Agricultural Secretary Tom Vilsack today announced a new program that will help rural residents conserve energy and save money on their utility bills. The new Rural Energy Savings Program (RESP) will make $52 million in loans available to energy providers to help rural families and small businesses reduce their energy use.
“Investments like the ones we will make through the Rural Energy Savings Program not only reduce energy costs for consumers, but also build a cleaner and more sustainable energy future,” Vilsack said. “This program is the latest of many financing options USDA provides to rural communities to expand energy efficiency efforts and strengthen rural economies.”
José Otero-García, USDA Rural Development State Director for Puerto Rico indicated that RESP provides loans to rural energy providers who in turn fund projects for consumers to decrease their energy use or costs. Eligible applicants include current and former Rural Utilities (RUS) borrowers, subsidiaries of current or formers RUS borrower, and entities that provide retail electric service in rural areas.
RESP borrowers may finance loans at 0% interest for up to 20 years, making the program an attractive and affordable option to finance energy saving measures. Energy customers participating in program financed through RESP then repay the loans at an interest rate of up to 3% for up to 10 years through their electric bills.
RESP builds upon the work that USDA Rural Development has done to help improve the energy efficiency of single and multi-family housing, businesses, farm and utilities. It aligns with the Obama Administration’s Strike Force for Rural Growth and Opportunity and Promise Zone initiatives to help revitalize communities and expand economic opportunity through targeted funding, technical assistance and partnerships. RESP will be used to target low-income, high-energy-cost communities.
RUS is making $52 million in loans available under RESP.
To be considered for RESP funding, applicants should submit a letter of intent by August 5, 2016. Email the letter of intent to RESP@wdc.usda.gov . Applications will be processed on a first come/first served basis until funds are expended. For additional information, see page 40262 of the June 21, 2016, Federal Register.
USDA’s Rural Utilities Service also administers infrastructure programs that bring broadband, safe drinking water and improved wastewater treatment facilities to rural communities.
For additional information, please, contact Miguel Ramírez at (787) 766-5708, or visit our web www.rd.usda.gov/pr .