S. 1214 — Heating and Cooling Relief Act

This section states congressional findings on unaffordable home energy costs for low-income households (e.g., energy burdens three times higher than non-low-income households at approximately 3% of income, with 1 in 4 low-income households spending over 15% and 54% of households under $35,000 income forgoing necessities such as medicine or food to pay energy bills). The section further finds that the Low-Income Home Energy Assistance Program (LIHEAP) reaches only 18% of income-eligible households and less than 3% for cooling assistance (with 7% of funding for cooling needs); climate change has increased billion-dollar winter disasters by 135% (from 31 events in 1985-2004 to 73 in 2005-2024), extended heat wave seasons by 46 days since the 1960s, and raised heat-related deaths over 16% per year since 2016; residential utility arrears exceed $21 billion as of September 2024 (affecting over 21 million electric and 15 million natural gas households, or 1 in 7 households); shutoffs contribute to homelessness and evictions, with 10 states lacking winter protections and 29 lacking summer protections; and the federal government should expand LIHEAP to prevent shutoffs, enhance cooling assistance with renewables, improve outreach and eligibility, and support 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, especially those spending a high share of income on home energy, meet immediate energy needs—as follows: (1) replaces the prior specified amounts ($2 billion annually for FY1995-FY1999, such sums as necessary for FY2000-FY2001, and $5.1 billion annually for FY2005-FY2007) with such sums as may be necessary indefinitely to assist all eligible households and implement state home energy affordability measures (e.g., those under new section 2605(b)(3)); (2) increases the annual emergency funding authorization from $600 million to $2 billion for FY2026 and $2 billion plus such additional sums as necessary for each fiscal year thereafter (in addition to regular formula funds), expands eligible emergencies to include major disasters as defined in section 2604(e)(1), and removes the prior requirement for a presidential budget request; and (3) adds a new authorization of $1 billion for FY2026 and $1 billion plus such additional sums as necessary for each fiscal year thereafter to carry out section 2607C (i.e., grants related to program activities).

This section establishes definitions under the Low-Income Home Energy Assistance Program (LIHEAP)—which provides federal grants to states, tribes, and other entities to help low-income households meet home heating and cooling needs—for the following terms: (1) “extreme heat” and “extreme cold” (i.e., a period with increased risk of heat- or cold-related illness, hospitalization, or death, or of home cooling or heating failures or shutoffs); (2) “HEAP coordinator” (i.e., 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” (i.e., a local organization or office receiving LIHEAP funds under section 2602(b) to perform customer intake or approve benefits on behalf of the state agency); and (4) “State agency” (i.e., a state agency administering the LIHEAP program funded under section 2602(b)).

This section amends the emergency assistance provisions of 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—by (1) updating a cross-reference in subsection (a)(1)(B) from section 2605(b)(9)(B) to section 2605(b)(10)(B); and (2) revising subsection (e) to define "covered household" as an eligible LIHEAP household in an area affected by a natural disaster, emergency, or major disaster, and to define "major disaster" to include (i) major disasters or emergencies declared under the Stafford Act (42 U.S.C. 5170, 5191), (ii) public health emergencies declared under section 319 of the Public Health Service Act (42 U.S.C. 247d), or (iii) periods of extreme heat or extreme cold as determined by the Secretary of Health and Human Services. It further directs the Secretary and the Federal Emergency Management Agency Administrator, upon such a declaration or determination, to provide heating or cooling assistance through LIHEAP allotments to states for covered households to the extent practicable (updating prior references from "natural disaster or other emergency" to "natural disaster, emergency, or major disaster"); and requires states to assure that they will not preclude households from receiving both heating and cooling assistance in the same calendar year, will not require a medical need certification for eligibility, and will allow funds for energy-efficient air conditioners and other home cooling equipment.

This section revises eligibility, certification, and administrative requirements for the Low-Income Home Energy Assistance Program (LIHEAP), which provides federal grants to states to assist low-income households (1) by expanding income eligibility for households not receiving specified benefits to the greater of 250 percent of the poverty level or 80 percent of state median income (from 150 percent of poverty or 60 percent of state median income); (2) by prohibiting states from excluding households from eligibility based on the citizenship of one or more members and requiring states to prioritize households with the highest home energy burden, lowest incomes, and highest rates of energy disconnection (changing "may give" to "shall give" such priority); (3) by directing the Department of Health and Human Services, to the extent practicable, to work with states to ensure no LIHEAP-eligible household has home energy expenditures exceeding 3 percent of household income, prioritizing the lowest-income households; (4) by requiring states to certify use of data-sharing agreements with programs such as SNAP, Medicaid, and SSI for eligibility verification; simplified re-enrollment for fixed-income or pre-eligible households; no requirement for proof of citizenship; and self-attestation of eligibility when other processes do not apply; and (5) by clarifying that LIHEAP assistance is not a federal public benefit under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 for immigration purposes.

This section amends conditions for states to receive funding under the Low-Income Home Energy Assistance Program (LIHEAP)—which assists eligible low-income households with heating, cooling, and other energy costs—as follows: (1) in subsection (b)(1)(C), requires weatherization and repair activities to use toxics-free materials without asthmagens or respiratory sensitizers and prioritizes, to the greatest extent practicable, emergency home repairs fostering energy efficiency, decarbonization, climate resilience, and beneficial electrification; (2) in subsection (b)(8), adds vendor assurances that, in exchange for program funds, home energy suppliers must waive late fees for 12 months surrounding assistance payments (6 months before and after), refund any such fees within 7 days, prohibit shutoffs for two years post-assistance, share data on nonpaying households for outreach, include program information in late payment notices, and offer a low-income energy affordability payment program via state partnership within two years of enactment; (3) in subsection (b)(10), increases the share of funds for state planning and administration to 15 percent (from 10 percent), requires the excess over 10 percent to expand LIHEAP to year-round operations, and directs specified uses including online application capability within five years of enactment, coordinator wages at not less than $15 per hour (or applicable minimum wage), training, targeted outreach, and autoenrollment of eligible households; (4) in subsection (c)(1), adds a state plan assurance describing year-round LIHEAP expansion efforts; and (5) adds subsections (m) through (p) directing the Secretary of Health and Human Services to minimize administrative burdens, study shutoff and late fee rates among eligible households, provide technical assistance for vendor-state partnerships, and issue guidance on school-based outreach to boost enrollment among high energy-burden families with children.

This section increases the maximum amount of Low-Income Home Energy Assistance Program (LIHEAP) funds a state may use for low-cost residential weatherization and other cost-effective energy-related home repair to 25% (from 15%). The section further revises requirements for an additional portion of LIHEAP funds by (1) increasing such portion to the greater of 35% (from 25%); and (2) directing states, to the extent practicable, to prioritize using that portion for energy-related home repairs that reduce dependence on fossil fuel energy sources—such as replacing fossil fuel appliances with renewable-powered electric heating or cooling technology—and to facilitate eligible households' participation in community solar programs or access to distributed renewable energy infrastructure using LIHEAP leveraging funds.

This section establishes data collection, reporting, guidance, and grant requirements related to home energy payment arrears for the Low-Income Home Energy Assistance Program (LIHEAP), which provides formula grants to states to assist eligible low-income households (generally those at or below 150% of the poverty level or 60% of state median income, or receiving specified public benefits) with home energy costs, 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 data on eligible households in arrears (defined as those not paying a home energy bill for 60 to 90 days, as determined by the state or local agency unless otherwise specified by state law), including metrics on disconnections, late fees, reconnections, and arrearage balances, aligned with existing federal and state reporting; (2) issue guidance within one year of enactment on best practices for states to pay arrears using LIHEAP funds (including at the time of assistance), prohibiting suppliers from recovering costs through rate increases or charges that disproportionately impact low-income households; (3) implement a joint data tracking system for aggregate arrears and energy burden data and issue recommendations to LIHEAP coordinators and guidance to suppliers; and (4) provide grants to states for implementation. The section authorizes appropriations as necessary to carry out these provisions.

This section renames the Low-Income Home Energy Assistance Program (LIHEAP) as the Home Energy Assistance Program by striking "low-income" from the definition of leveraged resources in LIHEAP section 2607A(b) and from section 2607B(e)(2)(B)(ii), and by deeming references in other federal laws, executive orders, rules, regulations, or documents to refer to the Home Energy Assistance Program.

This section establishes the HEAP just transition grant program, under which the Secretary of Health and Human Services and the Secretary of Energy jointly award three-year grants to states and local governments to develop and implement interagency plans reducing energy burdens for eligible Low-Income Home Energy Assistance Program (LIHEAP) households with high home energy use, in a manner supporting a just transition from fossil fuels and protection from climate change threats. (As background, LIHEAP provides formula and contingency grants to assist low-income households with home energy costs, crisis aid, and weatherization.) In awarding grants, the Secretaries give preference to applicants establishing coordination systems (1) to identify LIHEAP recipients with high home energy use, (2) to prioritize households with the highest energy burdens and lowest incomes—per LIHEAP priority criteria in section 2605(b)(2) and (3)—for emergency repair, weatherization, and retrofit assistance achieving decarbonization and energy reductions, and (3) to partner with workforce development initiatives, unions, or minority- or women-owned business enterprises for such assistance. At the conclusion of the three-year grant period, the Secretaries must evaluate program outcomes and submit a report to Congress with results and policy recommendations.

This section makes conforming amendments to the Low-Income Home Energy Assistance Act of 1981 by (1) in the state plan requirements for the Residential Energy Assistance Challenge (R.E.A.Ch.) program, revising the cross-referenced paragraphs of section 2605(b) (allowable LIHEAP uses) to paragraphs (2), (4), (5), (6), (8), (10), (11), (12), (13), (14), and (15) (from paragraphs (2), (3), (4), (5), (7), (9), (10), (11), (12), (13), and (14)); and (2) in the evaluation requirements, revising the cross-referenced paragraphs of section 2605(b) to paragraphs (2), (6), (9), and (16) (from clauses (2), (5), (8), and (15)).