Provides grants to households for home energy assistance; appropriation

BILL NUMBER:S3121

Title of bill

An act to create the temporary home energy assistance grant program; making an appropriation therefor; and providing for the repeal of such provisions upon expiration thereof

Purpose

Creates the temporary home energy assistance program, to provide additional benefits to those who receive federal home-energy assistance, as well as to provide benefits to those whose incomes make them ineligible for the federal program.

Summary of provisions

Section 1 creates the temporary home energy assistance grant program, and outlines the grant limits. Section 2 provides that all those who are eligible for the federal program and pay for their own heat, will receive a state grant of $200. Those who pay indirectly for their heat will receive a state grant of $100. Households that are ineligible for federal energy assistance, but whose incomes are still below 100% of the state's median income level, based on size, will receive a state grant of between $50-$150. Those who pay directly for their heat and whose income is above 60% but below 750 of the state median income will receive $150; those whose income is above 75% but below E5% of the state median income will receive $100; those whose income is above 85% but below 100% of the state median income will receive $50. Those who pay indirectly for their heat, and whose income is between 60% and 100% of the state's median income will receive $50. This legislation also provides that the grants issued by this bill will not be considered in any way as income or resources.

Section 3 provides for an immediate effective date, and a sunset of May 31, 2012.

Existing law

Currently, only those whose incomes are less than 60% of the state's median income, based on household size, are eligible for the home energy assistance program.

Justification

Over the past year, fuel prices have been steadily climbing. Increased demand for oil, coupled with the crippling effects of Hurricane Katrina has placed an enormous economic burden on consum- ers. The sharp increase in petroleum costs will result in much higher heating bills this winter for all New Yorkers. According to state energy officials, the cost of natural gas is expected to be up 32% from last winter, heating oil 31%, propane 21% and electricity 11%. A recent anal- ysis by federal officials predicts that the average New York family will have to spend $400 more to heat their home this winter.

The anticipated spike in home heating costs has placed New York State in the throes of an energy crisis. Many working families and vulnerable populations will be forced to choose between eating and heating their homes. This issue was recently highlighted in an article in the New York

Times on 11/27/05; which commented that many offices are not only seeing an increase in first time applications for assistance, but are having to refuse assistance to many because they are over the income limits. This legislation will help ease the burden of this winter's energy bills, not only for those who already receive assistance, but for those whose incomes are too high to get the federal assistance, yet are barely making it by.

Legislative history

2011-2012: S .1734- Finance 2010: S.2469 Referred to Finance 2008: S.2484 Referred to Finance 2006: S.7106 Referred to Finance

Fiscal implications

$500 million appropriation to be made to the program.

Effective date

Takes effect immediately and shall expire and be deemed repealed on May 31, 2014.