Appropriations

Energy Policy Act Increases Authorization for LIHEAP to $5.1 Billion

August 5, 2005

The Energy Policy Act of 2005 effectively reauthorized LIHEAP through FY 2009. The following is a summary of the key provisions contained in the Act that refer to LIHEAP:

1. Reauthorizes LIHEAP through FY 2007 and increases the funding authorization for the basic grant from $2 billion to $5.1 billion. It also allows a state to use LIHEAP to purchase renewable fuels, including biomass. Note ? this is an increase in the authorization level, it is not an increase in the appropriations level.
2. The Secretary of Interior may consider the use of oil and gas royalties to support federal and state energy assistance programs.
3. The following reports are required:

• The Secretary of Energy shall report to the Congress on the use of renewable fuels in providing LIHEAP assistance
• The Secretary of HHS is required to report to the Congress on report on how LIHEAP could be used more effectively to prevent loss of life from extreme temperature and that HHS shall consult with the states on this issue in the preparation of the report.
• The Secretary of Interior shall report to Congress after three years the effect of this oil and gas provision.

The Senate Health, Education, Labor and Pensions Committee has not decided whether or not to go forward with its own reauthorization bill. According to staff, they will decide that after they complete their review of the Energy Policy Act. In addition, we will be sending a letter to the Secretary of Interior shortly, urging her to implement the provisions of the Act and provide a set-aside for LIHEAP.