Authorizes the New York state energy research and development authority to develop a temporary middle income home energy assistance program; appropriation

BILL NUMBER:S1614B

Title of bill

An act to amend the public authorities law, in relation to authorizing the New York state energy research and development authority to develop a temporary middle income home energy assistance program; making an appropriation therefor and providing for the repeal of such provisions upon expiration thereof

Purpose

To establish a program which will provide home heating fuel assistance to middle-income families who would otherwise not qualify under the State/Federal Low-Income Home Energy Assistance Program.

Summary of provisions

Section one of the legislation establishes, within the New York State Energy Research & Development Authority (NYSERDA), and with the assistance of the Department of Taxation and Finance, the Temporary Middle Income Home Energy Assistance Program.

Section two appropriates $1,000,000 for the purpose of enacting this temporary program of assistance to middle-income New Yorkers.

Section three enacts the legislation immediately and sunsets the program on April 1, 2015.

Existing law

This is a new program. The Low Income Home Energy Assistance Program, after which this program is modeled, is established in Social Services Law § 97. LIHEAP is administered by the Office of Temporary and Disability Assistance, is federally-funded, and has income eligibility criteria. (See, http://otda.ny.gov/programs/heap)

Justification

Although natural gas prices have stabilized, the cost of heating oil, wood pellets and propane has not remained stable. With the onset of colder weather, it is anticipated home heating costs may approach or exceed the record costs seen in the winter of 2010-2011. When coupled with the continuing slow recovery of New York's employment, stagnation of wages and erosion of middle-class savings during the "Great Recession," it is a clear that there may be widespread inability of New Yorkers to pay their heating bills. At the same time, funding for low-income heating assistance is falling. Over the last two years, heating assistance funding has been cut to $3.5 billion from $5.1 billion in 2010. Finally, the number of households receiving assistance fell by 1.1 million over the period. Averting a catastrophe is imperative. And by providing a State-funded Middle Income Home Energy Assistance program we are delivering immediate help on an emergency basis to middle-income families.

The program will be funded through proceeds from carbon permits auctioned as part of the Regional Greenhouse Gas Initiative.

Legislative history

2011-12: S.1064-A - Referred to Energy & Telecommunications 2009-2010: S.2457 - Referred to Energy & Telecommunications 2008-2009: S.8757-A - Referred to Rules

Fiscal implications

This bill is estimated to cost $1 million in State revenue.

Effective date

This act shall take effect immediately and shall expire and be deemed repealed April 1, 2015.