Originally Posted - October 31, 2005

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ALBANY--The Home Energy Assistance Program (HEAP), which assists lower-income seniors and families with heating costs in the winter, will begin accepting applications on Tuesday, Nov. 1. Gov. George Pataki urged all eligible New Yorkers to file their applications with their county's department of social services beginning next week.

The Governor also called for the Legislature to adopt his 9-point Strategic Energy Action Plan, unveiled in September, to help combat rising energy prices across the nation. The Governor's plan would help ensure that gasoline and home heating oil remain affordable and increase efforts to diversify the State's energy resources -- including the use of alternative fuels, and fostering greater energy efficiency.

" New York winters can be cold and difficult and we know that while we are doing everything we can to keep energy prices in check, costs are going to rise this winter," Governor Pataki said. "This vital program provides important assistance to our most vulnerable residents, our low-income and elderly population, and I would urge all of them to sign up as quickly as possible. Additionally, we know we must work to reach a solution to the energy problems we are now facing and I am urging the Legislature to act on my nine-point strategic energy plan. We know we have to attack this problem so that our working families and seniors do not have to choose between purchasing food or medicine or heating their homes."

HEAP is a federally funded program administered on the state level by the Office of Temporary and Disability Assistance (OTDA). The program is managed locally by county departments of social services and by the Human Resources Administration in New York City.

HEAP provides grants for heating bills ranging from $40 to $400 depending on a household's income, living arrangement, heating expenses, family members, and type of heat. Both renters and homeowners can be eligible for assistance. Currently, New York State is scheduled to receive $236 million of the federally funded program. Due to skyrocketing fuel costs and an expected increase in demand, Governor Pataki has called on the Federal government to allocate additional contingency funds that if made available would increase New York's current share well beyond last season's levels. Governor Pataki has also pledged $25 Million in State funding if the Federal government does not provide New York with supplemental funds.

Each year New York designs its program to provide at least one regular and one heating or heat-related emergency benefit to all households that apply. Last season 804,640 households were served through the regular component and 165,022 through the emergency crisis component of the program. In 2003-04, 809,908 households received a regular benefit and 143,743 received emergency benefits. OTDA Commissioner Robert Doar said, "Given our heavy reliance on home heating fuels and the unpredictability of the energy market right now, the HEAP program provides valuable assistance to low-income families. I commend Governor Pataki for his actions the last few years to secure additional funds and for his efforts to do so again this year."

The federal HEAP statute allows states the flexibility in setting the income limits for households to be eligible. The maximum income limit for HEAP can be the greater of 150 percent of poverty or 60 percent of the state's median household income. New York is using the highest limit for income, the 60 percent of the median.

New York's HEAP program is designed to target the highest benefit to those households with the lowest income and highest energy costs in relation to income and so that benefits are provided to households that have a larger percentage of their income spent on energy costs; contain a vulnerable individual and have the lowest income.

Vulnerable individuals are defined as children under 6, adults aged 60 or older, and disabled individuals. The income guidelines for the 2005-2006 heating season are listed below. For more information on HEAP, contact your county's Department of Social Services or call 1-800-342-3009.

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In addition to HEAP, Governor Pataki continued his push for the State to adopt his 9-point strategic energy plan. The Governor noted that it is vital that New York take action to minimize the current impact of high fuel prices, increase the use of renewable energy, and develop a long-term strategy to lower the State's dependence on foreign fossil fuels. In addition, high home heating oil prices threaten seniors and needy families on limited incomes.

The Governor's plan calls for:

Home Heating Tax Credit for the Elderly - The State would offer a refundable Personal Income Tax credit for 25 percent of home heating expenses when total home heating expenses exceed 7.5 percent of income for the elderly. Individuals age 65 or older, with incomes up to $75,000, would be eligible to receive this tax credit, up to a maximum of $500. The total savings from this program is estimated to be $100 million annually.

Home Energy Assistance for Elderly and Low-Income Households - The State will request additional Federal funds to supplement benefits provided under the Federal Low-Income Home Energy Assistance Program (LIHEAP). If the Federal funds are not made available, the State would provide up to $25 million in supplemental benefits to help families meet rising energy costs.

Tax Credit for Upgrades to Home Heating Systems - A refundable Personal Income Tax credit, up to $500, would be offered to homeowners for 50 percent of the costs related to the upgrade or renovation of a residential home heating system. This credit would provide $25 million in annual savings to homeowners.

Sales Tax Free Week for Energy Star - To encourage home energy conservation, two sales-tax-free weeks would be offered for the purchase of energy-efficient Energy Star appliances, weather stripping, caulk, or insulation. This is expected to save consumers $3 million this fiscal year, and $6 million annually in subsequent fiscal years.

Small Business and Farmer Energy Assistance - Small businesses and farmers would be provided a refundable credit equal to 25 percent of their heating and production costs, up to $3,000, if their energy costs exceed 10 percent (for small business) or 5 percent (for farms) of their overall operating costs. Estimated savings is $60 million annually.

Tax Credit for Alternative Vehicles - The State would provide a refundable tax credit for individuals or corporations that purchase hybrid vehicles. The tax credits, up to $4,000 depending on vehicle weight, would be limited to individuals with incomes under $150,000. The State would also provide a credit for clean-fuel equipment installed in a motor vehicle other than a hybrid vehicle. This clean-fueled vehicle credit would be up to $10,000 depending on vehicle weight. The estimated cost-savings for consumers is $10 million annually.

Incentives for Alternative Fuel Production - The State would offer a bio-fuel production tax credit, up to $1 million per taxable year, for costs associated with constructing a bio-fuel facility, or producing or storing bio-fuel.

Bulk Purchasing of Electricity - The Governor also called for legislation that would authorize the State Office of General Services (OGS) to buy electricity directly on the open market for use by the State and localities, and to supply alternative fuels to these entities. The bulk purchasing and energy supplies would create additional opportunities for overall energy cost-savings. OGS currently uses bulk purchasing of gasoline and heating fuel to provide cost-savings for the State, localities and schools.

HOV Lanes for Alternative-Fueled Vehicles - The Governor has proposed a measure to increase energy efficiency by allowing alternative-fueled vehicles to utilize High Occupancy Vehicle (HOV) lanes regardless of the number of passengers in the vehicle. 10-31-05

© 2005 North Country Gazette