AN ACT Relating to low-income weatherization and energy assistance; adding a new chapter to Title 70 RCW; and providing an expiration date.

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

NEW SECTION. Sec. 1. The conservation of energy in all forms and by every possible means has been established as a public purpose of highest priority. The legislature finds and declares that 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 the 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 declared to be the public 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. Such weatherization and assistance complement existing low-income energy weatherization and assistance programs rather than supplant them. This 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.

(3) "Eligible" means that the eligibility criteria as determined by the department have been met.

(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. 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) "Household" means an individual or group of individuals living in a dwelling unit as defined by the department.

(9) "Low-income" means household income that is at or below one hundred twenty-five percent of the federally established poverty level as implemented by the department.

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

(11) "Residence" means a dwelling unit as defined by the department.

(12) "Residential space heating services" means the provision of fuel for residential space heating.

(13) "Single family housing" means housing structures that consist of one dwelling unit, and includes manufactured housing.

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

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

NEW SECTION. Sec. 3. The low-income energy assistance program in this chapter 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 low-income households and a grant component to assist eligible low-income households facing energy-related crises. The funding for the program shall be structured to increase gradually 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 has available to administer for each component. Relative funding levels shall be designed to ensure that the greatest possible number of residences are weatherized for the duration of the program.

NEW SECTION. Sec. 4. 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 who lease their residences may obtain weatherization assistance with priority given to multifamily housing of four or fewer units. The department shall adopt policies to ensure that: (1) The benefits of weatherization assistance in connection with leased residences accrues primarily to low-income tenants; (2) the rents on such residences are not raised because of any increase in their value due solely to weatherization assistance provided under this section; and (3) no undue or excessive enhancement occurs to the value of such residences.

NEW SECTION. Sec. 5. The grant assistance component shall provide crisis assistance to eligible households with priority given to those in health-threatening 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 adopt policies to 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.

NEW SECTION. Sec. 6. The department shall be flexible in establishing priorities for the low-income energy assistance program established under this chapter. The department shall adopt policies to promote coordination between this program and existing low-income energy assistance programs. The department may adopt rules to implement this chapter.

NEW SECTION. Sec. 7. (1) There is hereby levied and there shall be collected by the department of revenue from every person engaging within this state in the business of making sales at retail of fuels for space heating an assessment equal to the gross proceeds of the sales of the business, multiplied by the rate of fifty-six hundredths of one percent.

(2) In computing the assessment in subsection (1) of this section, there may be credited against the amount of the assessment amounts expended for low-income crisis assistance or low-income weatherization assistance, or both, provided to eligible households as defined in this chapter.

(3) There is hereby levied and there shall be collected by the department of revenue from every person engaged within this state in the businesses of light and power and gas distribution an assessment equal to the gross income of the business, multiplied by the rate of fifty-six hundredths of one percent.

(4) In computing the assessment in subsection (3) of this section, there may be credited against the amount of the assessment amounts expended for low-income crisis assistance or low-income weatherization assistance, or both, provided to eligible households as defined in this chapter.

NEW SECTION. Sec. 8. The provisions of chapters 82.04 and 82.32 RCW such as they apply are incorporated in this chapter except RCW 82.04.220 through 82.04.290 and 82.04.330.

NEW SECTION. Sec. 9. The low-income energy assistance account is hereby established in the custody of the state treasurer. The department shall deposit in the fund all moneys received from the assessment levied in section 7 of this act. Moneys in the fund may be spent only for low-income energy assistance. Disbursements from the fund shall be on authorization of the director of the department or the director's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

NEW SECTION. Sec. 10. 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. 11. This chapter shall expire June 30, 2001.

NEW SECTION. Sec. 12. Sections 1 through 11 of this act shall constitute a new chapter in Title 70 RCW.

NEW SECTION. Sec. 13. 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.