White House opposes oil donations to heating fund

WASHINGTON (Reuters) – The Bush administration opposes a
Republican proposal that oil companies voluntarily contribute
some of their record profits to a federal fund that helps poor
Americans pay winter heating bills, Energy Secretary Sam Bodman
said on Wednesday.

On Tuesday, Senate Finance Chairman Charles Grassley sent a
letter to U.S. energy companies, urging them to donate 10
percent of their swelling profits to the Low Income Home Energy
Assistance Program (LIHEAP).

Asked by reporters if the administration supported the
plan, Bodman responded: “No, sir. I wouldn’t support it. It is
similar to a tax.”

Bodman made his remarks after addressing an energy industry
group.

Last year, the LIHEAP program spent $2.2 billion to help
poor and elderly Americans pay their winter heating bills.
Democrats say the fund should be doubled for this winter.

Bodman also said the White House was considering a variety
of proposals to address high energy prices, including federal
funding for LIHEAP, more offshore oil drilling, and creating a
U.S. natural gas reserve that would be “analogous to the
Strategic Petroleum Reserve,” as well as a stockpile of refined
products. Announcements on such initiatives would be ready in
“weeks,” he said.