
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC8626b]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 94--LOW-INCOME ENERGY ASSISTANCE
 
            SUBCHAPTER II--LOW-INCOME HOME ENERGY ASSISTANCE
 
Sec. 8626b. Residential Energy Assistance Challenge option 
        (R.E.A.Ch.)
        

(a) Purpose

    The purpose of the Residential Energy Assistance Challenge (in this 
section referred to as ``R.E.A.Ch.'') program is to--
        (1) minimize health and safety risks that result from high 
    energy burdens on low-income Americans;
        (2) prevent homelessness as a result of inability to pay energy 
    bills;
        (3) increase the efficiency of energy usage by low-income 
    families; and
        (4) target energy assistance to individuals who are most in 
    need.

(b) Funding

                           (1) Allocation

        For each fiscal year, the Secretary may allocate not more than 
    25 percent of the amount made available pursuant to section 8621(d) 
    of this title for such fiscal year to a R.E.A.Ch. fund for the 
    purpose of making incentive grants to States that submit qualifying 
    plans that are approved by the Secretary as R.E.A.Ch. initiatives. 
    States may use such grants for the costs of planning, implementing, 
    and evaluating the initiative.

                           (2) Reservation

        The Secretary shall reserve from any funds allocated under this 
    subsection, funds to make additional payments to State R.E.A.Ch. 
    programs that--
            (A) have energy efficiency education services plans that 
        meet quality standards established by the Secretary in 
        consultation with the Secretary of Energy; and
            (B) have the potential for being replicable model designs 
        for other programs.

    States shall use such supplemental funds for the implementation and 
    evaluation of the energy efficiency education services.

(c) Criteria

                           (1) In general

        Not later than May 31, 1995, the Secretary shall establish 
    criteria for approving State plans required by subsection (a) of 
    this section, for energy efficiency education quality standards 
    described in subsection (b)(2)(A) of this section, and for the 
    distribution of funds to States with approved plans.

                          (2) Documentation

        Notwithstanding the limitations of section 8624(b) of this title 
    regarding the authority of the Secretary with respect to plans, the 
    Secretary may require a State to provide appropriate documentation 
    that its R.E.A.Ch. activities conform to the State plan as approved 
    by the Secretary.

(d) Focus

    The State may designate all or part of the State, or all or part of 
the client population, as a focus of its R.E.A.Ch. initiative.

(e) State plans

                           (1) In general

        Each State plan shall include each of the elements described in 
    paragraph (2), to be met by State and local agencies.

                     (2) Elements of State plans

        Each State plan shall include--
            (A) an assurance that such State will deliver services 
        through community-based nonprofit entities in such State, by--
                (i) awarding grants to, or entering into contracts with, 
            such entities for the purpose of providing such services and 
            payments directly to individuals eligible for benefits; or
                (ii) if a State makes payments directly to eligible 
            individuals or energy suppliers, making contracts with such 
            entities to administer such programs, including--
                    (I) determining eligibility;
                    (II) providing outreach services; and
                    (III) providing benefits other than payments;

            (B) an assurance that, in awarding grants or entering into 
        contracts to carry out its R.E.A.Ch. initiative, the State will 
        give priority to organizations that--
                (i) are described in section 9902(1) of this title, 
            except where significant geographic portions of the State 
            are not served by such entities;
                (ii) the Secretary has determined have a record of 
            successfully providing services under the Low-Income Home 
            Energy Assistance Program; and
                (iii) receive weatherization assistance program funds 
            under part A of title IV of the Energy Conservation and 
            Production Act [42 U.S.C. 6861 et seq.];

        except that a State may not require any such entity to operate a 
        R.E.A.Ch. program;
            (C) an assurance that, subject to subparagraph (D), each 
        entity that receives a grant or enters into a contract under 
        subparagraph (A)(i) will provide a variety of services and 
        benefits, including--
                (i) payments to, or on behalf of, individuals eligible 
            for residential energy assistance services and benefits 
            under section 8624(b) of this title for home energy costs;
                (ii) energy efficiency education;
                (iii) residential energy demand management services, 
            including any other energy related residential repair and 
            energy efficiency improvements in coordination with, or 
            delivered by, Department of Energy weatherization assistance 
            programs at the discretion of the State;
                (iv) family services, such as counseling and needs 
            assessment, related to energy budget management, payment 
            plans, and related services; and
                (v) negotiation with home energy suppliers on behalf of 
            households eligible for R.E.A.Ch. services and benefits;

            (D) a description of the methodology the State and local 
        agencies will use to determine--
                (i) which households will receive one or more forms of 
            benefits under the State R.E.A.Ch. initiative;
                (ii) the cases in which nonmonetary benefits are likely 
            to provide more cost-effective long-term outcomes than 
            payment benefits alone; and
                (iii) the amount of such benefit required to meet the 
            goals of the program;

            (E) a method for targeting nonmonetary benefits;
            (F) a description of the crisis and emergency assistance 
        activities the State will undertake that are designed to--
                (i) discourage family energy crises;
                (ii) encourage responsible vendor and consumer behavior; 
            and
                (iii) provide only financial incentives that encourage 
            household payment;

            (G) a description of the activities the State will undertake 
        to--
                (i) provide incentives for recipients of assistance to 
            pay home energy costs; and
                (ii) provide incentives for vendors to help reduce the 
            energy burdens of recipients of assistance;

            (H) an assurance that the State will require each entity 
        that receives a grant or enters into a contract under this 
        section to solicit and be responsive to the views of individuals 
        who are financially eligible for benefits and services under 
        this section in establishing its local program;
            (I) a description of performance goals for the State 
        R.E.A.Ch. initiative including--
                (i) a reduction in the energy costs of participating 
            households over one or more fiscal years;
                (ii) an increase in the regularity of home energy bill 
            payments by eligible households; and
                (iii) an increase in energy vendor contributions towards 
            reducing energy burdens of eligible households;

            (J) a description of the indicators that will be used by the 
        State to measure whether the performance goals have been 
        achieved;
            (K) a demonstration that the plan is consistent with section 
        8622 of this title, paragraphs (2), (3), (4), (5), (7), (9), 
        (10), (11), (12), (13), and (14) of section 8624(b) of this 
        title, subsections (d), (e), (f), (g), (h), (i), and (j) of 
        section 8624 of this title, and section 8625 of this title;
            (L) an assurance that benefits and services will be provided 
        in addition to other benefit payments and services provided 
        under this subchapter and in coordination with such benefit 
        payments and services; and
            (M) an assurance that no regulated utility covered by the 
        plan will be required to act in a manner that is inconsistent 
        with applicable regulatory requirements.

(f) Cost or function

    None of the costs of providing services or benefits under this 
section shall be considered to be an administrative cost or function for 
purposes of any limitation on administrative costs or functions 
contained in this subchapter.

(Pub. L. 97-35, title XXVI, Sec. 2607B, as added Pub. L. 103-252, title 
III, Sec. 312, May 18, 1994, 108 Stat. 662; amended Pub. L. 105-285, 
title III, Sec. 308(c), (d), Oct. 27, 1998, 112 Stat. 2758.)

                       References in Text

    The Energy Conservation and Production Act, referred to in subsec. 
(e)(2)(B)(iii), is Pub. L. 94-385, Aug. 14, 1976, 90 Stat. 1125, as 
amended. Part A of title IV of the Act is classified generally to part A 
(Sec. 6861 et seq.) of subchapter III of chapter 81 of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 6801 of this title and Tables.


                               Amendments

    1998--Subsec. (b)(1). Pub. L. 105-285, Sec. 308(c), substituted 
``For each fiscal year'' for ``For each of the fiscal years 1996 through 
1999''.
    Subsec. (e)(2)(E) to (H). Pub. L. 105-285, Sec. 308(d)(1)(A), 
redesignated subpars. (F) to (I) as (E) to (H), respectively.
    Subsec. (e)(2)(I). Pub. L. 105-285, Sec. 308(d)(1)(A), redesignated 
subpar. (J) as (I). Former subpar. (I) redesignated (H).
    Subsec. (e)(2)(I)(i). Pub. L. 105-285, Sec. 308(d)(1)(B), 
substituted ``of'' for ``on''.
    Subsec. (e)(2)(J) to (N). Pub. L. 105-285, Sec. 308(d)(1)(A), 
redesignated subpars. (K) to (N) as (J) to (M), respectively.
    Subsecs. (f), (g). Pub. L. 105-285, Sec. 308(d)(2), redesignated 
subsec. (g) as (f).


                             Effective Date

    Section effective Oct. 1, 1994, see section 314 of Pub. L. 103-252, 
set out as an Effective Date of 1994 Amendment note under section 8621 
of this title.


 Evaluation and Report on Residential Energy Assistance Challenge Option

    Pub. L. 105-285, title III, Sec. 308(a), (b), Oct. 27, 1998, 112 
Stat. 2758, provided that:
    ``(a) Evaluation.--The Comptroller General of the United States 
shall conduct an evaluation of the Residential Energy Assistance 
Challenge program described in section 2607B of the Low-Income Home 
Energy Assistance Act of 1981 (42 U.S.C. 8626b).
    ``(b) Report.--Not later than 2 years after the date of enactment of 
this Act [Oct. 27, 1998], the Comptroller General of the United States 
shall prepare and submit to Congress a report containing--
        ``(1) the findings resulting from the evaluation described in 
    subsection (a); and
        ``(2) the State evaluations described in paragraphs (1) and (2) 
    of subsection (b) of such section 2607B.''
