Gregg would double home heating aid

By JOHN DISTASO
Senior Political Reporter

Umion Leader  Thursday, Jul. 17, 2008

Washington, D.C. – Sen. Judd Gregg, R-N.H., today introduced legislation that could double the amount of home heating assistance that was available to New Hampshire and nationally last winter in a "fiscally responsible manner." Gregg would offset the $2.5 billion total cost by repealing an oil exploration tax break industry executives have admitted they do not need. A Gregg spokesman said the Home Energy Assistance Today (HEAT) Act would automatically produce $8.4 million in additional LIHEAP funding for New Hampshire and could result in another $18.7 million in contingency funding.

The state received a total of $25 million in LIHEAP funding last winter, and, “Essentially New Hampshire funding would double under this bill. Instead of receiving the $25 million, it would receive more than $50 million,” said Gregg spokesman Laena Fallon. Gregg said his bill doubles funding for the Low Income Energy Assistance Program “in a fiscally responsible manner.” It would offset the $2.5 billion overall cost by repealing a provision that allows major oil companies to take deductions for “domestic production activities.” The tax break was enacted in 2004. Oil company executives told Sen. Ron Wyden, D-Ore., during a Senate commerce committee hearing in November 2005 that once oil tops $55 a barrel, they do not need federal incentives for oil and gas exploration. Gregg said, “Low-income individuals families and seniors should not be forced to choose between keeping their homes warm this winter and other basic necessities such as food and medicine. It is high time for Congress to take action to ensure that these critical funds are available for states to distribute when they are needed.” But Gregg also said the increase "must be done in a fiscally responsible manner." Sen. John Sununu, R-N.H., an original co-sponsor of the Gregg bill, also said that “it is critical for Congress to address this issue now.”

Both senators co-sponsored a bill by Vermont Sen. Bernie Sanders to provide the same amount of additional funding but without the repeal of the oil industry tax break to pay for it. Fallon said Sanders’ bill would add to the federal deficit. A spokesman for Gov. John Lynch said all New England governors recently agreed “that the federal government’s commitment to LIHEAP would have to be double what it was last year just to be able to offer the same level of assistance as last winter.” The spokesman, Colin Manning, said Lynch “appreciates the efforts of the state’s congressional delegation and will continue to work with them to help ensure the federal government increases its commitment to LIHEAP.”

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