To amend the Low-Income Energy Assistance Act of 1981 to provide supplemental funds for States with programs to facilitate the collection of private donations by utilities to be used for payment of the utility bills, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Efficiency and Assistance Act 
of 2001''.

SEC. 2. SUPPLEMENTAL LIHEAP FUNDING FOR STATES WITH CERTAIN PROGRAMS.

    Section 2607A(b) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8626a) is amended by adding the following at the end 
thereof:
``The term `leveraged resources' also includes any State program which 
facilitates the collection of donations by electric and gas utilities 
to be used by public agencies or private nonprofit organizations to pay 
the electric and natural gas utility bills of individuals in households 
with incomes which do not exceed an amount equal to 200 percent of the 
poverty level for the State concerned and other individuals with 
insufficient financial resources to pay such bills.''.

SEC. 3. LIHEAP AND SUPPLEMENTAL LIHEAP AUTHORIZATIONS.

    Section 2602 of the Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8621) is amended as follows:
            (1) In subsection (b), strike ``$2,000,000000 for each of 
        fiscal years 2002 through 2004'' and insert ``$3,400,000,0000 
        for each of the fiscal years 2002 through 2005''.
            (2) Amend subsection (d) to read as follows:
    ``(d) There is authorized to carry out section 2607A, $100,000,000 
for each of the fiscal years 2002 through 2005.''.

SEC. 4. ENERGY EFFICIENT HOME FINANCING.

    (a) Residential Energy Efficiency Improvement Loans Included as 
Qualified Thrift Investment.--Subclause (I) of section 10(m)(4)(C)(ii) 
of Home Owners' Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii)(I)) is amended 
by inserting ``, including residential energy efficiency improvement 
loans'' before the period at the end.
    (b) Projected Energy Savings Taken Into Account in Determining Loan 
Eligibility.--
            (1) In general.--Chapter 2 of the Truth in Lending Act (15 
        U.S.C. 1631 et seq.) is amended by adding at the end the 
        following new section:
``Sec. 140. Residential energy efficiency improvement loans
    ``(a) Energy Savings.--In making any determination concerning the 
eligibility of any consumer for a residential energy efficiency 
improvement loan, the creditor shall take into account the amount of 
the estimated future savings attributable to the improvements in energy 
efficiency.
    ``(b) Factors for Consideration.--In reviewing regulations 
prescribed under this title and considering proposed regulations under 
this title, the Board shall consider--
    ``(1) whether the regulations or proposed regulations make, or 
could make, residential energy efficiency improvement loans more 
affordable; and
    ``(2) whether any changes could be made in such regulations to 
provide more flexibility for home equity loans in order to make such 
loans more readily available to low- and moderate-income consumers for 
the purposes of improving residential energy efficiency.
    ``(c) Residential Energy Efficiency Improvement Loan Defined.--For 
purposes of this section, the term `residential energy efficiency 
improvement loan' means any loan or extension of credit, secured or 
unsecured, the proceeds of which are to be used for improving the 
energy efficiency of residential real property, including the purchase 
and installation of alternative sources of energy.''.
            (2) Clerical amendment.--The table of sections for chapter 
        2 of the Truth in Lending Act is amended by inserting after the 
        item relating to section 139 the following new item:

``140. Residential energy efficiency improvement loans''.
    (c) FHA.--Title V of the National Housing Act (12 U.S.C. 1731a et 
seq.) is amended by adding at the end the following new section:

``SEC. 543. INCENTIVES TO INCREASE ENERGY EFFICIENCY.

    ``Not later than 12 months after the date of the enactment of the 
Energy Efficiency and Assistance Act of 2001, the Secretary shall--
            ``(1) develop and implement measures under the mortgage 
        insurance programs under this Act--
                    ``(A) to provide financing incentives to improve 
                the energy efficiency of residential properties subject 
                to mortgages insured under this Act;
                    ``(B) to make energy efficient mortgages (as such 
                term is defined in section 106(c) of the Energy Policy 
                Act of 1992 (42 U.S.C. 12712 note)) more affordable and 
                available; and
                    ``(C) to ensure that, in making any determination 
                concerning the eligibility of any borrower for a 
                mortgage insured under this Act that includes financing 
                for any residential energy conservation measures (as 
                such term is defined in section 210 of the National 
                Energy Conservation Policy Act (42 U.S.C. 8211)), the 
                lender shall take into account the amount of the 
                estimated future savings attributable to the 
                improvements in energy efficiency; and
            ``(2) submit a report to the Congress specifying the 
        actions taken to carry out the requirements under paragraph 
        (1).''.
    (d) Rural Housing.--Title V of the Housing Act of 1949 (42 U.S.C. 
1471 et seq.) is amended by adding at the end the following new 
section:

``SEC. 544. INCENTIVES TO INCREASE ENERGY EFFICIENCY.

    ``Not later than 12 months after the date of the enactment of the 
Energy Efficiency and Assistance Act of 2001, the Secretary shall--
            ``(1) develop and implement measures under the housing loan 
        programs under this title--
                    ``(A) to provide financing incentives to improve 
                the energy efficiency of residential properties puon 
                210 of the National Energy Conservation Policy Act (42 
                U.S.C. 8211)), the lender shall take into account the 
                amount of the estimated future savings attributable to 
                the improvements in energy efficiency; and
            ``(2) submit a report to the Congress specifying the 
        actions taken to carry out the requirements under paragraph 
        (1).''.
    (e) Fannie Mae.--The Federal National Mortgage Association Charter 
Act (12 U.S.C. 1716 et seq.) is amended by inserting after section 304 
the following new section:

 ``incentives to increase energy efficiency--federal national mortgage 
                              association

    ``Sec. 305. Not later than 12 months after the date of the 
enactment of the Energy Efficiency and Assistance Act of 2001, the 
corporation shall--
            ``(1) develop and implement measures or standards for loans 
        purchased by the corporation--
                    ``(A) to provide financing incentives to improve 
                the energy efficiency of residential properties 
                purchased with such loans;
                    ``(B) to make energy efficient mortgages (as such 
                term is defined in section 106(c) of the Energy Policy 
                Act of 1992 (42 U.S.C. 12712 note)) more affordable and 
                available; and
                    ``(C) to ensure that, in making any determination 
                concerning the eligibility of any borrower for such a 
                loan that includes financing for any residential energy 
                conservation measures (as such term is defined in 
                section 210 of the National Energy Conservation Policy 
                Act (42 U.S.C. 8211)), the lender shall take into 
                account the amount of the estimated future savings 
                attributable to the improvements in energy efficiency; 
                and
            ``(2) submit a report to the Congress specifying the 
        actions taken to carry out the requirements under paragraph 
        (1).''.
    (f) Freddie Mac.--The Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1451 et seq.) is amended by adding at the end the following 
new section:

               ``incentives to increase energy efficiency

    ``Sec. 311. Not later than 12 months after the date of the 
enactment of the Energy Efficiency and Assistance Act of 2001, the 
Corporation shall--
            ``(1) develop and implement measures or standards for loans 
        purchased by the Corporation--
                    ``(A) to provide financing incentives to improve 
                the energy efficiency of residential properties 
                purchased with such loans;
                    ``(B) to make energy efficient mortgages (as such 
                term is defined in section 106(c) of the Energy Policy 
                Act of 1992 (42 U.S.C. 12712 note)) more affordable and 
                available; and
                    ``(C) to ensure that, in making any determination 
                concerning the eligibility of any borrower for such a 
                loan that includes financing for any residential energy 
                conservation measures (as such term is defined in 
                section 210 of the National Energy Conservation Policy 
                Act (42 U.S.C. 8211)), the lender shall take into 
                account the amount of the estimated future savings 
                attributable to the improvements in energy efficiency; 
                and
            ``(2) submit a report to the Congress specifying the 
        actions taken to carry out the requirements under paragraph 
        (1).''.

Summary: Energy Efficiency and Assistance Act of 2001 - Amends the Low-Income Home Energy Assistance Act of 1981 to redefine leveraged resources to include any State program which facilitates the collection of donations by electric and gas utilities to be used by public agencies or private nonprofit organizations to pay the utility bills of specified individuals with insufficient financial resources to pay such bills. Extends authorization of appropriations for home energy grants to FY 2005. Amends the Home Owners' Loan Act to include residential energy efficiency improvement loans among the assets of a savings association that qualify as qualified thrift investments. Amends the Truth in Lending Act to require a creditor, when determining consumer eligibility for a residential energy efficiency improvement loan, to take into account estimated future savings attributable to energy efficiency improvements. Amends the following Acts to instruct the Secretary of Housing and Urban Development to develop and implement measures that promote financial incentives for increased energy efficiency: (1) National Housing Act, (2) the Housing Act of 1949, (3) the Federal National Mortgage Association Charter Act, and (4) the Federal Home Loan Mortgage Corporation Act.