Energy Secretary Steven Chu spoke to a Christian Science Monitor event yesterday and was asked why the Obama Administration was willing to propose/accept major cuts in LIHEAP, the Low Income Home Energy Assistant Program, for fiscal year 2012. His response suggests the Administration does not have a principled or coherent answer.
The CSM story with video is here. Sam Stein at HuffPo captures part of the contradiction in Adminstration policy but doesn’t discuss the more blatant absurdity of Chu’s respsonse: [my bold]
. . . Chu acknowledged that the administration had made “very, very hard decisions” in proposing to decrease funding for the Low Income Home Energy Assistance Program by $2.5 billion in its 2012 budget. But while President Barack Obama argued in February that lower commodity prices meant less aid was necessary, a subsequent spike has led the administration to reassess its approach to justifying the new funding levels.
On Friday, Chu argued that the administration was pursuing alternate, broader reforms to help stabilize energy prices for households.
Sorry, but what follows from Chu is all total nonsense. LIHEAP is a program for providing block grants to states (you know, flexible things Republicans like when the Feds try to dictate programs) to help people lower their energy bills.
One of the main features is direct payments to low-income people to pay for heating oil and/or utility bills when energy prices are particularly high and/or weather is severe. It’s to keep low-income people from having to choose between freezing to death and starving to death. From the Health and Human Services, Children and Families, LIHEAP web site: (my bold)
Contingency Funds: The President may release these funds to assist with the home energy needs arising from an emergency situation. They may be allocated to one or more grantees, or to all grantees, based on criteria appropriate to the nature of the emergency. In the past, the President generally has released these funds in response to emergency situations arising from extreme weather conditions or energy price increases. Generally, funds have been distributed based on the degree to which specific States are affected by the weather or energy price situation that led to the release of contingency funds.
As the CSM reporter noted in his question, the Administration claimed fuel prices were down last year, so let’s cut funding for next year. Except we just had a very severe winter and oil-related prices have spiked. That means people who rely on types of fuel oil for heating are hurting and could again next winter. So the Administration rationale didn’t make sense then, and doesn’t make sense now.
But it gets worse. As Stein’s HuffPo article notes, Secretary Chu then talked about a different rationale — in a time of austerity, Chu tells us in the video, the federal government needs to cut the funding, but it also wants to expand the leverage of federal dollars while extending weatherization assistance to middle-income people. Uh, no, Mr. Secretary. In a severe recession, the federal governement should be expanding safety net programs, not contracting them.
Now there’s nothing wrong with using federal dollars to leverage local and personal investments in weatherization of existing homes and rental units. The California Energy Commission started pushing that, uh, about 30 years ago. Welcome aboard, Mr. Secretary. But what has this to do with keeping poor people from freezing or starving next winter? Nada, zilch. Zero.
In case the Administration has forgotten, there are still 14 million people unemployed and another 10 million underemployed. We have record poverty in the US and worse income maldistribution than Egypt. Poor people aren’t borrowing money from friendly Bank of America to make weatherization retrofits in their (likely) badly maintained rental units, and neither are their landlords, because, you know, landlords don’t pay the utility bills and renters don’t get the benefits of retrofits they paid for after they leave.
We’ve understood this market failure problem for decades. So I don’t know what Chu thinks the feds are leveraging that will help matters soon. And utility bills are about electricity and natural gas, not just heating oil in areas, such as the Northeast, that use oil for heating. People who have lost jobs and health insurance need help paying their electricity bills, including their natural gas bills if they have gas heating — and they need it even when natural gas prices are historically low. It’s not just about home heating oil and Libya.
So if the US DOE wants to tackle the broader problem of America spending way too much money on energy because the housing stock leaks energy like a sieve, and many state building codes are negligent about energy, that’s fine. Go get ‘em. I agree it makes sense to do about a gillion cost-effective things on the demand side, including weatherization loans and leveraging federal dollars.
But first they need to make sure people don’t freeze while the Department of Energy relearns 30 years of history and takes however long it takes to set up institutions to handle loans, convinces utilities and state utilities commissions to fund energy audits and retrofits, develops community organizations to help get the word out and assist renters — something like ACORN sounds like a really good idea — and makes sure the weatherization contractors aren’t scam artists and the bank lenders don’t behave like, well, the mortgage lenders at Citi, Wells Fargo and Bank of America.
But the last thing this effort needs is for a Nobel laureate wasting his time fronting for a bunch of White House spin masters trying to tell us the problems the US is facing require fiscal austerity. And he certainly shouldn’t be covering up for a President who can’t admit his policy judgments and rationales are not credible.



36 Comments

As always, not enough money for those with real needs but plenty for the rich by extending the
BushObama tax cuts.I would say they should all be ashamed of themselves but that pre-supposes they have a conscience capable of feeling shame.
Yep, and there’s always enough money for another war. Monsters in three piece suits, the lot of them.
The Nobels get more debased with every passing day.
This guy couldn’t even think himself out of a wet paper bag.
Take his, and his boss’s, Nobels back.
US DOE
U.S. D.O.A.
Are Nobel Prizes awarded for douche bags?
Chu is just another example of O’s FU. O doesn’t even care enough about what voters think to even prepare talking points, unlike the wingnuts, who at least pretend.
There’ve been some doozies in Peace & Economics.
amen and thanks!
Another example of the administration’s corruption:
Roosevelt Institute Fellow Matt Stoller,
Comptroller of the Currency Orders National Banks to Cover Up Foreclosure Scandal
John Walsh blocks information that could help desperate homeowners.
see http://www.newdeal20.org/2011/03/31/comptroller-of-the-currency
Blessings,
“funds have been distributed based on the degree to which specific States are affected by the weather or energy price situation that led to the release of contingency funds.” Huh? Isn’t something missing here, like need. The number of people now classified as low income has not decreased to my knowledge. Will there be a lottery to see who gets to have heat and who gets to freeze to death.
A lottery would be too fair. O & Chu will pick the most arbitrary and unfair way to pick out those who should freeze to death.
Sounds to me like he’s trying to appease the teabagger wing of the Republican Party, no longer content with trying to appease the mainstream Republicans. Barack Obama: A hybrid between Josef Stalin and Neville Chamberlain.
My money is on the people receiving Medicare or Medicaid that happen to have a terminal illness. They’re going to die anyway, no use throwing good money after bad.
The Nobel Prize for physics has been in a drain circling mode for some time now. Recently, the committee actually boasted that their laureates were into “applied stuff”, as if that were a good thing.
And of course, the underwhelmed, almost embarassed reaction of the last winners was almost a rebuff to the whole process. Essentially they said ” we don’t work on that shit any more. It was briefly interesting, but other stuff is more fun”.
The Nobel for physics should only be awarded when it is deemed there is a candidate of sufficient quality available to merit it. Annual awards are a quasi-random joke that debase the achievements of true giants like Feynman. No Nobel laureate before or since is his equal.
Chu is an ass-clown, establishment stooge, and a disgrace to academia.
As my field in not physics, that’s interesting to know. Certainly true in the fields I know a bit about.
Like Native Alaskans, the elderly and middle class wage earners will need to turn to Hugo Chavez for free oil, while America bankrupts itself building more weapons to kill for global energy corporation’s offshore (untaxed) profits.
My money would be on “card-carrying progressives” or “professional liberals” [or whatever epithet Obama used to describe those of us who criticize him].
I’m betting there’s some movement afoot to link critical Obama comments on the net or in the press to cutting off what meager Federal benefits remain.
PS – have folks seen the story in today’s NYT about the difficulty/impossibility of finding a doctor/specialist who accepts Medicare? [A fact to which I can attest from personal experience.] Guess that’s just another way of “saving” Federal expenditures.
Obama’s “death panel.”
Look, Steven Chu was a legend already 15 years ago when I was looking at grad schools in physics. He can think his way through laser-laced mazes a lot faster and more accurately than pretty much anyone on this planet. He’s no disgrace to the Nobel Prize in Physics.
A cabinet secretary, to keep his job, has to go out and make the best case he can for the policies of the administration he works for. It means he thinks it’s the best case; it doesn’t always mean he believes it’s a good case, a logical case, or a well-thought out case.
Agreed. I respect Chu; he’s not the problem, though at some point, a decent man has to ask himself, why am I doing this?
Three things:
1) They did the same thing when they cut food stamps because food prices were going down at one time, they figured they could cut the appropriation for the next year.
2) They have been talking about how inefficient and ineffective Weatherization has been, and trying to cut it also.
3) There has been no Social Security COLA for two years and word to the effect that any COLA for next year will be canceled out by an increase in Medicare premiums. Somebody in congress proposed a $250 payment (as was done during the Bush administration) to SS people to compensate for the non-existent COLA, but it died without a word of support from Obama, Chu or anybody else. That $250 would have paid my mom’s gas bill for January.
He has enough clout to get an academic position if he needs one. If he is principled, he should resign and make a statement as to why he is resigning.
Clarence Thomas Obama wants to cut LIHEAP because it makes him more attractive to rich powerful white people and because he is a prick who doesn’t care about poor people because, well, what can they do for him?
And I quite agree that he (like every cabinet secretary) should be held accountable for what he’s doing as cabinet secretary, and for policies he defends / gives cover for. I just don’t think one should leap to the conclusion he’s a moron.
That should have started with the BP coverup.
Slightly OT, but relevant to a discussion of Nobelists. I heard a line on “Wait, wait, don’t tell me!” that came from somewhere else; don’t remember where. Something like, “President Obama has now launched more cruise missiles than any Nobel Peace Prize winner in history.”
If Chu has any integrity left, he can resign. The energy industry are making record profits, paying no taxes, and getting billions of in subsidies.
Chu doesn’t need to turn himself into a corporate tool like Obama has done.
“My money would be on “card-carrying progressives” or “professional liberals” [or whatever epithet Obama used to describe those of us who criticize him].”
They are known as “the fucking retarded”.
How many lobbyists have the low-income, unheated masses?
I thought so.
yes indeed it shoulda.
The level of an intellect more or less determines the honesty that person will feel bound by, driven by an inability to deny “truth” in so far as they can know it. Feynman was involved in one famously political event, the Challenger enquiry. When he discovered what had happened, his intellectual honesty drove him to tell the tale, against the wishes of the political appointees and yes-men serving with him. He would not conform. He wrote a minority report and made damn sure everyone knew he was dissenting. I can onl assume that the “legend” that is Steven Chu isn’t quite as intellectually strong as his famous predecessor.
Fuk the Lying Chu and the Obama he rode in on. Note that War Criminal to rival Pol Pot, Henry Kissinger is also a Nobel Prize winner.
No one could have predicted that poor elderly people would freeze to death. – Chubama
While there is certainly a growing problem finding specialists to take new Medicare patients, it seems that the article in today’s NYT is about people with Medicaid cards.
Thanks for the reminder — it was one of the sharpest lines I’ve heard there in quite awhile.
I hope someone has the opportunity to ask Chu or Obama what kind of decision making guidelines they’ll be issuing for the state Death Panels/Energy Assistance Subdivision.
And ask it over and over and over, everywhere little people have a chance to ask it.
“Barack Obama: A hybrid between Josef Stalin and Neville Chamberlain.”
One once again, Margaret scores.
LIHEAP will pay up to $350.00 if you are going to be cut off. But that is one timely only and then usually, but not necessaries, two times a year. You may keep your lights on but the bill keeps on coming. Living in a southern state, and being housebound and with no way to make more money, it is hot in summer, sometimes exceeding 110 degrees, and then very cold, down to below 20 degrees. People die here from no power. Power bills jumped up fifty percent this winter. I’m moving into newer building this month. The local legislature, despite community’s clearly stated will, just gave Power Co. the second raise this year. Power is able to increase in winter and summer bills because they, “have to pay for more power” -unnamed representative. Sure, cut LIHEAP and watch the riots begin.