RURAL ENERGY SAVINGS PROGRAM (RESP)

This briefing from the Environmental and Energy Study Institute (EESI) describes the Rural Energy Savings Program (RESP), which provides zero-interest loans to eligible entities to fund energy efficiency, renewable energy, and electrification improvements for rural households and small businesses. The document includes a side-by-side comparison of current law and a May 2024 House Agriculture Committee discussion draft, highlighting proposed expansions to eligible borrowers, the inclusion of manufactured home replacements, and the introduction of grants for technical assistance and repairs.

• The Rural Energy Savings Program (RESP) provides zero-interest loans to entities such as electric cooperatives, green banks, and state financing entities to establish energy efficiency programs for rural households and small businesses. These improvements, which include insulation, air sealing, and new heating and cooling equipment, are implemented at no upfront cost and are repaid via a utility bill line-item.
• Beyond basic energy efficiency, RESP-funded programs may finance energy storage, electric vehicle supply equipment, distributed renewable energy generation, and irrigation improvements, provided they are cost-effective for the end user. The program also supports the deployment of broadband infrastructure to enable the use of networked appliances and smart thermostats.
• Between fiscal year (FY) 2019 and FY 2023, the amount of zero-interest loans awarded by RESP increased from $71.3 million in FY 2019 to $200 million in FY 2023. During this same period, annual congressional appropriations ranged from $10 million in FY 2019 to a peak of $12 million in FY 2020.
• A May 2024 House Agriculture Committee discussion draft proposes several changes to current law, including the reauthorization of the program through 2029 and the addition of manufactured home replacements to the list of eligible energy efficiency measures, provided they are cost-effective.
• The House discussion draft proposes expanding the types of eligible borrowers to include Indian Tribes and public, quasi-public, or nonprofit entities that use innovative financing and market development tools to accelerate energy efficiency technology deployment.
• The proposed House version introduces grants for eligible entities to cover costs for technical assistance, outreach, training, and property repairs that facilitate energy efficiency measures. These grants would generally be limited to 5% of the loan amount, increasing to 10% for qualified consumers in persistent poverty counties.
• The House discussion draft suggests extending the repayment terms for loans to qualified consumers, allowing for a term and amortization schedule based on the useful life of the implemented energy efficiency measures, up to a maximum of 20 years.

APA

Environmental and Energy Study Institute (2024). RURAL ENERGY SAVINGS PROGRAM (RESP). https://www.eesi.org/files/2024.5.21_Side-by-Side_RESP_House_FINAL_.pdf

Chicago

Environmental and Energy Study Institute. RURAL ENERGY SAVINGS PROGRAM (RESP). 2024. https://www.eesi.org/files/2024.5.21_Side-by-Side_RESP_House_FINAL_.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=RURAL ENERGY SAVINGS PROGRAM (RESP) |date=21 May 2024 |url=https://www.eesi.org/files/2024.5.21_Side-by-Side_RESP_House_FINAL_.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2024rural, author = {{Environmental and Energy Study Institute}}, title = {{RURAL ENERGY SAVINGS PROGRAM (RESP)}}, institution = {Environmental and Energy Study Institute}, year = {2024}, month = may, url = {https://www.eesi.org/files/2024.5.21_Side-by-Side_RESP_House_FINAL_.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }