Rural Energy Savings Plan

BIPARTISAN BICAMERAL COALITION INTRODUCES LEGISLATION CREATING RURAL ENERGY SAVINGS PROGRAM

Creating Jobs, Saving Money, Reducing Pollution

On Wednesday March 10, 2010, a bipartisan coalition of Senate and House Members were joined by rural electric cooperatives and energy industry leaders to introduce legislation establishing a Rural Energy Savings Program (RESP) to create jobs, save American families and businesses money on their electric bills, and reduce air pollution. The legislation (H.R. 4785 in the House) is estimated to create 20,000 to 40,000 jobs a year.

The bill provides $4.9 billion in loan authority through the U.S. Department of Agriculture's Rural Utilities Service (RUS) to electric cooperatives to offer low-interest micro-loans to residential and small business customers for energy-saving retrofit and structural improvements. The program will be a boon for the domestic manufacturing and construction industries, as energy-efficiency products are almost exclusively manufactured in the United States and installation jobs cannot be exported. The program builds on the existing co-op infrastructure that has strong community ties and a demonstrated 75-year history of on-bill financing for consumer loans.