Members introduce rural utility loan bill designed to spur energy efficiency efforts

A bipartisan group of lawmakers introduced a bill today to provide homeowners and businesses with low-interest loans to make energy efficiency improvements to cut their energy use.

The measure would grant $4.9 billion in loan authority to the Rural Utilities Services, which finances rural electric utilities. The RUS loans to the electric co-ops would be zero percent interest, and given on the condition that the co-ops would in turn make low-interest loans to their customers for things like installing insulation, replacing old heating and cooling systems and repairing leaky roofs.

The co-op loans could not exceed interest rates of greater than 3 percent.

“This bill provides for energy conservation, job creation and cost-effective upgrades that will improve consumers’ quality of life,” House Majority Leader Jim Clyburn (D-S.C.) said in a statement.

Supporters said the bill would create between 20,000 and 40,000 jobs. Rural co-op officials said efficiency programs may mean utilities won’t have to build new power plants to meet the electricity demands of their customers, avoding new carbon dioxide emissions most scientists say are warming the planet.

The legislation has 10 original co-sponsors: Clyburn, Reps. Tom Perriello (D-Va.); John Spratt (D-S.C.); Ed Whitfield (R-Ky.); and Sens. Jeff Merkley (D-Ore.); Jeanne Shaheen (D-N.H.), Tim Johnson (D-S.D.); Michael Bennet (D-Colo.); Lindsey Graham (R-S.C.); and Richard Lugar (R-Ind.).

The bill number in the House is h.r. 4785, although at the time of this post, the measure had not been added to the Thomas legislative database.