To authorize the Secretary of the Treasury, on an emergency basis, to guarantee loans made by depository institutions during the 2008-2009 heating season to eligible consumers, under certain conditions, for home heating purchases and repairs, and for other purposes.

Summary: Home Heating Loan Guarantee Act of 2008 - Authorizes the Secretary of the Treasury to guarantee qualified home heating loans made by depository institutions during the 2008-2009 home heating season if necessary to minimize disruptions in the supply and distribution of home heating resources because of the inability of customers of the suppliers to pay for home heating supplies or repairs made to broken home heating equipment or leaking or frozen lines.

Sets forth terms and conditions governing the loan guarantee, including overall loan limits.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Heating Loan Guarantee Act of 
2008''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) Heating oil, propane, and natural gas help to keep 70 
        percent of United States households warm.
            (2) For 8,000,000 homes alone in the United States, heating 
        oil is the primary source of heating and 6,200,000 of those 
        homes are in the Northeast, including the Central Atlantic 
        States.
            (3) Over the last year and a half, the retail cost of 
        heating oil has nearly tripled, as follows:
                    (A) In January 2007, a gallon of heating oil cost 
                $1.59.
                    (B) By autumn of 2007, the cost of 1 gallon was 
                $2.75.
                    (C) From October 2008 through March 2009, heating 
                oil is projected to average $4.13 per gallon, an 
                increase of about 25 percent over last winter.
                    (D) Increases in natural gas and propane prices 
                this winter are also projected.
            (4) Many homeowners, already strapped financially, simply 
        will not be able to heat their homes this winter.
            (5) In Northeastern Pennsylvania this winter, the average 
        homeowner who uses 950 gallons of home heating oil will have to 
        pay between $3,000 to $4,000 for heating.
            (6) While the Low Income Home Energy Assistance Program 
        operated by the Secretary of Health and Human Services through 
        the Administration for Children and Families (the program is 
        commonly referred to as ``LIHEAP'') is a big help to consumers, 
        the Program by itself is not enough to meet the challenge and 
        the Congress should act to increase its funding as a separate 
        matter.
            (7) Heating oil dealers have faced and will continue to 
        face tremendous stress because of the price increase.
            (8) Home heating oil dealers suffered cash flow problems in 
        the Winter of 2007-2008 and, with such large price increases, 
        the problems will only get worse in the Winter of 2008-2009.
            (9) In the usage of trade in the home heating oil supply 
        and distribution system, home heating oil dealers must 
        typically pay suppliers within 10 days of delivery of oil.
            (10) If customers cannot make timely payments to dealers, 
        dealers, in turn, lack the cash to pay suppliers to keep 
        supplies flowing to consumers.

SEC. 3. GUARANTEED DEPOSITORY INSTITUTION LOANS TO HOME HEATING 
              SUPPLIERS.

    (a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Consumer.--The term ``consumer'' means an individual or 
        household who acquires goods or services from a home heating 
        supplier primarily for personal, family, or household purposes.
            (2) Depository institution.--The term ``depository 
        institution'' has the same meaning as in section 19(b)(1)(A) of 
        the Federal Reserve Act.
            (3) Eligible consumer.--The term ``eligible consumer 
        means'' means any individual or household whose household 
        income for the last year ending before any receiving any loan 
        under this section did not exceed an amount equal to 150 
        percent of the national median household income for such year.
            (4) Qualified home heating loan.--The term ``qualified home 
        heating loan'' means an unsecured consumer loan to an eligible 
        consumer that is made for the sole purpose of paying a home 
        heating supplier for home heating supplies delivered by such 
        supplier (or to be delivered), or repairs made by the supplier 
        to broken home heating equipment or leaking or frozen lines, 
        during the 2008-2009 home heating season.
            (5) Home heating supplier.--The term ``home heating 
        supplier'' means a business engaged in retail distribution of 
        heating oil, propane, or natural gas to consumers.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
    (b) Loan Guarantees Authorized.--Subject to the requirements of 
this section and to the extent and in such amounts as are provided in 
advance in appropriation Acts, the Secretary may guarantee qualified 
home heating loans made by depository institutions during the 2008-2009 
home heating season when the Secretary determines that such action is 
necessary to minimize disruptions in the supply and distribution of 
home heating resources due to the inability of customers of the 
suppliers to pay for home heating supplies delivered by such supplier 
or repairs made by the supplier to broken home heating equipment or 
leaking or frozen lines.
    (c) Terms and Conditions.--
            (1) Annual percentage rate.--The interest imposed on any 
        qualified home heating loan that is guaranteed by the Secretary 
        under this section shall be at a fixed rate and the annual 
        percentage rate (as determined in accordance with the Truth in 
        Lending Act) with respect to such loan may not exceed 5 
        percent.
            (2) Origination fees.--The total amount of loan origination 
        fees imposed in connection with any qualified home heating loan 
        that is guaranteed by the Secretary under this section, in 
        accordance with regulations which the Secretary shall 
        prescribe, may not exceed an amount equal to 1 percent of the 
        principal of the loan.
            (3) Maximum loan amount.--The amount of any credit extended 
        under any qualified home heating loan that is guaranteed by the 
        Secretary under this section may not exceed $5,000.
            (4) Repayment period.--Any qualified home heating loan that 
        is guaranteed by the Secretary under this section shall be 
        fully amortized under a repayment schedule that requires full 
        repayment before the end of the 2-year period beginning on the 
        date the loan is consummated.
            (5) Other terms and conditions.--The Secretary may 
        establish by regulation such additional terms and conditions 
        that shall apply with regard to qualified home heating loans as 
        the Secretary may determine to be appropriate.
    (d) Provisions Relating to Program.--
            (1) Distribution of proceeds.--To accelerate the 
        distribution of loan proceeds and limit fraud, the Secretary 
        may require, by regulation, that the proceeds of a qualified 
        home heating loan to be disbursed directly to a home heating 
        supplier designated by the consumer, except that the Secretary 
        may also require that the consumer cosign for any disbursement 
        of such proceeds when necessary for the protection of 
        consumers.
            (2) Background checks.--The Secretary may take such action 
        as appropriate, or require such verification by a depository 
        institution as appropriate, to ascertain--
                    (A) the character and creditworthiness of a home 
                heating supplier, including any owner or managing 
                directors or employees of the supplier, and any 
                consumer seeking to qualify for a home heating loan; 
                and
                    (B) the effectiveness of the consumer operations of 
                the home heating supplier established to meet the 
                requirements of the Secretary under paragraph (1).
            (3) Overall loan limits.--The Secretary may, by regulation 
        establish such criteria and requirements, as the Secretary may 
        determine to be appropriate with respect to--
                    (A) the total number of loans or the aggregate loan 
                amounts guaranteed under this section that are made to 
                customers of any single home heating supplier or by any 
                depository institution; and
                    (B) the total number of loans or the aggregate loan 
                maximum loan amounts guaranteed under this section that 
                are made to customers of home heating suppliers, or by 
                depository institutions, operating in a geographical 
                area or region as the Secretary may prescribe.
            (4) Self-certification.--To expedite implementation of the 
        program, a depository institution may self-certify that any 
        consumer loan and any consumer meets the eligibility standards 
        for a qualified home heating loan in order to obtain the 
        guarantee with respect to a home heating loan to such consumer, 
        except that any guarantee of such loan shall be subject to a 
        demonstration by such depository institution that the loan 
        actually met such eligibility standards if the depository 
        institution submits a claim to the Secretary with regard to 
        such guarantee in the event of nonpayment by the consumer.
    (e) Enforcement.--The Secretary may exercise any power or authority 
of the Secretary arising under any other provision of law, including 
section 5318 of title 31, United States Code, to carry out this section 
and enforce any provision of this section or any requirement or 
obligation arising under this section or any regulation prescribed 
under this section.