DOVER – Recognizing the growing financial strain caused by rising utility bills, lawmakers introduced legislation Wednesday that would provide direct energy bill assistance to households struggling with increasing energy costs.
Sponsored by Rep. Debra Heffernan and Sen. Stephanie Hansen, House Bill 50 would create the Delaware Energy Fund, administered by Sustainable Energy Utility (SEU), to provide financial assistance to moderate income Delawareans. The bill would also allocate additional funding to the Low Income Home Energy Assistance Program (LIHEAP).
“I’ve received an overwhelming number of calls and emails from constituents who were blindsided by the dramatic increase in their energy bills – many are paying two, three, even four times what they normally do. That kind of unexpected expense is hard for anyone, but for families struggling to make ends meet, it can mean serious hardship,” said Rep. Debra Heffernan.
“These programs will provide immediate relief to those who need it most, and as an added bonus, they do so without adding any extra cost to the state.”
Under HB 50, a portion of funds currently allocated to various green energy programs would be redirected to the Delaware Energy Fund and LIHEAP, providing direct energy bill assistance to eligible residents.
The new Delaware Energy Fund would be paid for by CO2 allowance proceeds, which Delaware receives as a member of the Regional Greenhouse Gas Initiative (RGGI), a multi-state program designed to cap and reduce carbon emissions from the power sector. Revenue from RGGI is typically reinvested in energy efficiency, renewable energy and other consumer benefit programs.
The Delaware Energy Fund program would be available to households earning less than 350% of the Federal Poverty Level, which for a four-person household would be an annual income of less than $112,525.
Additional funding for the LIHEAP program would come from alternative compliance payments, fees paid by electric suppliers and companies that do not meet required renewable energy targets.
LIHEAP is a federally funded program that helps low income Delawareans cover the cost of energy-related expenses. Income eligibility for LIHEAP is defined as 60% of state median income (SMI), which for a four-person household would be an annual income of less than $72,577.
“Utility rates for Delmarva Power customers rose too high too fast, leaving many Delaware families in dire need of relief,” said Senator Stephanie Hansen, Senate Prime Sponsor of HB 50.
“This bill represents a critical first step in a broader approach to support and protect consumers against rising prices with further actions from Democratic lawmakers set to follow in the coming weeks.”
Delaware Energy Fund recipients would be required to participate in energy savings and efficiency programs.
The legislation would sunset three years after enactment. House Bill 50 has been assigned to the House Natural Resources and Energy Committee.