Bill Text: PA HB2476 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for Low-Income Home Energy Assistance Program eligibility, allocation of funds and resources; imposing duties on the Department of Public Welfare; and providing for compliance and fraud prevention procedures and for performance audit and allocation of appropriations.

Spectrum: Moderate Partisan Bill (Democrat 30-5)

Status: (Introduced - Dead) 2010-04-29 - Referred to HEALTH AND HUMAN SERVICES [HB2476 Detail]

Download: Pennsylvania-2009-HB2476-Introduced.html

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PRINTER'S NO. 3676
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2476 Session of2010
INTRODUCED BY HARKINS, HORNAMAN, FABRIZIO, McGEEHAN, BRADFORD, BRENNAN, CALTAGIRONE, CARROLL, CAUSER, CONKLIN, D. COSTA, DALEY, DePASQUALE, HUTCHINSON, KORTZ, HARHAI, HALUSKA, GRUCELA, GOODMAN, GIBBONS, FREEMAN, LONGIETTI, MAHONEY, MANN, McILVAINE SMITH, MILLER, MURT, PARKER, PAYTON, YUDICHAK, SIPTROTH, SANTONI, SAINATO AND READSHAW, APRIL 29, 2010
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, APRIL 29, 2010
AN ACT
Providing for Low-Income Home Energy Assistance Program
eligibility, allocation of funds and resources; imposing
duties on the Department of Public Welfare; and providing for
compliance and fraud prevention procedures and for
performance audit and allocation of appropriations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Home Energy
Assistance in Time of Need (HEAT ON) Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Budget billing." The proration of an estimated 12-month
projection of the cost of household heating based on weather,
energy costs and occupancy adjusted over time as required for
changes in assumptions versus actual experience.
"Customer assistance program." A plan or program sponsored
by a public utility for the purpose of providing universal
service and energy conservation, as defined by 66 Pa.C.S. § 2202
(relating to definitions) or 2803 (relating to definitions), in
which customers make monthly payments based on household income
and household size and under which customers must comply with
certain responsibilities and restrictions in order to remain
eligible for the Low-Income Home Energy Assistance Program.
"Department." The Department of Public Welfare of the
Commonwealth.
"Hardship fund." A fund that provides cash assistance to
utility customers with utility bill payment as defined in 52 Pa.
Code §§ 54.72 (relating to definitions) and 62.2 (relating to
definitions).
"Income." The types of income used in determining
eligibility for LIHEAP as provided in the State Plan for the
applicable fiscal year.
"Independent charitable organization." An organization
approved as a charitable organization under section 501(c)(3) of
the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
§ 501(c)(3)).
"Leveraged resources." Any LIHEAP funding resource as
defined in section 2607A of the Low-Income Home Energy
Assistance Act of 1981 (Public Law 97-35, 42 U.S.C. § 8621 et
seq.).
"Low-Income Home Energy Assistance Program" or "LIHEAP." A
federally funded program that provides financial assistance in
the form of cash and crisis grants to low-income households for
home energy bills and is administered by the Department of
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Public Welfare.
"Participating energy vendor." An agent or company that
directly distributes home heating energy or services, including
emergency energy or services, in exchange for payment.
"Plan year." The Federal LIHEAP fiscal year.
"Poverty level." The poverty level published by the United
States Department of Health and Human Services and used by the
Department of Public Welfare in determining eligibility for
LIHEAP.
"State Plan." The State Plan for LIHEAP prepared by the
Department of Public Welfare as required by section 2605(c) of
the Low-Income Home Energy Assistance Act of 1981 (Public Law
97-35, 42 U.S.C. § 8621 et seq.).
Section 3. Eligibility.
(a) Income verification.--The department shall verify the
income of LIHEAP applicants by requiring income documentation
from applicants. Utilities shall use department verification of
LIHEAP applicant approval as confirmation for enrollment
eligibility in a customer assistance program.
(b) Qualifications for LIHEAP.--A notice of termination to a
customer of a public utility shall be sufficient proof of a
crisis for a customer with the requisite income level to receive
a LIHEAP crisis grant from the department or its designee.
(c) Energy vendor participation.--As a condition of
receiving LIHEAP funds, all participating energy vendors must
provide eligible applicants budget billing over 12 months. In
the event a budget customer of a deliverable fuel vendor not
regulated by the Pennsylvania Public Utility Commission accepts
LIHEAP funds but fails to adhere to an existing vendor budget
agreement, the vendor may terminate the budget agreement and
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require predelivery payment for energy for the balance of the
program year. Participation by a deliverable fuel customer in a
budget or automatic delivery plan shall not disqualify the
customer from receiving LIHEAP crisis benefits. The department
shall require all participating energy vendors to establish an
annual outreach plan component for all prior year LIHEAP
recipients to receive current year LIHEAP application
notification.
(d) Notice of eligibility.--The department shall work with
all participating energy vendors in verifying an applicant's
eligibility for any energy assistance, including, but not
limited to, customer assistance programs and hardship funds.
(e) Nondiscrimination.--The department shall not
discriminate in any aspect of Federal LIHEAP funding resource
administration on the basis of energy type used as the primary
source of home heating. Households using regulated utility
services for home heating shall receive full and timely crisis
and cash grants in accordance with 66 Pa.C.S. § 1406 (relating
to termination of utility service).
Section 4. Allocation of funds.
(a) General rule.--The department shall implement the State
Plan to utilize available funds to assist eligible households to
meet the costs of home heating energy and shall make payments
only as specified in an approved State Plan or as otherwise
provided by law. The department shall not seek to alter energy
pricing of any fuel type nor attempt to negotiate or condition
participation of any energy vendor in the LIHEAP program based
on the vendor's energy pricing.
(b) Allocation.--The annual LIHEAP fiscal year projected
budget shall conform to Federal guidelines in effect at the time
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and shall utilize allocated Federal funds as follows:
(1) Adjustments within spending guideline maximums shall
be made as needed, but shall not exceed 100% of available
Federal funds in any fiscal year.
(2) Of the funds available to the Commonwealth, a
reasonable amount of crisis funds based on data from prior
years shall be reserved until May 31 of each program year by
the department for energy crisis intervention. The program
for which funds are reserved by this subsection shall be
administered by public or nonprofit entities which have
experience in administering energy crisis programs under the
Low-Income Home Energy Assistance Act of 1981 (Public Law
97-35, 42 U.S.C. § 8621 et seq.), with experience in
assisting low-income individuals in the area to be served,
the capacity to undertake a timely and effective energy
crisis intervention program and the ability to carry out the
program in local communities. The program for which are
reserved under this subsection shall:
(i) No later than 48 hours after a household applies
for energy crisis benefits, provide some form of
assistance that will resolve the energy crisis if the
household is eligible to receive such benefits.
(ii) No later than 18 hours after a household
applies for crisis benefits, provide some form of
assistance that will resolve the energy crisis if the
household is eligible to receive the benefits and is in a
life-threatening situation.
(iii) Require each entity that administers the
program:
(A) To accept applications for energy crisis
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benefits at sites that are geographically accessible
to all households in the area to be served by such
entity.
(B) To provide to low-income individuals who are
physically infirm the means:
(I) to submit applications for energy crisis
benefits without leaving their residences; or
(II) to travel to the sites at which such
applications are accepted by such entity.
Section 5. Leveraged resources.
(a) Procedure.--The department shall utilize all programs
and resources to maximize Federal LIHEAP funding by establishing
a procedure for each plan year in accordance with the following:
(1) The department shall provide for certification of
the sources and amount of all resources that may be leveraged
from public and private sector records for the applicable
plan year and inclusion of the data in the State Plan.
(2) The department shall use all of the following in the
application for the incentive program for leveraging non-
Federal resources and request for approval of such for
additional leveraged Federal LIHEAP funding:
(i) Customer assistance program-related and recorded
resources in application.
(ii) Discounts or credits for monthly billing and
arrearage forgiveness provided through utilities'
customer assistance programs. Sources for leveraged
resources shall include reduced utility residential
tariff rates, utility operating funds, waived late
payment charges, security deposit fees and reconnection
fees which shall be documented by the Pennsylvania Public
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Utility Commission as sources of leveraged resources.
(iii) Cash grant assistance from any nongovernmental
source and utility credits for LIHEAP recipients to
assist in the payment of:
(A) Home heating costs.
(B) The repair of home heating equipment and/or
excavation costs to repair gas lines.
(C) Home weatherization materials and
installation.
(iv) The value of private nonutility delivered fuel
vendor bulk fuel donations, as reported to the department
by private nonutility fuel vendors, hardship funds and
other social service agencies and utility company
resources.
(v) Community-based independent charitable
organization cash grants.
(vi) Donations or in-kind contributions provided by
rural electric cooperatives and independent charitable
organizations. The source of funds includes:
(A) Cooperative member and director
contributions.
(B) Electric cooperative matching funds.
(C) Funds from a federation of independent
charitable organizations.
(D) Heating system materials and supplies
donated by building and supply companies to LIHEAP
recipients.
(vii) Programs administered by municipalities that
provide home heating assistance to low-income households.
(viii) Any other resource not prohibited by Federal
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law.
(b) Allocation of grant funds.--Any leveraging incentive
grant award shall be used to maintain or increase benefits to
LIHEAP households.
Section 6. Public participation and legislative oversight.
In accordance with section 2605(b)(12) of the Low-Income Home
Energy Assistance Act of 1981 (Public Law 97-35, 42 U.S.C. §
8624(b)(12)), the department shall provide for timely public
participation in the development of a State Plan as follows:
(1) In accordance with section 2605(a)(2) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. §
8624(a)(2)), public hearings on each fiscal year LIHEAP
proposed State Plan shall be held as scheduled by the
Secretary of Public Welfare, notice of which shall be
published in the Pennsylvania Bulletin in a timely manner.
(2) (i) A LIHEAP advisory committee shall advise the
Secretary of Public Welfare on the administration of the
LIHEAP block grant, including a review of the proposed
plan and recommendations on the final plan.
(ii) Members of the advisory committee shall be
appointed by the Secretary of Public Welfare and
represent the following:
(A) Consumer and advocacy interests.
(B) Participating energy vendors.
(C) Other concerned citizens of this
Commonwealth.
(iii) In addition to the members provided for in
subparagraph (ii), the advisory committee shall include:
(A) The chairman and the minority chairman of
the Consumer Protection and Professional Licensure
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Committee of the Senate or their designees.
(B) The chairman and the minority chairman of
the Public Health and Welfare Committee of the Senate
or their designees.
(C) The chairman and the minority chairman of
the Consumer Affairs Committee of the House of
Representatives or their designees.
(D) The chairman and the minority chairman of
the Health and Human Services Committee of the House
of Representatives or their designees.
(iv) One member shall serve as the chairman of the
advisory committee. The position of chairman shall change
annually and the same member shall not serve as chairman
more than once in any four-year period. For the purpose
of selecting a chairman, the position shall revolve
annually among representatives of the consumer and
advocacy interests, energy vendors, concerned citizens
and legislative members.
(3) Copies of the proposed State Plan, including a copy
of public comments received, shall be forwarded to the
chairman and minority chairman of the Consumer Protection and
Professional Licensure Committee of the Senate, the chairman
and minority chairman of the Public Health and Welfare
Committee of the Senate, the chairman and minority chairman
of the Consumer Affairs Committee of the House of
Representatives and the chairman and minority chairman of the
Health and Human Services Committee of the House of
Representatives for review and comment 60 days prior to final
plan submission to the Department of Health and Human
Services. Copies of the plan shall be available for public
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review and comment at all county assistance offices.
Section 7. Monitoring and audit.
(a) Monitoring.--In accordance with section 2605(b)(10) of
the Low-Income Home Energy Assistance Act of 1981 (Public Law
97-35, 42 U.S.C. § 8624(b)(10)), the department shall implement
fiscal control and fund accounting procedures to assure the
proper disbursement of funds, which include monitoring payments
and an annual audit of State Plan expenditures.
(b) Audit.--In accordance with section 2605(e) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. § 8624(e)),
the department shall submit annually to a financial and
compliance audit in accordance with the standards of the
Comptroller General of the United States. A copy of the audit
shall be submitted within 30 days after completion of the audit
to the Governor, the Secretary of the Senate and Chief Clerk of
the House of Representatives. The department shall make the
audit report available to the public on a timely basis.
(c) Department action.--In the event the department uncovers
any false, misleading or inaccurate statement by applicants,
participating energy vendors or State employees, the department
shall notify the State Inspector General or appropriate law
enforcement agency.
Section 8. Performance audit and allocation.
(a) Performance audit.--The Legislative Budget and Finance
Committee shall conduct a performance audit on the use of the
LIHEAP weatherization assistance program moneys for fiscal years
July 1, 2006, through June 30, 2009, and submit to the General
Assembly a report based on the audit within one year of the
effective date of this act.
(b) Allocation.--Commencing with fiscal year 2010-2011, the
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allocation of LIHEAP moneys appropriated to the Department of
Community and Economic Development for the weatherization
assistance program shall be based on the findings of the audit
performed pursuant to subsection (a). Any money allocated but
not utilized for the weatherization assistance program during
the program year shall be returned to the department and used
for LIHEAP assistance grants.
Section 20. Effective date.
This act shall take effect immediately.
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