Low Income Fuel and Weatherization Supplementary Assistance Act

Low-Income Fuel and Weatherization Supplementary Assistance Act - Authorizes the Secretary of Health and Human Services to make grants to States to assist households with incomes below a specified level to meet home energy costs. Authorizes to be appropriated for fiscal years 1982 through 1986 to carry out such program 100 percent of all funds received by the Federal Government from collections and settlements for fuel overcharges, less all identifiable legitimate claims for such overcharges. Grants to the Governor of a State the discretion to allocate such grants as needed.

Allocates funds for States, U.S. territories and possessions, and Indian tribes. Requires that a reasonable amount of such funds be reserved by each State for energy crisis intervention.

Requires a State to submit to the Secretary an application for each fiscal year. Conditions allotments after the first fiscal year in which a State receives funds on the holding of public hearings in such State on the use and distribution of such funds. Requires that an applicant State agree to: (1) use such funds in accordance with this Act; (2) describe the households eligible for home energy assistance and give priority to certain households; (3) conduct outreach activities to inform people of the availability of such assistance; (4) coordinate activities with similar State and Federal programs; (5) describe the amount of assistance to be provided to participating households; (6) give special consideration in designating local administrative agencies to local public or private nonprofit agencies receiving funds under any other low-income energy assistance or weatherization program; (7) establish notification procedures in connection with direct payments by the State to home energy suppliers; (8) treat owners and renters equitably under the program under this Act; (9) use a maximum of ten percent of the State allotment for administrative expenses; (10) provide for fiscal control and fund accounting procedures and prepare an annual audit of expenditures under such program; and (11) cooperate with any Federal investigations pursuant to this Act. Requires the State to repay to the United States any amounts not expended under this Act. Authorizes the Secretary to offset such amounts against future grants to such State.

Prohibits exclusion from participation in, or denial of benefits from, any program or activity funded under this Act on the basis of race, color, national origin, sex, age, or handicap.

Directs the Secretary to withhold funds from any State which does not use its allotment in accordance with this Act. Prohibits the Secretary from withholding funds from a State for a minor failure to comply with this Act. Requires the Secretary to conduct investigations in States to evaluate and insure compliance with this Act.

Prohibits the use of grants under this Act for the purchase or improvement of land or for the purchase, construction, or permanent improvement of any building or facility, except under specified circumstances.