SB-1135, As Passed Senate, December 14, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1135

A bill to provide energy assistance for low-income households;

and to prescribe certain powers and duties of certain state

departments and agencies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"Michigan energy assistance act".

Sec. 2. As used in this act:

(a) "Crisis" means 1 of the following:

(i) An individual or recipient has received a past due notice

on an energy bill for his or her household.

(ii) A residential fuel tank is estimated to contain not more

than 25% of its heating fuel capacity.

(iii) A stated need for deliverable fuel or a nontraditional

fuel source in which there is no meter or regular energy bill

provided.

(iv) A notice that the balance in a prepayment account is below

a minimum amount.

(b) "Department" means the department of human services.

household income of not more than 150% of the federal poverty

guidelines.

(d) "Energy assistance" means a program to assist eligible

low-income households in meeting their home energy costs for their

primary residence through payment or partial payment of bills for 1

or more of the following:

(i) Electricity.

(ii) Natural gas.

(iii) Propane.

(iv) Heating oil.

(v) Any other deliverable fuel used to provide heat.

(e) "Federal poverty guidelines" means the poverty guidelines

published annually in the federal register by the United States

department of health and human services under its authority to

revise the poverty line under section 673(2) of subtitle B of title

VI of the omnibus budget reconciliation act of 1981, 42 USC 9902.

(f) "Funds" means a portion of the money received from the

federal low income home energy assistance program block grant that

is not used for the home heating credit, money received from the

low-income energy assistance fund, or any other money appropriated

for this program.

Senate Bill No. 1135 (H-3) as amended December 14, 2012

(g) "Program" means the Michigan energy assistance program

established in section 3.

Sec. 3. (1) [Subject to state appropriations, not] later than

October 1, 2013, the department

shall establish and administer the Michigan energy assistance

program statewide to provide energy assistance to eligible low-

income households.

(2) The department may use funds received from a federal

energy assistance program and any funds collected or appropriated

to fund the program. The department shall distribute the funds

described in this subsection for energy assistance and may use a

portion of the funds for necessary administrative expenses.

Necessary administrative expenses shall be calculated using an

established cost allocation methodology.

(3) Energy assistance must include services that will enable

participants to become or move toward becoming self-sufficient,

including assisting participants in paying their energy bills on

time, assisting participants in budgeting for and contributing to

their ability to provide for energy expenses, and assisting

participants in utilizing energy services to optimize on energy

efficiency. By October 1, 2014, each entity that carries out a

contract with the department under this section shall provide or

coordinate these services. The department shall attempt to

coordinate its efforts with the efforts of other state departments

or agencies to assist low-income households in becoming or moving

toward becoming self-sufficient.

(4) The department shall develop a simplified, single

application for all applicants to use to apply for energy

assistance under the program. The single application shall be made

available to all entities that contract with the department to

provide services under the program.

(5) Not later than December 1, 2014, and annually after that,

the department shall provide a report to the legislature, the

senate and house appropriations subcommittees on the department

budget, the senate and house committees on issues relating to

energy, and the senate and house fiscal agencies on how money from

the program created in this act was distributed.

Sec. 4. (1) The department shall only use money from the low-

income energy assistance fund for energy assistance.

(2) Money from the low-income energy assistance fund may be

used for the program's crisis season, which begins on November 1

and ends May 31 each year. Not more than 30% of the funds received

for the program shall be spent outside of the crisis season.

Sec. 5. (1) The department, in consultation with the Michigan

public service commission, may contract with different public or

private entities or local units of government to provide energy

assistance.

(2) The department shall include clear performance metrics in

any contract with an entity under this section.

(3) Except as provided in this subsection, an entity with

which the department contracts under subsection (1) shall use not

less than 92% of the funds received from the department for energy

assistance. An entity with which the department contracts under

subsection (1) may, upon approval from the department, use less

than 92% but not less than 90% of the funds received for the