Senate File 2235 - Introduced SENATE FILE 2235 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 2125) A BILL FOR An Act requiring provision of deliverable fuels to customers 1 under specified circumstances, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5862SV (3) 83 rn/nh

S.F. 2235 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 between November 1 and 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 providing deliverable fuel to a 12 customer described in subsection 1, paragraph “a” , may apply the 13 customer’s cash payment as follows: 14 a. Seventy-five percent toward the current deliverable fuel 15 sale or delivery. 16 b. Twenty-five percent toward any unpaid balance. 17 3. A customer shall be responsible for the reasonable 18 cost of equipment safety checks conducted by a deliverable 19 fuel vendor, unless the customer is eligible for the federal 20 low-income home energy assistance program and the cost is paid 21 for with program funds. Equipment safety check payments shall 22 be in addition to, and shall not reduce, the cash payment 23 otherwise available for deliverable fuel sale or delivery 24 pursuant to subsection 1, paragraph “a” . A deliverable fuel 25 vendor conducting an equipment safety check shall inform 26 customers eligible for the low-income home energy assistance 27 program of the existence of programs and projects developed 28 by the Iowa propane education and research council to provide 29 assistance to persons eligible for the program, if applicable 30 based upon the results of the safety check. 31 4. An existing customer of a deliverable fuel vendor 32 with an unpaid balance owing to that vendor shall not obtain 33 deliverable fuel from another vendor pursuant to this section 34 unless and until a payment arrangement for paying off the 35 -1- LSB 5862SV (3) 83 rn/nh 1/ 4

S.F. 2235 unpaid balance has been entered into between the customer and 1 the deliverable fuel vendor. In the event the customer is 2 eligible for the federal low-income home energy assistance 3 program, the division shall offer assistance in facilitating 4 the payment arrangement. The division shall by rule establish 5 procedures regarding notification by deliverable fuel vendors 6 of payment arrangements in default. 7 5. A deliverable fuel vendor is not prohibited from 8 withholding the sale or delivery of deliverable fuel to a 9 customer who is eligible for the federal low-income home 10 energy assistance program and has received the maximum amount 11 of annual assistance pursuant to the program, and who cannot 12 otherwise document the ability to make a cash payment for 13 deliverable fuel pursuant to subsection 1, paragraph “a” . 14 6. The division shall adopt rules governing contracts and 15 agreements with deliverable fuel vendors pursuant to this 16 section in order to protect the rights of persons who heat 17 their homes with deliverable fuels. 18 7. For the purposes of this section, unless the context 19 otherwise requires: 20 a. “Customer” means an existing customer of a deliverable 21 fuel vendor or a prospective customer submitting an application 22 or otherwise applying for the purchase or delivery of 23 deliverable fuel. 24 b. “Deliverable fuel” means propane or any other heating 25 fuel sold or delivered in this state for home heating purposes. 26 c. “Deliverable fuel vendor” means a retail propane 27 dispenser, retail propane marketer, or a retail dispenser or 28 marketer of a deliverable fuel other than propane. 29 d. “Propane” , “retail propane dispenser” , and “retail propane 30 marketer” mean the same as defined in section 101C.2. 31 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 32 immediate importance, takes effect upon enactment. 33 EXPLANATION 34 This bill prohibits a deliverable fuel vendor from 35 -2- LSB 5862SV (3) 83 rn/nh 2/ 4

S.F. 2235 withholding the sale or delivery of deliverable fuel to an 1 existing or prospective customer between November 1 and April 1 2 annually if the customer meets one of two alternative criteria. 3 One criteria qualifies customers for delivery if they are 4 eligible for the federal low-income home energy assistance 5 program (LIHEAP). 6 The second criteria qualifies customers who can document 7 that they are able to make a cash payment for deliverable fuel 8 of $500. The bill provides that in the event an unpaid balance 9 by the customer exists, 75 percent of this cash payment may be 10 allocated by the deliverable fuel vendor toward the current 11 deliverable fuel sale or delivery, and that 25 percent may be 12 allocated toward the unpaid balance. 13 The bill provides that a customer shall be responsible for 14 the cost of equipment safety checks performed by a vendor, 15 either directly or through LIHEAP, and that if the customer 16 is not a LIHEAP recipient, the cost shall not reduce the $500 17 cash payment otherwise required for the purchase of deliverable 18 fuel. The bill requires vendors conducting equipment safety 19 checks to inform LIHEAP customers of assistance available 20 through programs and projects developed by the Iowa propane 21 education and research council, if indicated based on the 22 results of the safety check. 23 The bill requires a customer with an outstanding balance 24 owing to a vendor to work out a payment arrangement with that 25 vendor prior to obtaining deliverable fuel from another vendor, 26 and requires the division of community action agencies of the 27 department of human rights to assist LIHEAP customers in making 28 these arrangements. 29 The bill states that a vendor is not prohibited from 30 withholding a sale or delivery to a LIHEAP customer who has 31 received their maximum amount of annual assistance under the 32 program and who cannot document the ability to make the $500 33 cash payment. 34 The bill directs the division to adopt rules governing 35 -3- LSB 5862SV (3) 83 rn/nh 3/ 4

S.F. 2235 contracts and agreements with deliverable fuel vendors in order 1 to protect the rights of persons who heat their homes with 2 deliverable fuels. Definitions of “customer”, “deliverable 3 fuel”, “deliverable fuel vendor”, and “propane” are supplied. 4 The bill takes effect upon enactment. 5 -4- LSB 5862SV (3) 83 rn/nh 4/ 4