Committee Chairs Binienda and Fargo, members of the Committee, I am Joe Diamond, Executive Director of the Massachusetts Association for Community Action . It my pleasure to be here today to assist the Committee as it gathers information and perhaps develops policies related to fuel assistance.

MASSCAP is the statewide Association of Community Action Agencies (CAAs) operating in Massachusetts. CAAs were created over 35 years ago to address the causes of poverty and to foster self-sufficiency among low-income and working people. To that end, we provide basic support, education and training, and advocacy services. Among these services is the administration of fuel assistance and other energy related programs.

First, let me commend the Committee on scheduling this hearing in the fall well ahead of the any fuel price crisis that may occur during the winter. You, the Legislature, and the Governor are in a position this year to proactively address such a crisis in part because of the leadership you undertook last year to address the home heating oil crisis.

In particular, the allocation of emergency state fuel assistance resources at 200 percent of the federal poverty level helped thousands of low-income and working families meet their heating needs at a time of crisis and potential dislocation. You, the legislature, and the Governor rose to the occasion by ensuring that our most vulnerable citizens would not suffer during the winter.

The leadership you demonstrated in proposing and championing 200 percent of poverty as the income eligibility level for federal fuel assistance is much appreciated as it will allow thousands of low-income and working families meet their home heating needs this coming winter allowing them to focus on getting the training and education they need to become self-sufficient.

As the subject of today's hearing is the price of natural gas, it is important to state a few facts: half of the over 125,000 households we serve with fuel assistance use gas as their heating fuel; natural gas prices are likely to rise over 40 percent; with this increase the average natural gas household will pay over $1,000 during the heating season.

It is our hope that, in anticipation of the almost certain crisis that high fuel prices will bring, this committee consider recommending the creation, prior to the cold weather, of an emergency state fuel assistance fund. Such a fund would allow for a quick response that will shield low-income and working families from the volatility of the market and help them cover rising fuel prices. We urge that this fund be combined with federal resources, be made available immediately, and not be contingent on the complete distribution of federal resources.

An up-front allocation of close to $70 million -- current federal allocation combined with the recently announced emergency federal allocation and the hoped for state allocation -- would allow for the stabilization of the program and the distribution of the resource at benefit levels that will help all needy families cover a significant portion of their rising heating costs. A state fund, perhaps most importantly, would return the state to its one-time position as a partner with the federal government in helping the state’s most vulnerable citizens heat their homes during often brutal New England Winters. In addition, adequate fuel assistance resources will relieve the people we serve of having to make the excruciating choice between heating and eating.

Here is language we respectfully recommend the Committee consider offering as part of a funding vehicle for this fiscal year:

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 7004-1000 For a state supplement to the federal Low Income Home Energy Assistance Program for the purpose of assisting low income elders, working families and other households with the purchase of heating oil, natural gas, propane, electricity, and other fuels necessary to heat their homes; provided further, that all assistance awarded by said program shall be distributed in combination with federal Low Income Home Energy Assistance Program resources to all households that are eligible for the federal Low Income Home Energy Assistance Program; provided further, that the department may increase the maximum assistance for which a household is eligible to reflect the need of such household; provided, that up to five per cent of this item may be allocated for outreach:12,000,000

I am joined today by several MASSCAP members and allied organizations. Together we will present information as a panel. The topics we will cover will include but not be limited to the following: background on the dynamics of the market that result in high natural gas prices, background on the fuel assistance program, the anticipated progress of the implementation of the program in light of predicted record high natural gas prices, and policy recommendations.

Thank you for your consideration.