The City of Duluth is launching a new program designed to help residents slash energy expenses.

A bill drafted by Minnesota Senator Yvonne Prettner-Solon, DFL-Duluth, has locked in $1.5 million in federal stimulus money to get the project on its feet.

At City Hall, a number of experts said they've got a plan to tackle a growing threat.

"Increasing energy costs into the future is a dangerous combination for the city," said Mayor Don Ness of the City of Duluth.

To do battle with energy costs, local and state leaders unveiled the Duluth Energy Efficiency Program (DEEP). Officials say the plan involves setting up low interest loans to help people finance energy efficiency work done in their homes.

"It will create permanent green jobs here in Duluth, while saving homeowners thousands of dollars on their energy bills," said Prettner-Solon.

DEEP has pulled experts from a variety of sectors. However, program spokespeople say they're still looking for an agency to manage the effort. Part of the initiative involves homeowners scheduling advanced energy audits.

"That auditor would come to my home and help me prioritize the most cost-efficient work to get done in my home," said Councilor Tony Cuneo.

Others say the program offers significant benefits.

"We think conservatively, an average household...could see a 20 to 30 percent energy reduction," said Dean Talbott of Minnesota Power.

Experts say the plan is to have homeowners pay back loans equal to the amount of their energy savings.

"If we can reduce the amount of climate-changing gases, emanating from our structures, our homes--we are certainly making an impact on leaving our planet a better place for the next generation," said Cuneo.

While, energy investments are not always cheap, some say they're worth every penny.

"It's actually one of the best rate of returns you can get now as opposed to you know putting your money in a savings account," said Jodi Slick, Common Ground Construction executive director.

Experts say properly sealing a house can cost around $4,000 to $6,000.

Requests for proposals will be sent out in hopes of finding a managing agency for the program.

The city says residents hoping to learn more about the initiative can contact the Duluth Community Development Office at (218) 730-5480. Or Call Tony Cuneo at (218) 726-5430.