WASHINGTON — In December 2013, the U.S. Department of Agriculture announced its new Energy Efficiency and Loan Conservation Program would make $250 million available to rural electric cooperatives to retrofit residences and businesses in rural communities to improve their energy efficiency.

A year later, none of the Oregon Rural Electric Cooperative Association’s members have participated in the program, according to Ted Case, the group’s executive director.

Under the plan, announced by Agriculture Secretary Tom Vilsack, cooperatives would use the money to make low-interest loans to business and residential customers. The customers would use the loans to buy energy-saving devices — timers for lights, for example, or an energy-efficient appliance — and have their loan payments folded into their electric bills. Ideally, customers would use less electricity and the savings would help pay for the loan.

The U.S. Department of Agriculture program is still getting up and running, and smaller cooperatives would like to see how it works for others before committing time and resources to it, Case said.

“There’s a bunch of webinars right now, informing people about how it works,” he said. “It’s in that phase, learning about the intricacies of the program.”

Jeff Beaman, the member services director for the Redmond-based Central Electric Cooperative, said the cooperative’s members saved $736,000 over the last 13 months — enough energy to power 230 homes for a year — using the co-op’s existing efficiency programs. But the co-op doesn’t want to dive into the money-lending business until it has a clearer picture of how it would work and whether its members would be interested.

“We don’t have a program set up where we finance activities for our members through us,” he said. “When a new program like this comes out, and it definitely has some potential and appeal to the members, we still have to see it run a little bit.”

While the program was announced Dec. 5, 2013, the first loans weren’t approved until Oct. 23, Beaman said.

The USDA did not respond to requests for information about the Energy Efficiency and Conservation Loan Program, and it did not make anyone available for comment.

Two co-ops have received more than $10 million in loans already, according to a Rural Utilities Services memo. The Roanoke Electric Membership Corporation in North Carolina was granted $6 million to finance improvements to HVAC systems, appliance replacements and other structural improvements for an average of 200 residences per year over four years, according to the agency.

The North Arkansas Electric Cooperative will use a loan of $4.6 million to fund geothermal installations, energy-efficient lighting, and weatherization measures, according to the memo.

Rural Utilities Services has also approved a business plan for Inland Power and Light Co., a co-op based in Spokane, Washington, with the loan expected to be $43 million over ten years.

“We’re at a stage where Rural Utilities Services just approved our application,” said John Francisco, Inland Power’s chief of energy resources. “We haven’t begun loaning money yet; we’re still sorting through how we’re going to qualify people for loans.”

The ability to access low-cost capital for the benefit of the co-op’s members makes the program very appealing, he said.

“If you could put a heat pump or new windows in your house, not only do you save on your energy bill, your family is more comfortable, and you’ve created a more valuable asset in your home,” he said.

Inland Power will likely target members who might not have the means to engage in energy efficiency and conservation activities, he said.

“I’m glad that the RUS is looking at programs that have the potential to lower bills for participants,” Francisco said.

— Reporter: 202-662-7456, aclevenger@bendbulletin.com