04.08.03

Bipartisan Low Income Energy AssistanceAmendment Passes Committee

WASHINGTON, DC – The Senate Energy Committee today passed, by voice vote, an amendment to the Energy bill that will make it easier for western states to access Low-Income Home Energy Assistance emergency funds.

U.S. Senators Maria Cantwell (D-WA) and Gordon Smith (R-OR) were today joined by Senators Dianne Feinstein (D-CA), and Ron Wyden (D-OR) in offering the amendment, which requires the Department of Health and Human Services (HHS) to grant states’ applications for LIHEAP funds within 30 days, unless the agency makes findings that an energy emergency does not exist. In requiring HHS to develop clear rules for the fair treatment of these applications, the amendment also directs the agency to take into account regional factors, such as the impact of drought on energy prices throughout the West.

"LIHEAP emergency funds helped keep the heat and lights on for more than 7,000 Washington state families last year, but far too many families were left on waiting lists," Senator Maria Cantwell said. "This amendment levels the playing field so that all states will get equal consideration in receiving critical LIHEAP emergency funding."

"With Oregon in the depths of a recession, many families throughout the state will be unable to meet their energy needs without the help of the LIHEAP program," Senator Gordon Smith (R-OR). "This will allow governors and states to be flexible and responsive in times of great need."

"The states need a way to shake LIHEAP funding loose so that it’s there in time to help people," Senator Ron Wyden said. "This amendment will help governors get energy assistance on the ground when it’s needed most."

The Cantwell-Smith-Feinstein-Wyden amendment:

Gives governors the explicit authority to apply to the Health and Human Services (HHS) Secretary for the release of LIHEAP contingency funds;

Adds transparency to the release of emergency money by directing HHS, in cooperation with the states and Department of Energy, to put in place procedures for the equitable consideration of these applications;

Requires HHS to include in these procedures the consideration of regional differences in sources of energy supply for low-income households, relative energy price trends and relevant weather-related factors such as drought;

And finally, directs HHS to grant states’ applications within 30 days—unless the Secretary makes findings that an emergency, as defined in the statute, has not been demonstrated. LIHEAP is a block grant program distributed by formula and administered by the Secretary of Health and Human Services, designed to provide home energy assistance to low-income households. In addition to the LIHEAP block grants, there is a separate contingency fund that the HHS Secretary has discretion to release to meet additional home energy assistance needs arising from a natural disaster or other emergency.

Since 1990, a total of $2.67 billion in contingency funds has been released. The demand for LIHEAP dollars has long out-paced supply and the release of contingency funds have helped meet the needs of low-income families. However, there have also been widely varying eligibility rules leading to instances in which HHS has overlooked very real energy emergencies.

The Senate Energy Committee is scheduled to pass the energy bill on May 1, 2003