Senate File 2004 - Introduced
SENATE FILE
BY HATCH
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to energy assistance including providing
2 supplemental funding for the low=income home energy assistance
3 program, providing for a household heating tax credit,
4 allocating unclaimed utility refunds, requiring low=income
5 customer rates by rate=regulated public utilities providing
6 gas or electric service, and providing an effective date.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. SUPPLEMENTAL APPROPRIATION == LOW=INCOME HOME
1 2 ENERGY ASSISTANCE. There is appropriated from the general
1 3 fund of the state to the division of community action agencies
1 4 of the department of human rights for the fiscal year
1 5 beginning July 1, 2005, and ending June 30, 2006, the
1 6 following amount, or so much thereof as is necessary, to be
1 7 used for the following purpose:
1 8 For supplementation of the low=income home energy
1 9 assistance appropriation made in 2005 Iowa Acts, chapter 164,
1 10 section 10, to be used to help eligible households meet home
1 11 energy costs in accordance with 2005 Iowa Acts, chapter 164,
1 12 section 10, subsection 4, and none of the following amount
1 13 shall be used for administrative expenses:
1 14 ................................................. $ 6,000,000
1 15 Sec. 2. NEW SECTION. 422.11M HOUSEHOLD HEATING TAX
1 16 CREDIT.
1 17 1. The taxes imposed under this division, less the credits
1 18 allowed under sections 422.12 and 422.12B, shall be reduced by
1 19 a household heating tax credit. A taxpayer with a taxable
1 20 household net income of less than fifty thousand dollars may
1 21 claim a household heating tax credit for costs paid by the
1 22 taxpayer for energy used to heat the taxpayer's primary
1 23 residence.
1 24 2. The department shall adopt rules to establish a sliding
1 25 scale for eligibility for the tax credit that may be claimed
1 26 under this section based on taxable net household income and
1 27 number of dependents. A tax credit claimed under this section
1 28 shall not be more than one hundred dollars per taxpayer per
1 29 taxable year. Not more than one taxpayer per household may
1 30 claim a tax credit under this section for heating costs paid
1 31 at the same residence without prior approval by the
1 32 department. If the department approves more than one taxpayer
1 33 per household as eligible for a tax credit pursuant to this
1 34 section, the total amount of tax credit that may be claimed by
1 35 all taxpayers of the household shall not be more than one
2 1 hundred dollars.
2 2 3. For purposes of this section, "household income" means
2 3 the same as in section 425.17.
2 4 Sec. 3. Section 473.11, subsection 1, paragraph f,
2 5 unnumbered paragraph 1, Code 2005, is amended to read as
2 6 follows:
2 7 The moneys deposited under section 473.16 in the general
2 8 fund of the state shall be used for research and development
2 9 of selected projects to improve Iowa's energy independence by
2 10 developing improved methods of energy efficiency, or by
2 11 increased development and use of Iowa's renewable
2 12 nonresource=depleting energy resources. The moneys credited
2 13 to the general fund of the state under section 556.18,
2 14 subsection 3, shall be used for means=tested energy
2 15 conservation and alternative energy resource projects and
2 16 energy crisis assistance as selected by the administrator of
2 17 the division of community action agencies of the department of
2 18 human rights. The projects shall be selected by the director
2 19 and administered by the department. Selection criteria for
2 20 funded projects shall include consideration of indirect
2 21 restitution to those persons in the state in the utility
2 22 customer classes and the utility service territories affected
2 23 by unclaimed utility refunds or deposits.
2 24 Sec. 4. Section 476.6, Code 2005, is amended by adding the
2 25 following new subsection:
2 26 NEW SUBSECTION. 23. RATES FOR LOW=INCOME PERSONS. The
2 27 board shall require each rate=regulated public utility
2 28 providing gas or electric service to offer reduced rates for
2 29 eligible low=income residential customers. Customer
2 30 eligibility for reduced rates shall be adopted by rule and
2 31 shall be similar to the eligibility requirements for the Iowa
2 32 affordable heating program under section 216A.103. The board
2 33 shall determine and provide a schedule of reduced rates for
2 34 each rate=regulated public utility after notice and a hearing
2 35 conducted as a contested case proceeding pursuant to chapter
3 1 17A.
3 2 Sec. 5. EFFECTIVE DATE. Section 1 of this Act, being
3 3 deemed of immediate importance, takes effect upon enactment.
3 4 EXPLANATION
3 5 This bill relates to the provision of energy assistance.
3 6 The bill provides for a supplementary appropriation to the
3 7 low=income home energy assistance program administered by the
3 8 division of community action agencies of the department of
3 9 human rights for the fiscal year beginning July 1, 2005, in
3 10 the amount of $6,000,000. The supplementary appropriation is
3 11 for energy cost assistance and not for administrative
3 12 expenses. This provision takes effect upon enactment.
3 13 The bill establishes a household heating tax credit. A
3 14 taxpayer with less than $50,000 annual taxable household
3 15 income may claim a tax credit from personal income taxes
3 16 imposed by Code chapter 422. The tax credit shall be for an
3 17 amount not more than $100 per taxpayer for the costs paid by
3 18 the taxpayer for energy used to heat the taxpayer's primary
3 19 residence. The department of revenue may give prior approval
3 20 for a tax credit to more than one taxpayer from a single
3 21 residence but the total tax credit for all taxpayers from a
3 22 single residence shall not exceed $100. The department is
3 23 required to establish a sliding scale for eligibility for the
3 24 tax credit based on taxable household net income.
3 25 The bill provides that unclaimed utility refunds shall be
3 26 used for means=tested energy conservation and energy crisis
3 27 assistance projects as selected by the administrator of the
3 28 division of community action agencies of the department of
3 29 human rights. Under current law, unclaimed utility refunds
3 30 may be used for energy conservation and alternative energy
3 31 resource projects as selected by the director of the
3 32 department of natural resources.
3 33 The bill provides that the Iowa utilities board of the
3 34 department of commerce shall require all rate=regulated public
3 35 utilities providing gas or electric service to offer reduced
4 1 rates to eligible low=income residential customers. The board
4 2 is required to adopt rules to establish customer eligibility
4 3 and to determine and provide a reduced rate schedule for each
4 4 rate=regulated public utility after notice and a hearing
4 5 conducted as a contested case proceeding pursuant to Code
4 6 chapter 17A. A "rate=regulated public utility providing gas
4 7 or electric service" does not include a utility providing
4 8 electric service to fewer than 10,000 customers, an electric
4 9 cooperative corporation or association, a municipally owned
4 10 utility, or a gas public utility with fewer than 2,000
4 11 customers.
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