SCHUMER: POLAR VORTEX IS CAUSING SOME OF UPSTATE NY’S MOST FRIGID TEMPERATURES IN DECADES – SENATOR PUSHES FOR IMMEDIATE RELEASE OF OVER $35 MILLION IN CRITICAL HOME HEATING AID FOR NEW YORK THAT’S BEING HELD BACK BY FEDS

Schumer Also Pushes Senate Appropriators to Increase LIHEAP Funds for FY2014 in Negotiations Set to Be Completed in Coming Weeks – Effort Would Provide New Funding Through Sept. 30th & Help Protect Low- Income Homeowners and Seniors Who Must Now Spend More on Heating this Winter

Schumer: LIHEAP Helps Seniors & Those in Need Survive Winter Months and Saves on Energy Costs for the Entire Grid

WASHINGTON, D.C. – January 9, 2014 – (RealEstateRama) — In light of record low temperatures and extreme weather slamming Upstate New York, U.S. Senator Charles E. Schumer today on a conference call urged the Department of Health and Human Services (HHS) to immediately release over $35 million in funds from the Low Income Home Energy Assistance Program (LIHEAP) that are currently being held back and will go to New York residents upon release. As of November 2013, HHS only obligated $316 million of the $351 million that is available for New York this winter from the FY13 appropriations. Secondly, Schumer urged his colleagues on the Senate Appropriations Committee to increase the LIHEAP funding above the FY 2013 levels in the Appropriations bill currently being negotiated, which will provide additional funding from January 15th through September 30th. LIHEAP protects Upstate New York’s low-income homeowners and senior citizens, and since 2011, funding has dramatically declined despite the steady increase in home heating costs and below-average winter temperatures. Schumer noted that as funding has declined, the number of eligible households has continued to exceed the available funding.

Schumer said that as Upstate New Yorkers experience historic frigid temperatures, caused by the polar vortex, the federal government should not be holding back critical heating aid for our most vulnerable citizens, especially considering that the unexpectedly cold weather may drive up heating costs. He also explained that the LIHEAP program will benefit all residents throughout Upstate New York by increasing energy efficiency in a greater number of homes, thus alleviating demand on the entire grid and reducing costs for consumers.

“With the polar vortex driving down temperatures in Upstate New York to record lows, the home heating assistance that the federal government provides for seniors and low-income households could not be more critical. Hundreds of thousands of New Yorkers rely on LIHEAP funding so that they don’t have to make the choice between putting food on the table or buying prescription drugs, and heating their home, but there are approximately $35 million in federal funds intended for New York that are just sitting unused in the D.C. coffers,” said Senator Schumer. “In light of the extreme cold and potential for heating costs to skyrocket due to increased demand, I’m urging the Dept. of Health and Human Services to immediately release the remaining funds that were allocated to New York this year so we don’t leave our seniors out in the cold.”

Schumer continued, “In addition to the quick release of these already-allocated funds, I will fight to boost LIHEAP funds during the ongoing appropriations debate to help those seniors and low-income families pay for heating costs this upcoming year, from now through September 30th. Winters in New York can be especially brutal, and heating costs have steadily risen over the past five years; now is the time to add the program, not subtract, and I will make sure my colleagues are aware of all the benefits the LIHEAP program has to offer.”

The mission of the Low Income Home Energy Assistance Program (LIHEAP) is to assist low income households and seniors, particularly those seniors with the lowest incomes, who spend a high proportion of their total household income on home energy. Specifically, New York families whose incomes are 150 percent of the federal poverty level or lower are eligible for LIHEAP funds, and the majority of LIHEAP recipients fall well below that threshold. Hundreds of thousands of New Yorkers, particularly many senior citizens living on a fixed income, benefit from the program each and every year. The funding can offset the cost of more efficient heating units in the winter, more efficient air conditioners in the summer, as well as weatherization. In addition, individuals can receive assistance with their utility bills, which could see serious spikes as energy prices rise this winter. In reaction to the unexpectedly low temperatures caused by the polar vortex, heating costs could skyrocket as demand for energy increases.

Since LIHEAP funds are intended to aid seniors, families with a disabled member, and families with children under the age of six, home heating aid is a significant health issue as well as an economic one. Roughly 40% of households served by LIHEAP include an adult aged 60 or over.

The Department of Health and Human Services (HHS), which dispenses LIHEAP funds to the State of New York for distribution, has thus far only dispensed $316 of the $351 million allocated to New York. Because appropriations are sometimes subject to change, the federal government typically holds back portions of annual funding until appropriations are secure. But with record low temperatures across Upstate New York, Schumer is now pushing HHS to immediate release the held back funds, since the polar vortex has created an immediate need. To support his push, Schumer is also urging members of the Senate Appropriations Committee to increase LIHEAP funding for the upcoming year, above FY13 levels, thus ensuring the previous year’s funds are covered and more. Annual funding for LIHEAP has steadily declined at the federal level since a peak in 2011. Despite rising heating costs and lingering effects of the economic downturn, the federal LIHEAP appropriation has declined from $4.7 billion in 2011 to only $3.25 billion in 2013. New York’s share of LIHEAP funding has similarly decreased from $521.9 million in 2011 to $351.3 million this year, a mark which Schumer hopes to increase in negotiations for FY2014 appropriations.

Schumer said that New Yorkers, in particular, need this assistance more than ever. According to a recent report from AARP, New Yorkers could see home heating bills increase more than 13 percent this year. What’s more, prices for fuel surged this week as the cold weather approached, with natural gas for Tuesday delivery reaching $90/mmBtu at a New Jersey delivery point, as compared to $13.6102/mmBtu on Friday, according to the Wall Street Journal.

Schumer believes that increasing this funding for New York would also have a positive impact on the state’s economy. Economists Mark Zandi and Alan S. Blinder have calculated that every dollar from LIHEAP produces $1.13 in economic activity. Because LIHEAP funds drive weatherization and other energy efficiency efforts, power grids across the state are benefitted by an increase in their use. With more efficient heating and cooling across Upstate, there is less overall demand on the grid and consumers across the board save on utility costs.

Hundreds of thousands of New Yorkers benefit from LIHEAP each and every year. Last year, from September 2012 through October 2013, over 1,575,590 households in New York received LIHEAP funding in the amount of $306,250,583. A similar number of eligible households are expected this year, and the total funding will be larger if Schumer’s efforts to boost funding are successful.

Here is the breakdown across the state:

In the Capital Region, 90,528 households benefitted from LIHEAP and received $36,043,750 in funding

In Western New York, 166,297 households are benefitted from LIHEAP and received $54,821,160 in funding

In the Rochester-Finger Lakes Region, 94,480 households benefitted from LIHEAP and received $31,062,718 in funding

In the Southern Tier, 74,159 households benefitted from LIHEAP and received $31,695,934 in funding

In Central New York, 111,897 households benefitted from LIHEAP and received $39,960,878 in funding

In the Hudson Valley, 112,960 households are expected to benefit from LIHEAP this winter and receive $28,246,853 in funding

In the North Country, 63,137 households benefitted from LIHEAP and received $29,928,194 in funding

In Long Island, 74,796 households benefitted from LIHEAP and received $21,240,242 in funding

A copy of Schumer’s letters to the Senate Appropriations Committee and HHS are available upon request.