Enegy and Water Development Appropriations Act, 2006--Coference Report

ENERGY AND WATER DEVELOPMENT APPROPRIATIONS ACT, 2006--CONFERENCE REPORT -- (Senate - November 14, 2005)

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Mr. REED. Mr. President, the second storm surge from Hurricanes Katrina and Rita--high energy prices--threatens to overwhelm working families and senior citizens. The Energy Information Administration forecasted that households heating with natural gas will spend $306, or 41 percent, more for fuel this winter than last winter; households primarily using heating oil can expect to pay $325, or 27 percent, more; and households heating primarily with propane can expect to pay $230, or 21 percent, more.

Low-income families and seniors need assistance from the Federal Government in order to guarantee energy security in this high price environment. To provide immediate help this winter, I am working with Senator Collins to secure $5.1 billion in funding for the Low-Income Home Energy Assistance Program. Over the last 4 weeks, we have offered two amendments to increase funding for LIHEAP. While a majority of the Senate supported these amendments, we have been unable to reach the required 60 vote supermajority needed to waive the budget point of order on emergency spending.

Oil companies reported record profits for the third quarter of this year. As oil prices go up, low-income hard working Americans struggle to pay their heating bills. That is why fully funding LIHEAP is vital, and I believe oil companies should help shoulder the cost through a temporary, one-year windfall profit tax on integrated oil companies.

The President also has been silent, failing to ask for any funding for LIHEAP in the supplemental appropriations request he sent to Congress. In addition, Energy Secretary Bodman has repeatedly stated that the administration is against a windfall profits tax.

The Administration's National Energy Policy Report, the National Petroleum Council's report, Balancing Natural Gas Policy, and the National Commission on Energy Policy's report, Ending the Energy Stalemate, emphasized that energy efficiency is essential to managing the nation's short- and long-term energy challenges. Unfortunately, despite all of the agreement, federal funding for energy efficiency is not keeping pace.

In September, Senator Snowe and I wrote a bipartisan letter signed by 33 of our colleagues urging the Administration to request $500 million for the Weatherization Assistance Program, WAP, and $100 million for the State Energy Program, SEP, in the wake of Hurricanes Katrina and Rita. President Bush and Secretary Bodman called on the American people to conserve energy and invest in energy efficiency, and the American people are responding. I am disappointed that the administration did not seek additional funding for these key programs in their supplemental appropriations request.

Indeed, SEP helps states implement energy efficiency and energy emergency preparedness programs in all sectors of the economy, thereby, reducing energy consumption for residential consumers, schools, hospitals, the agricultural sector, commercial enterprises, and industry. For every Federal dollar invested in SEP, over $7 is saved in energy costs. SEP funds would immediately be directed to energy efficiency projects to bring energy usage down. Instead of our bipartisan request of $100 million, the Energy and Water Appropriations Conference Report provides only $36 million for the program in FY2006. This is almost a 20-percent cut from this year's funding level. This cut means States will not be able to provide rebates to homeowners for energy conservation, schools and hospitals will be ill-equipped to reduce energy usage, and small business will not receive needed energy efficiency upgrades. Basically, every sector of the economy will be harmed in the midst of an energy crisis.

I hope that the Senate will provide more funding for LIHEAP, SEP, and the weatherization program before the worst of the winter season hits.

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