The U.S. Department of Agriculture (USDA) Rural Development 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.
The Rural Energy Savings Program will provide loans to rural energy providers who in turn will fund projects for consumers to make energy efficiency improvements in their homes or businesses that will lower their energy use. Eligible applicants include current and former USDA Rural Utilities Service (RUS) borrowers, subsidiaries of current or former RUS borrowers, and entities that provide retail electric service in rural areas. The new program is a key part of USDA’s work to reduce energy costs for consumers and build a cleaner and sustainable future.
Rural Energy Savings Program borrowers will receive zero percent interest loans for up to 20 years, making the program an attractive and affordable option to finance energy-saving measures. Energy consumers participating in programs financed by RESP borrowers will repay their loans at an interest rate of up to 3 percent for up to 10 years through their electric bills.
The Rural Energy Savings Program builds upon the work that USDA Rural Development has done to help improve the energy efficiency of single- and multi-family housing, businesses, farms, and utilities. It will be used to focus on low-income, high-energy-cost communities.
Congress authorized the program in the 2014 Farm Bill. USDA’s Rural Utilities Service administers RESP, as well as the Energy Efficiency and Conservation Loan Program (EECLP). The Rural Energy Savings Program is open to a broader pool of eligible borrowers, has a zero percent interest rate, and has a longer loan term than EECLP.
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. Since 2009, USDA Rural Development (#USDARD) has invested $31.3 billion in 963 electric projects that have financed more than 185,000 miles of transmission and distribution lines serving 4.6 million rural residents. USDA also has invested $11 billion to start or expand 103,000 rural businesses; helped 1.1 million rural residents buy homes; funded nearly 7,000 community facilities, such as schools, public safety, and healthcare facilities; and helped bring high-speed Internet access to nearly 6 million rural residents and businesses. To learn more, visit www.usda.gov/results.