Congress Introduces Energy Efficiency Legislation

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Bill breaks down barriers for consumers to make upgrades

March 10, 2010 -- Washington, DC -- U.S. Senator Tim Johnson (D-SD) joined a bipartisan group of colleagues today in introducing legislation that would make it more affordable for families in rural areas to improve the energy efficiency of their homes. This legislation, the Rural Energy Improvement Act of 2010, would provide low-interest loans to families to finance energy-efficient improvements, with the cost included in their monthly utility bill.

“The bill I am helping introduce today will reduce barriers that many homeowners face when trying to make their homes more energy efficient,” Johnson said. “South Dakotans who participate in this program would not have to wait long to see the financial benefits from making these upgrades.”

In addition to helping families save money in energy costs, this bill will also spur manufacturing and construction industries, because energy-efficient products are nearly exclusively made in the United States. It is estimated that the bill will create 20,000 to 40,000 jobs a year nationwide, all of which cannot be exported.

The legislation would allow the USDA Rural Utility Service to issue loans to electric cooperatives, who would then loan the money at a low-interest rate to qualified customers.

This program will build on the existing co-op infrastructure in rural communities, which have a long history of on-bill financing for consumer loans. Typical loans will range from $1,500 to $7,000 and the requirements of the program would ensure that the projects funded are proven to save energy. Possible improvement projects include upgrading windows, heat pumps, boilers, roofs, HVAC replacement, weather stripping and insulation installation.

Similar legislation was introduced in the House of Representatives today.

Source: Senator Tim Johnson