AN ACT Relating to public assistance; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.16 RCW; creating a new chapter in Title 74 RCW; repealing RCW 74.38.070; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that conservation of energy in all forms and by every possible means has been established as a public purpose of highest priority. Weatherization of the residences of low-income persons is an important energy resource for citizens of the state. Investment in such weatherization benefits all citizens by reducing future need to obtain energy from more costly conventional energy resources and stimulates local economies. The legislature also finds that rising energy costs have made it difficult for low-income citizens of the state to afford adequate fuel for residential space heat. Weatherization of residences occupied by low-income customers is a long-term solution to this problem because it will lower their energy consumption, thereby making their space heat more affordable and lowering the debt incurred by fuel suppliers when low-income customers cannot pay fuel bills.

The legislature further finds that the loss of residential space heat, particularly during cold weather, may endanger health. Such crisis situations can be alleviated through grant assistance to help with low-income customers' residential space heating bills.

It is the policy of the state of Washington and a recognized governmental function to weatherize the residences of low-income persons and to assist low-income persons in the payment of residential space heat bills. It is the intent of this program to complement existing low-income energy assistance programs rather than supplant them. Such a public policy is both necessary to support the poor and infirm and also benefit the health, safety, and general welfare of all citizens of the state.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

(1) "Crisis" means weather-related and other household energy-related emergencies.

(2) "Department" means the department of community development or its successor agency.

(3) "Eligible" means a low-income household that is in need of energy assistance and satisfies eligibility criteria as determined by the department.

(4) "Energy assessment" means an analysis of a dwelling unit to determine the need for energy conservation measures that would be cost-effective as determined by the department.

(5) "Fuel" means electricity, natural gas, oil, coal, kerosene, butane, propane, and wood or wood products.

(6) "Grant" means financial assistance provided to eligible households for the purpose of meeting all or part of residential space heating bills. Notwithstanding any other provision of law, unless enacted in express limitation of this subsection, the amount of any grant assistance payments or allowances provided to an eligible household under this chapter shall not be considered income or resources of such household (or any member thereof) for any purpose under any federal or state law, including any law related to taxation, food stamps, public assistance, or welfare programs.

(7) "Grantee" means the local agency with which the department has entered into a contract to conduct an energy assistance program.

(8) "Low-income" means household income that is at or below the level determined by the department.

(9) "Multi-unit housing" means housing structures that contain more than one distinct dwelling unit.

(10) "Single family housing" means housing structures that consist of one dwelling unit, including manufactured housing.

(11) "Vendor" means a seller of fuel to be used for residential space heat.

(12) "Weatherization" means materials or measures that are designed to improve the thermal efficiency of a dwelling unit.

NEW SECTION. Sec. 3. (1) The low-income energy assistance program is designed to meet the need of eligible low-income households for assistance with residential space heat costs and the need of the state for low-cost energy resources. The program shall consist of a weatherization component that provides conservation measures for residences of eligible households and a grant component to assist eligible households facing energy-related crises. The funding for the program shall be structured to gradually increase the proportion of funds allocated to weatherization by decreasing the proportion allocated to grants. The proportional allocation of funds shall be determined by the maximum amount the department can administer for each component. Relative funding levels shall be designed to ensure that the greatest possible number of homes are weatherized during the life of the program.

(2) Weatherization assistance shall include an energy assessment of residences occupied by eligible low-income households unless an adequate energy assessment has already been conducted. The installation of weatherization measures that have been determined by the department to be cost-effective shall be provided. Eligible low-income households residing in leased dwelling units may obtain weatherization assistance with priority given to multifamily housing of four units or less. The department shall ensure that: (a) The benefits of weatherization assistance in connection with leased dwelling units accrues primarily to low-income tenants; (b) the rents on such dwelling units are not raised because of any increase in their value due solely to weatherization assistance provided under this subsection; and (c) no undue or excessive enhancement occurs to the value of such dwelling units.

(3) The grant assistance component shall provide crisis assistance to eligible households with priority given to those in health or life-threatening situations. The grant assistance component shall supplement the existing federally funded energy crisis intervention program. Unallocated funds shall be carried over to the following year for use in the weatherization component. The department shall ensure that grant assistance is used for the payment of residential space heating bills. The department shall inform grant assistance recipients of the availability and benefits of weatherization.

(4) The department may be flexible in establishing priorities for the low-income energy assistance program. The department shall promote coordination between this program and existing low-income energy assistance programs. The department may adopt rules to implement this chapter.

NEW SECTION. Sec. 4. The state treasurer shall create a special account in the general fund and designate it as the "low-income energy bills assistance account." The account shall receive moneys from the low-income energy bills assistance excise taxes levied in sections 8 and 9 of this act. The department shall withdraw funds from this account as necessary to carry out the duties specified in this chapter.

NEW SECTION. Sec. 5. In addition to the duties assigned elsewhere in this chapter, community action agencies and the department are authorized to accept and distribute grants and donations from governments, individuals, businesses, and community groups for assisting low-income persons with utility and other energy bills.

NEW SECTION. Sec. 6. The department may recover from any recipient the amount of assistance above that which the recipient is entitled to receive. If the recipient obtained the excessive assistance fraudulently, the recipient shall pay a penalty equal to twenty percent of the excessive assistance.

NEW SECTION. Sec. 7. Beginning in 1989 and at three-year intervals thereafter, the department shall report to the legislature the extent to which this program benefits low-income persons and the costs and benefits to other home heat customers.

NEW SECTION. Sec. 8. A new section is added to chapter 82.04 RCW to read as follows:

There is levied and there shall be collected a tax from every person engaging within this state in a business making retail sales of home heating fuels, except those taxed under chapter 82.16 RCW, an assessment equal to nine-tenths of one percent of the gross proceeds from sales or gross income of the business. All of the applicable provisions of chapter 82.32 RCW have full force and application with respect to taxes imposed under this section. Proceeds from this tax shall be deposited in the low-income energy bills assistance account established by the state treasurer. This section shall expire on July 1, 2001.

NEW SECTION. Sec. 9. A new section is added to chapter 82.16 RCW to read as follows:

There is levied and there shall be collected from every person a tax of five-tenths of one percent of gross income for the act or privilege of engaging within this state in the sale of light and power and gas distribution. The tax levied in this section on a person may be reduced by the total of any programs for low-income crisis intervention and low-income weatherization funded by that person. Proceeds from this tax shall be deposited in the low-income energy bills assistance account established by the state treasurer. This section shall expire on July 1, 2001.

NEW SECTION. Sec. 10. Sections 1 through 7 of this act shall constitute a new chapter in Title 74 RCW. This chapter shall expire July 1, 2001.

NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12. Section 1, chapter 116, Laws of 1979, section 1, chapter 160, Laws of 1980 and RCW 74.38.070 are each repealed.