THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

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

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

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

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

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

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

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

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

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.