H.F. 2475 Section 1. NEW SECTION . 216A.105 Deliverable fuels —— 1 mandatory delivery —— qualifications. 2 1. A deliverable fuel vendor engaged in the business of 3 providing deliverable fuel to customers in this state shall 4 not withhold the sale or delivery of deliverable fuel to a 5 customer from November 1 through April 1 annually if either of 6 the following apply: 7 a. The customer documents that they are able to make a cash 8 payment for deliverable fuel of five hundred dollars. 9 b. The customer is eligible for the federal low-income home 10 energy assistance program. 11 2. A deliverable fuel vendor is not prohibited from 12 withholding the sale or delivery of deliverable fuel to a 13 customer who is eligible for the federal low-income home 14 energy assistance program and has received the maximum amount 15 of annual assistance pursuant to the program, and who cannot 16 otherwise document the ability to make a cash payment for 17 deliverable fuel pursuant to subsection 1, paragraph “a” . 18 3. A deliverable fuel vendor providing deliverable fuel to a 19 customer described in subsection 1, paragraph “a” , may apply the 20 customer’s cash payment as follows: 21 a. Seventy-five percent toward the current deliverable fuel 22 sale or delivery. 23 b. Twenty-five percent toward any unpaid balance. 24 4. A customer shall be responsible for the reasonable 25 cost of equipment safety checks conducted by a deliverable 26 fuel vendor, unless the customer is eligible for the federal 27 low-income home energy assistance program and the cost is paid 28 for with program funds. Equipment safety check payments shall 29 be in addition to, and shall not reduce, the cash payment 30 otherwise available for deliverable fuel sale or delivery 31 pursuant to subsection 1, paragraph “a” . A deliverable fuel 32 vendor conducting an equipment safety check shall inform 33 customers eligible for the low-income home energy assistance 34 program of the existence of programs and projects developed 35 -1- LSB 5862HV (4) 83 rn/nh 1/ 4

H.F. 2475 by the Iowa propane education and research council to provide 1 assistance to persons eligible for the program, if applicable 2 based upon the results of the safety check. 3 5. a. An existing customer of a deliverable fuel vendor 4 with an unpaid balance owing to that vendor shall not obtain 5 deliverable fuel from another vendor pursuant to this section 6 unless and until a reasonable payment arrangement for paying 7 off the unpaid balance has been entered into between the 8 customer and the deliverable fuel vendor. In the event the 9 customer is eligible for the federal low-income home energy 10 assistance program, the division shall offer assistance in 11 facilitating the payment arrangement. The division shall by 12 rule establish procedures regarding payment arrangements. 13 b. For the purposes of this subsection, a “reasonable 14 payment arrangement” means a payment arrangement or agreement 15 determined by considering the current household income, ability 16 to pay, payment history including prior defaults on similar 17 arrangements or agreements, the size of the bill, the amount 18 of time and the reasons why the bill has been outstanding, and 19 any special circumstances creating extreme hardships within 20 the household, either based upon information submitted by the 21 customer or subject to confirmation by an acknowledgment from 22 the department of human services or another agency. 23 6. The division shall adopt rules governing contracts and 24 agreements with deliverable fuel vendors pursuant to this 25 section in order to protect the rights of persons who heat 26 their homes with deliverable fuels. 27 7. For the purposes of this section, unless the context 28 otherwise requires: 29 a. “Customer” means an existing customer of a deliverable 30 fuel vendor or a prospective customer submitting an application 31 or otherwise applying for the purchase or delivery of 32 deliverable fuel. 33 b. “Deliverable fuel” means propane or any other heating 34 fuel sold or delivered in this state for home heating purposes. 35 -2- LSB 5862HV (4) 83 rn/nh 2/ 4

H.F. 2475 c. “Deliverable fuel vendor” means a retail propane 1 dispenser, retail propane marketer, or a retail dispenser or 2 marketer of a deliverable fuel other than propane. 3 d. “Propane” , “retail propane dispenser” , and “retail propane 4 marketer” mean the same as defined in section 101C.2. 5 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 6 immediate importance, takes effect upon enactment. 7 EXPLANATION 8 This bill prohibits a deliverable fuel vendor from 9 withholding the sale or delivery of deliverable fuel to 10 existing and prospective customers from November 1 through 11 April 1 annually if the customer meets one of two alternative 12 criteria. 13 One criteria qualifies customers for delivery if they are 14 eligible for the federal low-income home energy assistance 15 program (LIHEAP). 16 The second criteria qualifies customers who can document 17 that they are able to make a cash payment for deliverable fuel 18 of $500. The bill provides that in the event an unpaid balance 19 by the customer exists, 75 percent of this cash payment may be 20 allocated by the vendor toward the current deliverable fuel 21 sale or delivery, and that 25 percent may be allocated toward 22 the unpaid balance. 23 The bill provides that a vendor is not prohibited from 24 withholding a sale or delivery to a LIHEAP customer who has 25 received the maximum amount of annual assistance pursuant to 26 the program, and who cannot otherwise document the ability to 27 make the $500 cash payment. 28 The bill requires customers to pay for the reasonable cost of 29 equipment safety checks conducted by vendors, unless the check 30 is paid for with LIHEAP funds, and that equipment safety check 31 payments shall be in addition to and shall not reduce the $500 32 cash payment otherwise required for a deliverable fuel payment. 33 Vendors conducting the checks are required to inform LIHEAP 34 customers of assistance available through programs and projects 35 -3- LSB 5862HV (4) 83 rn/nh 3/ 4

H.F. 2475 developed by the Iowa propane education and research council, 1 if applicable. 2 The bill prevents an existing customer owing an unpaid 3 balance to a vendor to obtain deliverable fuel from another 4 vendor unless and until a reasonable payment arrangement, as 5 defined in the bill, for paying off the unpaid balance has 6 been entered into between the customer and the vendor. The 7 bill directs the division of community action agencies of 8 the department of human rights to assist LIHEAP customers in 9 facilitating the arrangements, and to establish procedures by 10 rule regarding such arrangements. 11 The bill also directs the division to adopt rules governing 12 contracts and agreements with vendors in order to protect the 13 rights of persons who heat their homes with deliverable fuels. 14 Definitions of “customer”, “deliverable fuel”, “deliverable 15 fuel vendor”, and “propane” are supplied. 16 The bill takes effect upon enactment. 17 -4- LSB 5862HV (4) 83 rn/nh 4/ 4