BOSTON – Senator John Kerry and seven of his colleagues today introduced the Emergency Energy Assistance Act of 2008 to provide emergency assistance to low-income and working families who are struggling to make ends meet in the face of escalating energy prices.

The Act consists of three components: a temporary increase in the Earned Income Tax Credit (EITC) for 2008 (an increase in the maximum credit amount by $300), full funding of the Low-Income Home Energy Assistance Program (LIHEAP) as well as full funding for the Weatherization Assistance Program (WAP).

“Today many Massachusetts families are facing tough decisions about signing contracts for winter heating oil. Prices are at record levels with no signs of letting up. No one should have to choose between heating their homes and putting food on their table,” said Senator Kerry. “My legislation will provide targeted, emergency assistance to thousands of low-income households who are suffering from rising energy costs. I strongly urge my colleagues to support this bill, because it’s unacceptable for so many working Massachusetts families to be left out in the cold this winter.”

“This legislation is desperately needed,” said Robert Coard, President/CEO of Action for Boston Community Development (ABCD), which provides fuel assistance and weatherization services to 18,000 Boston-area families and also runs an EITC program. “The combination of unparalleled energy costs with bitter winter cold creates a perfect storm of destruction and despair for low-income and working families who are struggling to survive. Fuel prices are expected to stay at a high plateau and without significant emergency assistance there will be immense human suffering. The costs to society will be far higher in the long run. We are very grateful to Senator Kerry and other supporters for acting now – in the heat of July – with interventions to keep the heat on and food on the table of poor, elderly, children and working people this winter.”

The legislation was co-sponsored by Senators Edward Kennedy (D-MA), Christopher Dodd (D-CT), Joseph Lieberman (I-CT), Ben Cardin (D-MD), Robert Menendez (D-NJ), Sheldon Whitehouse (D-RI) and Maria Cantwell (D-WA).

Melissa Wagoner, spokeswoman for Senator Edward M. Kennedy, said “With rising energy prices and budgets stretched to the breaking point, families in Massachusetts and across the country will struggle harder than ever to heat their homes this winter. By providing direct financial assistance to families and increasing the funds available for home heating and weatherization, this legislation will provide the relief these families urgently need.”

“The recent energy price spikes hit low income families hardest, especially in states like Connecticut that rely heavily on heating oil. We need to get this vital relief in place before the cold winter months hit,” said Senator Joseph Lieberman.

“We have all felt the pain of high energy costs, but it presents a real danger to low-income families who may face a winter without heat,” said Senator Benjamin L. Cardin (D-MD). “I have co-sponsored this bill because we cannot allow American families to go without heat this coming winter, and this measure offers critical assistance to those who need help to heat their homes.”

Senator Menendez said: “One of the rising challenges that families could struggle with in this economy is out-of-control heating bills this coming winter. We want to make sure that the Americans who are struggling the most as they try to keep up with rising monthly bills will be able to keep their homes and their families warm this winter. It may seem a long way off when we think of the cold winter during this hot summer, but if we have to prepare now if we are to help make heating affordable. I thank Senator Kerry for taking the lead, and I look forward to standing with him on this issue.”

“Rhode Island families are already struggling to stay afloat under the weight of a sagging economy and high gas prices. They shouldn’t also have to worry about how they’ll afford to stay warm this winter,” Whitehouse said. “We need to act now to make sure that assistance is available for those who need it.”

The first component of this legislation is a temporary increase in the EITC for 2008. The EITC is a refundable tax credit for low-income working families. Low-income households are bearing the burden of escalating energy costs, yet the majority of these beneficiaries did not receive the full rebates provided through the Economic Stimulus Act of 2008. The Act would increase the maximum credit amount by $300 for 2008. By increasing the credit amount, more families will be eligible for the credit than under current law. Beneficiaries will receive the increased EITC when they file their 2008 tax returns.

In addition, Kerry’s legislation would provide full funding for 2008 for two critically important programs that provide support to low-income households: LIHEAP and WAP. The bill would increase FY08 LIHEAP levels by $2.53 billion, raising the total LIHEAP funding to $5.1 billion, the fully authorized level for FY08. Similarly, the bill would increase FY08 Weatherization Assistance Program levels by $522.8 million, raising the total weatherization funding to $750 million, the fully authorized level for FY08.

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