Federal Cuts to Energy Assistance Make State Action Vital

Last week, we saw the devastating news that the federal government fired the entire staff in charge of the Low-Income Home Energy Assistance Program (LIHEAP). For decades, this program has provided essential relief funds to those who cannot afford their energy bills. With the program left with no staff to administer funds, it’s clear that Oregon needs to take energy affordability into our own hands.

This year, we have many opportunities for big changes at the Oregon Legislature to prioritize families’ energy affordability, not big corporate interests. CUB is urging legislators to take a stand to protect Oregonians against rising energy costs.

We have no other option. Oregon needs to step up for energy affordability in 2025.

Losing LIHEAP Funds Will Be Devastating

Each year, LIHEAP provides Oregonians with roughly $40 million in utility bill payment assistance. This funding is vital for the tens of thousands of families who are facing disconnection from unpaid utility bills. Without this support, we could see a huge rise in households losing access to electricity and gas during the heating season this winter.

Oregon Households LIHEAP Served in Fiscal Year 2024

• Heating: 55,478
• Cooling: 11,049
• Crisis: 3,632
• Weatherization: 691

Although the funds have not been made unavailable, it’s unclear what the path forward is for this assistance program. At the beginning of April, the Department of Health and Human Services eliminated the entire staff of LIHEAP. Without people to administer the funds, it’s uncertain how the funds will be distributed to any state—including Oregon.

The fiscal year for LIHEAP is October 1 to September 31, meaning that we might not see the full impact of these staff eliminations until the beginning of the fall. Oregon has dedicated funding through September 31, 2025, but the future is uncertain. It’s also unclear if our state will be able to receive the remaining 10% of funds allocated for this summer.

Energy is a Necessity

LIHEAP provides critical relief to some of the most vulnerable populations in our communities. In FY 2022, the vast majority of recipients in Oregon were households with those most at risk of a disconnection.

An energy service disconnection can be extremely dangerous. For those with health issues that require oxygen, medical equipment, or even temperature-sensitive medication like insulin, losing power can pose a major health risk.

Energy is a necessity, especially for vulnerable populations. Having power in our homes helps us:

• Keep our families fed and nourished with a running refrigerator, microwave, stove, and oven.
• Keep our families’ homes safe and comfortable with healthy temperatures, healthy air, and warm water when we need it.
• Keep perishable medicines refrigerated, such as insulin and antibiotics
• Keep us hooked up to life-saving devices that ensure we can breathe, like oxygen, nebulizers, CPAP machines, and ventilators.
• Keep us mobile so we can charge our electric wheelchairs and use our chair lifts up and down the stairs
• Keep us connected so we can charge and use our mobile devices, utilize WiFi, and plug in our computers for work, education, enrichment, and entertainment.

Oregon Needs to Take Control of Energy Affordability

With the federal government poised to create a massive hit for energy affordability with the cuts to LIHEAP, it’s time for Oregon to take matters into our own hands.

We have the opportunity this year to create new laws that will directly impact Oregonians’ energy bills. But we need our lawmakers to take a strong stand to support energy affordability by centering customers in utility regulation, expanding assistance programs, and reducing the impact of corporate interests on our energy bills.

HB 3792: Expanding Oregon Energy Assistance

As bills have gone up, bill payment assistance programs have largely stagnated, leading to rising power shutoffs. In 2024, Portland General Electric and Pacific Power together disconnected nearly 58,000 households—the most since reporting started in 2018. Oregon needs to increase funding for the Oregon Energy Assistance Program (OEAP) to meet growing needs.

HB 3792 expands the Oregon Energy Assistance Program (OEAP) by doubling funding. With a current annual budget of $20 million, the need drastically outweighs the available funds. This bill increases the annual amount for OEAP to be combined with other affordability programs.

The Oregon Energy Assistance Program is customer-funded by a small amount collected on each PGE and Pacific Power electricity bill. These funds are only available to income-qualified household customers of these utilities who meet eligibility requirements. OEAP is a vital source of energy assistance because it is more flexible than federal bill payment assistance (LIHEAP). As we continue to face uncertainty about federal funding, this program will provide stable and consistent assistance for Oregonians.

Tell Your Legislators to Support HB 3792

HB 3179: Fairness & Affordability in Residential (FAIR) Energy Act

This bill aims to change the priorities of for-profit utilities and state regulators to center consumer affordability. Oregon’s largest utilities have raised billing rates by nearly 50% since 2021. While some assistance programs are available, these alone are not enough to keep up with utility customers’ needs.

The FAIR Energy Act (HB 3179) empowers state regulators to help families avoid big increases in energy bills. The bill will also move any increases out of winter, when energy usage is highest. Utilities will also have more flexibility to use low-cost financing for important investments in the energy grid to keep customer impacts low. Additionally, the bill will increase transparency so that customers know what they are paying for and what to expect from any changes in energy bills.

Tell Your Legislators to Support HB 3179

HB 3546: Protecting Oregonians With Energy Responsibility (POWER) Act

The demand for energy is growing rapidly in Oregon, mainly from data centers. This mass influx of very large energy users is putting a strain on our energy system and driving up costs for everyone. We’re already seeing the impact of these large energy users not paying their share. As we have seen significant growth in data centers, we have seen big increases in energy bills. We need data centers and cryptocurrency operations to pay their fair share.

The POWER Act (HB 3546) seeks to hold large energy users accountable for paying for their own energy needs. This bill requires state regulators to create new policies to help protect Oregon households from paying for the energy needs of data centers and cryptocurrency operations. It will also make for-profit utilities identify the costs that these large energy users are adding to the system—and make them pay their share. By creating a special category for these customers, regulators can protect Oregonians from covering the cost of these businesses.

Tell Your Legislators to Support HB 3546

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