Heating and Cooling Relief Act

This bill amends the Low-Income Home Energy Assistance Act of 1981 to increase funding and expand access to heating and cooling assistance for low-income households. It aims to reduce energy burdens, protect against shutoffs, and address climate change impacts.

Sec. 3, Funding: The bill removes the $2 billion cap on the main program and authorizes "such sums as may be necessary" to assist all eligible households. It increases the emergency contingency fund from $600 million to $2 billion for fiscal year 2026 and each year after, plus additional sums as needed. It also authorizes $1 billion for fiscal year 2026 and each year after for new Just Transition Grants.

Sec. 4, Definitions: The bill adds definitions for "extreme heat" and "extreme cold" as periods with increased health or energy shutoff risks. It defines "HEAP coordinator" as a program administrator, "local coordinating agency" as a local organization handling intake, and "State agency" as the state program administrator.

Sec. 5, Assistance for emergencies and major disasters: The bill expands emergency assistance to cover "major disasters," including declared disasters, public health emergencies, and periods of extreme heat or cold. It requires the Secretary and FEMA to provide heating or cooling assistance to affected areas. States must not deny a household both heating and cooling aid in the same year, not require a medical need for eligibility, and allow funds for energy-efficient air conditioners.

Sec. 6, Eligible households: The bill raises the income eligibility threshold to the greater of 250% of the poverty level or 80% of state median income. States must give priority to households with the highest energy costs and lowest incomes and cannot exclude households based on citizenship of one or more members. It directs the Secretary to work with states to ensure no eligible household spends more than 3% of income on home energy.

Sec. 7, Conditions for funding: The bill requires states to ensure home energy suppliers do not charge late fees to assisted households for a period around the payment, refund any such fees within 7 days, and not shut off service for 2 years after assistance. Suppliers must share data on unpaid bills, include program information in late notices, and offer a low-income affordability payment program within 2 years. States must use at least 15% of funds for low-income energy needs, expand programs to year-round operation, allow online applications within 5 years, and pay HEAP coordinators at least $15 per hour.

Sec. 8, Weatherization: The bill increases the minimum state spending on weatherization from 15% to 25% of funds. It raises the portion for energy-related home repair from 25% to 35% and requires states to prioritize repairs that replace fossil fuel appliances with electric ones powered by renewable energy and increase participation in community solar programs.

Sec. 9, Home energy payment arrears data collection: The bill requires the Secretary to develop a standardized template for tracking data on households in arrears, including disconnections and fees. It mandates guidance on paying arrearages with program funds, prohibits suppliers from recovering arrearage costs through rate increases, and authorizes grants to states for data tracking.

Sec. 10, Program name change: The bill changes the name of the "Low-Income Home Energy Assistance Program" to the "Home Energy Assistance Program" in the law and other federal references.

Sec. 11, Just Transition Grants: The bill creates a 3-year grant program for states and local governments to develop interagency plans to reduce energy burdens for high-use eligible households, supporting a transition away from fossil fuels. Preferences are given to those coordinating to identify high-use households, prioritize those with highest burdens, and partner with workforce initiatives or minority-owned businesses. A report to Congress is required at the end.

Sec. 12, Conforming amendments: The bill updates cross-references in other sections of the law to match the new paragraph numbering.