PRINTER'S NO. 1500
No. 1037 Session of 2006
INTRODUCED BY TOMLINSON, CORMAN, BOSCOLA, LEMMOND, BROWNE, PUNT, C. WILLIAMS AND PIPPY, FEBRUARY 6, 2006
REFERRED TO PUBLIC HEALTH AND WELFARE, FEBRUARY 6, 2006
AN ACT 1 Establishing the Natural Gas and Electric Assistance Fund and 2 imposing powers and duties on the Department of Public 3 Welfare and the Department of Revenue. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short title. 7 This act shall be known and may be cited as the Natural Gas 8 and Electric Assistance Act. 9 Section 2. Declaration of policy. 10 The General Assembly finds and declares as follows: 11 (1) Certain residents of this Commonwealth may find it 12 difficult to pay for energy services because of a temporary 13 financial reversal, medical crisis or other family problem. 14 (2) Nonprofit energy assistance organizations have been 15 formed, joining together various nonprofit human service 16 agencies and the major energy utilities in this Commonwealth 17 to raise money through contributions of the members and 18 others to provide temporary financial assistance to needy
1 customers that may have exhausted all other available 2 resources. 3 (3) Sharp increases in natural gas and oil prices took 4 place in the wake of hurricanes Katrina and Rita. 5 (4) The American Gas Association has projected market 6 prices for natural gas for the winter of 2005-2006 are 7 expected to be between 50% and 70% higher than the winter of 8 2004-2005. 9 (5) In light of such sharp increases, Commonwealth 10 residents are expected to brace for record high energy prices 11 this winter. 12 (6) The current high and volatile nature of energy 13 prices have made it essential to consider increased funding 14 for energy assistance programs. 15 (7) It serves a public purpose to provide supplemental 16 funding to the Low Income Home Energy Assistance Program 17 (LIHEAP) in order to help eligible families with paying their 18 anticipated high energy bills. 19 (8) Increases in natural gas prices are expected to 20 generate additional unanticipated sales tax revenue to the 21 Commonwealth that can be used to offset the costs of 22 supplemental grant funding under this act. 23 Section 3. Definitions. 24 The following words and phrases when used in this act shall 25 have the meanings given to them in this section unless the 26 context clearly indicates otherwise: 27 "Eligible household." Includes: 28 (1) A household with income of 150% of the Federal 29 poverty level for a household containing one or more 30 individuals under 65 years of age. 20060S1037B1500 - 2 -
1 (2) A household with income of 200% of the Federal 2 poverty level for a household containing only individuals 65 3 years of age or older. 4 "Fund." The Natural Gas and Electric Assistance Fund 5 established in section 4. 6 "LIHEAP." The program established by Title XXVI of the 7 Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 42 8 U.S.C. § 8621 et seq.) and administered by the Department of 9 Public Welfare. 10 Section 4. Fund. 11 (a) Fund established.--The Natural Gas and Electric 12 Assistance Fund is established as a special fund in the State 13 Treasury to be administered by the Department of Public Welfare. 14 The fund shall consist of additional sales tax revenue collected 15 by the Department of Revenue attributable to the price increase 16 in natural gas commodity charges incurred on or after September 17 1, 2005, through June 30, 2006. The additional revenue shall be 18 transferred monthly to the fund based on estimates certified by 19 the Department of Revenue. 20 (b) Expenditures.--All moneys in the fund shall be expended 21 for payment of utility expenses of residential customers 22 associated with restoration of electric or gas service or the 23 prevention of termination of electric or gas service. Payments 24 shall be reviewed consistent with LIHEAP cash and LIHEAP crisis 25 grants; however, payments shall be made directly to the gas or 26 electric utility. 27 (c) Distribution.--The Department of Public Welfare shall 28 increase benefits for eligible households by the maximum amount 29 that the Department of Revenue has certified is available from 30 September 1, 2005, to June 30, 2006, and shall distribute 20060S1037B1500 - 3 -
1 benefits in accordance with the following schedule: 2 (1) On or before January 1, 2006, 50% of the estimated 3 total amount under subsection (a). 4 (2) On or before July 31, 2006, 50% of the balance of 5 the actual excess amount under subsection (a). 6 Section 10. Effective date. 7 This act shall take effect immediately. B3L67VDL/20060S1037B1500 - 4 -