NATIONAL ASSOCIATION OF STATE UTILITY CONSUMER ADVOCATES

Resolution 2008-03

The Low Income Home Energy Assistance Program (LIHEAP) Resolution

WHEREAS the Low Income Home Energy Assistance Program (LIHEAP) is a federally-funded, state-administered energy program that has been in existence since 1981; and

WHEREAS the costs of residential energy, and heating and cooling in particular, burden low-income households disproportionately compared with non-low income households because energy costs require a greater percentage of the household budget for the poor; and

WHEREAS the costs of residential energy have increased steadily over the years as depicted in Energy Information Administration’s residential winter heating fuels forecast for the winter of 2008-2009 which predicts that the average household expenditure for natural gas will be 41% higher than the averaged expenditures for 2002-2007 and 23.8% higher than the prior year; the average household expenditure for heating oil will be 127% higher than the averaged expenditures for 2002-2007 and 36.3% higher than the prior year; the average household expenditure  for propane will be 71% higher than the averaged expenditures for 2002-2007 and 14.3% higher than the prior year; the average household expenditure  for electricity will be 25% higher than the averaged expenditures for 2002-2007 and 9.4% higher than the prior year; and

WHEREAS the demand for LIHEAP is increasing as reflected by the National Energy Assistance Directors’ Association announcement that the rise in energy prices coupled with a slowing economy has led to the highest number of households receiving LIHEAP, almost 6 million households as of April 2008; and

WHEREAS one measure of unaffordable residential energy is an increase in arrearages and disconnections and the National Energy Assistance Directors’ estimates that almost 15.6 million households are behind on their utility bills as of March 2008 and the total amount of arrears is almost 15% higher than the prior year; and

WHEREAS one method for measuring the impact of household energy bills is to calculate the household’s energy burden by dividing the annual cost of residential energy by the annual income of the same household; and

WHEREAS LIHEAP is a targeted block grant program that helps low-income households with high energy burdens and low-income households with members particularly vulnerable to the heat and cold which include the frail elderly, individuals with disabilities and very young children; and

WHEREAS the annual appropriation for LIHEAP, $2.2 billion in FY 2008, has failed to match the increase in home energy costs and the increase in demand for the program; and

WHEREAS the Center on Budget and Policy Priorities estimates that over $4.8 billion would be needed in FY 2009 for LIHEAP to offset the increase in home heating costs and serve the same share of the population needing energy assistance in FY 2008; and

RESOLVED that NASUCA urges Congress to fully fund LIHEAP for FY 2009 at $5.1 billion for the regular LIHEAP block grant formula and an additional $600 million in emergency contingency funding; and

BE IT FURTHER RESOLVED that the Consumer Protection Committee is authorized to make recommendations consistent with this resolution concerning funding levels for LIHEAP, both for FY 2009 and for future years, as the Consumer Protection Committee deems appropriate; and

BE IT FURTHER RESOLVED that the Executive Committee is authorized to take action consistent with this resolution concerning funding levels for LIHEAP, both for FY 2009 and for future years, including making requests for funding to Congress, as the Executive Committee deems appropriate; and

BE IT FURTHER RESOLVED that the membership shall be notified of actions taken pursuant to this resolution.

Approved by NASUCA:
New Orleans, LA
November 18, 2008