McHugh: Release Fuel from the Northeast Home Heating Oil Reserve to Bring Cost Relief to New Yorkers

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Congressman John M. McHugh (R-Pierrepont Manor) joined with Congressman Paul Hodes (D-New Hampshire) to introduce today bipartisan legislation that would allow for fuel in the Northeast Home Heating Oil Reserve to be released this winter if high prices continue to affect residents across the Northeast.  Currently, home heating estimates for the 2008-2009 winter season are expected to be almost 15 percent higher than this past winter.

“Across New York, home heating costs cause significant hardship for individuals and families struggling with the necessity of heating their homes during the long winter months.  With costs expected to rise this coming winter, the Northeast Home Heating Oil Reserve offers an opportunity for the government to step in and provide some relief.  This bill would reform the rules for use of the Reserve so that in situations such as when public safety is threatened because of the high prices or when the cost exceeds $4 per gallon, the Reserve can be released,” said McHugh.  “I am strongly supportive of this and other measures to increase our home heating fuel supply while lowering the price for consumers.”

The Northeast Home Heating Oil Reserve was created in 2000 as an emergency response to interruptions in the heating oil supply.  The Reserve is designed to serve New York, New Jersey, Pennsylvania, and the New England states – a region that contains 5.3 million households that use heating oil.  This is roughly 69 percent of all households that use heating oil to heat their homes.  However, to date, the Reserve has not yet been used due to the stringent rules that regulate its use.

The Northeast Home Heating Oil Reserve legislation that Congressman McHugh supports directs the release of the fuel from the Reserve if the price of heating oil remains above $4 per gallon, creating mandatory, incremental releases designed to provide cost relief to consumers.  The bill would also allow heating oil from the Reserve to be released if the President found that high prices were a threat to public safety and health.  Additionally, any revenue derived from the sale of products in the Reserve would be used to fund the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program for Low-Income Persons.

Congressman McHugh has continued to support initiatives to lower the cost of home heating fuels for residents of the 23rd Congressional District.  This includes his introduction in June of H.R. 6321, the Home Energy Affordability Tax Relief (HEATR) Act of 2008.  The HEATR Act would provide up to a $500 tax credit for individuals and families facing more than $1,500 in home heating costs during the winter season, with a maximum of one credit per housing unit.  Additionally, the Congressman has continued to lead efforts to increase funding for the LIHEAP program, most recently calling on the President to release the remaining LIHEAP funds to assist those still reeling from the high energy prices this past winter and those who must pre-buy fuels in an effort to get a head start before the next heating season.  There is currently a balance of $120 million in the LIHEAP contingency fund.

There is similar legislation to the Northeast Home Heating Oil Reserve bill under consideration in the Senate that was introduced by Sens. Olympia Snowe (R-Maine), Christopher Dodd (D-Conn.), and John Kerry (D-Mass.).

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