[Congressional Record (Bound Edition), Volume 151 (2005), Part 20]
[Senate]
[Pages 27276-27277]
[From the U.S. Government Publishing Office, www.gpo.gov]




                                 LIHEAP

  Mr. KENNEDY. Mr. President, winter is coming, and it could easily 
become a perfect storm of high energy prices, bitter cold, and too 
little heat for those in need.
  Households heating primarily with natural gas will pay an average of 
$306 more this winter for heat, an increase of an incredible 41 percent 
over last year. Those relying primarily on oil for heat will pay $325 
more, an increase of 27 percent.
  The poor, the elderly, and the disabled need our help and they need 
it now.
  Wilhelmina Mathis is one example of what is happening to the most 
vulnerable in our society. Wilhelmina is 71 years old and lives alone. 
All last winter she kept her thermostat set at 60 degrees to save 
money. She hopes the Federal Government will come through with more 
LIHEAP money. She says: ``I turn down the thermostat as low as I can 
and sometimes I turn it off and put on extra sweaters. I don't know how 
much longer I can keep doing this.''
  We have tried four times this year to increase funds for LIHEAP, and 
all four times we were defeated by the overwhelming Republican majority 
who voted in lock-step to reject it.
  The failure of the Republican Congress to increase LIHEAP funds 
continues to put millions of our fellow citizens at risk. But the Bush 
administration and the Republican Congress are telling the elderly, the 
disabled, and children across America that it doesn't matter if they 
have no heat this winter--they aren't a priority.
  In fact, the Republican leadership is forcing us to make impossible 
choices. Look at the Labor-HHS bill. The Republican leadership is 
telling us that if we fund LIHEAP, we must cut health care for seniors, 
cut education for our children, cut essential job training funds for 
people trying desperately to enter the workforce and attain a level of 
self-sufficiency.
  It is unconscionable. Why are we being forced to help one family at 
the expense of another? We must increase LIHEAP funds and fight against 
cuts to other essential health, education, and labor programs. It is 
time for Congress to stand up for the American people. We tell them we 
hear them and understand their struggle, now it is time to put our 
money where our mouth is. We need to stop the rhetoric and take action. 
The American people deserve nothing less.
  Mr. KOHL. Mr. President, I rise as a cosponsor of the amendment 
offered yesterday by the Senator from Rhode Island to the tax 
reconciliation bill. This amendment addresses a concern that is on the 
mind of many Wisconsinites as winter quickly approaches--the increased 
cost of home heating.
  The timing of this amendment could not be more relevant. Last week, 
executives from several major oil companies attempted to defend their 
record-breaking profits over the last quarter, in a hearing before the 
Senate Commerce and Energy Committees. Despite their efforts, they were 
unable to provide adequate answers. More importantly, they were unable, 
or unwilling, to provide solutions that would ease the burden on 
American consumers.
  I would like to remind my colleagues that while prices at the pump 
have declined slightly, we are not yet in the clear. Winter is just 
around the corner, and with colder temperatures comes higher heating 
bills. I know my constituents in Wisconsin are worried not only about 
the costs of filling their cars, but also the costs of heating their 
homes. As the profits of these oil companies continue, what answers can 
I provide to these constituents, these hard-working Americans, about 
how they will pay their heating bills?
  I believe the amendment of the Senator from Rhode Island was a first 
step towards offering my constituents some piece of mind when it comes 
to heating their homes. This amendment would have created a temporary, 
1-year levy on the excess profits of U.S. oil companies to provide 
$2.92 billion for the Low-Income Home Energy Assistance Program. 
Because this would only be in place for 1 year, and only effect profits 
made in 2005, this amendment would have no effect on gas prices or do 
anything to increase dependence on foreign oil. The amendment offered a 
simple, short-term solution that would provide real help to those who 
will need it most, when the temperature starts to drop.
  The Energy Information Administration has forecasted significantly 
increased home heating costs this winter. For those using home heating 
oil, the average increase in price will be $325 over last year. While 
that might not be much to the oil executives, I can assure you that it 
could mean going without heat for some families in Wisconsin. I believe 
it is the responsibility of the Federal Government to protect consumers 
when the market fails to do so.
  I am deeply disappointed that the amendment failed in last night's 
vote. I assure my constituents that I will continue to work towards a 
comprehensive solution to high heating costs.
  Mr. CARPER. Mr. President, I am pleased to voice my support for the 
Low-Income Home Energy Assistance Program and for the Reed amendment 
that I cosponsored to S.2020, the tax reconciliation bill. The Reed 
amendment would have fully funded LIHEAP in fiscal year 2006 and would 
have paid for the increased funding with a temporary tax on the 
windfall profits of major oil companies.
  The Senate fiscal year 2006 Labor, Health and Human Services, and 
Education Appropriations bill took an important first step toward 
providing adequate LIHEAP funds by including $2.183 billion for the 
program for next fiscal year. This is a good starting point.
  However, $2.183 billion represents only a very slight increase over 
fiscal year 2005 levels and is likely not enough to meet the needs of 
LIHEAP beneficiaries in the coming winter.
  For this reason, I have worked to find ways to increase funding for 
the LIHEAP program and to do so in a manner that is fiscally 
responsible. The Reed amendment would have added $2.92 billion to the 
LIHEAP program and paid for this increase by taxing the windfall 
profits of major oil companies.
  Some have criticized this windfall profits tax. Yet I believe that a 
temporary, limited tax on the windfall profits of energy companies is a 
reasonable way to help the least fortunate among us pay for their home 
energy needs.
  Indeed, I believe that the country's oil producers can afford to help 
pay for LIHEAP. Last month they posted record profits. ExxonMobil 
reported that their profits rose 75 percent, and in just 3 months they 
made $9.92 billion in profit. Similar record profits have been reported 
by all of the major integrated oil companies. Some of this increase in 
profit is due to oil prices that started to rise this summer even 
before Hurricanes Katrina and Rita struck the gulf coast. After the 
hurricanes, though, the price of gasoline, diesel, jet fuel and other 
refined oil products soared.
  Our Nation is still struggling to recover from the disasters along 
the gulf coast. All Americans have had to make sacrifices as a result. 
This winter the country is facing another crisis, record energy prices 
and associated increased household heating bills.

[[Page 27277]]

  According to the U.S. Energy Information Administration, consumers 
who heat their homes with natural gas prices--about 55 percent of U.S. 
households--are expected to see their heating bills rise by 48 percent 
this winter. Those who heat with oil will pay 32 percent more, those 
who heat with propane will pay 30 percent more, and those who heat with 
electricity will pay 5 percent more.
  These increases will take the greatest toll on the least fortunate 
among us. Low-income Americans will have a harder time heating their 
homes and may turn their heat down dangerously low in hopes of being 
able to pay their monthly bills.
  That is why the LIHEAP program is so important. LIHEAP provides vital 
home energy assistance to low-income families to help them weatherize 
their homes and pay their energy bills.
  The Reed amendment would have asked the oil companies that have 
profited so much from recent rising energy prices to help ease the 
burden of this winter's high prices.
  I am pleased with the approach taken by the Reed amendment because I 
believe that we should try to pay for increases in spending. I have 
been uncomfortable supporting some previous amendments to increase 
funding for the LIHEAP program because they did not find a way to pay 
for the increased spending.
  Senator Reed has found a way not only to fully fund this vital 
program, but to pay for it as well.
  Unfortunately, Senator Reed's amendment was not accepted by the full 
Senate during consideration of the tax reconciliation bill. The 
amendment needed 60 votes to overcome a point of order and received 
only 50.
  We will keep trying though.
  The LIHEAP program serves a vital function in helping as many as 5 
million low-income households who need a bit of help paying their 
energy bills or weatherizing their homes. I'm pleased to have been a 
cosponsor of the Reed amendment and I will continue to look for ways to 
increase funding for the LIHEAP program.

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