H.R. 2486 — Heating and Cooling Relief Act

This section states congressional findings that low-income households face energy burdens three times higher than non-low-income households (approximately 9% vs. 3% of income), with 1 in 4 spending more than 15% of income on energy and 54% of households under $35,000 reducing necessities like medicine or food to pay bills in the prior year. The section further finds that the Low-Income Home Energy Assistance Program (LIHEAP)—which provides heating and cooling assistance to eligible households—reached only 18% of income-eligible households in 2023, with less than 3% receiving cooling aid despite climate-driven increases in extreme weather (e.g., 135% rise in billion-dollar winter disasters over two decades, heat waves 46 days longer); utility arrears have reached $21 billion affecting 21 million electric and 15 million gas households (nearly 1 in 7); many states lack shutoff protections (10 with no winter protections, 29 with no summer); energy shutoffs contribute to homelessness; and the federal government should expand LIHEAP for greater funding, cooling assistance, outreach, presumed eligibility, and weatherization.

This section revises the authorization of appropriations for the Low-Income Home Energy Assistance Program (LIHEAP)—which provides formula grants to states to help low-income households, particularly those with the lowest incomes and highest energy costs, meet immediate home energy needs—by (1) replacing specified annual amounts through FY2007 (previously up to $5.1 billion) with indefinite authority for such sums as necessary, including to assist all eligible households and to implement specified home energy affordability measures, and updating the list of excluded programs; (2) increasing the emergency fund authorization to $2 billion for FY2026 and $2 billion plus additional sums as necessary for each fiscal year thereafter (from $600 million annually), expanding eligibility to emergencies arising from major disasters; and (3) authorizing $1 billion for FY2026 and $1 billion plus additional sums as necessary for each fiscal year thereafter to carry out section 2607C (i.e., grants under that section).

This section adds definitions to the Low-Income Home Energy Assistance Program (LIHEAP), which assists eligible low-income households with heating and cooling costs, as follows: (1) “extreme heat” and “extreme cold,” meaning a period with increased risk of heat- or cold-related illness, hospitalization, death, or home cooling or heating failures or shutoffs; (2) “HEAP coordinator,” meaning an employee administering a LIHEAP program funded under section 2602(b) whose salary is paid partly or wholly with such funds; (3) “local coordinating agency,” meaning a local organization or office receiving LIHEAP funds under section 2602(b) for customer intake or benefit approval on behalf of the state agency; and (4) “State agency,” meaning a state agency administering the LIHEAP program funded under section 2602(b); and redesignates certain existing paragraphs accordingly.

This section revises the Low-Income Home Energy Assistance Program (LIHEAP), which provides formula grants to states, tribes, and territories to assist low-income households with heating and cooling costs, as follows: (1) updates a cross-reference in subsection (a)(1)(B) from section 2605(b)(9)(B) to section 2605(b)(10)(B); and (2) in subsection (e), defines covered households as LIHEAP-eligible households in areas affected by a natural disaster, emergency, or major disaster—including Stafford Act major disasters or emergencies (42 U.S.C. 5170, 5191), public health emergencies under section 319 of the Public Health Service Act (42 U.S.C. 247d), or periods of extreme heat or extreme cold as determined by the Secretary of Health and Human Services. It further directs the Secretary and FEMA Administrator, to the extent practicable, to provide heating or cooling assistance through LIHEAP allotments to states for covered households upon such a declaration or determination; and requires states to assure that (A) households receiving one type of assistance (heating or cooling) in a calendar year remain eligible for the other type, (B) no medical need certification is required for eligibility, and (C) funds may be used for energy-efficient air conditioners and other home cooling equipment allowable under LIHEAP.

This section revises eligibility and certification requirements under the Low-Income Home Energy Assistance Program (LIHEAP), which provides federal grants to states for assistance to low-income households with home energy costs, including heating, cooling, crisis intervention, and weatherization. Specifically, it (1) increases maximum household income eligibility to the greater of 250% of the poverty level or 80% of state median income (from 150% poverty level or 60% state median income); (2) requires states to prioritize assistance to households with the lowest incomes and highest energy costs and home energy burdens (changing "may give" priority to "shall give"); (3) prohibits states from excluding households from eligibility based on citizenship or immigration status of household members and from requiring proof of citizenship; (4) directs the Department of Health and Human Services (HHS), to the extent practicable, to work with states to implement affordability measures ensuring no eligible household spends more than 3% of household income on home energy (prioritizing the lowest-income households) using LIHEAP formula funds supplemented by state-level programs; (5) requires states to certify use of data-sharing agreements with SNAP, Medicaid, and SSI for eligibility verification; simplified re-enrollment for fixed-income or pre-qualified households; no citizenship proof; and self-attestation where other processes do not apply; and (6) specifies that LIHEAP assistance is not a federal public benefit under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (thus preserving eligibility for immigrants subject to public charge rules). (Thus, these changes expand access for higher-income and mixed-status households, streamline administration, and target energy affordability.)

This section revises conditions for states to receive grants under the Low-Income Home Energy Assistance Program (LIHEAP)—which assists low-income households with heating, cooling, and other energy costs—by (1) requiring, in weatherization assistance funded under LIHEAP, the use of toxics-free materials without asthmagens or respiratory sensitizers and prioritizing, to the greatest extent practicable, emergency home repairs that promote energy efficiency, decarbonization, climate resilience, and beneficial electrification of heating and cooling; (2) requiring home energy suppliers receiving LIHEAP funds to (A) waive late fees for payments by assisted households during the 6 months before and after receiving funds and refund any such fees within 7 days of receipt, (B) not shut off service to assisted households for 2 years after assistance, (C) share data on nonpaying households and include LIHEAP information in late payment notices, and (D) offer, within 2 years of enactment and in partnership with the state, a low-income energy affordability payment program; (3) increasing from 10% to 15% the portion of LIHEAP funds a state may use for planning and administration, with the additional 5% required to expand LIHEAP to year-round operation, and directing states to implement online applications within 5 years of enactment, pay LIHEAP coordinators at least $15 per hour (or applicable minimum wage), provide training and outreach (including to certain utilities and for autoenrollment), and partner with schools to boost enrollment among high energy-burden families with children; (4) requiring state LIHEAP plans to describe year-round expansion efforts; and (5) directing the Secretary of Health and Human Services to minimize administrative burdens for households, study shutoff and late fee rates among eligible households, provide technical assistance for supplier partnerships, and issue guidance on school-based outreach and administrative uses of funds.

This section revises permissible uses of Low-Income Home Energy Assistance Program (LIHEAP) funds for low-cost residential weatherization and other energy-related home repair by (1) increasing the maximum amount a state may reserve for such purposes to 25% (from 15%); and (2) increasing to the greater of 35% (from 25%) the portion of those funds that a state must use for energy-related home repair, which—to the extent practicable—must reduce dependence on fossil fuel energy sources, facilitate eligible households' participation in community solar programs or access to distributed renewable energy infrastructure using funds available under LIHEAP leveraging authority, and prioritize replacement of fossil fuel appliances with renewable-powered electric heating or cooling alternatives. (Thus, the changes promote LIHEAP-funded electrification and renewable energy adoption among low-income households eligible for weatherization assistance.)

This section establishes data collection, reporting, and guidance requirements relating to home energy payment arrears for eligible households under the Low-Income Home Energy Assistance Program (LIHEAP), which provides formula grants to states to assist low-income households (generally those at or below 150% of the poverty level or 60% of state median income, or receiving certain public benefits) with home heating and cooling costs, energy crisis intervention, and weatherization. Specifically, the section directs the Secretary of Health and Human Services, in consultation with the Secretary of Energy, to (1) develop a standardized template for states and home energy suppliers to track and report arrears data—including a definition of arrears as nonpayment for 60 to 90 days (as determined by state or local agencies unless otherwise specified by state law), plus metrics on disconnections, late fees, reconnections, and balances—that aligns with existing federal and state reporting; (2) issue guidance within one year of enactment on best practices for states to use LIHEAP funds to pay arrears (including at the time of assistance disbursement) and prohibiting suppliers from recovering such costs through rate increases or charges that disproportionately affect low-income households; (3) to the extent practicable, implement a joint data tracking system for aggregate arrears and energy burden data with recommendations for LIHEAP grantees and issue guidance for suppliers on addressing arrears; (4) provide grants to states for implementation; and (5) authorize such sums as necessary for these purposes.

This section renames the Low-Income Home Energy Assistance Program (LIHEAP)—which provides federal grants to states to assist eligible households with home heating, cooling, and other energy costs—as the Home Energy Assistance Program by striking "low-income" from the statutory definition of leveraged resources (42 U.S.C. 8626a(b)) and a related provision and deeming references in other federal laws to refer to the new name.

This section establishes a joint grant program between the Secretary of Health and Human Services and the Secretary of Energy to provide three-year grants to states and local governments for developing and implementing interagency plans to reduce energy burdens for low-income households with high home energy use under the Low-Income Home Energy Assistance Program (LIHEAP). The plans must support a just transition from fossil fuels and protect households from climate change threats. In awarding grants, the Secretaries must prioritize applicants with coordination systems that (1) identify LIHEAP recipients with high energy use; (2) prioritize those with the highest energy burdens and lowest incomes for decarbonizing emergency repairs, weatherization, and retrofits, consistent with LIHEAP priority rules in 42 U.S.C. 8624(b)(2)-(3); and (3) partner with workforce development initiatives, unions, or minority- or women-owned businesses for such assistance. At the end of the three-year period, the Secretaries must evaluate the program and report results and policy recommendations to Congress.

This section makes conforming amendments to the Low-Income Home Energy Assistance Act of 1981 (1) in the Residential Energy Assistance Challenge (R.E.A.Ch.) program provisions by revising the cross-reference in 42 U.S.C. 8626b(e)(2)(K) to specified paragraphs of section 2605(b) (uses of funds) from paragraphs (2), (3), (4), (5), (7), (9), (10), (11), (12), (13), and (14) to paragraphs (2), (4), (5), (6), (8), (10), (11), (12), (13), (14), and (15); and (2) in reporting requirements by revising the cross-reference in 42 U.S.C. 8629(b)(1) from clauses (2), (5), (8), and (15) to paragraphs (2), (6), (9), and (16) of section 2605(b).