DeGette sponsors legislation to lower Coloradans’ energy costs

February 9, 2023

WASHINGTON, D.C. – U.S. Rep. Diana DeGette (D-CO) sponsored legislation introduced today to help thousands of Coloradans struggling to afford the skyrocketing cost of their heating bills.

The legislation – known as the Heating and Cooling Relief Act of 2023 – would increase funding for the federal government’s Low Income Housing Energy Assistance Program, which helps hard-working Americans pay a portion of their monthly utility bills. It would also make more Americans eligible for the program to ensure that no one has to spend more than 3% of their income on energy costs.

“Almost everyone in our community has seen their heating bills jump significantly in recent months,” DeGette said. “These skyrocketing energy bills are further straining people’s already strained budgets, and they are making it impossible for some families to afford the cost of heating their home altogether. We have to find a way to provide people some immediate relief, especially those struggling to make ends meet. This legislation will make more people in our area eligible for federal assistance to help pay their utility bills and it will ensure no one receiving help under the program has their energy shut off because they can’t afford it.”

The legislation will increase the amount of funding that’s available to help Americans pay their utility bills by increasing the overall funding for the LIHEAP program from $6.1 billion to $40 billion. It will also prohibit utility companies from shutting off services or charging late fees to LIHEAP recipients.

Almost every Colorado resident has seen their energy bills skyrocket in recent months. The sudden increase has led to a record number of Coloradans seeking assistance to pay their gas and electric bills, which, for some, have more than doubled compared to the same time last year.

Under current LIHEAP program guidelines, any household earning less than 60% of the state median income is eligible for assistance to help pay their energy costs. In Colorado, that means a family of four earning less than $66,500 a year, or an individual earning less than $34,560 a year, is eligible to have a portion of their utility bill paid through the federally-funded program.

If approved, the legislation sponsored by DeGette, who serves as the top Democrat on the House Energy and Climate subcommittee, would drastically expand those eligibility requirements so a family of four earning less than $88,600 a year would be eligible for assistance through the program, as would any individual making less than $46,000 a year. It would also make eligible any household that spends, on average, more than 3% of their income on energy bills.

According to statistics updated weekly by the state of Colorado, 11,647 households in Denver have already sought assistance through the LIHEAP program this winter. Of those 11,647 households that have applied, 6,067 have been approved with more than 1,500 applications still pending. The average benefit paid to those receiving assistance in Denver so far this season has been $389.13.

To help offset energy costs for even more residents in the Denver area, the legislation sponsored by DeGette would:

Increase annual funding for LIHEAP from $6.1 billion to $40 billion annually;
Expand eligibility to any household earning less than 80% of their state’s median income; and ensures that no household has to pay more than 3% of their income on energy costs;
Minimize the barriers to applying for LIHEAP funds by allowing households to self-attest to their eligibility criteria;
Protect LIHEAP recipients from shutoffs, late fees and price gouging;
Ensure states can use LIHEAP to provide utility assistance to households during major disasters; and
Increase funding for LIHEAP weatherization programs to promote renewable energy usage.

A copy of the bill is available here.

Following is a section-by-section summary of the legislation:

Heating and Cooling Relief Act of 2023

Section-by-Section Summary

Sec. 1 Short Title

Names the bill Heating and Cooling Relief Act

Sec. 2 Findings

Highlights that low-income households, Black, Hispanic, and Native American households have disproportionately high energy burdens, and the concerning health and economic impacts this has on households
Highlights that climate change is fueling an increased intensity of winter storms and heat waves, influence the nature and magnitude of utility assistance needed
Mentions that LIHEAP was initially authorized to reduce utility burdens for low-income households, and that in 2019, 16 percent of eligible households received a LIHEAP subsidy.
States that as part of a robust federal social safety net, the federal government should expand and improve LIHEAP to protect households against unaffordable energy bills, adapt to rising temperatures, enhance outreach, and further weatherization efforts.

Sec 3. Funding

Authorizes $40 billion annually in funds for 10 years for LIHEAP heating and cooling assistance
Given the increasing need for cooling assistance for climate adaptation purposes, states that the Secretary of HHS may provide additional funds for cooling assistance annually at the request of states, authorizing an additional $1 billion annually for cooling assistance. Funds can be used to provide energy-efficient air conditions to households in need.

Sec 4. Definitions

Defines the term HEAP Coordinator

Sec 5. Emergencies

Authorizes FEMA and HHS to work together to provide LIHEAP-eligible households with utility assistance during major disaster events.

Sec 6. Additional Cooling Assistance for Heat Waves

Authorizes the Secretary of HHS to provide additional grants to eligible entities for LIHEAP funding for eligible households suffering from extreme heat.

Sec 7. Eligible Households

Significantly expands eligibility for LIHEAP such that any household that spends more than three percent of their monthly income on heating or cooling bills averaged over the last year is eligible, as well as any household with an income below 250% Federal Poverty Line or 80% of State Median Income.
Allows for self-attestation by households that they meet the eligibility criteria and states that households are not required by the federal government to submit proof of income, citizenship, or need to the LIHEAP coordinating agency or state to receive LIHEAP fund
Specifies that states may not preclude access to LIHEAP funds on the basis of citizenship status of any member of the household

Sec 8. Conditions for Funding

Conditions aimed at protecting consumers:
- States that in exchange for receiving LIHEAP funding, utility companies cannot charge late fees or shut off utilities for LIHEAP recipient households
- States that utility companies that receive LIHEAP funds are expected to share household data on utility non payments to aid coordinated LIHEAP outreach efforts
- Commissions a report on the rate of utility shut-offs and late fees that LIHEAP-eligible households have experienced
- States that utility companies that receive LIHEAP funds shall offer Percentage of Payment Income Payment Plans for utility customers.
Conditions aimed at supporting a robust implementation of the LIHEAP program:
- Increases the administrative cap on LIHEAP funds from 10 percent to 15 percent, and encourages that for at least two years, administrative funds be used for technological changes, outreach activities, and ensuring LIHEAP coordinators are paid a living wage. Funds can also be used to support utility cooperatives, Public Power Authorities, and other public and non-profit utility providers with LIHEAP outreach.
- Recognizing that the share of households with children participating in LIHEAP has declined over the last decade, this legislation directs the Secretary of DOE and HHS to develop guidance for how states can partner with schools and Local Education Agencies to increase family enrollment in LIHEAP.
- Encourages states and territories to use the increase in administrative funding to expand LIHEAP to be a year-round program.
- Requires HHS to issue guidance to states on how to ensure high-risk individuals who use medical equipment that requires electricity have access to LIHEAP
- Requires HHS to work with the Department of Energy to work collaboratively to target the DOE’s Inflation Reduction Act funding to LIHEAP-eligible households

Sec 9. Weatherization

Recognizing that LIHEAP is the main federal funding source for the Department of Energy Weatherization Assistance Program, this legislation increases the share of LIHEAP funding that can be used for weatherization purposes to 25 percent without a waiver and 35 percent with a waiver.
Specifies that residential weatherization and home repair under LIHEAP should, to the greatest extent possible, reduce dependence on fossil fuel energy sources and mandates that repairs use toxin-free materials.

Sec 10. Home Energy Arrears

States that LIHEAP administrators can use LIHEAP funds to clear one year of utility arrears for eligible households
States that the Secretary of Health and Human Services, working in partnership with Secretary of Department of Energy, should issue guidance on best practices for how states should use LIHEAP funds to address utility arrears.
Calls on HHS and DOE to work together to implement a data tracking system to identify LIHEAP-eligible households who have utility arrears and develop recommendations for how state coordinators can help minimize energy burdens for these households. Agencies are also encouraged to issue guidance to utility companies on how to work with the state LIHEAP coordinators to address utility debt.

Sec 11. Program Name Change

Changes name of Low Income Housing Energy Assistance Program to Housing Energy Assistance Program to more accurately reflect eligibility and reduce any barriers of seeking support related to stigmatization.

Sec 12. Just Transition Grants

Establishes a LIHEAP Just Transition Grant Program, authorized at $1 billion annually for each fiscal year for ten years, to develop and pilot interagency plans on reducing energy burdens for low-income households with high energy usage in a way that support a just transition away from fossil fuel energy and adapts to the threats of climate change. Eligible entities are states and local governments. Encourages applicants for this grant program to partner with workforce development initiatives and utilize union labor.