Rural Energy Savings Program

This briefing describes the proposed Rural Energy Savings Program (RESP), a legislative initiative designed to provide low-interest loans to rural homeowners for energy efficiency improvements via on-bill financing through the USDA's Rural Utilities Service.

• The Rural Energy Savings Program (RESP) aims to reduce greenhouse gas emissions and household utility bills in rural communities by providing low-interest loans for energy efficiency improvements. These loans are repaid through 'on-bill financing', where payments are made via the customer's monthly electric bill using the savings generated from reduced energy consumption.
• Under the proposed legislation, the USDA's Rural Utilities Service (RUS) would provide long-term loans to cooperative and public electric utilities. To qualify, utilities must create a list of cost-effective, commercial off-the-shelf energy efficiency measures, an implementation plan, and a measurement and verification plan. Utilities can manage revolving loan pools for up to 20 years and may charge consumers up to 3% interest to cover costs and a loan loss reserve.
• The USDA is required to support program implementation by developing a protocol for measuring energy consumption, establishing a measurement and verification advisory committee, and maintaining a directory of energy efficiency auditors. These tasks must be completed within two months of the bill's final passage.
• There are key differences between the House (HR 4785) and Senate (S. 2216) versions of the bill. The House version proposed $993 million in funding over five years, whereas the Senate version does not specify funding levels but allows the program to continue until all funds are spent. Additionally, the Senate bill allows loan advances to utilities of up to 50%, compared to 30% in the House bill.
• Existing on-bill financing examples include Midwest Energy in Kansas, which has funded over 700 projects since 2007 with more than $4 million; a 2011 pilot program by the Electric Cooperatives of South Carolina that retrofitted 125 homes; and the New York On-Bill Recovery Loan Program, the first statewide program of its kind, signed into law in 2011.

APA

Environmental and Energy Study Institute (2012). Rural Energy Savings Program. https://www.eesi.org/files/resp_bills_062612.pdf

Chicago

Environmental and Energy Study Institute. Rural Energy Savings Program. 2012. https://www.eesi.org/files/resp_bills_062612.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Rural Energy Savings Program |date=June 2012 |url=https://www.eesi.org/files/resp_bills_062612.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2012rural, author = {{Environmental and Energy Study Institute}}, title = {{Rural Energy Savings Program}}, institution = {Environmental and Energy Study Institute}, year = {2012}, month = jun, url = {https://www.eesi.org/files/resp_bills_062612.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }