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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY CUTLER, WATERS, AUMENT, BAKER, BOBACK, V. BROWN, CLYMER, CREIGHTON, DALEY, FARRY, FLECK, GABLER, GEIST, GINGRICH, GROVE, HARHAI, HELM, HESS, HICKERNELL, KAUFFMAN, KILLION, MAJOR, MILLARD, MILLER, MULLERY, PICKETT, PYLE, REED, REICHLEY, SAYLOR, SONNEY, STERN, SWANGER, TOEPEL, VULAKOVICH AND WATSON, NOVEMBER 16, 2011 |
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| REFERRED TO COMMITTEE ON HEALTH, NOVEMBER 16, 2011 |
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| AN ACT |
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1 | Amending the act of July 10, 1986 (P.L.1398, No.122), entitled |
2 | "An act establishing a special fund for moneys received by |
3 | the Commonwealth from resolution of oil overcharge matters; |
4 | designating certain low-income energy conservation and |
5 | assistance programs for funding from this special fund; and |
6 | making appropriations," further providing for definitions; |
7 | providing for verification and assistance amounts and for |
8 | fraud reporting to Inspector General; further providing for |
9 | weatherization and energy conservation; providing for |
10 | performance audits by the Auditor General; and making |
11 | editorial changes. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. The definition of "energy conservation and |
15 | assistance programs" in section 3 of the act of July 10, 1986 |
16 | (P.L.1398, No.122), known as the Energy Conservation and |
17 | Assistance Act, amended July 9, 1987 (P.L.235, No.42), is |
18 | amended to read: |
19 | Section 3. Definitions. |
20 | The following words and phrases when used in this act shall |
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1 | have the meanings given to them in this section unless the |
2 | context clearly indicates otherwise: |
3 | "Energy conservation and assistance programs." Includes any |
4 | of the following: |
5 | (1) The programs established under Part D of Title III |
6 | of the Energy Policy and Conservation Act (Public Law 94-163, |
7 | 42 U.S.C. § 6321 et seq.), providing for state energy |
8 | conservation programs. |
9 | (2) The programs established under Part G of Title III |
10 | of the Energy Policy and Conservation Act, providing for |
11 | energy conservation investments in schools and hospitals. |
12 | (3) The programs established under the National Energy |
13 | Extension Service Act (Public Law 95-39, 42 U.S.C. § 7001 et |
14 | seq.), providing for, inter alia, energy conservation |
15 | outreach programs to small businesses and individual |
16 | consumers. |
17 | (4) The programs established under the Low-Income Home |
18 | Energy Assistance Act of 1981 (Public Law 97-35, 42 U.S.C. § |
19 | 8621 et seq.), providing for energy assistance and |
20 | weatherization assistance to low-income households. |
21 | (5) The programs established under Part A of the Energy |
22 | Conservation in Existing Buildings Act of 1976 (Public Law |
23 | 94-385, 42 U.S.C. § 6851 et seq.), establishing the Low |
24 | Income Weatherization Program. |
25 | (6) The programs established by the Governor's Energy |
26 | Council [which] and now administered by the Department of |
27 | Environmental Protection to promote energy conservation and |
28 | energy development, in compliance with the terms and |
29 | conditions of oil overcharge settlement agreements, oil |
30 | overcharge orders issued by the courts or the Department of |
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1 | Energy or fund distribution requirements of the Department of |
2 | Energy. |
3 | * * * |
4 | Section 2. Section 5(c) of the act, amended July 9, 1987 |
5 | (P.L.235, No.42), is amended to read: |
6 | Section 5. Supplemental low-income energy conservation and |
7 | assistance programs. |
8 | * * * |
9 | (c) Administration of programs.--The programs established in |
10 | subsection (a) shall be administered as follows: |
11 | (1) The Pennsylvania Supplemental Low-Income |
12 | Weatherization Program established in subsection (a)(1) shall |
13 | be administered by the Department of Community [Affairs] and |
14 | Economic Development as a part of the programs authorized |
15 | under the Low-Income Home Energy Assistance Act of 1981 |
16 | (Public Law 97-35, 42 U.S.C. § 8621 et seq.) or the Energy |
17 | Conservation in Existing Buildings Act of 1976 (Public Law |
18 | 94-385, 42 U.S.C. § 6851 et seq.). Community action agencies, |
19 | existing low-income weatherization providers or other county, |
20 | municipal or nonprofit corporations may apply for a portion |
21 | of these funds. The Department of Community [Affairs] and |
22 | Economic Development shall establish regulations necessary |
23 | for administering this program consistent with the |
24 | requirements of section 6. |
25 | (2) (i) The Pennsylvania Supplemental Low-Income Energy |
26 | Assistance Program established in subsection (a)(2) shall |
27 | be administered by the Department of Public Welfare as |
28 | part of the program authorized under the Low-Income Home |
29 | Energy Assistance Act of 1981. The Department of Public |
30 | Welfare shall establish regulations necessary for |
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1 | administering this program. |
2 | (ii) The Department of Public Welfare shall provide |
3 | the General Assembly with an annual report, which shall |
4 | include an independent audit, not later than September 30 |
5 | of each year, covering all expenditures made in |
6 | administering this program. |
7 | Section 3. The act is amended by adding sections to read: |
8 | Section 5.1. Verification and assistance amounts. |
9 | (a) Energy assistance.--The Department of Public Welfare |
10 | shall verify the income eligibility of recipients receiving |
11 | energy assistance through the programs set forth in paragraph |
12 | (4) of the definition of "energy conservation and assistance |
13 | programs" in section 3 and the program established in section 5 |
14 | (a)(2) in accordance with the verification procedures in |
15 | sections 432.19 and 432.23 of the act of June 13, 1967 (P.L.31, |
16 | No.21), known as the Public Welfare Code, unless otherwise |
17 | prohibited by Federal law. |
18 | (b) Weatherization services.--The Department of Community |
19 | and Economic Development shall verify the income eligibility of |
20 | recipients receiving weatherization services through the |
21 | programs set forth in paragraphs (4) and (5) of the definition |
22 | of "energy conservation and assistance programs" in section 3 |
23 | and the program established in section 5(a)(1) in accordance |
24 | with the verification procedures in sections 432.19 and 432.23 |
25 | of the Public Welfare Code, unless otherwise prohibited by |
26 | Federal law. |
27 | (c) Offset.--The Department of Community and Economic |
28 | Development shall determine the increased efficiency gained from |
29 | weatherization services provided to an individual eligible for |
30 | energy assistance who has previously received weatherization |
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1 | services. The Department of Public Welfare shall reduce the |
2 | individual's energy assistance amount accordingly. |
3 | Section 5.2. Fraud reporting to the Office of Inspector |
4 | General. |
5 | (a) Duty of employee and contractor.--If an employee or |
6 | contractor of an energy conservation and assistance program has |
7 | reason to believe a recipient of or applicant for weatherization |
8 | services or energy assistance is committing fraud or providing |
9 | false information in order to receive weatherization services or |
10 | energy assistance, the employee or contractor shall make a fraud |
11 | report directly to the Office of Inspector General. |
12 | (b) Duty of applicant and recipient.--If a recipient of or |
13 | applicant for energy assistance or weatherization services has |
14 | reason to believe an employee or contractor of an energy |
15 | conservation and assistance program is committing fraud, the |
16 | applicant or recipient shall make a fraud report directly to the |
17 | Office of Inspector General. |
18 | (c) Sanctions.--The employee, contractor, applicant or |
19 | recipient shall not be subject to any sanctions for making a |
20 | fraud report. |
21 | Section 4. Section 6 of the act is amended to read: |
22 | Section 6. Weatherization and energy conservation. |
23 | (a) Establishment of Statewide Weatherization and Energy |
24 | Conservation Policy Council.--A Statewide Weatherization and |
25 | Energy Conservation Policy Council is hereby created and shall |
26 | have the responsibility of advising the Department of Community |
27 | [Affairs] and Economic Development on matters of policy related |
28 | to the development and implementation of this program. The |
29 | council shall establish bylaws governing its activities and |
30 | shall assume all responsibilities associated with the existing |
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1 | Policy Advisory Council required by the Department of Energy. |
2 | Members of the council shall be appointed by the Secretary of |
3 | the Department of Community [Affairs] and Economic Development. |
4 | (b) Approval of Statewide plan.--The council must approve |
5 | the Statewide plan each year prior to the expenditure of any |
6 | funds under this section. |
7 | (c) Members of council.--The council shall include |
8 | representatives of gas and electric utilities, rural electric |
9 | cooperatives, municipal electric systems, heating oil dealers, |
10 | eligible participants in the program, weatherization providers, |
11 | energy advocacy groups, social service agencies and senior |
12 | citizen organizations. Representatives serving on the council |
13 | shall constitute a reasonable and fair geographic distribution |
14 | of utility, service agency and other members. |
15 | (d) Annual report to General Assembly.--The Statewide |
16 | Weatherization and Energy Conservation Policy Council shall |
17 | submit an annual report to the General Assembly on or before |
18 | September 30 of each year summarizing and evaluating the |
19 | expenditure of funds under this section during the previous |
20 | State fiscal year. Such a report shall include, but not be |
21 | limited to, a summary of program and administrative |
22 | expenditures, the number of households served, the average |
23 | investment per home, an estimate of energy savings, the number |
24 | of applicants and any other relevant information the council |
25 | deems appropriate. All such information shall be by county, |
26 | where appropriate. In addition, the report shall contain |
27 | recommendations to the General Assembly for improvements in the |
28 | weatherization program. |
29 | (e) Coordination of activities.--Activities supported under |
30 | this act shall be coordinated with other Federal, State, local |
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1 | and privately funded programs in order to avoid duplication of |
2 | effort and promote integration with other conservation and |
3 | energy assistance programs. Such coordination shall include, but |
4 | not be limited to, the establishment, by interagency agreement |
5 | or otherwise, of a joint policy advisory council to ensure that |
6 | energy assistance and weatherization assistance benefits are |
7 | delivered in an effective manner. |
8 | (f) Administrative and program efficiency.--All |
9 | administrative and programmatic requirements shall be |
10 | streamlined to the greatest extent possible and shall be |
11 | structured so as to reinforce the quality and productivity of |
12 | conservation work performed. |
13 | (g) Energy education.--Up to 5% of the allocation to each |
14 | grantee may be utilized for energy education, which shall |
15 | include the instruction and demonstration in the home, at the |
16 | time the work is performed, of behavior and skills necessary to |
17 | effectively utilize and preserve the energy conservation |
18 | measures involved and adopt sound conservation practices in |
19 | daily lifestyle, as well as the provision of written educational |
20 | materials and the development of instructional aids and |
21 | followup. |
22 | (h) Program support cost.--No more than 150% of the |
23 | Statewide average in any fiscal year of the cost of materials |
24 | shall be provided for program support costs, including, but not |
25 | limited to, labor, tools, insurance, supervision, eligibility |
26 | determinations, recordkeeping, audit, rent and utilities. |
27 | Grantees may request waivers of this subsection from the |
28 | Statewide Weatherization and Energy Conservation Policy Council |
29 | in appropriate circumstances, including, but not limited to, |
30 | programmatic and administrative expenditures attributed to cost- |
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1 | effective and innovative weatherization and conservation |
2 | technologies. |
3 | (i) Advance payment.--An advance payment of one-sixth of the |
4 | total contract shall be provided on the effective date of each |
5 | contract. This amount shall be reduced by deducting one-twelfth |
6 | of the advanced amount from each monthly invoice. All funds |
7 | shall be disbursed to grantees and their subcontractors in a |
8 | timely fashion so as to promote continuity and productivity of |
9 | program and staff. |
10 | (j) Inventory.--Each local program operator shall be allowed |
11 | funds to enable the maintenance of an inventory equal to 5% of |
12 | the total contract throughout the period of the contract. |
13 | (k) Reallocation of funds.--In order to ensure the maximum |
14 | utilization of all funds, the Department of Community [Affairs] |
15 | and Economic Development shall conduct and complete an |
16 | evaluation of all grantee spending by [December 1] May 15 of |
17 | each year and submit its evaluation to the Auditor General. |
18 | Grantees which are spending at a level of at least 10% less than |
19 | projected shall have such underexpenditures in excess of 10% |
20 | deducted from the annual contract. Such funds shall be |
21 | reallocated, forthwith, to other grantees able to utilize the |
22 | funds during the contract period. |
23 | (l) Quality control monitoring and evaluation.--The |
24 | department shall institute regulations, procedures and studies |
25 | to the following ends: |
26 | (1) To ensure that only measures of high cost |
27 | effectiveness consistent with priorities established by an |
28 | energy audit have been installed. |
29 | (2) To ensure that the material quality and labor |
30 | associated with the installation of all measures equals or |
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1 | exceeds, where applicable, prevailing industry standards and |
2 | is sufficiently high to make the measures fully effective. |
3 | (3) To evaluate, with the cooperation of utilities and |
4 | fuel vendors, and with the consent of the recipient |
5 | household, fuel consumption before and after treatment in a |
6 | minimum of 5% of the buildings weatherized with major |
7 | measures by each contractor. In addition to fuel savings, the |
8 | household shall be evaluated with respect to any enhanced |
9 | ability to pay or increased comfort. Local grantees shall be |
10 | required to conduct an independent review of any household |
11 | which does not show reduced usage or increased comfort and |
12 | provide an explanation to the department. Any evaluations |
13 | conducted pursuant to this paragraph shall be performed by a |
14 | qualified independent organization which shall be chosen by |
15 | the Statewide Weatherization and Energy Conservation Policy |
16 | Council in accordance with bidding and selection criteria |
17 | developed by the Department of Community [Affairs] and |
18 | Economic Development. Any evaluation shall also include the |
19 | effectiveness of any energy education component associated |
20 | with the weatherization activity. |
21 | (4) To ensure that an independent audit is performed |
22 | annually for each grantee organization. |
23 | (5) To ensure that sufficient funds for research and |
24 | development shall be available to review and evaluate |
25 | specific technologies, installation procedures or other |
26 | aspects of the program, including training and technical |
27 | assistance, as may be necessary to ensure maximum energy |
28 | savings and to improve the cost-effectiveness of the program. |
29 | (m) Audit.--The Legislative Budget and Finance Committee |
30 | shall conduct a performance audit of the Pennsylvania |
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1 | Weatherization Program as administered prior to the effective |
2 | date of this act by the Department of Community Affairs. The |
3 | committee shall conduct such inquiries as it deems necessary, |
4 | including, but not limited to, obtaining interviews with |
5 | provider agencies and program recipients, with administrators |
6 | within the Department of Public Welfare, the Department of |
7 | Community Affairs, the Pennsylvania Public Utility Commission |
8 | and the Weatherization Policy Advisory Council of the Department |
9 | of Community Affairs, and with such other persons and entities |
10 | as it deems necessary. The committee shall present to the |
11 | General Assembly findings and recommendations for programmatic |
12 | improvements within one year of the effective date of this act. |
13 | Section 5. The act is amended by adding a section to read: |
14 | Section 6.1. Powers and duties of Auditor General. |
15 | (a) Conduct of performance audit.--The Auditor General shall |
16 | conduct a thorough performance audit of the programs set forth |
17 | in paragraphs (4) and (5) of the definition of "energy |
18 | conservation and assistance programs" in section 3 and the |
19 | programs created in section 5(a)(1) and (2) which shall be |
20 | completed within one year after the effective date of this |
21 | section. Thereafter, the Auditor General shall conduct such |
22 | performance audits at intervals of not greater than five years |
23 | from the date of completing the immediately preceding |
24 | performance audit required under this subsection. The |
25 | departments and individuals administering the programs being |
26 | audited under this section shall make all records, documents and |
27 | other information available for the inspection of the Auditor |
28 | General that reasonably relate to the conduct of the performance |
29 | audit prescribed in this section. |
30 | (b) Content of audit.--The audit shall address in detail the |
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1 | adequacy of the performance with respect to each of the |
2 | administrative and regulatory activities and shall make detailed |
3 | recommendations to the department, each local office, |
4 | contractors, the Governor and the General Assembly for remedial |
5 | and regulatory changes in the program that will further the |
6 | purposes of this act. |
7 | (c) Transmission of audit reports and public access.--A copy |
8 | of each performance audit conducted pursuant to subsection (a) |
9 | shall be transmitted to the Department of Public Welfare, the |
10 | Department of Community and Economic Development, the Governor, |
11 | the Office of Inspector General, the Attorney General, the |
12 | chairman and minority chairman of the Appropriations Committee |
13 | of the Senate, the chairman and minority chairman of the |
14 | Appropriations Committee of the House of Representatives, the |
15 | chairman and minority chairman of the Public Health and Welfare |
16 | Committee of the Senate and the chairman and minority chairman |
17 | of the Health Committee of the House of Representatives. A copy |
18 | of the performance audit shall be published as a notice in the |
19 | Pennsylvania Bulletin. |
20 | (d) Transmission of information related to fraudulent |
21 | activities.--The Auditor General shall transmit any information |
22 | uncovered during the conduct of the performance audit relating |
23 | to fraud to the Department of Public Welfare, each local office, |
24 | the Attorney General and the Office of Inspector General. |
25 | Section 6. Section 7(a) of the act, amended July 9, 1987 |
26 | (P.L.235, No.42), is amended to read: |
27 | Section 7. Administration of certain energy conservation and |
28 | assistance programs. |
29 | (a) [Governor's Energy Council] Duties of Department of |
30 | Environmental Protection.--The energy conservation and |
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1 | assistance programs set forth in paragraphs (1), (2), (3) and |
2 | (6) of the definition of "energy conservation and assistance |
3 | programs" in section 3 shall be administered by the [Governor's |
4 | Energy Council] Department of Environmental Protection. The |
5 | [council] Department of Environmental Protection shall establish |
6 | regulations necessary for administering these programs. |
7 | * * * |
8 | Section 7. Section 8.1 of the act, added December 12, 1986 |
9 | (P.L.1583, No.173), is amended to read: |
10 | Section 8.1. Limited grants for resource recovery projects. |
11 | (a) General rule.--Pursuant to the programs set forth in |
12 | section 3(1), there is hereby established within the Department |
13 | of Environmental [Resources] Protection a limited grant program |
14 | as part of the State Energy Conservation Plan to assist |
15 | municipalities in developing resource recovery projects. |
16 | Consistent with Federal law and regulations, including those |
17 | governing State energy conservation plans, and departmental |
18 | regulations, the program shall provide grants which cover up to |
19 | 75% of the following: |
20 | (1) Costs associated with feasibility studies. |
21 | (2) Costs associated with project development activity. |
22 | No grant funds shall be used to cover in any manner any |
23 | construction costs incurred for resource recovery projects. |
24 | (b) Funding.--Money for the grant program shall be derived |
25 | from the appropriation in section 9(c.1). |
26 | (c) Duration.--This grant program shall continue until June |
27 | 30, 1988, at which time the program shall expire, and any |
28 | unexpended funds shall lapse back to the Energy Conservation and |
29 | Assistance Fund. |
30 | (d) [Governor's Energy Council] Duties of Department of |
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1 | Environmental Protection.--In administering this program, the |
2 | Department of Environmental [Resources] Protection shall comply |
3 | with such procedures and restrictions and submit such reports as |
4 | may be required [by the Governor's Energy Council] in order to |
5 | fulfill its federally mandated responsibilities regarding the |
6 | State Energy Conservation Plan. |
7 | Section 8. This act shall take effect immediately. |
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