Amends the Rural Electrification Act of 1936 to direct the Secretary of Agriculture to establish an initiative to promote energy efficiency by providing interest-free loans for purposes of making energy efficiency improvements and achieving energy conservation.
Requires the Secretary to: (1) make interest-free loans to encourage eligible borrowers (entities that have received and cooperatives that are eligible to receive a loan or loan guarantee under such Act) to invest in and facilitate consumer energy efficiency improvements or to increase energy conservation; and (2) use fees collected from lenders who receive guarantees for bonds or notes issued for electrification or telephone purposes under such Act to provide such loans.
Directs the Secretary to: (1) use only those fees that are collected for loans guaranteed after this Act's enactment; and (2) require the amount of the annual fee paid for the guarantee of a bond or note to be equal to 50 basis points of the amount of the unpaid principal of the bond or note guaranteed, with an additional loan origination fee equal to 50 such basis points to be paid at the time the guarantee is approved. Terminates such requirements on or after September 30, 2011.
Directs the Secretary to approve $3 million in loan guarantees under this Act to qualified lenders for FY2010.