7 USC 8107a - Rural energy savings program

U.S Code last checked for updates: Nov 24, 2024

§ 8107a.

Rural energy savings program

(a)

Purpose

(b)

Definitions

In this section:

(1)

Eligible entity

The term “eligible entity” means—

(A)

any public power district, public utility district, or similar entity, or any electric cooperative described in section 501(c)(12) or 1381(a)(2) of title 26, that borrowed and repaid, prepaid, or is paying an electric loan made or guaranteed by the Rural Utilities Service (or any predecessor agency);

(B)

any entity primarily owned or controlled by 1 or more entities described in subparagraph (A); or

(C)

any other entity that is an eligible borrower of the Rural Utilities Service, as determined under section 1710.101 of title 7, Code of Federal Regulations (or a successor regulation).

(2)

Energy efficiency measures

(3)

Qualified consumer

(4)

Secretary

(c)

Loans to eligible entities

(1)

In general

(2)

Requirements

(A)

In general

As a condition of receiving a loan under this subsection, an eligible entity shall—

(i)

establish a list of energy efficiency measures that is expected to decrease energy use or costs of qualified consumers;

(ii)

prepare an implementation plan for use of the loan funds, including use of any interest to be received pursuant to subsection (d)(1)(A);

(iii)

provide for appropriate measurement and verification to ensure—

(I)

the effectiveness of the energy efficiency loans made by the eligible entity; and

(II)

that there is no conflict of interest in carrying out this section; and

(iv)

demonstrate expertise in effective use of energy efficiency measures at an appropriate scale.

(B)

Revision of list of energy efficiency measures

(C)

Existing energy efficiency programs

(3)

No interest

(4)

Eligibility for other loans

(5)

Repayment

With respect to a loan under paragraph (1)—

(A)

the term shall not exceed 20 years from the date on which the loan is closed; and

(B)

except as provided in paragraph (7), the repayment of each advance shall be amortized for a period not to exceed 10 years.

(6)

Amount of advances

(7)

Special advance for start-up activities

(A)

In general

(B)

Amount

(C)

Repayment

Repayment of the special advance—

(i)

shall be required during the 10-year period beginning on the date on which the special advance is made; and

(ii)

at the election of the eligible entity, may be deferred to the end of the 10-year period.

(8)

Limitation

(9)

Accounting

(d)

Loans to qualified consumers

(1)

Terms of loans

Loans made by an eligible entity to qualified consumers using loan funds provided by the Secretary under subsection (c)—

(A)

may bear interest, not to exceed 5 percent, to be used for purposes that include—

(i)

to establish a loan loss reserve; and

(ii)

to offset personnel and program costs of eligible entities to provide the loans;

(B)

shall finance energy efficiency measures for the purpose of decreasing energy usage or costs of the qualified consumer by an amount that ensures, to the maximum extent practicable, that a loan term of not more than 10 years will not pose an undue financial burden on the qualified consumer, as determined by the eligible entity;

(C)

shall not be used to fund purchases of, or modifications to, personal property unless the personal property is or becomes attached to real property (including a manufactured home) as a fixture;

(D)

shall be repaid through charges added to the recurring service bill for the property for, or at which, energy efficiency measures are or will be implemented, on the condition that this requirement does not prohibit—

(i)

the voluntary prepayment of a loan by the owner of the property; or

(ii)

the use of any additional repayment mechanisms that are—

(I)

demonstrated to have appropriate risk mitigation features, as determined by the eligible entity; or

(II)

required if the qualified consumer is no longer a customer of the eligible entity; and

(E)

shall require an energy audit by an eligible entity to determine the impact of proposed energy efficiency measures on the energy costs and consumption of the qualified consumer.

(2)

Contractors

(e)

Contract for measurement and verification, training, and technical assistance

(1)

In general

Not later than 90 days after February 7, 2014, the Secretary—

(A)

shall establish a plan for measurement and verification, training, and technical assistance of the program; and

(B)

may enter into 1 or more contracts with a qualified entity for the purposes of—

(i)

providing measurement and verification activities; and

(ii)

developing a program to provide technical assistance and training to the employees of eligible entities to carry out this section.

(2)

Use of subcontractors authorized

(f)

Additional authority

(g)

Effective period

(h)

Publication

Not later than 120 days after the end of each fiscal year, the Secretary shall publish a description of—

(1)

the number of applications received under this section for that fiscal year;

(2)

the number of loans made to eligible entities under this section for that fiscal year; and

(3)

the recipients of the loans described in paragraph (2).

(i)

Authorization of appropriations

(Pub. L. 107–171, title VI, § 6407, as added Pub. L. 113–79, title VI, § 6205, Feb. 7, 2014, 128 Stat. 857; amended Pub. L. 115–334, title VI, § 6303, Dec. 20, 2018, 132 Stat. 4749.)

cite as: 7 USC 8107a