Together, America Prospers 

Energy Efficiency and Conservation Loan Program
 

What does this 

program do? 

The Energy Efficiency and 

Conservation Loan Program 

(EECLP) provides loans to 

finance energy efficiency and 

conservation projects for 

commercial, industrial, and 

residential consumers. With the 

EECLP, eligible utilities—including 

existing Rural Utilities Service 

(RUS) borrowers—can borrow 

money tied to U.S. Treasury 

rates of interest and reIend 

the money to develop new and 

diverse energy service products 

within their service territories. 

For instance, borrowers could 

set up on-bill financing programs 

whereby customers in their 

service territories implement 

energy efficiency measures 

behind the meter and repay the 

loan to the distribution utility 

through their electric bills. 

Who may apply for this program? 

Loans under the EECLP are available 

to those businesses (utility systems) 

that have direct or indirect responsibility 

for providing retail electric service to 

persons in a rural area. In general, a 

rural area for EECLP purposes is a 

town, or unincorporated area that has 

a population not greater than 20,000 

inhabitants, and any area within a 

service area of a borrower for which 

a borrower has an outstanding loan. 

Eligible communities can be combined 

into service territories that exceed 

20,000. In other words, the EECLP is 

available for an entity in the business 

of providing: 

• Retail electric service to consumers, 

• Wholesale electric supply to 

distribution entities, or 

• Transmission service to distribution 

or generation entities. 

What are the terms of these loans? 

The maximum term for loans under 

the EECLP is 15 years, unless the 

funding relates to ground-source 

loop investment or technology on 

an aggregate basis with a useful life 

greater than 15 years. 

What is an eligible area? 

The law requires the consideration of 

several factors to determine whether 

an area qualifies as ruraI for the 

purposes of this program. 

We encourage you to contact your 

General Field Representative (GFR) 

to determine if your program would 

serve a qualified rural area. 

How may funds be used? 

The EECLP allows borrowers to design 

their EE Programs. While RUS does 

not establish specific energy efficiency 

program designs, the program does 

require that funding be used to: 

• Improve energy efficiency and/ 

or reduce peak demand on the 

customer side of the meter; 

• Modify the electric load such 

that there is a reduction in overall 

system demand; 

• Stimulate a more efficient use of 

existing electric facilities; 

• Attract new business and create 

jobs in rural communities by 

investing in energy efficiency, and/or 

• Encourage the use of renewable 

energy fuels for demand-side 

management or to reduce the use of 

fossil fuel use within a service territory. 
 

 

Energy Efficiency and 

Conservation Loan Program 

What is an eligible investment or 

activity under the EELCP? 

In addition to energy efficiency 

measures, EECLP funds could be 

used for: 

• All energy efficiency measures on a 

consumer premises 

• Distribution generation for on or off 

grid renewable energy systems 

• Side management investments 

• Energy audits 

• Consumer education and 

outreach programs 

• Power factor correction equipment 

on the consumer side of the meter 

• Changing to more energy 

efficient lighting 

• Other energy efficiency program 

investments approved by 

RUS Residential and commercial 

energy audits 

• Community awareness and 

outreach programs 

How do we get started? 

• We encourage you to contact your 

GFR to begin the loan application 

process. 

• RUS accepts applications for these 

programs year round. 

Who can answer questions? 

• Contact the GFR who serves 

your area 

• Contact the Rural Electric Program’s 

Office of Loan Origination and 

Approval (OLOA) 

What governs this program? 

• Rural Electrification Act of 1936, 

as amended in 7 U.S.C. 901 

• Code of Federal Regulations 

7 CFR 1710 Subpart H 

• Final Rule 

Why does USDA Rural Development 

do this? 

Nearly every rural electric cooperative 

utility nationwide has some form of 

energy efficiency program as part of 

their strategy to manage power costs, 

meet consumer demand and increase 

environmental regulatory compliance. 

Encouraging energy conservation 

and the use of renewable resources 

of power have long been a part of 

the RUS Electric Program. The EECLP 

provides funds to expand efforts to 

help consumers save money, reduce 

the need to purchase or generate 

energy, reduce emissions from 

generation of electricity, and help 

strengthen rural economies through 

job creation for energy efficiency and 

conservation projects. 

NOTE: Because citations and other information may be subject to change, 

please always consult the program instructions listed in the section above 

titled “What Governs This Program?” You may also contact your local office for 

assistance. You will find additional forms, resources, and program information at 

rd.usda.gov. USDA is an equal opportunity provider, employer, and lender. 

Last Updated December 2019