Bill Summary for Bill Number SB05-201

Final
BILL SUMMARY for SB05-201

HOUSE COMMITTEE ON FINANCE

Votes:

Action Taken:

Refer SB 05-201 to the Committee on Appropriations

PASS

11:54 AM -- Senate Bill 05-201 - Concerning Additional Funding for the Low-Income Energy Assistance Program (LEAP)

Representative Frangas, prime sponsor, explained the provisions of the bill. He explained the bill authorizes the General Assembly to appropriate $7.6 million from the Severance Tax Trust Fund to the Low-Income Energy Assistance Program (LEAP) to help qualifying low-income families pay their heating bills. Representative Frangas and Representative Vigil commented on the ability of the legislature to pass the legislation quickly to enable the moneys to be used for the program's current billing cycle.

The following persons testified:

11:56 AM -- Mr. Greg Schnacke, Executive Vice President for the Colorado Oil and Gas Association, testified in support of the legislation. Mr. Schnacke commented that the Severance Tax Trust Fund was financially capable of being used for low-income energy assistance because revenues in the fund have grown from increased natural gas production and higher commodity costs. Mr. Schnacke closed by saying that we are glad that the moneys in the fund are being used for an energy-related issue.

11:57 AM -- Ms. Helen Wells, Business Relations Representative for Kinder Morgan (Natural Gas Distribution Supplier), testified in support of the legislation. Ms. Wells commented that Kinder Morgan feels that the legislation is the right direction to take to help low-income individuals and families with their energy bills. Ms. Wells urged the committee to support the legislation.

11:58 AM -- Mr. Skip Arnold, Energy Outreach Colorado, testified in support of the legislation. Mr Arnold pointed out that one in five Colorado households is considered low-income and yet just one in three receive much-needed assistance to help pay their home heating bills (366,000 households). The cost to heat a home has doubled over the past two years due to increasing natural gas prices. Mr. Arnold continued by saying households that receive assistance have doubled in the last four years because of the LEAP program.

Mr. Arnold mentioned that unlike previous years, last year families carried high winter energy cost balances into the summer. These large balances resulted from enormous gas price increases. Generally, in previous years families were able to catch up on their winter heating balances in the summer months. As a result, many families, seniors, and disabled people in our communities are cutting back on necessities like medical care, food, and housing in order to pay their heating bills. Mr. Arnold commented that these are often people who can't afford energy efficient housing so they may pay as much as half of their disposable income each month on their heating bills.

Mr. Arnold commented that the impact of Senate Bill 05-201 will be substantial. The average benefit paid by LEAP through April 8 of this year without Senate Bill 05-201 has been $270, which is the lowest amount paid since 1995. With Senate Bill 05-201, the average LEAP payment will increase to $350 per season. Mr. Arnold said that although LEAP payments are meaningful, we are not catching up with energy assistance because the $350 amount distributed with the aid of Senate Bill 05-201 would be lower than what was distributed by the program in 2000. Given the fact that energy prices have increased, assistance payments are not keeping up with rising costs.

Mr. Arnold said that it is appropriate to use moneys from the Severance Tax Trust Fund because moneys in this fund are generated in large part from natural gas production. The price of natural gas influences the amount of moneys in the fund. Mr. Arnold closed by pointing out that disadvantaged low-income people pay a disproportionate amount of their total incomes to heat their homes and are an appropriate group to help.

12:03 PM -- Mr. Glenn Cooper, Director of the LEAP Program with the Department of Human Services, testified in support of the program. Mr. Cooper commented on the immediate need for program money. Mr. Cooper mentioned that LEAP provides financial assistance to 95,000 families in Colorado. Mr. Cooper commented on the increasing need for the program and is a good way to help low-income families, seniors, and the disabled pay to heat their homes.


BILL:	SB05-201
TIME:	12:04:42 PM
MOVED:	Cloer
MOTION:	Refer SB 05-201 to the Committee on Appropriations. The motion passed on a 13-0-0 vote.
SECONDED:	Garcia
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Jahn	Yes
	Marshall	Yes
	Massey	Yes
	May M.	Yes
	McCluskey	Yes
	Witwer	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:06 PM

Adjourn.