[Congressional Record Volume 149, Number 147 (Monday, October 20, 2003)]
[Senate]
[Pages S12891-S12892]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. CANTWELL (for herself, Mr. Smith, Mrs. Murray, Mrs. 
        Feinstein, and Mr. Wyden):
  S. 1761. A bill to provide guidelines for the release of Low-Income 
Home Energy Assistance Program contingency funds; to the Committee on 
Health, Education, Labor, and Pensions.
  Ms. CANTWELL. Mr. President, I rise today to introduce the Low-Income 
Home Energy Assistance Program (LIHEAP) Emergency Reform Act, which 
will put in place guidelines for the release of LIHEAP contingency 
funds.
  The LIHEAP program, created in 1981, is the primary vehicle by which 
the Federal Government, through block grants to States, provides energy 
assistance to low-income families. I applaud the provisions contained 
in pending energy legislation that will raise the LIHEAP authorization 
from $2 billion to $3.4 billion for Fiscal Years 2004 through 2006. As 
in most parts of the country, demand for LIHEAP dollars far outpaces 
the supply in my home State of Washington, where, even when fully 
funded under the current authorization, only 19 percent of eligible 
families receive home energy assistance.
  The legislation I'm introducing today, however, deals not with the

[[Page S12892]]

block-grant portion of the current program, in which allocations to 
States are determined via formula. Rather, it applies to the 
contingency fund, which was also authorized in 1981 ``to meet the 
additional home energy assistance needs of one or more States arising 
from a natural disaster or other emergency.'' As my colleagues are 
aware, this money is not released according to formula but solely at 
the discretion of the Health and Human Services Secretary.
  The LIHEAP Emergency Reform Act does four things, designed to provide 
clarity to States that are in the unfortunate position of suffering 
from an emergency, as defined in the LIHEAP statute. My legislation: 
gives Governors the explicit authority to apply to the 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 certifies that an emergency, as defined in the 
statute, has not been demonstrated.
  Since 1990, a total of $2.67 billion in LIHEAP contingency funds have 
been distributed. And while there is no doubt in my mind that, in all 
cases, this money has helped meet the needs of low-income families 
across this Nation, I believe there have also been widely varying 
eligibility rules leading to instances in which HHS has overlooked very 
real energy emergencies.
  In the Pacific Northwest, for example, we have over the past two 
years suffered from an unprecedented rise in retail energy rates, the 
burden of which has fallen disproportionately on low-income families. 
In fact, today, Washington State families at or below the 50 percent 
Federal poverty level spend 34 percent or more of their annual income 
on home energy bills. That is a huge burden, especially in view of our 
rising unemployment rate and the severe downturn in our economy.

  Unfortunately, Northwest States have not received emergency LIHEAP 
funds consistent with their needs. In part, I believe this is because 
of the perception that our rates will, notwithstanding any increases we 
might suffer, always be lower, and because this money has traditionally 
been used to defray the costs of natural gas and home heating oil in 
the Midwest and Northeast.
  This legislation requires HHS to consider regional factors such as 
the fact that home heating oil prices are not relevant to Washington 
State's low-income families, 77 percent of which have homes reliant on 
electricity.
  In addition, it directs HHS to consider regional rather than 
absolute, price trends. This is a very important point, because, 
regardless of how low a State's prices might be compared to its 
neighbor's, a drastic run up in rates has devastating impacts when its 
manufacturing base, residential homes and truly its entire economy are 
built upon access to an affordable power supply.
  In summary, LIHEAP Emergency Reform Act provides additional certainty 
to states across the country.
  I understand that the Senate Health, Education, Labor and Pensions 
(HELP) Committee will soon consider legislation to reauthorize the 
LIHEAP program. As my colleagues may recall, the provisions of the 
LIHEAP Emergency Reform Act were originally included in the Senate 
energy bill, now the subject of conference committee deliberations. 
During floor debate on that bill, I was pleased that the distinguished 
Chairman and Ranking Member of the HELP Committee, Senators Gregg and 
Kennedy, agreed to examine the contingency fund issue during 
reauthorization of the LIHEAP program. I believe that clear rules for 
the release of LIHEAP contingency funds will ensure that, in the 
unfortunate event of an energy emergency, low-income families will 
receive much-needed assistance in keeping the lights and the heat 
turned on, which is precisely what Congress intends when it 
appropriates money to the LIHEAP contingency fund. I believe the LIHEAP 
Emergency Reform Act will help provide this additional certainty.

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