LIHEAP backers hope US Congress will OK $2-bil more in funding

Washington (Platts)--27Dec2005

Additional funding for the federal Low-Income Home Energy Assistance
Program may be made available after Congress returns in late January, a
spokeswoman for US Sen Olympia Snowe (Republican-Maine) said Tuesday.

     The spokeswoman said Senate Majority Leader Bill Frist
(Republican-Tennessee) and Minority Leader Harry Reid (Democrat-Nevada) said
they would arrange for a floor vote on a separate, emergency supplemental bill
to provide $2-bil in additional funding to LIHEAP.

     The vote will come after the Senate considers the nomination of Judge
Samuel Alito to the US Supreme Court in January. Snowe's spokeswoman said
hearings on Alioto's confirmation will begin in mid-January.

     Snowe said in a statement that "given the magnitude of the situation in
cold weather states from Maine to Minnesota, we felt that it would be
unconscionable to leave for the year without a firm commitment to address this
issue as soon as possible." 

     Even if the Senate acts quickly and the House agrees to appropriate
additional money, program recipients will face a tough time in January and
February, said Mark Wolfe, executive director of the National Energy
Assistance Directors Assn. In some states, the program is facing the prospect
of running out of money by the end of January, he said.

     Wolfe said Arkansas, Iowa and Delaware will run out of money by the end
of January. Florida social service agencies will begin exhaust funding by the
end of December. Ten of the 24 agencies that allocate LIHEAP funds in Indiana
will be out of money by the end of January. Maryland's funding will run out by
end of February and New York will stop taking applications for assistance by
the end of January, he added.

                             ---Rodney White, rodney_white@platts.com

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