Natural Gas Utilities Praise House Vote to Increase funding for the Low Income Home Energy Assistance Program (LIHEAP)

Washington, D.C. – Action taken yesterday by the U.S. House of Representatives to increase funding for the Low Income Home Energy Assistance Program (LIHEAP) is a welcome step which could help the over-stretched energy assistance program to reach many more of the millions of working class and low-income Americans who are eligible for the program, but don’t receive assistance, the American Gas Association (AGA) said today.  LIHEAP funding was contained in the Departments of Labor/Health and Human Services FY 2008 Appropriations bill that passed the House by a vote of 276-140.  LIHEAP provides heating and cooling assistance to low income Americans.

“The nation’s natural gas utilities salute the steps taken by the House,” said David N. Parker, president and CEO of AGA.  “These measures will help to bring low-income home energy assistance to many more of the 33 million eligible homes that need assistance.”   AGA also urged the Senate to support increased funding when it takes up consideration of the bill. 

Parker said the $2.67 billion contained in the FY 08 Departments of Labor/Health and Human Services appropriations bill reflects a $500 million increase over the FY 07 level of $2.16.  If approved by the Senate and the President, the additional $500 million would go into the program’s “emergency” fund, which can be released at the request of the President, often in reaction to weather or economic conditions.  The regular appropriation for LIHEAP, which is distributed directly to states in the form of block grants, would remain funded at the same $1.98 billion level as in FY 07.

A chronology of LIHEAP funding shows that in recent years, funding for LIHEAP has lagged behind the need for the program.  According to the AGA Energy Analysis, The Growing Need to Help Low-Income Energy Consumers:  Government, Charitable and Utility Programs, 33 million homes are eligible for assistance, however only about 5 million received LIHEAP aid in 2005, the most recent year for which data is available.

Natural gas and electric utility companies provided the equivalent of more than  $1.7 billion in energy assistance in 2004 alone. "That’s a sizeable contribution, yet the need continues to be far greater than utilities are able to fulfill, despite our best combined efforts,” Parker said.

Parker noted that in addition to increased funding for LIHEAP, AGA supports policies that promote increased supply of natural gas and encourage the wise use of energy, in order to stabilize energy prices over the long term