PRINTER'S NO. 1595
No. 1412 Session of 1981
INTRODUCED BY RICHARDSON, OLIVER, GRAY, RYBAK, EVANS, IRVIS,
J. D. WILLIAMS, RIEGER, McINTYRE, LEVIN, WIGGINS, DEAL,
COHEN, DAWIDA, PISTELLA, O'DONNELL, HOEFFEL AND COLAFELLA,
MAY 11, 1981
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, MAY 11, 1981
AN ACT
1 Providing assistance to eligible households to offset the costs
2 of home energy for heating and lighting.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the "Home Energy
7 Assistance Act."
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have, unless the context clearly indicates otherwise, the
11 meanings given to them in this section:
12 "Annual period." The time sequence running from July 1
13 through June 30, to be used for the calculation and payment of
14 energy assistance credits.
15 "Corporation." All bodies corporate, joint stock companies
16 or associations, domestic or foreign, their lessees, assignees,
17 trustees, receivers or other successors in interest, having any
1 of the powers or privileges of corporations not possessed by
2 individuals or partnerships. It shall not include municipal
3 corporations, except as otherwise expressly provided herein, nor
4 bona fide cooperative associations which furnish service on a
5 nonprofit basis only to their stockholders or members.
6 "Department." The Department of Public Welfare.
7 "Eligible household." A household:
8 (1) with an income equal to or less than 125% of the
9 Bureau of Labor Standards lower living standard income level;
10 or
11 (2) having at least one member receiving general
12 assistance under the act of June 13, 1967 (P.L.31, No.21),
13 known as the "Public Welfare Code."
14 "Energy corporation." A person or corporation distributing
15 coal, heating oil, kerosene, butane, propane, electricity or
16 other nonrenewable energy products in the Commonwealth of
17 Pennsylvania to the public for compensation.
18 "Energy supplier." A person, corporation, energy
19 corporation, municipal corporation or public utility from which
20 households purchase their primary home heating or lighting
21 energy.
22 "Household." An individual or group of individuals who are
23 living together as one economic unit in a residential dwelling
24 for whom energy is customarily purchased in common.
25 "Home energy."
26 (1) Fuel or other utilities provided by an energy
27 supplier and obtained from an energy source for use by the
28 primary heating system in residential dwellings.
29 (2) Electricity provided by an energy supplier and
30 obtained from an energy service for lighting in residential
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1 dwellings.
2 "Lower living standard income level." The income level
3 (adjusted for regional, metropolitan, nonmetropolitan
4 differences and family size) determined annually by the Bureau
5 of Labor Standards.
6 "Municipal corporation." Cities, boroughs, towns, townships
7 or counties of this Commonwealth, and any public corporation,
8 authority or body whatsoever created or organized under any law
9 of this Commonwealth for the purpose of rendering a service
10 similar to that of a public utility.
11 "Person." Individuals, partnerships or associations other
12 than corporations. It includes their lessees, assignees,
13 trustees, receivers, executors, administrators or other
14 successors in interest.
15 "Public utility."
16 (1) A person or corporation owning or operating in this
17 Commonwealth, equipment or facilities for producing,
18 generating, transmitting, distributing or furnishing natural
19 or artificial gas, electricity or steam for the production of
20 light, heat or power to or for the public for compensation.
21 (2) The term "public utility" does not include:
22 (i) A person or corporation, not otherwise a public
23 utility, furnishing service only to himself or itself.
24 (ii) A bona fide cooperative association which
25 furnishes service only to its stockholders or the members
26 on a nonprofit basis.
27 (iii) A producer of natural gas not engaged in
28 distributing such gas directly to the public for
29 compensation.
30 "Residential dwelling." A building or mobile home used for
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1 residential occupancy which:
2 (1) is owned, occupied or leased by an eligible
3 household;
4 (2) contains one or more dwelling units;
5 (3) has a system for heating or lighting for which home
6 energy is purchased from an energy supplier; and
7 (4) does not include nursing homes, hotels and motels.
8 "State." The Commonwealth of Pennsylvania.
9 Section 3. Eligibility.
10 Eligibility is to be determined for each household by the
11 department based on:
12 (1) an income equal to or less than 125% of the lower
13 living standard income level; or
14 (2) having at least one member receiving general
15 assistance under the act of June 13, 1967 (P.L.31, No.21),
16 known as the "Public Welfare Code." Whenever the department
17 so finds, the household shall be eligible for energy
18 assistance for payment of their home energy heating and
19 electricity bills.
20 Section 4. Energy assistance rate.
21 The energy assistance credit rate for heating shall be 50% of
22 the cost of home energy up to a maximum payment of $300 per
23 annual period. The energy assistance credit rate for lighting
24 shall be 50% of the cost up to a maximum of $200 per annual
25 period. This rate shall be applied by public utilities in
26 monthly reductions to home energy bills and in installments or
27 by other reasonable means as determined by the department for
28 those energy suppliers who do not maintain monthly billing
29 cycles.
30 Section 5. Administration of the act.
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1 (a) It shall be the duty of the department to administer
2 this act in coordination with related Federal and State agencies
3 and programs.
4 (b) The department shall promulgate the rules, regulations
5 and forms necessary to carry out this act and maintain them in
6 compliance with Federal legislation and:
7 (1) Shall describe with particularity the procedures by
8 which eligible households are identified and certified as
9 participants.
10 (2) Provide that the State will treat owners and renters
11 equitably under the programs set forth in this act.
12 (3) Provide that there will be, whenever resources are
13 available and to the extent possible, coordination and
14 referral of individuals to existing weatherization and energy
15 conservation efforts.
16 (4) Provide that fiscal control and fund accounting
17 procedures will be established as may be necessary to assure
18 the proper dispersal of and accounting for funds expended
19 under this act.
20 (c) It shall be the responsibility of the department to:
21 (1) Certify and maintain eligibility applications for
22 each eligible household.
23 (2) Establish provisions for annual certification of
24 households.
25 (3) Provide the energy suppliers with a list of all
26 certified households together with the names of the customers
27 of record whenever such information is applicable.
28 (d) A payment or benefit received by a member of a
29 participating household under this act may not be considered
30 income for determining eligibility for any other Federally or
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1 State assisted program.
2 Section 6. Payments.
3 (a) The State shall make direct payments from the General
4 Fund to the energy suppliers for heating other than gas on
5 behalf of eligible households in amounts representing the total
6 energy credits provided. Such payments shall be made quarterly
7 upon certification by the energy supplier of the amount of home
8 energy assistance given and determined by this program.
9 (b) When the provisions of subsection (a) are not applicable
10 as to heating other than gas, the department shall issue
11 nontransferable energy vouchers. These vouchers shall be issued
12 directly to eligible households whenever the household is making
13 undesignated payments for rising energy costs in the form of
14 rent increases or payments to home energy suppliers who fail to
15 carry out the purpose of this act:
16 (1) These vouchers shall contain, both the names and
17 addresses of the tenant within the eligible household and the
18 landlord.
19 (2) The issuance, administration and payment under the
20 nontransferable energy voucher shall be established by the
21 department.
22 (c) The energy assistance for gas heat and lighting shall be
23 by reduction of 50% in the household's monthly bills for gas
24 heating and electricity.
25 Section 7. Funding for home energy assistance.
26 (a) The appropriations from this home energy assistance
27 program for heating other than gas shall be taken from the
28 General Fund until such time as Federal appropriations are made
29 to the State for such purpose.
30 (b) The amount of money representing the total subsidy
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1 reduction in any year for gas heating and lighting shall be
2 credited against any obligation of the public utility for the
3 payment of the Utilities Gross Receipts Tax imposed by the act
4 of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
5 1971.
6 Section 8. Applications.
7 (a) Each eligible household may receive energy assistance
8 under this act only upon application to the department at such
9 time, in such manner, and containing or accompanied by such
10 information as the department deems necessary.
11 (b) Each such application shall:
12 (1) Require the necessary information to establish the
13 applicant's eligibility.
14 (2) List the name and address of the energy supplies
15 from whom the applicant's household purchases home energy.
16 (3) Supply the name of the energy supplier's customer of
17 record from each household to provide prompt application of
18 the energy assistance rate.
19 (4) Furnish the name and address of the landowner for
20 each leased household.
21 (5) Provide for agreements with home energy suppliers
22 under which:
23 (i) The State will make quarterly payments for
24 heating other than gas to the energy suppliers designated
25 by each participating household in the amount of
26 assistance provided for hereunder and determined by
27 program or the energy supplier will get a credit for gas
28 heat or for lighting against the Utilities Gross REceipts
29 Tax imposed by the act of March 4, 1971 (P.L.6, No.2),
30 known as the "Tax Reform Code of 1971."
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1 (ii) The home energy supplier shall charge the
2 household specified in section 3 in regular installments
3 or in the manner provided by the department the
4 difference between the anticipated cost of the home
5 energy and the amount of the payment made by the State or
6 the credit to the energy supplier under this act. The
7 balance between the actual and anticipated costs shall be
8 determined in the fourth quarter of the annual period and
9 any adjustments shall be made at that time.
10 (6) Provide assurances that any agreement entered into
11 with a home energy supplier not under the jurisdiction of the
12 Public Utility Commission or other regulatory authority and
13 described in subsection (b)(5) will contain provisions to
14 assure that a household receiving assistance under this act
15 will not have home energy delivery terminated unless:
16 (i) Such household fails to meet the obligations
17 identified in subsection (c).
18 (ii) The household receives a written termination
19 notice not less than 30 days prior to the termination.
20 (iii) The household has an opportunity for a
21 hearing.
22 (c) The applicant has the obligation to pay his portion of
23 the amount charged for home energy costs:
24 (1) Within the billing provisions as set forth in the
25 rules and regulations governing the public utility.
26 (2) For those energy suppliers not governed by the
27 Public Utility Commission or other regulatory authority, the
28 outstanding costs for home energy shall be paid within a
29 reasonable time and within the guidelines established by the
30 department.
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1 (d) A person shall not knowingly make a false statement or
2 provide false information for the purpose of obtaining an energy
3 assistance credit.
4 (e) Whosoever violates subsection (d) of this act is guilty
5 of a misdemeanor and subject to the penalty related thereto.
6 Section 9. Effect of act.
7 Nothing contained in this act is intended or shall be
8 construed to increase the jurisdiction of the Pennsylvania
9 Public Utility Commission.
10 Section 10. Effective date.
11 This act shall take effect in 30 days.
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