CHARLOTTE, VT– U.S. Senator Peter Welch (D-Vt.), Chair of the Senate Agriculture Subcommittee on Rural Development and Energy, joined the U.S. Department of Agriculture (USDA) Rural Development, Vermont Bond Bank, and community leaders to celebrate Vermont’s first Rural Energy Savings Program (RESP) loan from the federal government, which will invest $40 million to benefit rural communities and school districts with low-interest, long-term financing for clean energy projects. Senator Welch introduced a bipartisan bill to reauthorize RESP and improve the program to help rural utilities maximize the program’s benefits. The bill was included as part of the Senate’s Farm Bill proposal, the Rural Prosperity and Food Security Act.
“I’m thrilled to celebrate the closing of USDA’s first RESP loan to a Vermont institution. This RESP loan to the Vermont Bond Bank will save energy costs, reduce carbon emissions, support good jobs in Vermont, and keep investments local. It’s a win for all of us,” said Senator Welch. “I will continue to work towards ensuring my bipartisan Rural Energy Savings Act will pass as part of the Farm Bill to help more folks access low-interest loans for energy projects.”
Senator Welch was joined by Michael Gaughan, Executive Director, Vermont Bond Bank; Sarah Waring, USDA RD State Director for Vermont and New Hampshire; Ted Brady, Vermont League of Cities and Towns; Jim Faulkner, Chair of the Charlotte Select Board and Representatives from the Offices of Senator Bernie Sanders (I-Vt.) and Representative Becca Balint (D-Vt.).
“Reducing costs for our municipal and education partners also reduces cost for taxpayers in the long term, so this is a terrific use of federal funds,” said Sarah Waring, USDA RD State Director for Vermont and New Hampshire. “Our agency has been pro-active in implementing the mandates of the Biden-Harris Administration to invest in rural communities to save money and build more efficient infrastructure. We’re proud to work with partners like the Vermont Bond Bank, one of the very first financial institutions in the country to close an RD RESP loan, because we share our mission to support economic opportunity and quality-of-life improvements for our communities.”
“The Bond Bank’s RESP loan will be a game changer in reducing energy costs for Vermont’s rural villages, towns, and school districts,” said Bond Bank Executive Director Michael Gaughan. “The resulting flexible and low-cost loans will align incentives for communities to enhance both financial and environmental sustainability while also helping to unlock incentives within the Inflation Reduction Act.”
The Rural Energy Savings Program provides no-interest loans to rural utilities, electric cooperatives, and related entities to offer affordable financing for rural households and businesses making energy efficiency, electrification, and renewable energy improvements. Financing is most often used to support air sealing, insulation, new space conditioning systems, and new water heaters.
Senator Welch’s bipartisan Rural Energy Savings Act would reauthorize RESP and improve the program by providing limited grant funding to rural utilities to offset administrative and program costs, extending the maximum repayment term for loans to consumers to up to 20 years, and expanding eligibility for all households within a rural utility’s service territory. The bill also codifies the ability of “green banks” to access RESP and codifies manufactured housing as an eligible improvement.
Created in 1969 as the nation’s first state bond bank, the Bond Bank helps finance and implement crucial municipal infrastructure at lower costs to communities by providing access to more affordable capital. The Bond Bank does this by overcoming gaps in information, scale, and credit to allow cities, towns, villages, school districts, and other forms of government achieve equitable access to capital. This market specialization also helps with expertise in recognizing emerging needs like flood relief and managing federal requirements for faster and easier access to capital. In addition to facilities and infrastructure lending, the Bond Bank also provides post disaster bridge loans and is the financial administrator of the State of Vermont Clean and Drinking Water State Revolving Loan Funds.
USDA Rural Development supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. Visit USDA’s Rural Data Gateway to learn how and where these investments are impacting rural America.
View photos from the event below:
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