December 4, 1974
Page 38013
By Mr. MUSKIE (for himself and Mr. RANDOLPH)
S. 4209. A bill to strengthen the intergovernmental response to the current energy emergency by providing financial assistance to the States for grants to families with annual incomes of $8,000 or less to assist such families to obtain emergency heating fuel, and for other purposes. Referred to the Committee on Labor and Public Welfare.
INTERGOVERNMENTAL EMERGENCY. HEATING FUEL ASSISTANCE ACT
Mr. MUSKIE. Mr. President, it was just last winter that an embargo by the Arab oil producers brought on an energy crisis.
Now it is winter again, and another crisis is upon us. Less spectacular than that of last year, it is no less serious in its impact.
The energy crisis last winter was caused by a shortage of supplies. And though some Americans suffered more than others, the shortage affected every one of us in a very real way.
This winter, the energy crisis is one of price rather than supply. And the burden this time around promises to be much less equally distributed. For with fuel prices – particularly for heating oil – soaring out of sight, those who can least afford to pay are going to have a long cold winter.
Today, I am introducing the Intergovernmental Emergency Heating Fuel Assistance Act, on behalf of myself and Senator RANDOLPH, a bill to provide emergency financial assistance to families who cannot afford to pay for the energy they need to keep warm this winter.
Under the provisions of the bill, the Federal Government would assist States that develop programs to provide heating assistance to families whose annual incomes are $8,000 or less.
Funds would be apportioned among the States according to a simple formula based on the number of eligible families in each State and the State's relative temperature.
Mr. President, this legislation is needed and needed now. Fuel prices have gone up dramatically in recent years. In fact, the September Consumer Price Index shows that energy prices have increased 63.8 percent during the year ending in May. Leading the way is petroleum with an increase of 69.1 percent in the price of crude oil and an 85.2 percent increase in the price of refined products.
For the consumer, those statistics mean higher heating bills – in dollars and cents. For example, in my State, No. 2 heating oil – which more than 90 percent of the homes in the State use for heating – has increased from 19 cents a gallon in December 1972 to 39 cents a gallon in November of 1974. In other words, a consumer who only 2 years ago was paying $400 a year to heat his home must now spend $800 for the same amount of energy.
And the situation is as bad in other parts of the country. The Office of Economic Opportunity in its publication "The Great Energy Crisis of 1973-74," reports that in Georgia the price of propane rose 400 percent before "stabilizing" at a level of 800 percent increase.
In Kentucky, where many of the poor heat with coal, the price of coal has gone up 300 percent to 500 percent over the past 2 years.
And in Pennsylvania, Gov. Milton Shapp says the average cost of heating a home with oil has increased from $312 a year to $420 and with coal from $340 to $625.
OEO observed–
Heating fuel price increases are no problem in warm weather, but they will strike most painfully at the poor next fall and winter, when prices will be higher, and the weather – '73-'74 was a mild winter – may not be as benign. Costs of propane, electricity, fuel oil, gasoline – all the energy people purchase directly – are climbing rapidly and price increases are essentially uncontrolled.
As prices have gone up, the low income have begun to spend more and more of their income on energy needs. In fact, according to the final report of the Ford Foundation's energy policy project, low-income Americans now spend 15 percent of the family budget on energy as compared with 4 percent for the well-to-do. This disparity is further accented by a harsh irony of simple economics – while the poor use less energy on the average, they must pay more for the energy they do use.
Statistics compiled by the Washington Center for Metropolitan Studies show that for 1972-73, an average household paid $361 for 235 million Btu's of heat or $1.64 per million Btu's. But poor families, who on the average used only 174 million Btu's, had to pay $1.81 per million Btu's. And the elderly, many of whom are on fixed incomes, paid out most of all – $3.50 per million Btu's.
In addition, because many low-income people live in older housing that is often poorly constructed and inadequately insulated, they must buy extra energy to make up for that which is lost.
Mr. President, we have all heard a lot about the skyrocketing prices of both food and fuel. We are too well aware that the price of food has gone up 12 percent in the last year and is expected to continue to rise.
The harsh human realities of those price increases for low-income people is all too clear – unless low-income families receive some kind of help, they will be forced to make the cruel choices between necessities.
They, unlike those Americans with higher incomes, will be forced to choose between staying warm this winter and eating properly – between adequate health care and adequate heating, and that Hobson's choice is underscored when, as it did in Maine last winter, the temperature stays below zero for a whole week, sometimes dropping to 27 degrees below.
This point was brought home to me recently when I received a letter from a retired person in my State. She wrote to tell me how difficult it was for her to afford to heat two rooms in her house and have enough to eat on her monthly income of $132 from social security.
Another problem faced by low- and middle-income families this winter is the lack of credit and the inability of fuel dealers – the traditional source of such credit – to come to their assistance.
In past years, long term payment programs and other credit arrangements enabled low- and middle-income families to purchase and pay for needed energy supplies. But because fuel costs rose so high last winter, many families still owe money on last year's heating bill. As a result, fuel dealers simply cannot afford to extend further credit.
The high prices of fuel have even further reduced the ability of fuel dealers to extend credit. Because they must now pay out so much cash to their wholesalers in order to secure fuel, they have little money left with which to offer credit.
In my own region of New England, small oil dealers are a principal supplier of heating oil, as a result, their inability to extend credit threatens to disrupt the entire distribution system.
The consequences of such a disruption would be grave, indeed. Consumers would be unable to buy fuel. And small dealers would face the prospect of being forced out of business.
Mr. President, of course, the legislation I introduce today is no panacea for these serious long-term problems.
It is an emergency program to provide emergency relief and provide it during the energy price emergency this winter.
It would provide the greatest relief to those families in the coldest parts of the country.
It would permit the States to provide that help in a manner best suited to the needs of their residents.
And most important, it is a modest response to a most extreme problem.
This legislation would establish no elaborate bureaucracy. It is designed to perform only one function – to put funds for fuel into cold hands.
When I began work on this legislation, I set four goals that a program to assist low-income families with their heating bills must meet.
First. It must be simple enough to begin operating and provide relief this winter;
Second. It must offer relief to those families caught in the no-credit/high-cost crunch;
Third. It must not pay people to waste energy; and
Fourth. It must put the money where it is the coldest and where people need it the most.
I believe the legislation I am introducing today meets those objectives.
I am particularly pleased to be joined in the introduction of this bill by Senator RANDOLPH, a congressional pioneer in energy matters. An early awareness that the United States was pursuing an unwise course led to his warnings 15 years ago that energy demand would outstrip our ability to meet it from domestic fuel sources. Senator RANDOLPH's concern and continued efforts resulted in establishment in 1971 of the National Fuels and Energy Policy Study, an activity that has been valuable in helping the Senate to understand and respond to the critical energy questions of the past. His experience and his knowledge in energy matters are substantial.
Mr. President, I ask unanimous consent that a copy of the bill, a section by section analysis, and a table estimating allotments to the States under the bill, be printed in the RECORD at this point.
There being no objection, the material was ordered to be printed in the RECORD, as follows:
8.4209
A bill to strengthen the intergovernmental response to the current energy emergency by providing financial assistance to the States for grants to families with annual incomes of $8,000 or less to assist such families to obtain emergency heating fuel, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of American in Congress assembled, That this Act may be Cited as the "Intergovernmental Emergency Heating Fuel Assistance Act of 1974".
DECLARATION OF POLICY
SEC. 2. (a) The Congress finds that solving the present energy emergency requires a cooperative effort among the Federal Government and the States; that the high cost of home heating fuel this winter is a major aspect of the energy emergency; that an important concern of the States in dealing with the current energy emergency is insuring that low income families within their jurisdictions can afford the cost of fuel for heating their homes this winter; that the States are limited in their ability to provide financial assistance to help low income families pay their home heating fuel bills; and that the intergovernmental response to the energy emergency would be greatly enhanced if the States received Federal financial assistance for the purpose of assisting low income families pay the cost of home heating fuel.
(b) Therefore, the Congress declares it to be the policy of the United States to provide financial assistance payments to the States to help them pay for assistance to low income families who cannot afford the cost of heating their homes this winter.
FINANCIAL ASSISTANCE AUTHORIZED
SEC. 3. (a) The Administrator shall, in accordance with the provisions of this Act, make grants to States for assisting families with annual incomes of $8,000 or less to meet the high cost of acquiring heating fuel during the present energy emergency.
(b) For the purpose of making such grants, there are authorized to be appropriated $75,000,000 for the fiscal year 1975.
DEFINITIONS
SEC. 4. As used in this Act–
(1) "Administrator" means the Administrator of the Federal Energy Administration,
(2) "heating fuel" means fuel obtained from any energy source for use in heating residential dwellings,
(3) "State" means each of the several States and the District of Columbia,
(4) "eligible family" means a family, as defined by the Bureau of Census, whose annual income is $8,000 or less, and
(5) "temperature factor" means the ratio the numerator of which is the total number of degrees annually by which all reporting stations in a State, included in the annual report of the Environmental Data Service, National Oceanic and Atmospheric Administration for the Department of Commerce, fall below an average daily temperature of 65 degrees Fahrenheit divided by the number of reporting stations in the State and the denominator of which is the average for all States of the number of degrees annually that fall below an average daily temperature of 65 degrees Fahrenheit; except that each degree in the numerator for each State which exceeds such national average shall count as two degrees.
ALLOTMENTS
SEC. 5. (a) The Administrator shall allot to each State an amount equal to the amount appropriated under Section 3(b) of this Act multiplied by the ratio obtained by multiplying the temperature factor of the State by the number of eligible families in the State and then dividing that product by the sum of such products for all States.
(b) The portion of any State's allotment under subsection (a) for a fiscal year which the Administrator determines will not be required, for the period such allotment is available, for carrying out the purposes of this Act shall be available for reallotment from time to time, on such dates during such period as the Administrator may fix, to other States in proportion to the original allotment to such States under subsection (a) for such year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum which the Administrator estimates such State needs and will be able to use for such period for carrying out such portion of its State application approved under this Act, and the total reduction shall be similarly reallotted among the States whose proportionate amounts are not so reduced. In carrying out the requirement of this subsection, the Administrator shall establish procedures for prompt reallotment of funds under this Act so as to assure the use of assistance during the winter months. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) for such year.
(c) The number of eligible families in each State and the temperature factor in each State shall be determined by the Administrator on the basis of the most recent satisfactory data available to him.
USES OF FEDERAL ASSISTANCE
SEC. 6. Grants made under this Act may be used in accordance with applications approved under section 7 for providing financial assistance to eligible families in each State to assist such families to obtain needed heating fuel.
APPLICATIONS
SEC. 7. (a) Each State may receive a grant under this Act only upon application to the Administrator, at such time, in such manner, and containing or accompanied by such information as the Administrator deems necessary. Each such application shall–
(1) provide for a State program for furnishing heating fuel assistance to eligible families;
(2) provide assurances that the State has in effect or will soon have in effect a program which places special emphasis upon conserving energy;
(3) set forth policies and procedures to assure that Federal funds made available under this Act for any fiscal year will be so used as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be available for the purpose described in section 6, and in no case supplant such funds;
(4) provide that fiscal control and fund accounting procedures will be established as may be necessary to assure the proper disbursalof, and accounting for, Federal funds paid to the State under this Act;
(5) provide that reasonable reports will be furnished in such form and containing such information as the Administrator may reasonably require and such reports will be kept and access furnished thereto as the Administrator may find necessary to assure the correctness and verification of such reports.
(b) The Administrator shall approve, within 30 days of its receipt, any application that meets the requirements of subsection (a) and shall not finally disapprove, in whole or in part, any application for assistance under this Act without first affording the State reasonable notice and opportunity for a hearing.
PAYMENTS
SEC. 8. (a) From the amount allotted to each State pursuant to section 5, the Administrator shall pay to the State which has an application approved under section 7, an amount equal to the amount needed for the purposes set forth in that application.
(b) Payments under this Act may be made in installments and in advance or by way of reimbursement, with necessary adjustments on account of overpayments or under-payments.
WITHHOLDING
SEC. 9. Whenever the Administrator, after reasonable notice and opportunity for hearing to any State, finds that there has been a failure to comply substantially with any provisions set forth in the application of that State approved under section 7, the Administrator shall notify the State that further payments will not be made under this Act until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, no further payments shall be made under this Act.
ADMINISTRATION
SEC. 10. The Administrator may–
(a) promulgate such rules, regulations and procedures as may be necessary to carry out the provisions of this Act;
(b) utilize the services and facilities of any agency of the Federal government and of any other public agency or institution in accordance with appropriate agreements, and to pay for such services either in advance or by way of reimbursement as may be agreed upon.
CONSULTATION AND TECHNICAL ASSISTANCE TO STATE GOVERNMENTS
SEC. 11. The Administrator shall–
(1) before promulgating any rules, regulations, or policies under the authority of this Act, consult, to the extent practicable, with State governments and provide them with an opportunity to comment on such rules, regulations or policies; and
(2) provide technical assistance including advice and consultation relating to State programs to assist State governments in their efforts to deal with the energy related problems of low income families.
REPORT
SEC. 12. The Administrator shall report to the Congress not later than April 30, 1975, on the operation of the program. The report shall include a statement of the disbursements made by the Administrator pursuant to section 5 of this Act and an evaluation of the operation of the program.
PROHIBITION AGAINST DISCRIMINATION
SEC. 13. (a) The provision of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000-4) shall apply to any activity, program, or service financed in whole or in part from any funds received by any State under this Act. The Administrator shall promulgate regulations to carry out the provisions of such title VI with respect to the distribution and use of any funds under this Act. Whenever the Administrator determines that any State receiving funds under this Act has failed to comply with the provisions of such title VI, or any regulation of the Administration promulgated with respect thereto, he is authorized to (1) refer the matter to the Attorney General with a recommendation that appropriate action be instituted, (2) exercise the powers and functions provided by such title VI, or (3) take such other action as may be provided by law.
(b) Any person adversely affected or aggrieved by an action of an official of a State thereof in violation of subsection (a) of this section, or in violation of regulations promulgated by the Administrator pursuant thereto, may bring a civil action for relief on his own behalf against such official. Any such action may be in any district court of the United States in which such person resides, or in which the claim arose, or in the United States District Court for the District of Columbia. The court may, in its discretion, permit the Attorney General to intervene in such civil action if he certifies that the case is of general public importance. Upon application by the complainant and in such circumstances as the court may deem just, the court may appoint an attorney for such complainant and may authorize the commencement of the civil action without the payment of fees, costs, or security.
(c) In any action commenced pursuant to this section, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney's fee as part of the costs, and the United States shall be liable for costs the same as a private person.
(d) In the case of an alleged act or practice prohibited by this section which occurs in a State which has a State law prohibiting such act or practice and establishing or authorizing a State authority to grant or seek relief from such practice or to institute proceedings with respect thereto upon receiving notice thereof, no civil action may be brought under this section before the expiration of thirty days after written notice of such alleged act or practice has been given to the appropriate State authority by registered mail or in person, provided that the court may stay proceedings in such civil action pending the termination of State enforcement proceedings.
PAYMENTS NOT TO BE CONSIDERED AS INCOME
SEC. 14. No payment received under this Act shall be considered as income for the purposes of the Internal Revenue Code of 1954; or for the purposes of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other Federal law.
SECTION-BY-SECTION ANALYSIS OF THE INTERGOVERNMENTAL EMERGENCY HEATING FUEL SYSTEM ACT
Section 1 provides that this legislation may be cited as the "Intergovernmental Emergency Heating Fuel Systems Act of 1974."
DECLARATION OF POLICY
Section 2 sets out the Congressional findings that solving the present energy emergency requires cooperation between the Federal Government and the States; that the high cost of home heating fuel this winter is a major aspect of the energy emergency; that an important concern of the state in dealing with the energy emergency is ensuring that low income families can afford fuel for heating their homes this winter; that the states are limited in their ability to provide financial assistance to low-income families; and that the intergovernmental response to the energy emergency would be greatly enhanced if the states received Federal financial assistance for the purpose of assisting low-income families.
Section 2 further declares the national policy to provide financial assistance payments to the states to help them pay for assistance to low-income families who can not otherwise afford the cost of heating their homes this winter.
FINANCIAL ASSISTANCE AUTHORIZED
Section 3 requires the Administrator of the Federal Energy Administration to make grants to the states for assisting low-income families to pay for heating fuel during the present energy emergency. $75 million would be appropriated for the purposes of making such grants.
DEFINITIONS
Section 4 defines several terms used in the Act.
"Administrator" is defined as the Administrator of the Federal Energy Administration. "Heating fuel" is defined as "fuel obtained from any energy source for use in heating residential dwellings" "State" means each of the several states and the District of Columbia. "Eligible family" is defined by this section as "a family as defined by the Bureau of Census, whose annual income is less than
$8,000,""Temperature factor" is defined by this section as "the ratio, the numerator of which, is the total number of degrees annually by which all reporting stations in a state, included in the annual report of the Environmental Data Service, National Oceanic and Atmospheric Administration, U.S. Department of Commerce, fall below an average daily temperature of 65 degrees F divided by the number of reporting stations in the state, and the denominator of which is the average for all states of the number of degrees annually that fall below an average daily temperature of 65 degrees F; provided that, each degree in the numerator for each state which exceeds such national average shall count as 2 degrees."
ALLOTMENTS
Section 5 establishes the manner in which the Administrator is required to determine each state's allotment.
Subsection 5(a) requires the Administrator to determine the total allotment for each state by multiplying the total allocation of $75 million by the ratio obtained by multiplying the temperature factor of the state by the number of eligible families in the state and then dividing that product by the sum of such products for all states.
Subsection 5(b) requires that the Administrator make available for redistribution from time to time State allotments which he determines will not be utilized or necessary. The redistribution to other states must be made in the same proportion as their original allotment under the Act's formula, adjusted for their particular needs. In carrying out the requirements of this Subsection, the Administrator is required to establish procedures for prompt reallotment of funds so as to assure the use of assistance during the winter months. Any amount redistributed to
a state under this Subsection will be deemed part of its allotment under Section 5(a).
Subsection 5(a) allows the Administrator to determine the number of eligible families in each state and the temperature factor for each state on the basis of the most recent satisfactory data available to him.
USES OF FEDERAL FUNDS
Section 6 requires that grants made under this Act be used in accordance with approved applications providing for financial assistance to families with annual incomes of $8,000 or less in each state to assist such families in obtaining needed heating fuel.
APPLICATIONS
Section 7 details the information the states must provide in their applications for funds under this Act. That application must:
1. Provide for a State program for furnishing heating fuel assistance to families with annual incomes of $8,000 or less;
2. Provide assurances that the state has in effect or will soon put into effect a program which places special emphasis on conserving energy;
3. Provide assurances that Federal funds under the Act will supplement or increase the level of funds available for providing heating assistance to low-income families;
4. Provide that necessary fiscal controls and accounting procedures be established to assure the proper use of Federal funds under this Act; and
5. Requires states which receive funds under the Act will furnish and keep such reports as the Administrator requires.
Subsection 7(b) requires the Administrator to approve within 30 days of its receipt, any application that meets the requirements of Subsection 7(a). The Subsection also provides that the Administrator may not disapprove, in whole or in part, any application for assistance under this Act without first giving the State reasonable notice and an opportunity for a hearing.
PAYMENTS
Section 8 sets forth the manner in which payments must be made to the States.
WITHHOLDING
Section 9 provides that the Administrator may withhold funds from a state which does not comply with the conditions set forth in its application for those funds, providing he gives that state a reasonable opportunity for a hearing.
ADMINISTRATION
Section 10 authorizes the Administrator to promulgate rules, regulations, and procedures as may be necessary to carry out his functions under the Act, to utilize the-services and facilities of any agency of the Federal Government and any other public agency or institution in accordance with appropriate agreements, and to pay for such services either in advance or by way of reimbursement as may be agreed upon.
CONSULTATION AND TECHNICAL ASSISTANCE TO STATE GOVERNMENTS
Section 11 describes the technical assistance and consultation the Administration must provide to state governments.
Subsection 11(a) stipulates that the Administrator must consult with State governments before promulgating any rules, regulations, or policies under the authority of this Act.
Subsection 11(b) requires the Administrator to provide technical assistance to assist State government in their efforts to deal with the energy related problems of low-income families. Such technical assistance may include advice and consultation relating to State programs.
REPORTS
Section 12 requires the Administrator to report to the Congress on the operation of the program. The report must include a statement of the disbursements made by the Administrator under the Act and an evaluation of the operation of the program.
PROHIBITION AGAINST DISCRIMINATION
Section 13 makes Title VI of the Civil Rights Act applicable to the activities financed in whole and in part from the funds provided for in the Act. The Section further expressly guarantees the right of individuals to sue in the Federal District courts in case of violation of Title VI, and provides, in appropriate cases, for the payment of reasonable attorney's fees to the prevailing party.
PAYMENTS NOT TO BE CONSIDERED AS INCOME
Section 14 provides that payments received under the Act cannot be considered as income for the purpose of the Internal Revenue Code of 1954 or for the purposes of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other Federal program.
[Table omitted]
SENATOR RANDOLPH JOINS IN EFFORT TO AID LOW INCOME FAMILIES IN MEETING FUEL COSTS
Mr. RANDOLPH. Mr. President, prices are continuing to rise at a rate that threatens to deprive many Americans of the ability to provide themselves with the necessities of life. Many family budgets can be adjusted so that expenditures are shifted from items considered luxuries to such essentials as food, housing and heat.
The heavy snows and plunging temperatures that struck States in the East and Midwest last weekend were dramatic reminders that winter is here. With the severe weather, the provision of heat become a critical necessity that demands a larger share of family incomes.
I am gratified to join Senator MUSKIE in introducing legislation for immediate implementation to assist low-income families in meeting their heating requirements – not some time in the future, but this winter. The able Senator from Maine has observed that the cost of home heating has skyrocketed. This is true of every fuel – oil, natural gas, and coal. This situation would be bad enough even if the cost of other necessities was relatively stable. But in a time when all prices are rising – along with unemployment – it is a serious threat to the health and welfare of our citizens.
Senator MUSKIE has demonstrated his concern in drafting a bill that goes directly to the heart of the problem. It would authorize the distribution of $75 million to the States to provide fuel supplement payments to low-income families. Federal funds would be allocated through a simple formula utilizing the number of eligible families and temperature factors.
Under this proposed allocation West Virginia would be eligible for $925,500 to help people keep warm this winter. I saw the heavy snows in West Virginia last weekend, and I know this money would be well spent in helping people keep out the cold in the months ahead.
America has been negligent in developing a rational approach to meeting its energy requirements. Unfortunately, it took last winter's crisis to stimulate action aimed at reducing fuel consumption and lessening our dependence on foreign energy sources. If we sustain this effort we will be successful. In the meantime, however, our citizens must not suffer as they attempt to keep warm.
This is a simple, uncomplicated bill with a humanitarian purpose. Its prompt consideration and passage will do much to alleviate hardship and suffering through the winter months of 1974 and 1975.