AGENCY TESTIMONY
LIHEAP/HEAP program details and limitations
1:49:52
·
136 sec
Sarah Parker provides an in-depth explanation of the Low Income Home Energy Assistance Program (LIHEAP/HEAP), its funding structure, and its limitations in addressing cooling needs in New York City.
- HEAP is a federal program with funds allocated to states; NY state dedicates only 4% of funds to cooling assistance
- The cooling program operates on a first-come, first-served basis and often runs out of funds
- HEAP cooling program provides appliances (AC units or fans) but does not offset utility costs
- The program is unlikely to significantly offset property owners' costs for implementing Intro 994 or help New Yorkers pay for summer electricity bills
Sarah Parker
1:49:52
On the topic of utility affordability, I'll now discuss the Low Income Home Energy Assistance Program known as LIHEAP or HEAP.
1:50:00
This is a federal program through the Department of Health and Human Services, and New York state receives a block grant on an annual basis.
1:50:09
In New York state's current HEAP plan for the 2025 year, the largest share of funds, 51%, is to be used for heating assistance, while only 4% of funds is dedicated to cooling assistance.
1:50:25
The cooling program operates on a statewide first come, first serve basis.
1:50:30
And once funding is exhausted, the program is closed.
1:50:34
The summer 2024 cooling program that we just underwent was funded at 22,000,000 statewide, and 8,000,000 was spent in New York City.
1:50:44
It is notable that the number of benefits issued in New York City has more than doubled over the past 4 years, meaning the program is benefiting more households in New York City than ever before.
1:50:56
Demand for the program, however, always exceeds available funds.
1:51:01
The HEAP cooling program works different than the heating program.
1:51:05
The heating program provides direct payments to utilities on behalf of low income households to offset heating utility costs in the winter months.
1:51:14
In contrast, the cooling program supplies appliances either with a window air conditioner or a fan but does not offset utility costs.
1:51:24
HEAP eligibility is determined by income adjusted for household size per requirement sent annually by New York state.
1:51:32
Our written testimony includes further details on the number of households in New York City that might qualify for HEAP.
1:51:42
The HEAP cooling program as it's currently structured is unlikely to provide a large source of funding to offset property owners' costs to implement intro 994.
1:51:52
Additionally, HEAP funds, as it's currently structured, will not help New Yorkers pay for electric utilities in the summer months.
1:52:02
Lastly, I will discuss the capacity of New York City's electrical grid in peak summer months.
