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                                                        PRINTER'S NO. 37

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 33 Special Session No. 1 of 2007-2008


        INTRODUCED BY VEREB, GEORGE, BELFANTI, BEYER, BISHOP, BLACKWELL,
           BRENNAN, BROOKS, CLYMER, CURRY, DALLY, DePASQUALE, EVERETT,
           FREEMAN, HARPER, HORNAMAN, HUTCHINSON, KILLION, KOTIK, LEACH,
           MAHONEY, MANDERINO, MANN, R. MILLER, MOYER, MUNDY, MYERS,
           D. O'BRIEN, PETRONE, PHILLIPS, PICKETT, QUIGLEY, RAPP,
           READSHAW, REICHLEY, RUBLEY, SOLOBAY, STERN, WALKO, WOJNAROSKI
           AND YOUNGBLOOD, OCTOBER 18, 2007

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           OCTOBER 18, 2007

                                     AN ACT

     1  Providing for the Low-Income Weatherization Assistance Program
     2     and for an evaluation of the program; and authorizing
     3     additional funding for the program through interfund
     4     transfers.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Low-Income
     9  Home Energy Weatherization Improvement Act.
    10  Section 2.  Declaration of policy.
    11     The General Assembly finds and declares that:
    12         (1)  Many residents of this Commonwealth are finding it
    13     difficult to pay for energy services, due to the sharp energy
    14     price increases experienced by many Pennsylvanians recently.
    15         (2)  The Department of Energy has projected that natural
    16     gas heating costs this winter are expected to rise over 30%

     1     from last winter and home heating oil costs are expected to
     2     also rise over 30% this winter.
     3         (3)  In view of these sharp increases, Commonwealth
     4     residents can expect to pay higher costs to heat and cool
     5     their homes.
     6         (4)  The current high and volatile nature of energy
     7     prices has made it essential to consider increased funding
     8     for energy assistance programs.
     9         (5)  Studies have predicted that the price of fossil
    10     fuels will rise at the rate of 6% to 10% per year for the
    11     next 20 years. If the cost of energy increases at 6% per year
    12     by 2024, it will cost the average low-income household in
    13     Philadelphia, for example, almost $8,000 to meet that
    14     household's energy and water needs.
    15         (6)  Energy conservation helps to maintain affordable
    16     energy bills and reduces our nation's dependence on foreign
    17     oil; therefore, it serves a public purpose to provide support
    18     to programs which can reduce home energy costs and
    19     consumption.
    20         (7)  It serves a public purpose to provide supplemental
    21     funding to the Low-Income Weatherization Assistance Program
    22     in order to help eligible families with reducing their home's
    23     energy consumption.
    24         (8)  Increases in energy prices have generated additional
    25     unanticipated sales tax revenue to the Commonwealth that can
    26     be used to offset the costs of supplemental funding under
    27     this act.
    28  Section 3.  Definitions.
    29     The following words and phrases when used in this act shall
    30  have the meanings given to them in this section unless the
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     1  context clearly indicates otherwise:
     2     "Commission."  The Pennsylvania Public Utility Commission.
     3     "Department."  The Department of Community and Economic
     4  Development of the Commonwealth.
     5     "Eligible household."  The term includes a household with
     6  income at or below 200% of the Federal poverty level.
     7     "Low-Income Weatherization Assistance Program" or "program."
     8  The program established by Title XXVI of The Omnibus Budget
     9  Reconciliation Act of 1981 (Public Law 97-35, 42 U.S.C. § 8621
    10  et. seq.) and administered by the Department of Community and
    11  Economic Development with funds received through the Department
    12  of Public Welfare and the Department of Energy.
    13  Section 4.  Administration of Low-Income Weatherization
    14                 Assistance Program.
    15     (a)  Revisions to current program guidelines.--The department
    16  shall develop revisions to the current program guidelines so
    17  that the program is positioned to take advantage of the greatest
    18  possible savings in terms of energy and energy costs and shall
    19  expand the list of eligible energy conservation measures to
    20  include new measures that are shown to be cost effective.
    21     (b)  Independent evaluation.--The department shall undertake
    22  an independent evaluation of the program for the purpose of
    23  improving the quality and effectiveness of the program. The
    24  evaluation shall at a minimum include:
    25         (1)  A determination of the overall effectiveness in
    26     terms of the cost versus the benefits of the program.
    27         (2)  A determination of the level of energy savings
    28     achieved by each grantee or subgrantee and on a per home
    29     basis by each grantee or subgrantee.
    30         (3)  The effectiveness of the energy conservation
    20071H0033B0037                  - 3 -     

     1     measures being installed.
     2         (4)  Other improvements, including, but not limited to:
     3             (i)  Jobs created.
     4             (ii)  Peak load reductions.
     5             (iii)  Any recommendations to improve the program's
     6         effectiveness, especially in service delivery and in
     7         increasing the types of energy conservation measures to
     8         be installed.
     9     (c)  Increased program promotion.--The department shall
    10  develop methods to increase awareness of the program and shall
    11  work with local program providers to ensure that the highest
    12  possible form of public awareness campaign is implemented to
    13  provide information about the availability and purpose of the
    14  program to eligible residents.
    15     (d)  Final inspections.--
    16         (1)  The department shall adopt procedures to ensure that
    17     local program providers verify and inspect that the
    18     weatherization work is performed and performed to the
    19     appropriate standards on 100% of the homes receiving
    20     weatherization services.
    21         (2)  The department shall ensure that all local program
    22     providers are sufficiently trained on proper inspection and
    23     verification procedures and shall conduct a program of
    24     continuing education as necessary to ensure compliance with
    25     this subsection.
    26     (e)  Schedule for ongoing evaluations.--The department shall
    27  develop a schedule for conducting ongoing evaluations of the
    28  program. The department shall submit copies of the evaluation
    29  report to the Public Health and Welfare Committee of the Senate,
    30  the Environmental Resources and Energy Committee of the Senate,
    20071H0033B0037                  - 4 -     

     1  the Health and Human Services Committee of the House of
     2  Representatives and the Environmental Resources and Energy
     3  Committee of the House of Representatives.
     4     (f)  Joint study.--The department and the commission shall
     5  jointly conduct an annual review of the program and the
     6  universal service and energy conservation policies, protections
     7  and services defined in 66 Pa.C.S. § 2803 (relating to
     8  definitions), specifically low-income usage reduction programs
     9  conducted by public utilities. The review shall include, but not
    10  be limited to:
    11         (1)  Methods to improve the coordination and
    12     effectiveness between the program and those programs.
    13         (2)  Opportunities to increase the energy savings
    14     resulting from activities of the program and those programs.
    15  Any written report or evaluation of the review shall be a public
    16  record open to public inspection under the act of June 21, 1957
    17  (P.L.390, No.212), referred to as the Right-to-Know Law.
    18  Section 5.  Transfer of funds.
    19     On or before September 1 of fiscal years 2008-2009, 2009-2010
    20  and 2010-2011, the State Treasurer shall transfer the amount of
    21  $15,000,000 each year from the General Fund to the Emergency
    22  Energy Assistance Fund administered by the Department of Public
    23  Welfare and used exclusively for providing supplemental funding
    24  to the Low-Income Weatherization Assistance Program administered
    25  by the department. Any of the transferred funds that are
    26  unencumbered and unexpended by June 30, 2010, shall be
    27  immediately transferred to the General Fund.
    28  Section 6.  Report to General Assembly.
    29     On or before June 30, 2009, the department and the Department
    30  of Public Welfare shall jointly submit a report to the
    20071H0033B0037                  - 5 -     

     1  Appropriations Committee of the Senate, the Public Health and
     2  Welfare Committee of the Senate, the Environmental Resources and
     3  Energy Committee of the Senate, the Appropriations Committee of
     4  the House of Representatives, the Health and Human Services
     5  Committee of the House of Representatives and the Environmental
     6  Resources and Energy Committee of the House of Representatives
     7  providing an overall evaluation of the program to date.
     8  Section 7.  Effective date.
     9     This act shall take effect in 60 days.














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