Rep. Tom Allen Joins Bipartisan Call to Double LIHEAP Funding

Rep. Tom Allen Joins Bipartisan Call to Double LIHEAP Funding

September 13, 2005

Maine Congressman says current benefit "won't even pay for one full tank of heating fuel at current prices"

Washington, D.C. - U.S. Representative Tom Allen, a member of the House Energy and Commerce Committee, today joined Democratic, Republican and Independent House members in an appeal to House and Senate appropriators to double funding for the Low Income Home Energy Assistance Program (LIHEAP) for Fiscal Year 2006 because of skyrocketing fuel prices. In their letter to Senators Arlen Specter (R-PA) and Tom Harkin (D-IA) and Representatives Ralph Regula (R-OH) and David Obey (D-WI), the chairs of the appropriations subcommittees for LIHEAP, the members urged that funding for the program be increased from $2 billion already approved by the House to $4 billion.

"The current $440 annual LIHEAP benefit won't even pay for one full tank of heating fuel at current prices," Representative Allen said. "Where are the elderly and the families who depend on LIHEAP going to find the additional $1,600 or more they will need to stay warm this winter? I fear that they will be forced to heat their homes just enough to keep the pipes from freezing and to choose between paying for fuel and buying food and medicines."

Representative Allen noted that at the current average $2.54 per gallon cost of #2 fuel oil the present annual LIHEAP stipend will pay for 173 gallons. The fuel tanks in most homes hold 200-250 gallons. Representative Allen added that the average Maine household uses around 800 gallons each winter which would cost $2,032 at current prices. In their letter, the bipartisan House members expressed concern that prices may yet rise much higher than current levels because of Hurricane Katrina.

"Low-income families across the nation, already struggling to pay their heating and air conditioning bills at current prices, face dramatically increased bills over the next year as a result of this disaster," the Members' letter states. "Since the winter heating season of 2001-02, the price of heating oil increased from $637 to $1261, natural gas from $602 to $954 and propane from $888 to $1377 - and that was before the increase in prices expected from Hurricane Katrina. The Energy Information Administration predictions released on September 7 show that prices for winter fuel oil, propane and natural gas will be 218% higher this year than in 2001, when LIHEAP was funded at $2.25 billion. Simply maintaining LIHEAP's FY 2001 purchasing power would require an appropriation of $4.9 billion in FY 2006."

The members' letter echoed a call Representative Allen made at a September 2nd press conference in Portland. At that same press conference, Representative Allen called on President Bush to take decisive action to rein in fuel prices by summoning oil company executives to Washington like President John F. Kennedy did in a similar situation with steel company executives in 1962. He outlined comprehensive bipartisan legislation he introduced in July to require greater energy efficiency in appliances, encourage energy conservation and Representative Allen also outlined his plans to introduce legislation to provide relief to truckers, farmers, fishing boat operators and other small businesses owners through tax credits to help offset fuel price increases.

http://tomallen.house.gov/showart.asp?contentID=1710&IssueID=1&ID=