WASHINGTON, Dec. 4, 2013 – Agriculture Secretary Tom Vilsack
today announced USDA plans to provide rural electric cooperatives up to $250
million to lend to business and residential customers for energy efficiency
improvements and renewable energy systems. The department says the new steps will
save consumers money on their energy bills in partnership with rural electric
cooperatives.
"Energy efficiency retrofitting can shrink home energy
use by 40 percent, saving money for consumers and helping rural utilities
manage their electric load more efficiently," said Vilsack.
"Ultimately, reducing energy use helps pump capital back into rural
communities. This program is designed to meet the unique needs of consumers and
businesses to encourage energy efficiency retrofitting projects across rural
America."
Vilsack noted that the Energy Efficiency and Loan
Conservation Program, by promoting energy savings in rural areas, is another
step by which USDA is supporting President Obama's Climate Action Plan. The
program will help build a cleaner and more sustainable domestic energy sector
for future generations by reducing barriers to investment in energy efficiency
and potentially cutting energy bills for American families and businesses in
the process, Vilsack said.
Although energy efficiency measures can reduce home energy
use considerably, many consumers and businesses do not invest in them because
they lack the capital or financing to do so. The funding is meant to reduce
barriers to these investments by making financing more available.
Funding will be provided to rural electric cooperatives and
utilities – the majority of which already have energy efficiency programs in
place – who will then re-lend the money to help homeowners or businesses make
energy efficiency improvements. In addition to energy audits, the loans may be
used for upgrades to heating, lighting and insulation, and conversions to more
efficient or renewable energy sources.
A March 2012 Rockefeller Foundation report on financing
energy efficiency projects found that a $279 billion investment could yield
more than $1 trillion in energy savings over 10 years. That is the equivalent
of 30 percent of the annual electricity spending in the U.S.
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