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, with new provisions for emergencies, extreme weather, and energy affordability.

Sec. 3, Funding: The bill removes the previous $2 billion cap on program funding, authorizing 'such sums as may be necessary' to assist all eligible households. It sets a minimum of $2 billion for fiscal year 2026 for emergency assistance, plus additional sums as needed, and authorizes $1 billion for fiscal year 2026 for new Just Transition Grants, with similar increases thereafter.

Sec. 4, Definitions: Adds definitions for 'extreme heat' and 'extreme cold' as periods with increased health or energy shutoff risks, defines 'HEAP coordinator' as a program administrator, 'local coordinating agency' as a local intake office, and 'State agency' as the state program administrator.

Sec. 5, Assistance for emergencies and major disasters: Expands emergency assistance to cover major disasters, including extreme heat or cold. Requires states to not deny households both heating and cooling aid in the same year, not require medical need for eligibility, and allow funds for energy-efficient cooling equipment.

Sec. 6, Eligible households: Raises income eligibility to the greater of 250% of the poverty level or 80% of state median income. States must prioritize households with the lowest incomes and work to ensure no eligible household spends more than 3% of income on home energy. States cannot exclude households based on citizenship of members.

Sec. 7, Conditions for funding: Requires states to ensure energy suppliers do not charge late fees for six months before and after receiving program funds, and refund any such fees within 7 days. Suppliers cannot shut off energy for two years after a household receives aid. States must use at least 15% of funds for year-round program operation, enable online applications within 5 years, and pay HEAP coordinators at least $15 per hour.

Sec. 8, Weatherization: Increases the minimum portion of funds states must spend on weatherization from 15% to 25%. States must prioritize using at least 35% of that for energy-related home repairs that reduce fossil fuel dependence, especially replacing fossil fuel appliances with electric ones powered by renewable energy.

Sec. 9, Home energy payment arrears data collection: Directs the Secretary to develop a standardized template for tracking households in arrears (60-90 days late) and related fees and disconnections. Requires guidance on paying arrearages with program funds, prohibiting suppliers from recovering costs through rate increases. Authorizes grants to states for data tracking.

Sec. 10, Program name change: Renames the 'Low-Income Home Energy Assistance Program' to the 'Home Energy Assistance Program' in all federal laws and documents.

Sec. 11, Just Transition Grants: Creates a 3-year grant program for states and local governments to develop interagency plans reducing energy burdens for high-use eligible households, promoting a just transition away from fossil fuels. Preferences go to systems identifying high-use households, prioritizing those with highest burdens and lowest incomes, and partnering with workforce initiatives or minority-owned businesses. Requires a report to Congress on outcomes.

Sec. 12, Conforming amendments: Updates cross-references in the original act to match the new paragraph numbering from this bill.