Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I am a proud cosponsor of H.R. 4785, a bill authored by the distinguished majority whip, Mr. James Clyburn of South Carolina. The Rural Energy Savings Program Act will…
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I am a proud cosponsor of H.R. 4785, a bill authored by the distinguished majority whip, Mr. James Clyburn of South Carolina. The Rural Energy Savings Program Act will not only quickly create construction and manufacturing jobs, but it will also help Americans make their homes more energy efficient.
The Agriculture Committee reported this bill favorably in July. I want to commend the chairman of the committee, Mr. Peterson, and Mr. Clyburn for subsequently working with my committee, the Energy and Commerce Committee, to actually improve the legislation. The bill includes the Home Star Energy Efficiency Loan Program that was reported by the Energy and Commerce Committee on April 15, 2010, as part of H.R. 5019, the Home Star Energy Retrofit Act of 2010.
Mr. Chairman, H.R. 5019 was approved by the committee with a bipartisan vote of 30-17. It was supported by a broad array of stakeholders, including energy efficiency advocates, manufacturers, business and industry trade associations, and small businesses. Under this bill, homeowners anywhere in the country will be able to work with their rural cooperative, utility, or other governor-designated lender to borrow money for proven energy efficiency investments in their homes. They would repay the loans over time, generally from a portion of the money they save on their energy bill, and at an interest rate of not more than 3 percent. The lenders would repay their States, and the States would repay the Federal Government after not more than 20 years.
The Home Star Energy Efficiency Loan Program is a natural companion to the Rural Energy Savings Program Act. As you may know, the Rural Energy Savings Act authorizes zero-interest loans to rural electric cooperatives for purposes of offering consumer loans for energy efficiency home retrofits. The Home Star Energy Efficiency Loan Program will authorize zero-interest loans to those portions of the country not served--I repeat that--not served by rural electric cooperatives.
I originally cosponsored this bill because it provided enormous assistance to consumers served by rural electric cooperatives across the country. My district in North Carolina is served by 10 rural electric co-ops in addition to the 20 municipal power utilities and two investor-owned utilities.
Across the country, cooperatives only serve about 12 percent of the Nation's population. So the provisions included in the substitute amendment will ensure that a homeowner will have the same access to a low interest energy efficiency loan whether or not they are served by a co-op, an investor-owned utility, or a municipality.
Under the Home Star loan program, States could borrow Federal funds to allow entities like electric utilities or other entities provide loans to consumers for residential energy efficiency measures. The Department of Energy, in consultation with the Secretary of Agriculture, would identify the eligible energy efficiency measures.
The programs in this bill, Mr. Chairman, vary significantly from the Weatherization Assistance Program. Weatherization is a grant program used by low-income households to reduce their energy bills by making their homes more energy efficient. The programs in this bill are loans, and thus do not increase the deficit. They are available to anyone, regardless of income.
Some of my Republican colleagues have questioned this bill's necessity due to the significant investment made in the Weatherization program in the Recovery Act. Well, while I concede that Weatherization got off to a slow start, today over 30,000 homes each month are being weatherized across the country. In September, the Department of Energy announced that it had weatherized over 200,000 homes across the country. In June, 960 homes were weatherized in my State of North Carolina. Each of the low-income families living in those 960 homes will save an average of $437 annually on their energy bill. But that's not why we are here today. We are here to offer all Americans a chance to lower their utility bills and put their neighbors back to work.
The recession has had a significant impact on the home construction and services industry, which has experienced unemployment rates of 27 percent. Additionally, manufacturing plants that produce construction- related products have operated at 50 percent of capacity. Home energy retrofit work can provide, and it will provide, significant employment opportunities for construction workers while boosting domestic manufacturing. More than 92 percent of the energy-efficient products and materials for which the Home Star program will stimulate sales are manufactured here in the United States of America.
Home energy efficiency retrofits can also cut the Nation's energy use, saving consumers money and cutting pollution. American homes account for about 33 percent of the Nation's total electricity demand, and approximately 22 percent of all energy use in the United States. This legislation, Mr. Chairman, presents an opportunity for all of us to work together to save energy and create jobs. I urge all of our colleagues to seize this opportunity.
I reserve the balance of my time.
Mr. Chairman, I yield 2 minutes to the distinguished gentleman from Vermont (Mr. Welch), a member of the Energy and Commerce Committee.
Mr. Chairman, I thank the ranking member for his comments.
We continue to say that this legislation is a good bill and it is certainly deficit neutral. It has been judged that way by the Congressional Budget Office. It is a loan program. It is not a grant program. It will not add to the deficit. It will not add to the debt in any respect.
I would like to encourage my colleagues to distinguish this program from the Department of Energy program that is a weatherization program. The weatherization programs, as we all know as Members, are intended to help low-income families, and it is a grant program. This is a loan program whereby Federal dollars are given to an investor-owned utility or to a municipality or to a rural cooperative, and the money is used then, in turn, to make low-interest loans to families who qualify. It is not income based. There are qualifications for the loans, but the family income is not a qualification to qualify for the loan.
We must enable the American people to weatherize their homes. Forty percent, in some instances, of their utility bill can be attributed to the loss of heat and air within the homes. And so this program is intended to help install replacement windows and insulation and other things that will make homes more energy efficient.
It will pay for itself. It's a good bill. I ask my colleagues to support it.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I stand to offer this amendment as a designee.
Mr. Chairman, I am told that the gentleman from Washington is en route to the floor. I simply stood to offer the amendment to make it in order. The gentleman who offered the amendment should be here momentarily.
Mr. Chairman, I would like to proceed as the designee.
Let me apologize to the Chair, to the ranking member and to my colleagues for all of the confusion, but we are ready to proceed on this matter.
Mr. Chairman, I have reviewed this amendment. It appears to be in keeping with the spirit of the underlying legislation. I would urge my colleagues to support it.
I reserve the balance of my time.
To the extent that I can, Mr. Barton.
I do not have that material in front of me, Mr. Barton.
You certainly appreciate the disadvantage at which I find myself.
I thank the gentleman for his kind comments.
Mr. Chairman, I yield back the balance of my time.
Mr. Speaker, pursuant to the instructions of the House in the motion to recommit, I report the bill, H.R. 4785, back to the House with an amendment.