Grassley said today that he will offer an amendment when the Senate considers the annual spending bill for the Energy Department. His amendment will require the administration to present an energy plan to Congress by the end of the summer. The spending bill is expected to be considered this week.
"Eighty-one percent of Iowans’ homes are heated by natural gas," Grassley said. "Unless there’s a smart, well thought-out response to the rising prices, consumers in Iowa and across the country could be hit by the next energy price crisis before the year’s end."
Last week the Department of Labor reported that natural gas prices had shot up 7.8 percent in June alone. They’ve doubled since last year.
Grassley said he is offering legislation because he is concerned that without a mandate, the administration may delay action or fail to act at all.
On July 5, Grassley wrote a letter to President Bill Clinton and Energy Secretary Bill Richardson regarding the inadequacy of natural gas supplies to meet the winter demand. Neither the President nor the Cabinet Secretary has yet responded. Last week, Grassley questioned Richardson about the natural gas situation during a congressional hearing on the effect of high gasoline and diesel fuel prices on the agriculture sector. Grassley said that Richardson’s response to those questions was vague.
The United States’ supply of natural gas is substantial, but Grassley said "we need to improve access to supplies on the land owned by the government in order to lower prices and decrease America’s dependence on foreign oil." Access to federal land is a key factor in providing economically accessible natural gas.
Grassley has long been an advocate for federally-sponsored energy efficiency programs to help lower consumers’ home heating and cooling bills.
The Weatherization Assistance Program (WAP) improves the energy efficiency of low-income households, particularly those with children, the disabled and the elderly. Improvements typically save a household $193 annually in natural gas costs and, on average, the typical weatherized home reduces energy usage by over 20 percent.
Grassley also has successfully sought to expand the federal program that helps the poor pay for heat or air conditioning when they face extremely cold or hot temperatures.
"Without the basic assistance provided by the Low Income Home Energy Assistance Program known as LIHEAP, many families and older people in Iowa would literally have been forced to chose between heating their homes or putting food on the table over the last ten years," he said.
Last year alone, the LIHEAP program provided heating assistance to 60,284 Iowans. Nationwide, LIHEAP provides heating and cooling assistance to almost 5 million low-income households, including the working poor, those making the transition from welfare to work, the disabled and elderly, and families with young children.