California.

On January 17, 2025, the Final Rule requires the States to update the SUA methodology with the federal agency and expand the allowable shelter expense to include basic internet costs, to ensure SUA compliance by October 1, 2025, along with the annual CalFresh Cost-of-Living Adjustments (COLA) updates. However, Section 10104 (7 U.S.C. section 2014) of the Act now prohibits basic internet costs from being included in the calculation of SUA or qualification for LUA. FNS approved the SUA methodology submitted by CDSS to exclude the basic internet costs, which is compliant with the H.R. 1 Act.

On July 4, 2025, the H.R. 1 Act was signed into law, which limits the SUA allowance based on SUAS payment to HHs with elderly or disabled members and excludes the cost of basic internet when determining the SUA.

Treatment of Energy Assistance Payments Made Under State Law

Effective upon completion of automation, payments made under a state law to provide energy assistance to a HH without an elderly or disabled member must be considered money payable directly to the HH. Payments made under a state law to provide energy assistance to a HH with an elderly or disabled member must be considered an out-of-pocket expense incurred and paid by the HH. Therefore, the energy assistance payment will continue to be excluded from consideration as income.

Please refer to AR 63-504.39, CalFresh COLA for Federal Fiscal Year 2026, for the updated deduction amount for SUA, LUA, and TUA.

At the time of CalFresh application evaluation for ES, the SUAS determination is not used. ES is based on the HH's reported utility costs. This means if the HH pays for heating or cooling separate from shelter cost, the SUA amount, released via COLA AR, will be used in the CalFresh budget. If the HH is eligible for the LUA, then the LUA amount will be used. If the HH is only eligible for TUA, then the TUA amount will be used.

Payments for energy assistance under federal, and state law, or one-time payments for emergency repairs are exempt from being counted as income.

For those CalFresh HHs certified for 24 months, evaluation for the $20.01 SUAS payment must be made at the time of the required 12-month contact with the HH. If the SUAS payment is not issued to eligible HHs at least once every 12 months, then the HHs are not eligible for the SUAS-based SUA deduction.

The CF 1- Notice to CalFresh Recipients provides SUAS-eligible CalFresh HHs with information regarding the SUAS cash payment provided on their Electronic Benefit Transfer (EBT) account and how it can be used. It provides the SUAS eligibility criteria.

The following are acceptable documents for utility verification, when it is questionable:

• Utility Bill; 
• Information on signed application; 
• SAR 7 or Mid-Period Report (SAR 3); 
• Affidavit (PA 853); or 
• Applicant/Participant’s verbal statement when utility bill is not available.