---
kind: "section"
citation: "42 U.S.C. § 8626b"
title: "42"
title_heading: "The Public Health and Welfare"
number: "8626b"
heading: "Residential Energy Assistance Challenge option (R.E.A.Ch.)"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/8626b"
units:
  - "Chapter 94 — Low-Income Energy Assistance"
  - "Subchapter II — Low-Income Home Energy Assistance"
---

# §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](/usc/42/8622.md?p=2) 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](/usc/42/8622.md?p=9) may allocate not more than 25 percent of the amount made available pursuant to [section 8621(d) of this title](/usc/42/8621.md?p=d) for such fiscal year to a R.E.A.Ch. fund for the purpose of making incentive grants to [States](/usc/42/8622.md?p=10) that submit qualifying plans that are approved by the [Secretary](/usc/42/8622.md?p=9) as R.E.A.Ch. initiatives. [States](/usc/42/8622.md?p=10) may use such grants for the costs of planning, implementing, and evaluating the initiative.
  - (2) **Reservation—** The [Secretary](/usc/42/8622.md?p=9) shall reserve from any funds allocated under this subsection, funds to make additional payments to [State](/usc/42/8622.md?p=10) R.E.A.Ch. programs that—
    - (A) have energy efficiency education services plans that meet quality standards established by the [Secretary](/usc/42/8622.md?p=9) in consultation with the [Secretary](/usc/42/8622.md?p=9) of Energy; and
    - (B) have the potential for being replicable model designs for other programs.

    [States](/usc/42/8622.md?p=10) 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](/usc/42/8622.md?p=9) shall establish criteria for approving [State](/usc/42/8622.md?p=10) plans required by [subsection (a)](#a), for energy efficiency education quality standards described in [subsection (b)(2)(A)](#b-2-A), and for the distribution of funds to [States](/usc/42/8622.md?p=10) with approved plans.
  - (2) **Documentation—** Notwithstanding the limitations of [section 8624(b) of this title](/usc/42/8624.md?p=b) regarding the authority of the [Secretary](/usc/42/8622.md?p=9) with respect to plans, the [Secretary](/usc/42/8622.md?p=9) may require a [State](/usc/42/8622.md?p=10) to provide appropriate documentation that its R.E.A.Ch. activities conform to the [State](/usc/42/8622.md?p=10) plan as approved by the [Secretary](/usc/42/8622.md?p=9).
- (d) **Focus—** The [State](/usc/42/8622.md?p=10) may designate all or part of the [State](/usc/42/8622.md?p=10), 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](/usc/42/8622.md?p=10) plan shall include each of the elements described in [paragraph (2)](#e-2), to be met by [State](/usc/42/8622.md?p=10) and local [agencies](/usc/42/8262.md?p=1).
  - (2) **Elements of State plans—** Each [State](/usc/42/8622.md?p=10) plan shall include—
    - (A) an assurance that such [State](/usc/42/8622.md?p=10) will deliver services through community-based [nonprofit](/usc/42/300s–3.md?p=3) entities in such [State](/usc/42/8622.md?p=10), 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](/usc/42/8622.md?p=10) 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](/usc/42/8622.md?p=10) will give priority to organizations that—
      - (i) are described in [section 9902(1) of this title](/usc/42/9902.md?p=1), except where significant geographic portions of the [State](/usc/42/8622.md?p=10) are not served by such entities;
      - (ii) the [Secretary](/usc/42/8622.md?p=9) has determined have a record of successfully providing services under the Low-Income [Home Energy](/usc/42/8622.md?p=6) 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](/usc/42/6861.md) et seq.];

      except that a [State](/usc/42/8622.md?p=10) may not require any such entity to operate a R.E.A.Ch. program;

    - (C) an assurance that, subject to [subparagraph (D)](#e-2-D), each entity that receives a grant or enters into a contract under [subparagraph (A)(i)](#e-2-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](/usc/42/8624.md?p=b) for [home energy](/usc/42/8622.md?p=6) 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](/usc/42/8622.md?p=10);
      - (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](/usc/42/8622.md?p=6) suppliers on behalf of [households](/usc/42/8622.md?p=5) eligible for R.E.A.Ch. services and benefits;
    - (D) a description of the methodology the [State](/usc/42/8622.md?p=10) and local [agencies](/usc/42/8262.md?p=1) will use to determine—
      - (i) which [households](/usc/42/8622.md?p=5) will receive one or more forms of benefits under the [State](/usc/42/8622.md?p=10) 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](/usc/42/8622.md?p=1) assistance activities the [State](/usc/42/8622.md?p=10) 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](/usc/42/8622.md?p=5) payment;
    - (G) a description of the activities the [State](/usc/42/8622.md?p=10) will undertake to—
      - (i) provide incentives for recipients of assistance to pay [home energy](/usc/42/8622.md?p=6) costs; and
      - (ii) provide incentives for vendors to help reduce the [energy burdens](/usc/42/8622.md?p=2) of recipients of assistance;
    - (H) an assurance that the [State](/usc/42/8622.md?p=10) 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](/usc/42/8622.md?p=10) R.E.A.Ch. initiative including—
      - (i) a reduction in the energy costs of participating [households](/usc/42/8622.md?p=5) over one or more fiscal years;
      - (ii) an increase in the regularity of [home energy](/usc/42/8622.md?p=6) bill payments by eligible [households](/usc/42/8622.md?p=5); and
      - (iii) an increase in energy vendor contributions towards reducing [energy burdens](/usc/42/8622.md?p=2) of eligible [households](/usc/42/8622.md?p=5);
    - (J) a description of the indicators that will be used by the [State](/usc/42/8622.md?p=10) to measure whether the performance goals have been achieved;
    - (K) a demonstration that the plan is consistent with [section 8622 of this title](/usc/42/8622.md), paragraphs (2), (3), (4), (5), (7), (9), (10), (11), (12), (13), and (14) of [section 8624(b) of this title](/usc/42/8624.md?p=b), subsections (d), (e), (f), (g), (h), (i), and (j) of [section 8624 of this title](/usc/42/8624.md), and [section 8625 of this title](/usc/42/8625.md);
    - (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.

## Source credit

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

## Notes

### Editorial Notes

### 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. Part A of title IV of the Act is classified generally to part A (§ 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, § 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, § 308(d)(1)(A), redesignated subpars. (F) to (I) as (E) to (H), respectively.

Subsec. (e)(2)(I). Pub. L. 105–285, § 308(d)(1)(A), redesignated subpar. (J) as (I). Former subpar. (I) redesignated (H).

Subsec. (e)(2)(I)(i). Pub. L. 105–285, § 308(d)(1)(B), substituted “of” for “on”.

Subsec. (e)(2)(J) to (N). Pub. L. 105–285, § 308(d)(1)(A), redesignated subpars. (K) to (N) as (J) to (M), respectively.

Subsecs. (f), (g). Pub. L. 105–285, § 308(d)(2), redesignated subsec. (g) as (f).

### Statutory Notes and Related Subsidiaries

### 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, § 308(a), (b), Oct. 27, 1998, 112 Stat. 2758, provided that the Comptroller General of the United States would conduct an evaluation of the Residential Energy Assistance Challenge program described in this section, and, not later than 2 years after Oct. 27, 1998, submit to Congress a report containing the findings of the evaluation and the State evaluations described in paragraphs (1) and (2) of subsec. (b) of this section.