US House passes rural energy savings program

The Rural Energy Savings Program Act also known as the Rural Star program passed the U.S. House on Thursday. House Majority Whip James Clyburn and Representative John Spratt pushed the legislation, which would provide loans to rural Americans to make their homes, farms or businesses more energy-efficient. The proposal is modeled on the South Carolina Electric Cooperatives’ plan to save consumers money on electric bills.

Clyburn says electric co-ops estimate that the program could create up to 40,000 new jobs annually nationwide for energy auditors and people trained in product installation. In South Carolina, 2,100 jobs are expected to be created in the first year.

AUDIO: Clyburn, Couick on Rural Star job creation (1:07)

Electric Cooperatives of South Carolina CEO Mike Couick joined Clyburn and Spratt for a press conference on Thursday.

Clyburn says energy savings from the renovations would cover most of the cost of the loans. He says energy savings in some cases will range up to two-thirds of a person’s utility bill.

Loans of about $3,000 to $7,500 would eliminate the upfront cost of home energy upgrades, which customers would then repay over 10 years on their electric bill.

Spratt says the legislation is a win, win, win situation. He says the program won’t cost the government anything.

AUDIO: Spratt says energy program is a triple play (1:20)

Couick says the bill will boost demand for energy efficient products, materials, and construction and installation services that are made in America. Over 90 percent of the needed products and materials, including caulking, insulation, hot water heaters, sealant, windows, doors other structural materials, are made in America.

Couick says the program will be great for the environment, reducing carbon emissions in the atmosphere as facilities that generate electricity will have less demand.

We can reduce carbon emissions in South Carolina by 6.7 million tons over a 10-year period. Those homes that are retrofitted will save $290 million a year, by 2020. That’s pretty much a grand slam, I think.

Couick says congress is doing the responsible thing if the program becomes law.

We’ll help our 1.5 million electric consumers in South Carolina save energy and money. We’ll also put thousands of people to work conducting energy audits and weatherizing and up-fitting homes. And none of this is a giveaway. It’s a lending program, and every dollar spent to make improvements gets paid back. We’re hopeful that the bipartisan support we’ve been getting from our congressional delegation will turn this plan into a reality.