House Study Bill 308 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to the low-income home energy assistance 1 program eligibility requirements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2941YC (1) 91 dg/ko

H.F. _____ Section 1. DEPARTMENT OF HEALTH AND HUMAN SERVICES —— 1 LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM. 2 1. For purposes of this section, “electric utility” means 3 any person, partnership, business association, or corporation, 4 domestic or foreign, owning or operating any facilities that, 5 for compensation, furnish electricity to the public in this 6 state. 7 2. a. The department of health and human services shall 8 amend the department’s rules pursuant to chapter 17A to allow 9 a household to be eligible for the low-income home energy 10 assistance program if the household is described by all of the 11 following: 12 (1) The household’s gross income is equal to or less 13 than two hundred fifty percent of the federal poverty level 14 applicable to the family size of the household. 15 (2) The household’s primary place of residence is located in 16 an electric utility service territory in which between July 1, 17 2023, and July 1, 2025, the electric utility increased the rate 18 for furnishing electricity. 19 (3) The household meets the non-income-based requirements 20 for the low-income home energy assistance program. 21 b. A household’s eligibility for the low-income energy 22 assistance program under paragraph “a” shall terminate four 23 years from the date an electric utility increased the rate for 24 furnishing electricity in the electric utility service area in 25 which the household is located. 26 3. a. The department of health and human services shall 27 assess a fee on all electric utilities in an amount necessary 28 to cover the increased cost of administering the low-income 29 home energy assistance program due to more households being 30 eligible for the program under subsection 2. 31 b. A nonprofit electric utility may assess a fee on all 32 ratepayers who are not participating in the low-income home 33 energy assistance program in an amount necessary to pay the 34 cost of the fee assessed by the department of health and human 35 -1- LSB 2941YC (1) 91 dg/ko 1/ 3

H.F. _____ services on the nonprofit electric utility under paragraph “a”, 1 but shall not assess such a fee on a ratepayer participating 2 in the program. 3 c. A for-profit electric utility shall not assess a fee 4 on any ratepayer to pay for the cost of the fee assessed by 5 the department of health and human services on the for-profit 6 electric utility under paragraph “a”. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to the low-income home energy assistance 11 program (LIHEAP) eligibility requirements. 12 LIHEAP is a federally funded program designed to help 13 low-income households pay for home heating and cooling costs 14 by providing financial assistance to cover a portion of their 15 energy bills, particularly during crisis situations such as 16 potential utility disconnections. LIHEAP eligibility is based 17 in part on household income. Current income-based eligibility 18 requires a household to have gross income equal to or less than 19 150 percent of the federal poverty level applicable to the 20 family size of the household (FPL), or equal to or less than 60 21 percent of the state median income, whichever is lower. 22 The bill defines “electric utility” as any person, 23 partnership, business association, or corporation, domestic or 24 foreign, owning or operating any facilities for furnishing, for 25 compensation, electricity to the public in this state. 26 The bill requires the department of health and human 27 services (HHS) to amend its rules so that a household is 28 eligible for LIHEAP if the household’s gross income is equal 29 to or less than 250 percent of the FPL, the household resides 30 in an electric utility service territory that increased the 31 rate for furnishing electricity between July 1, 2023, and July 32 1, 2025, and the household meets non-income-based requirements 33 for LIHEAP. A household’s eligibility for LIHEAP under the 34 bill terminates four years from the date an electric utility 35 -2- LSB 2941YC (1) 91 dg/ko 2/ 3

H.F. _____ increased the rate for furnishing electricity in the electric 1 utility service area in which the household is located. The 2 bill requires HHS to assess a fee on electric utilities in an 3 amount necessary to cover the increased costs to implement 4 LIHEAP due to increased LIHEAP eligibility. A nonprofit 5 electric utility (NEU) may assess a fee on ratepayers who are 6 not participating in LIHEAP to pay for the cost of the fee 7 HHS assesses on the NEU, but shall not assess such a fee on a 8 ratepayer participating in the program. A for-profit electric 9 utility shall not assess a fee on any ratepayer to pay for 10 the cost of the fee HHS assesses on the for-profit electric 11 utility. 12 -3- LSB 2941YC (1) 91 dg/ko 3/ 3