Last Thursday, the U.S. House of Representatives voted 240-172 to pass the Rural Energy Savings Program Act (H.R. 4785) with the goal of helping rural homeowners pay for energy efficiency improvements by reducing or eliminating upfront costs. The bill, dubbed “Rural STAR” because of its focus on rural homeowners like the related Home STAR legislation applicable to all homeowners , would make $4.9 billion available through the USDA’s Rural Utilities Service to rural electric co-ops. The co-ops would then provide low-interest loans for up to a 10 year period to their customers to finance efficiency upgrades on customers’ houses. The customers then pay back the loan through the energy savings (and thus, lower energy bills) through their monthly utility bill—a tool known as on-bill financing.
According to the Richmond Times-Dispatch, the typical loans to customers will range from $1,500 to $7,000 each and will be used to defray upfront costs of sealing, insulation, heat pump replacement, new HVAC systems, boilers, roof maintenance and other such energy-saving home improvements.
The bill will now go to the Senate – where the larger, Home STAR bill also awaits a vote. It is increasingly unlikely that the Senate will take action on either bill prior to the November elections, which is a shame. Homeowners throughout Appalachia could certainly benefit from improving the efficiency of their homes before the coming winter. Want to take action? Call your U.S. Senators and encourage them to consider both bills as soon as possible.
