Electric Co-op Today

The legislation would enable co-ops or statewide groups of co-ops to obtain interest-free loans from RUS, and then provide micro-loans for residential and small business improvements, such as insulation, HVAC systems, boilers and roofs. Appliances are not covered by the program.

The loans would be repaid by the savings on the electric bill.

“This will drastically reduce energy costs for my constituents and constituents all over the country,” said Rep. Kathleen Dahlkemper, D-Pa.

Supporters estimate the legislation could create nearly 26,000 jobs and make loans available to 1.1 mllion to 1.6 million rural households. It is based on a similar program developed by co-ops in South Carolina and Midwest Energy, Hays, Kansas.

During the committee markup, Rep. Jerry Moran, R-Kan., cited Midwest’s How$mart® energy-saving program, which recently surpassed the $1 million dollar mark in energy-efficiency investment.

Peterson noted that the committee’s vote only authorizes the program, so the estimated 10-year cost of $993 million to run Rural Star would have to come through the normal congressional appropriations process.

Committee members agreed to an amendment to eliminate an authorization of $11 million for 10 additional RUS employees to oversee the program.

Rep. Cynthia Lummis, R-Wyo., who sponsored the amendment with Blake Luetkemeyer, R-Mo., said the Department of Agriculture should be able to deal with the extra workload with current staffing levels.

The bill also has been referred to the House Energy and Commerce Committee. Similar legislation is in a Senate committee.

Tags: Energy Efficiency, Legislation, Rural Utilities Service, Weatherization