The bill establishes a new Percentage of Income Payment Plan (PIPP) program to be administered by the Iowa Department of Health and Human Services (HHS). This program is designed for individuals who qualify for the Low-Income Home Energy Assistance Program (LIHEAP), although those enrolled in PIPP will not receive LIHEAP benefits. Under the program, utility companies must halt collection of unpaid balances for individuals enrolled in PIPP, and no interest will accrue on these balances. Upon discharge from the program, any remaining arreared amounts will become immediately due.

HHS is tasked with developing a payment plan based on the individual's annual gross income, requiring them to pay a percentage of their gross monthly income towards their electric and gas utility bills. This percentage will not exceed $100 or 6% of their gross monthly income, and will not be less than $5 or 2.4% of their gross monthly income. Additionally, when HHS receives a payment from an individual, it will cover the remaining balance of their utility bills for that month and apply the payment towards the individual's arreared amount. The bill also mandates that individuals must apply for reenrollment in the program within one year of their previous approval, and HHS is required to adopt rules for administering the program, including discharge standards and graduated payment scales.