Mr. President, today I am introducing the Emergency Energy Assistance Act of 2008, which will provide emergency relief to families in Massachusetts and around the country who are suffering from…
Mr. President, today I am introducing the Emergency Energy Assistance Act of 2008, which will provide emergency relief to families in Massachusetts and around the country who are suffering from record energy costs. I am joined by Senators Kennedy, Lieberman, Cardin, Menendez, Whitehouse, Cantwell and Dodd in introducing this important and timely piece of legislation. This legislation will help some of the 85 percent of American families who are eligible for assistance from the Low-Income Home Energy Assistance, but have been unable to obtain it due to budget restrictions.
Consumers around the country are facing skyrocketing prices for transportation and heating fuels. Heating oil prices in the Northeast averaged $3.40 in the first quarter of 2008, compared to just $2.52 in 2007, putting severe strains on the approximately 960,000 Massachusetts families who simply cannot afford these skyrocketing prices. Today, 100,000 Massachusetts households are still behind on their energy bills from last winter and remain at risk of shut-offs of vital energy services.
These high costs are expected to continue through this year's heating season. Home heating oil prices in Massachusetts are already averaging $4.60/gallon. The typical family uses approximately 1,000 gallons of heating oil during the course of the winter--Massachusetts households could realistically be looking at heating bills approaching $5,000--an impossible sum for thousands of families around the state. When coupled with the escalating costs of transportation fuels, the burden is simply too much to bear.
The primary Federal energy assistance program for low-income households is the Low-Income Home Energy Assistance Program LIHEAP. As energy costs rise, the demand for LIHEAP funds grows. 5.8 million families received LIHEAP funds in 2008, the highest participation levels in 16 years. In Massachusetts, over 145,000 families receive LIHEAP funds. However, as energy costs rise and demand for LIHEAP grows, the program's budget has not kept pace and we just can't cover all the people that need help. In fact, only 15 percent of eligible households nationally are receiving funding. Even in those households that do receive LIHEAP funds, the money isn't going very far--the average LIHEAP grant only pays for 18 percent of the total cost of heating a home with heating oil.
I have been a long-time, strong supporter of legislation introduced by Senator Sanders--the Warm in Winter, Cool in Summer Act that would fund the LIHEAP program for 2008 at the fully-authorized level of $5.1 billion, and I have incorporated that essential provision into the legislation I am introducing today.
In addition, the Emergency Energy Assistance Act of 2008 includes critical emergency funding for the Weatherization Assistance Program at the U.S. Department of Energy. This program enables service providers to install energy efficiency measures in the homes of qualifying homeowners free of charge, and it provides real, short-term opportunities for homeowners to bring down their energy bills. My legislation would fund the program at $750 million, the fully- authorized level for 2008.
Finally, this legislation would provide a temporary increase in the Earned Income Tax Credit EITC for 2008 to help families pay their increasing energy bills. The EITC is a refundable tax credit for low- income working families. These households are bearing the burden of escalating energy costs, yet many of these beneficiaries did not receive the full rebates provided through the Economic Stimulus Act of 2008.
This legislation would increase the maximum EITC credit amount by $300 for 2008. By increasing the credit amount, more families will be eligible for the credit than under current law. Beneficiaries will receive the increased EITC when they file their 2008 tax returns. This $300 will help working families with rising heating and transportation costs.
In the face of skyrocketing energy prices, we must take serious and immediate measures to assist low-income working families. We cannot stand idly by as American families are forced to make impossible decisions about whether to heat their homes or put food on their tables. This is a crisis of tremendous proportions, and it is incumbent upon us to take steps now to ensure that millions of households are not literally left out in the cold this winter.