(1) When funds are not available to serve all eligible households, the department may, at its option, take any or all of the following steps as needed:

(a) reduce the maximum benefit amounts of the benefit award matrices;

(b) limit eligibility to only financially needy households with a member 60 years of age or older or with a member who is disabled and receiving supplemental security income or social security income based on permanent and total disability;

(c) deny all subsequent applications.

(2) If additional funds become available to serve eligible households, the department may, at its option, take any or all of the following steps as needed:

(a) increase the maximum benefit amounts of the benefit award matrices;

(b) extend the duration of the current heating season beyond April 30; or

(c) increase the maximum income standards for eligibility, if permitted by federal law.