PRINTER'S NO. 2870
No. 2311 Session of 1993
INTRODUCED BY EVANS, DALEY, BELFANTI, J. TAYLOR, CAPPABIANCA,
ROEBUCK, FEE, GEORGE, HALUSKA, CARN, MARKOSEK, FREEMAN,
VAN HORNE, ACOSTA, BISHOP, BUNT, LESCOVITZ, MELIO, MERRY,
PRESTON, GIGLIOTTI, HERMAN, JOSEPHS, STEELMAN, TRICH,
STABACK, LEVDANSKY, JAMES, TRELLO, LAUGHLIN, HUGHES,
KUKOVICH, MICHLOVIC, THOMAS, ROBINSON, WILLIAMS, PISTELLA AND
BROWN, NOVEMBER 24, 1993
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, NOVEMBER 24, 1993
AN ACT
1 Establishing a separate office in the Department of Public
2 Welfare to administer the cash and crisis components of the
3 Low-Income Home Energy Assistance Program; and providing for
4 the funding of that program from certain public utility gross
5 receipts tax revenues.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Low-Income
10 Home Energy Act.
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Council." The Low-Income Energy Assistance Advisory
16 Council.
17 "Department." The Department of Public Welfare of the
1 Commonwealth.
2 "Federal program" or "LIHEAP." The Federal Low-Income Home
3 Energy Assistance Program.
4 "Secretary." The Secretary of Public Welfare of the
5 Commonwealth.
6 "State program." The State Low-Income Home Energy Assistance
7 Program.
8 Section 3. Legislative findings.
9 The General Assembly finds and declares as follows:
10 (1) Home heating and energy service are a necessary part
11 of shelter, and the lack of home heating poses a threat to
12 life, health and safety.
13 (2) Low-income households should be protected from the
14 disproportionately adverse effects on their income resulting
15 from increasing energy prices.
16 (3) Sound public policy dictates that assisting low-
17 income households in meeting their energy needs must include
18 a component to make energy more affordable by permanently
19 reducing energy costs through weatherization.
20 (4) It is the responsibility of the Commonwealth to
21 assist low-income households in meeting and reducing their
22 home energy needs.
23 (5) The Commonwealth recognizes that Oil Overcharge
24 Funds are a temporary and inadequate method of supplementing
25 the Federal program.
26 (6) The State program can operate effectively only with
27 a commitment of State dollars and resources to go along with
28 the Federal dollars.
29 (7) The State program is not an income maintenance
30 program and should not be administered as such.
19930H2311B2870 - 2 -
1 (8) The State program is of such importance to the low-
2 income households of this Commonwealth that it should be
3 administered by an office dedicated exclusively to that
4 purpose operated on a year-round basis.
5 Section 4. Office of Low-Income Home Energy Assistance.
6 (a) Establishment.--There is hereby established within the
7 department the Office of Low-Income Home Energy Assistance. This
8 office shall be separate and apart from offices performing other
9 functions, and its sole function shall be the administration of
10 the energy assistance components of the State program. All funds
11 appropriated to the department for low-income home energy
12 assistance from Federal, State or other sources shall be
13 coordinated and expended through the program administered by the
14 Office of Low-Income Home Energy Assistance.
15 (b) Weatherization.--The weatherization component of the
16 State program shall be administered separately by the Department
17 of Community Affairs.
18 Section 5. Low-Income Energy Assistance Advisory Council.
19 The Low-Income Energy Assistance Advisory Council is hereby
20 created to advise the department on matters of policy relating
21 to the development and implementation of this program. Its
22 members shall be appointed by the secretary to serve such term
23 as he deems necessary.
24 Section 6. Operation of program.
25 (a) General rule.--The State program shall be in operation
26 for 12 months of the year. A quarterly evaluation of the program
27 shall be conducted the last day of each fiscal quarter, and
28 benefits may be adjusted quarterly in response to the
29 evaluation. The council shall submit the evaluation results to
30 the General Assembly annually in the form of a report.
19930H2311B2870 - 3 -
1 (b) Staff.--The department shall be responsible for assuring
2 that the departmental office and local offices have sufficient
3 trained staff to adequately administer the program.
4 (c) Outreach.--Outreach programs at the State and county
5 level shall be provided.
6 (d) State plan.--The State program shall be administered in
7 a manner consistent with the State plan submitted to the Federal
8 Government.
9 (e) Cooperation with other agencies.--The department shall
10 cooperate with other State agencies and with the Federal
11 Government in the administration of this program.
12 (f) Rules and regulations.--The department shall, in the
13 manner provided by law, promulgate the rules and regulations
14 necessary to carry out the energy assistance components of the
15 State program.
16 Section 7. Heating Energy Assistance Fund.
17 (a) Deposit of certain revenues.--During fiscal year 1993-
18 1994 and in each fiscal year thereafter, the Secretary of
19 Revenue shall, from funds raised by the tax imposed by Article
20 XI of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
21 Reform Code of 1971, during that fiscal year, deposit in a
22 special fund, to be known as the Heating Energy Assistance Fund,
23 an amount as specified in subsections (b) and (c). These funds
24 shall be appropriated only for low-income energy assistance and
25 weatherization programs as described in this act. All remaining
26 funds raised by this tax shall be deposited in the General Fund.
27 (b) Distributed amounts.--The amount of money deposited in
28 the fund each fiscal year for distribution during that year
29 shall be equal to a designated amount less any Federal program
30 (LIHEAP) funding appropriated to the Commonwealth during that
19930H2311B2870 - 4 -
1 prior Federal fiscal year. In fiscal year 1993-1994 the
2 designated amount shall equal $135,000,000. In each subsequent
3 year the designated amount shall equal $135,000,000 escalated on
4 a compounded annual basis by the Consumer Price Index as
5 published in the Pennsylvania Bulletin by the Department of
6 Commerce for the previous calendar year.
7 (c) Deposit.--In addition to the funding in subsection (b),
8 in fiscal year 1993-1994 a one-time deposit shall be made in the
9 amount of $7,500,000 to be used as matching funds for Federal
10 Title IV-A (aid to families with dependent children), or other
11 Federal energy assistance matching funds. The funding shall be
12 maintained in escrow in an interest-bearing account. Interest
13 earned on the account shall be first used to attract additional
14 Federal matching funds if available. If no additional Federal
15 matching funds are available, all interest will be distributed
16 yearly for energy assistance along with the fund distribution in
17 subsection (d).
18 (d) Administration.--The department shall administer the
19 fund created in subsection (a), LIHEAP funds and any other funds
20 made available by and received from the Federal Government or
21 the Commonwealth for low-income heating assistance. The
22 following criteria shall apply to the administration of funds
23 managed by the department:
24 (1) Escrow interest as designated by the secretary,
25 LIHEAP and the Pennsylvania Heating Energy Assistance Fund
26 shall be distributed annually as one coordinated funding
27 source.
28 (2) Funds distributed on behalf of recipients shall be
29 paid directly to the recipient's heating vendor.
30 (3) Funds may be allocated annually to weatherization at
19930H2311B2870 - 5 -
1 the discretion of the secretary but shall not exceed 15% of
2 the annual fund distribution in subsection (b).
3 (4) Funds are to be distributed on a year-round basis,
4 beginning July 1 through June 30.
5 Section 8. Effective date.
6 This act shall take effect in 60 days.
J29L71DGS/19930H2311B2870 - 6 -