An Outline of the Regulation for the Energy Efficiency and Conservation Loan ProgramRural Utilities ServiceElectric ProgramUS Department of Agriculture

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• Electric Program• Water & Environmental Programs• Telecommunications and Broadband Programs

• Homeownership Loans• Home Repair Loans & Grants• Mutual Self‐Help TA Grants• Multi‐Family Housing Loans• Housing Preservation Grants• Community Facilities Loans & Grants

• Business and Industry Guaranteed Loans

• Rural Business Enterprise Grants• Rural Business Opportunity Grants• Intermediary Relending Program• Rural Energy for America Program• Value Added Producer Grants• Cooperative Development Assistance

Program Areas

Low interest funding Area coverage Cooperative principles -

“owned by those we serve” Standardized “rural”

engineering

The Electric Program

PR I N C I P L E S :

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Electric Program GFR Assignments

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Electric Program GFR Assignments

Rural Utilities Service published the Final Rule for the Energy Efficiency and Conservation Loan Program on December 5, 2013 which implements Section 6101 of the 2008 Farm Bill

This regulation is an added subpart to an existing regulation (new “subpart H” to 7 CFR 1710)

Section 6101 expands the ability of the electric program to make loans for energy efficiency activities

The regulation allows new financing opportunities for RUS borrowers to provide energy efficiency activities to businesses and homeowners in rural America

Eligible EE programs can be developed and implemented by an eligible borrower for its service territory

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The program is extremely flexible

Weatherization of homes

Heating, ventilation and air conditioning

Ground source heat pumps

lighting

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Appliances???

Demand-side management

Load Modifiers such as renewables

The list goes on and on……

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A typical borrower’s energy efficiency program might have the utility relending the funds to the consumer for EE upgrades to homes, businesses or industry.

Utilities may charge an interest rate to the consumer for the EE loan.

Loans to RUS borrowers may have terms for up to 30 years, and are based on the aggregate useful life of the equipment.

Potential borrowers should reach out to GFRs for guidance on submitting an application.

Rate Based Structure, the cooperate may choose to include some energy efficiency activities in the rate base

Energy Service Contracts, the cooperative can choose to be a full service energy efficiency provider.

Payment through Electric Bill Financing

This could be a tariff based program or a loan based program

Loans may be serviced directly by an RUS Borrower or a financial institution

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The EECLP loan process closely mirrors our existing loan process

There are some differences though....

Business Plans

Quality assurance plans

Prudent practice for any EE program

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Ground source loop investments etc. may be up to 30 years

Loan advances shall be on a reimbursement basis

Start-up costs are possible 5%

Consumer education and outreach programs may not exceed 5% of the RUS loan amount

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The Rural Business Service (RBS) and Rural Housing Service (RHS) have programs that can be leveraged using EE funds

REAP

REDLG

Housing loans for EE

Let us know your plans and we can get you to the right people…

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Designed by field staff as a resource to be shared with borrowers

Contains more detailed instructions and explanations

Contains examples of board resolutions and such

Goal is to incorporate examples of Business and Quality plans

There are also PowerPoint files available for easier understanding of the regulation

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Gerard Moore 202-720-6285 gerard.moore@wdc.usda.gov

Please visit our website at: http://www.rurdev.usda.gov/UEP_HomePage.html

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