01.28.05

Cantwell Calls on Bush Administration to Release Emergency Energy Aid

80 percent of eligible Washington families have yet to get help;Emergency money could help heat another 8,000 Washington homes

WASHINGTON, D.C. – Senator Maria Cantwell (D-WA) and a bipartisan group of 49 other Senators today called on the Bush Administration to release $200 million in emergency Low-Income Home Energy Assistance Program (LIHEAP) funds. This could provide support for over 8,000 Washington families that need help paying their utility bills this winter.

"All over the state of Washington, families are struggling to keep their lights and heat on," said Cantwell. "In many areas, utility disconnection rates are at an all-time high. We're grappling with the legacy of the Western energy crisis, at the same time our economy is trying to rebound. The least we can do is ensure that the money Congress set aside for crisis situations gets to the families facing energy emergencies this winter."

The LIHEAP Program provides federal funds to states every year, to distribute to low-income families through local organizations. Typically, Congress designates a portion of this money for distribution to states through a formula set in the law, and sets aside another fund for the Administration to release when an energy emergency occurs. There is currently $200 million in emergency funding that the Administration has not released—even as the total number of households asking for assistance nation-wide is expected to reach a 10-year high.

If these funds were released and divided up according to the existing formula, Washington state would receive an additional $4.1 million—enough to help about 8,300 households.

All over Washington state, local community organizations are struggling to keep pace with the growing demand for LIHEAP assistance. This situation was documented in a status report issued earlier this week by the National Energy Assistance Directors' Association.

Specifically:

The Blue Mountain Action Council in Walla Walla reported that the number of households on its LIHEAP waiting list had more than quadrupled compared to last year at this time, from less than 100 to 426. The Hopelink program that serves portions of North and East King County reported a 63 percent increase in utility disconnections compared to last year (41 in 2005 to-date, compared to 15 in 2004). Its number of "crisis" appointments (for households that have received notices, but have not yet been disconnected) has grown from 192 last year, to 243 thus far in 2005, a 21 percent increase. The Rural Resources Development Association, serving Ferry, Pend Oreille and Stevens Counties estimated that funding for Ferry and Pend Oreille would be completely exhausted by the end of this month. Stevens County would run out of funding by March, or possibly earlier. Thus far, unmet need in the three counties combined was estimated as 890 households. In Snohomish County, 2,208 households are currently waiting for assistance. To date, the local program has served 304 families in "crisis" situations, within 72-hours of being disconnected. In Clark County, "crisis" situations averaged just over 80 per month in 2004. In 2005, the average has been more than 105 per month. The Community Action Council of Lewis, Mason and Thurston Counties reported that "There was an extraordinary high demand for energy assistance when we initiated our energy assistance this year to the point of frenzy by our clients." The North Columbia Community Action Council also reported that "we have seen a substantial increase in the number of clients seeking assistance (high demand) and a good share of disconnections during the cold snap we just had."

In Washington state, an estimated 80 percent of the families eligible for LIHEAP assistance last year were unable to get it. While 302,000 households in the state qualify to receive this aid, there was only enough money to help 61,165 of these families in 2004. Of those who did receive aid, 71 percent make less than $12,000 per year.

Sen. Cantwell has consistently advocated increased funding for the LIHEAP program and has fought for the release of emergency resources to help Washington ratepayers hit hard by the Western energy crisis. In January 2003, after more than a year of pressing for release of this emergency money, Cantwell was able to free up an additional $3.2 million for Washington state. When it became clear that the Bush Administration would not voluntarily release the $300 million it was then withholding in emergency funds, Cantwell co-authored a successful amendment to a pending appropriations bill to distribute the funds to states. Within 48 hours of the amendment's passage in the Senate, the Administration released $200 million of this money. Washington state's share was enough to help another 5,500 families.

Cantwell has also authored the LIHEAP Emergency Reform Act, which would give states a more transparent process for applying for emergency assistance and require a timely response from the Administration. She plans to reintroduce this legislation in the new Congress.

LOCAL CONTACT INFORMATION ON LIHEAP:

The local agencies/organizations responsible for distributing LIHEAP funds can be found by selecting your county on the following website: http://www.acf.hhs.gov/programs/ocs/programs/liheap/about.

Cantwell's letter to Bush follows below:

January 27, 2005 The Honorable George W. Bush President of the United States The White House 1600 Pennsylvania Ave, N.W. Washington, D.C. 20500

Dear President Bush:

We urge you to immediately release the remaining $200 million in emergency Low-Income Home Energy Assistance Program (LIHEAP) funding provided in the fiscal year 2005 Consolidated Appropriations Act. Congress appropriated the LIHEAP emergency funds to help consumers meet the cost of rising energy prices and reduce energy debt remaining from last winter. The high energy burden facing low-income households and the cold weather being experienced throughout the country warrants the immediate release of these funds.

Many low-income consumers entered this winter without heat or electricity due to unaffordable energy prices last year, and thousands of these families remain without heat. Emergency funding is needed immediately to help low-income families and seniors restore disconnected utility service. For example, in Pennsylvania, as of December 15, 2004, 4,496 residential households remain without electric service and 10,509 residential households who heat with natural gas are without service.

The Energy Information Administration's Short-term Energy Outlook for January forecasts, despite the warmer weather in December, that heating oil expenditures by households are still expected to average 34 percent above last winter's levels, expenditures for propane-heated households are expected to increase about 20 percent this winter, and expenditures for natural gas-heated households are expected to rise by 10 percent. These increases far outpace the rate of inflation and are placing an overwhelming strain on family budgets. These increases come on top of soaring energy prices over the past several years. Oil prices climbed to over $48 a barrel for the week ending January 14th, the highest since the end of November. Natural gas rose to $6.445 for a million British Thermal Units (BTUs). Rising energy prices disproportionately burden low-income Americans who are also struggling to pay for higher food, housing and health care costs.

Based on preliminary applications, requests for energy assistance are expected to exceed five million households this winter, the highest number in the last 10 years. Newspapers throughout the country are reporting on the inability of states to meet rising demands. Without emergency assistance, low-income seniors and families will face impossible choices this winter: whether to heat their homes or to eat; whether to buy prescription drugs or to pay their electricity bill; and, whether to pay their rent or mortgage or to buy home heating oil. Unfortunately, these are the real choices that face low-income families, disabled Americans, and seniors when energy prices are unaffordable.

We believe the heating crisis facing low-income Americans warrants the immediate release of emergency LIHEAP assistance. Thank you for your attention to this important request.

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