Akenaton, I don't know how they do it in other states, but here in Maine there is a low-income fuel assistance program called LIHEAP already in place. When the powers that be in DC decided to cut the amount of federal funding that it used to provide in addition to state funds for this program, people in this state were going to be seriously SOL. Chavez approached our governor and offered cheap oil, which was then distributed to people already enrolled in LIHEAP.
In order to qualify for heating assistance, one has to show proof of need and fill out an application.