Electric Co-op Today

Rural Star is headed to the Senate.

House Majority Whip James E. Clyburn, D-S.C., spoke at the unveiling of the Rural Star bill earlier this year. (Photo By: Steven Johnson)

The co-op-backed energy-efficiency program passed the House of Representatives Sept. 16 on a 240 to 172 vote. Six Republican joined 234 Democrats in backing the measure.

Supporters hailed the vote as a step that will help members save on their electric bills, reduce the need for expensive new generation and create jobs in the energy-efficiency sector.

“We are very pleased that the bill passed the House. It represents an opportunity for many members to control their electric bills by improving the efficiency of their homes and farms,” said NRECA CEO Glenn English.

“It should provide a huge benefit to those who are struggling to meet their monthly bills in difficult economic circumstances,” he said.

House Majority Whip James E. Clyburn, D-S.C., the bill’s primary sponsor, called it “a win-win-win situation” that combines energy savings, reduced emissions and job creation.

“Rural Star will create high-skilled, high-wage manufacturing and construction jobs, and create meaningful savings for consumers that will put money directly in their pocketbook,” he said.

Formally known as the Rural Energy Savings Program Act, Rural Star would enable co-ops or a statewide group of co-ops to obtain zero-interest loans from the Rural Utilities Service.

They would provide micro-loans at no more than 3 percent interest to qualified members to offset the upfront cost of energy-efficiency upgrades, such as insulation and heating and cooling systems.

The loans would be repaid by savings on electric bills.

Supporters said the legislation could create nearly 26,000 jobs and make loans available to as many as 1.6 million rural households. It is based on programs developed by Midwest Energy, Hays, Kan., and co-ops in South Carolina.

In South Carolina alone, the program could lead to a reduction of 6.7 million tons of carbon emissions during the next 10 years and avert a $4 billion expenditure on new generation, said Michael Couick, CEO of The Electric Cooperatives of South Carolina.

“I think it’s probably a home run,” he said. “This is a very different approach to weatherization than anything that’s been done before.”

Tags: Efficiency and Conservation, Legislation, Rural Energy Savings Program Act