Energy initiative to expand

An idea to make an estimated quarter of a million homes in South Carolina more energy-efficient and help residents save cash each month on their electric bills is going national.

The program, hailed as revolutionary, is an expansion of one planned by the Electric Cooperatives of South Carolina. U.S. House Majority Whip Jim Clyburn and U.S. Sen. Lindsey Graham said Wednesday they want to take it to the rest of the country.

The congressmen were joined in Washington by a bipartisan group of U.S. representatives and senators to announce their intent to file legislation to create the Rural Energy Savings Program.

The program would allow homeowners and renters to borrow money to buy new heating-and-air units, roofs, insulation or other items such as weather-stripping to make their houses more energy-efficient. The loans would automatically be paid back on monthly electric bills. The energy efficiency would generate savings, some of which would go to pay back the loans and the rest to the resident.

In South Carolina, the loans would be made to cooperative customers at a 2.5 percent interest rate.

The typical loans would range from $1,500 to $7,000 and would be paid back between five and 10 years. The energy savings on the upgrades would cover most, and in many cases all, of the loan. Customers could save hundreds more each year after the loans are paid back.

The goal is to spend $750 million retrofitting 225,000 homes in South Carolina over the next 10 years. Nationally, the proposed legislation calls for $4.9 billion to be loaned to an estimated 1.6 million homeowners.

The program would help save homeowners money and would reate between 20,000 and 40,000 new jobs to refit the homes and relieve pressure to produce more energy, said Clyburn, a Democrat. South Carolina can expect 2,100 new jobs in the first year. Jobs would go mainly to installers, retailers and suppliers.

"This bill provides for energy conservation, job creation and cost-effective upgrades that will save people money," Clyburn said in statement. "There is such broad support for this initiative because it is a win-win-win proposition."

Under the plan, residents would save money. Jobs would be created. Energy use would be cut and the loans would be paid back.

Michael Couick, CEO for cooperatives, noted that the rate of default on an electric bill is significantly lower at 1 percent than the rate of default on typical consumer loans, so the program is less of a risk. The loans would be available to the public regardless of their credit rating.

Couick, on behalf of South Carolina's 20 cooperatives, brought the idea to Congress.

Cooperatives customers could receive the loans as early as this summer, if both the state and federal government authorize the program. The cooperatives provide power to more than 70 percent of the state geographically and serve 1.5 million homes.

Across the country, rural cooperatives provide power to 42 million Americans in 47 states.

Clyburn intends to make the loan program part of the jobs bills that are before Congress now.

At the state level, legislation is on track for approval in the coming weeks. The state legislation would allow other power companies, such as Santee Cooper and South Carolina Electric & Gas, to offer the loans.

Graham, R-S.C., commended the South Carolina electric cooperatives for "forward thinking."

"It is smart policy to take a small, limited amount of federal dollars and empower people to help themselves and, as a result, help our country," Graham said in a statement. "By turning this idea into law, our nation will be more energy-independent and less dependent on foreign sources of energy. I am proud to be part of this effort and hope we can make it happen this year."

Covering the politics of the Lowcountry, South Carolina and the nation.

Because the program provides loans, and not grants, the federal government is expected to recoup its initial investment.

The legislation has the support of the environmental community, including Charleston-based Coastal Conservation League. It also has numerous business supporters, including The American Chemistry Council, The Retail Industry Leaders Association and National Lumber and Building Material Dealers Association.

Reach Yvonne Wenger at 803-926-7855 or ywenger@postandcourier.com.

Editor's note: Earlier versions of this story contained an error concerning how many jobs would be created by the program. The Post and Courier regrets the error.