Helping Americans with High Energy Costs

Helping Americans with High Energy Costs

Weekly Column

by Senator Susan M. Collins

Even before Hurricanes Katrina and Rita ravaged our Gulf Coast, the United States was facing record-high energy prices. As our nation commits itself to helping the victims of those devastating storms rebuild their lives and their communities, we must also reach out to assist the low-income families throughout the country who will be economically devastated by the even higher home-heating prices that are resulting from the storms' damage to our energy industry.

For more than 20 years, one of our most effective tools to help less-fortunate Americans keep warm during the winter has been the Low Income Home Energy Assistance Program, or LIHEAP. Last year, LIHEAP assisted some 5 million households nationwide; nearly 50,000 were in Maine. This federal block grant program to the states has proven itself to be both well run and invaluable.

This year's appropriation for LIHEAP is about the same as for 2004. Yet energy experts estimate the damage caused by the hurricanes as well as other factors could mean an increase in heating costs from last winter by as much as 77 percent in some regions of the country. We cannot allow the purchasing power of LIHEAP funds to be diminished so substantially.

I am leading a bipartisan effort urging the Senate Appropriations Committee to approve an additional $1.276 billion in emergency LIHEAP funding. With this additional funding, the program will be able to provide the same level of purchasing power as last year, which is critical to avoid a looming, but preventable, crisis for millions of additional Americans caused by the soaring cost and diminishing affordability of home heating fuel as winter approaches.

The need for this additional funding is clear. Heating costs for the average family using heating oil are projected to hit $1,666 during the upcoming winter. This represents an increase of $403 over last winter's prices and $714 over the winter heating season of 2003-04. For families using natural gas, prices are projected to hit $1,568, representing an increase of $611 over last year's prices and $643 over 2003-04.

In addition to rising energy prices, the economic devastation in the Gulf region is likely to affect the national economy. Many more Americans will need LIHEAP assistance this year than ever before. Indeed, many states already are reporting major increases in applications due to the rapid rise in home energy prices. This additional funding will allow states to answer the calls for assistance.

Beyond helping low-income Americans pay their heating bills this winter, we must do more to reduce the demand for energy. To that end, I have joined Senator Olympia Snowe in asking President Bush to increase funding for the Department of Energy's conservation and management programs in a supplemental funding request to help the victims of Hurricane Katrina. To address the urgent energy crisis facing the country, we are requesting $100 million for the State Energy Program, $500 million for the Weatherization Assistance Program, and $90 million for an energy efficiency public information initiative.

The Weatherization Assistance Program provides vital resources to low-income households to reduce energy consumption. This program could expand quickly and reduce energy usage by as much as 25 percent in each home that is helped. More than 105,000 homes will be weatherized in 2005 based upon existing appropriations levels. Families can use savings resulting from weatherization to pay for other necessities, while reducing the nation's energy demand by the equivalent of 15 million barrels of oil every year. As energy prices increase, the dollar value of these savings also is increased, and the savings in oil and natural gas will keep more supply available in the market.

A greatly expanded public education initiative is required to encourage the public to tune-up vehicles, inflate tires, conduct energy audits of homes and implement measures to reduce energy usage, and promote the use of newly approved federal tax credits for energy efficiency. This education program would be coordinated with the Energy Star Program, jointly operated by the Department of Energy and the Environmental Protection Agency. By investing in conservation initiatives, we can lower energy prices and help families, small businesses, and others reduce the painful burden of soaring energy prices.

The people and communities affected by Hurricanes Katrina and Rita deserve the nation's full support and financial assistance, and we stand ready and willing to do everything we can to help. At the same time, however, we must not forget the millions of Americans who, though far from the fury of those storms, will feel their repercussions. The measures I propose will provide those in need with relief from soaring energy prices this winter and enhance the efficient use of energy into the future.

http://collins.senate.gov/high/crecord.cfm?id=247186