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PRINTER'S NO. 3302
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2694
Session of
2022
INTRODUCED BY MATZIE, MARSHALL, PISCIOTTANO, T. DAVIS, KINSEY,
FREEMAN, GUENST, HILL-EVANS, SCHLOSSBERG, McNEILL, MADDEN,
SANCHEZ, CIRESI AND HOWARD, JUNE 24, 2022
REFERRED TO COMMITTEE ON HUMAN SERVICES, JUNE 24, 2022
AN ACT
Providing for Low-Income Home Energy Assistance Program
eligibility, allocation of funds and resources; imposing
duties on the Department of Human Services; and providing for
compliance and fraud prevention procedures and for
performance audit and allocation of appropriations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Home Energy
Assistance Heating and Cooling Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Budget billing." The proration of an estimated 12-month
projection of the cost of household heating based on weather,
energy costs and occupancy adjusted over time as required for
changes in assumptions versus actual experience.
"Customer assistance program." A plan or program sponsored
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by a public utility for the purpose of providing universal
service and energy conservation, as defined by 66 Pa.C.S. § 2202
(relating to definitions) or 2803 (relating to definitions), in
which customers make monthly payments based on household income
and household size and under which customers must comply with
certain responsibilities and restrictions in order to remain
eligible for the Low-Income Home Energy Assistance Program.
"Department." The Department of Human Services of the
Commonwealth.
"Hardship fund." A fund that provides cash assistance to
utility customers with utility bill payment as defined in 52 Pa.
Code §§ 54.72 (relating to definitions) and 62.2 (relating to
definitions).
"Income." The types of income used in determining
eligibility for LIHEAP as provided in the State Plan for the
applicable fiscal year.
"Independent charitable organization." An organization
approved as a charitable organization under section 501(c)(3) of
the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
§ 501(c)(3)).
"Leveraged resources." Any LIHEAP funding resource as
defined in section 2607A of the Low-Income Home Energy
Assistance Act of 1981 (Public Law 97-35, 42 U.S.C. § 8626a).
"Low-Income Home Energy Assistance Act of 1981." The Low-
Income Home Energy Assistance Act of 1981 (Public Law 97-35, 42
U.S.C. § 8621 et seq.).
"Low-Income Home Energy Assistance Program" or "LIHEAP." A
federally funded program that provides financial assistance in
the form of cash and crisis grants to low-income households for
home energy bills and is administered by the department.
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"Participating energy vendor." An agent or company that
directly distributes home heating energy or services, including
emergency energy or services, in exchange for payment.
"Plan year." The Federal LIHEAP fiscal year.
"Poverty level." The poverty level published by the United
States Department of Health and Human Services and used by the
department in determining eligibility for LIHEAP.
"Secretary." The Secretary of Human Services of the
Commonwealth.
"State Plan." The State Plan for LIHEAP prepared by the
department as required by section 2605(c) of the Low-Income Home
Energy Assistance Act of 1981 (Public Law 97-35, 42 U.S.C. §
8624(c)).
Section 3. Eligibility.
(a) Income verification.--The department shall verify the
income of LIHEAP applicants by requiring income documentation
from applicants. Utilities shall use department verification of
LIHEAP applicant approval as confirmation for enrollment
eligibility in a customer assistance program.
(b) Qualifications for LIHEAP.--A notice of termination to a
customer of a public utility shall be sufficient proof of a
crisis for a customer with the requisite income level to receive
a LIHEAP crisis grant from the department or its designee.
(c) Energy vendor participation.--As a condition of
receiving LIHEAP funds, all participating energy vendors must
provide eligible applicants budget billing over 12 months. If a
budget customer of a deliverable fuel vendor not regulated by
the Pennsylvania Public Utility Commission accepts LIHEAP funds
but fails to adhere to an existing vendor budget agreement, the
vendor may terminate the budget agreement and require
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predelivery payment for energy for the balance of the program
year. Participation by a deliverable fuel customer in a budget
or automatic delivery plan shall not disqualify the customer
from receiving LIHEAP crisis benefits. The department shall
require all participating energy vendors to establish an annual
outreach plan component for all prior year LIHEAP recipients to
receive current year LIHEAP application notification.
(d) Notice of eligibility.--The department shall work with
all participating energy vendors in verifying an applicant's
eligibility for any energy assistance, including customer
assistance programs and hardship funds.
(e) Nondiscrimination.--The department shall not
discriminate in any aspect of Federal LIHEAP funding resource
administration on the basis of energy type used as the primary
source of home heating. Households using regulated utility
services for home heating shall receive full and timely crisis
and cash grants in accordance with 66 Pa.C.S. § 1406 (relating
to termination of utility service).
Section 4. Allocation of funds.
(a) General rule.--The department shall implement the State
Plan to utilize available funds to assist eligible households to
meet the costs of home heating energy and shall make payments
only as specified in an approved State Plan or as otherwise
provided by law. The department shall not seek to alter energy
pricing of any fuel type nor attempt to negotiate or condition
participation of any energy vendor in the LIHEAP program based
on the vendor's energy pricing.
(b) Allocation.--The annual LIHEAP fiscal year projected
budget shall conform to Federal guidelines in effect at the time
and shall utilize allocated Federal funds as follows:
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(1) Adjustments within spending guideline maximums shall
be made as needed, but shall not exceed 100% of available
Federal funds in any fiscal year.
(2) Of the funds available to the Commonwealth, a
reasonable amount of crisis funds based on data from prior
years shall be reserved until May 31 of each program year by
the department for energy crisis intervention. The program
for which funds are reserved by this subsection shall be
administered by public or nonprofit entities which have
experience in administering energy crisis programs under the
Low-Income Home Energy Assistance Act of 1981 (Public Law 97-
35, 42 U.S.C. § 8621 et seq.), with experience in assisting
low-income individuals in the area to be served, the capacity
to undertake a timely and effective energy crisis
intervention program and the ability to carry out the program
in local communities. The program for which funds are
reserved under this subsection shall:
(i) No later than 48 hours after a household applies
for energy crisis benefits, provide some form of
assistance that will resolve the energy crisis if the
household is eligible to receive the benefits.
(ii) No later than 18 hours after a household
applies for crisis benefits, provide some form of
assistance that will resolve the energy crisis if the
household is eligible to receive the benefits and is in a
life-threatening situation.
(iii) Require each entity that administers the
program:
(A) To accept applications for energy crisis
benefits at sites that are geographically accessible
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to all households in the area to be served by the
entity.
(B) To provide to low-income individuals who are
physically infirm the means:
(I) to submit applications for energy crisis
benefits without leaving their residences; or
(II) to travel to the sites at which the
applications are accepted by the entity.
Section 5. Leveraged resources.
(a) Procedure.--The department shall utilize all programs
and resources to maximize Federal LIHEAP funding by establishing
a procedure for each plan year in accordance with the following:
(1) The department shall provide for certification of
the sources and amount of all resources that may be leveraged
from public and private sector records for the applicable
plan year and inclusion of the data in the State Plan.
(2) The department shall use all of the following in the
application for the incentive program for leveraging non-
Federal resources and request for approval of such for
additional leveraged Federal LIHEAP funding:
(i) Customer assistance program-related and recorded
resources in application.
(ii) Discounts or credits for monthly billing and
arrearage forgiveness provided through utilities'
customer assistance programs. Sources for leveraged
resources shall include reduced utility residential
tariff rates, utility operating funds, waived late
payment charges, security deposit fees and reconnection
fees which shall be documented by the Pennsylvania Public
Utility Commission as sources of leveraged resources.
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(iii) Cash grant assistance from any nongovernmental
source and utility credits for LIHEAP recipients to
assist in the payment of:
(A) Home heating costs.
(B) The repair of home heating equipment and/or
excavation costs to repair gas lines.
(C) Home weatherization materials and
installation.
(iv) The value of private nonutility-delivered fuel
vendor bulk fuel donations, as reported to the department
by private nonutility fuel vendors, hardship funds and
other social service agencies and utility company
resources.
(v) Community-based independent charitable
organization cash grants.
(vi) Donations or in-kind contributions provided by
rural electric cooperatives and independent charitable
organizations. The source of funds includes:
(A) Cooperative member and director
contributions.
(B) Electric cooperative matching funds.
(C) Funds from a federation of independent
charitable organizations.
(D) Heating system materials and supplies
donated by building and supply companies to LIHEAP
recipients.
(vii) Programs administered by municipalities that
provide home heating assistance to low-income households.
(viii) Any other resource not prohibited by Federal
law.
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(b) Allocation of grant funds.--Any leveraging incentive
grant award shall be used to maintain or increase benefits to
LIHEAP households.
Section 6. Public participation and legislative oversight.
In accordance with section 2605(b)(12) of the Low-Income Home
Energy Assistance Act of 1981 (Public Law 97-35, 42 U.S.C. §
8624(b)(12)), the department shall provide for timely public
participation in the development of a State Plan as follows:
(1) In accordance with section 2605(a)(2) of the Low-
Income Home Energy Assistance Act of 1981 (Public Law 97-35,
42 U.S.C. § 8624(a)(2)), public hearings on each fiscal year
LIHEAP proposed State Plan shall be held as scheduled by the
secretary, notice of which shall be transmitted to the
Legislative Reference Bureau for publication in the
Pennsylvania Bulletin in a timely manner.
(2) The following apply:
(i) A LIHEAP advisory committee shall advise the
secretary on the administration of the LIHEAP block
grant, including a review of the proposed plan and
recommendations on the final plan. The department shall
review and give deference to the information and
recommendations that are provided by the LIHEAP advisory
committee and that are not inconsistent with this act.
(ii) Members of the advisory committee shall be
appointed by the secretary and represent the following:
(A) Consumer and advocacy interests.
(B) Participating energy vendors.
(C) Other concerned citizens of this
Commonwealth.
(iii) In addition to the members provided for in
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subparagraph (ii), the advisory committee shall include:
(A) The chairperson and the minority chairperson
of the Consumer Protection and Professional Licensure
Committee of the Senate or their designees.
(B) The chairperson and the minority chairperson
of the Health and Human Services Committee of the
Senate or their designees.
(C) The chairperson and the minority chairperson
of the Consumer Affairs Committee of the House of
Representatives or their designees.
(D) The chairperson and the minority chairperson
of the Human Services Committee of the House of
Representatives or their designees.
(iv) One member shall serve as the chairperson of
the advisory committee. The position of chairperson shall
change annually and the same member shall not serve as
chairperson more than once in any four-year period. For
the purpose of selecting a chairperson, the position
shall revolve annually among representatives of the
consumer and advocacy interests, energy vendors,
concerned citizens and legislative members.
(3) Copies of the proposed State Plan, including a copy
of public comments received, shall be forwarded to the
chairperson and minority chairperson of the Consumer
Protection and Professional Licensure Committee of the
Senate, the chairperson and minority chairperson of the
Health and Human Services Committee of the Senate, the
chairperson and minority chairperson of the Consumer Affairs
Committee of the House of Representatives and the chairperson
and minority chairperson of the Human Services Committee of
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the House of Representatives for review and comment 60 days
prior to final plan submission to the United States
Department of Health and Human Services. Copies of the plan
shall be available for public review and comment at all
county assistance offices.
Section 7. Monitoring and audit.
(a) Monitoring.--In accordance with section 2605(b)(10) of
the Low-Income Home Energy Assistance Act of 1981 (Public Law
97-35, 42 U.S.C. § 8624(b)(10)), the department shall implement
fiscal control and fund accounting procedures to assure the
proper disbursement of funds, which include monitoring payments
and an annual audit of State Plan expenditures.
(b) Audit.--In accordance with section 2605(e) of the Low-
Income Home Energy Assistance Act of 1981 (Public Law 97-35, 42
U.S.C. § 8624(e)), the department shall submit annually to a
financial and compliance audit in accordance with the standards
of the Comptroller General of the United States. A copy of the
audit shall be submitted within 30 days after completion of the
audit to the Governor, the Secretary of the Senate and Chief
Clerk of the House of Representatives. The department shall make
the audit report available to the public on a timely basis.
(c) Department action.--If the department uncovers any
false, misleading or inaccurate statement by applicants,
participating energy vendors or State employees, the department
shall notify the State Inspector General or appropriate law
enforcement agency.
Section 8. Performance audit and allocation.
(a) Performance audit.--The Legislative Budget and Finance
Committee shall conduct a performance audit on the use of the
LIHEAP weatherization assistance program money for fiscal years
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July 1, 2018, through June 30, 2021, and submit to the General
Assembly a report based on the audit within one year of the
effective date of this act.
(b) Allocation.--Commencing with fiscal year 2022-2023, the
allocation of LIHEAP money appropriated to the Department of
Community and Economic Development for the weatherization
assistance program shall be based on the findings of the audit
performed under subsection (a). Any money allocated but not
utilized for the weatherization assistance program during the
program year shall be returned to the department and used for
LIHEAP assistance grants.
Section 9. Cooling assistance.
(a) Authorization.--As part of the State Plan, the
department shall incorporate a component within LIHEAP to
specifically provide cooling assistance for eligible customers
who seek financial resources to cover cooling expenses.
(b) Criteria.--The other provisions of this act, including
eligibility, the allocation of funds, leveraged resources,
public participation, legislative oversight, monitoring and
audit, shall govern the component described in subsection (a).
(c) Supplemental appropriation.--After consultation with
relevant Federal and State entities, the department shall
determine the amount of a supplemental appropriation necessary
to implement and administer this section.
Section 10. Effective date.
This act shall take effect immediately.
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