Lincoln Urges Passage of Bipartisan Bill to Promote Job Creation and Help Arkansans Save on Energy Costs

Washington - U.S. Senate Agriculture, Nutrition and Forestry Committee Chairman Blanche Lincoln, D-Ark., has urged Congress to support the Rural Energy Savings Program to promote job creation and energy efficiency in rural America. The bill would create a loan program for energy efficiency upgrades to rural homes and businesses. Lincoln's comments came at a Senate Agriculture Subcommittee on Energy, Science and Technology hearing where the Vice President and General Manager of the Rheem Air Conditioning Division in Fort Smith, Bill Hanesworth, testified. Rheem produces energy efficient products and would potentially qualify for efficiency upgrades in the Rural Energy Savings Program.

"As we work to give families much-needed relief during these tough economic times, I am focused on promoting programs that will create jobs and lower utility bills for rural families. That is why I am proud to co-sponsor the Rural Energy Savings Program legislation that will help put Arkansans back to work and help consumers save on energy costs, while in-turn, increasing energy conservation. I appreciated Mr. Hanesworth's participation in today's hearing to highlight how this bill will specifically benefit Arkansas and support 1300 jobs in the Fort Smith area," said Lincoln.

Lincoln introduced Mr. Hanesworth, who testified at the hearing on behalf of the bill and spoke about the positive effects it will have on Arkansas' rural communities.

"This important legislative proposal would help support demand for the work of our Fort Smith team - enabling our dedicated employees to continue to design and build products to compete in a global marketplace. This important initiative would create jobs at a critical point in our economic recovery while at the same time providing direct and immediate benefits to consumers. Specifically, the domestic manufacturing and construction industries would benefit greatly as energy efficient products are manufactured and, as you know, installation jobs cannot be outsourced. Further, manufacturers of energy efficient products would realize increased demand and increased volume of sales, and others would have yet another incentive to enter the market of energy efficient products," said Hanesworth.

The Rural Energy Savings Program would create a $4.9 billion loan program for energy efficiency upgrades to homes or businesses. The program would be administered by Rural Utility Services (RUS) at the United States Department of Agriculture. RUS would extend zero interest loans to qualifying Rural Electric Cooperatives who would, in turn, extend credit for energy efficiency upgrades to its customers at an interest rate between zero and three percent. Customers would pay back the loan on their utility bills.

The bill would also provide funding for training energy auditors. This program will greatly benefit many in rural Arkansas which has a shortage of qualified energy auditors. By the end of 2012, it is estimated that this program would create 26,000 direct jobs as well as thousands of indirect jobs through the energy audits and efficiency upgrades. An estimated1.6 million households would be able to participate in the program with an average consumer loan of $3,000.