HSB 308 (LSB 2941YC (1) 91)

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 program eligibility requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.
   1.  For purposes of this section, “electric utility” means any person, partnership, business association, or corporation, domestic or foreign, owning or operating any facilities that, for compensation, furnish electricity to the public in this state.
   2.  a.  The department of health and human services shall amend the department’s rules pursuant to chapter 17A to allow a household to be eligible for the low-income home energy assistance program if the household is described by all of the following:
   (1)  The household’s gross income is equal to or less than two hundred fifty percent of the federal poverty level applicable to the family size of the household.
   (2)  The household’s primary place of residence is located in an electric utility service territory in which between July 1, 2023, and July 1, 2025, the electric utility increased the rate for furnishing electricity.
   (3)  The household meets the non-income-based requirements for the low-income home energy assistance program.
   b.  A household’s eligibility for the low-income energy assistance program under paragraph “a” shall terminate four years from the date an electric utility increased the rate for furnishing electricity in the electric utility service area in which the household is located.
   3.  a.  The department of health and human services shall assess a fee on all electric utilities in an amount necessary to cover the increased cost of administering the low-income home energy assistance program due to more households being eligible for the program under subsection 2.
   b.  A nonprofit electric utility may assess a fee on all ratepayers who are not participating in the low-income home energy assistance program in an amount necessary to pay the cost of the fee assessed by the department of health and human services on the nonprofit electric utility under paragraph “a”, but shall not assess such a fee on a ratepayer participating in the program.
   c.  A for-profit electric utility shall not assess a fee on any ratepayer to pay for the cost of the fee assessed by the department of health and human services on the for-profit electric utility under paragraph “a”.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the low-income home energy assistance program (LIHEAP) eligibility requirements.
   LIHEAP is a federally funded program designed to help low-income households pay for home heating and cooling costs by providing financial assistance to cover a portion of their energy bills, particularly during crisis situations such as potential utility disconnections. LIHEAP eligibility is based in part on household income. Current income-based eligibility requires a household to have gross income equal to or less than 150 percent of the federal poverty level applicable to the family size of the household (FPL), or equal to or less than 60 percent of the state median income, whichever is lower.
   The bill defines “electric utility” as any person, partnership, business association, or corporation, domestic or foreign, owning or operating any facilities for furnishing, for compensation, electricity to the public in this state.
   The bill requires the department of health and human services (HHS) to amend its rules so that a household is eligible for LIHEAP if the household’s gross income is equal to or less than 250 percent of the FPL, the household resides in an electric utility service territory that increased the rate for furnishing electricity between July 1, 2023, and July 1, 2025, and the household meets non-income-based requirements for LIHEAP. A household’s eligibility for LIHEAP under the bill terminates four years from the date an electric utility increased the rate for furnishing electricity in the electric utility service area in which the household is located. The bill requires HHS to assess a fee on electric utilities in an amount necessary to cover the increased costs to implement LIHEAP due to increased LIHEAP eligibility. A nonprofit electric utility (NEU) may assess a fee on ratepayers who are not participating in LIHEAP to pay for the cost of the fee HHS assesses on the NEU, but shall not assess such a fee on a ratepayer participating in the program. A for-profit electric utility shall not assess a fee on any ratepayer to pay for the cost of the fee HHS assesses on the for-profit electric utility.