July 18, 2008

The Honorable David A. Paterson
Governor of the State of New York
Executive Chamber - State Capitol
Albany, New York 12224

Dear Governor Paterson:

We are quickly approaching a severe home heating crisis in our State. I cannot overstate the magnitude of this problem which will impact millions of New Yorkers in the coming winter.

Over two million households in our State use heating oil. Home heating oil costs in New York have risen over $2.00 a gallon over the past year - a 75.5 percent increase. Even now, in the middle of the summer heat, the average price of home heating oil has reached $4.70 a gallon and in all likelihood will continue to rise.

Anticipating this crisis, the Assembly Majority developed, and our House passed, a comprehensive plan this session addressing the issue. First, the plan provides an additional $550 million to enhance the Home Energy Assistance Program (HEAP) thereby allowing the expansion of the income eligibility level to eighty percent of median family income from the current sixty percent. Under our proposal a family of four would be eligible for HEAP assistance up to $55,500, instead of the current $41,600. This is a heavily utilized program for which applications have more than doubled, even with very limited outreach on the part of the State.

Second, we dedicate up to $250 million to energy conservation measures including weatherization and home energy efficiency programs. We anticipate strong participation in these programs and there is in fact a three year waiting list for weatherization funds.

We raise the funding for our plan by: 1) imposing a two percent gross receipts tax on large oil companies, the very same companies that are experiencing an unprecedented growth in revenue; 2) including a retroactive measure to recapture the windfall the oil companies received when they failed to pass through the sales tax savings from the $2.00 cap the State Legislature imposed in 2005; and 3) prohibiting oil companies from passing along the additional costs to consumers through increases in prices.

The remainder of our package includes numerous consumer protection measures and restrictions on the State fleet.

Concurrent with my colleagues and I calling for an expansion of HEAP, the President is calling for a $570 million cut in federal funding for HEAP. Under the President's proposal New York State will lose over $70 million. This is consistent with the complete failure of the Bush administration to develop energy alternatives or encourage energy savings while letting the United Sates remain dependent on volatile foreign oil. These policies are inexcusable.

We must not find ourselves in the same inexcusable position this winter. Governor, I know you are aware of the severity of the problem and recognize the need for action. We have a proposal which will effectively and meaningfully help New Yorkers combat rising costs. We should work together to meet our obligation to address this issue as soon as we return to Albany. I look forward to our conversations.

Sincerely,

SHELDON SILVER
Speaker