USDA invests $345.5 million in rural electric infrastructure
August 6, 2018
WASHINGTON – Agriculture Secretary Sonny Perdue today announced that the U.S. Department of Agriculture is investing $345.5 million in 20 infrastructure projects (PDF, 121 KB) to improve rural electric service in 14 states.
"Delivering reliable and affordable electricity to power rural America will help lay the groundwork for increased rural prosperity and economic opportunity," Secretary Perdue said. "USDA is partnering with rural electric utilities and cooperatives so they can continue to invest in infrastructure improvements to provide electric power to those who live and work in rural areas."
USDA is making the investments through the Electric Infrastructure Loan Program. This program helps finance generation, transmission and distribution projects; system improvements; and energy conservation projects in communities with 10,000 or fewer residents.
The loans include $7.9 million for smart grid technology. This includes computer applications, two-way communications, geospatial information systems and other tools to increase the reliability and efficiency of electric power systems. Below are a few examples of the projects USDA is funding:
In Colorado, the San Isabel Electric Association is receiving a $15.8 million loan to build 63 miles of line and improve 143 miles to serve consumers in Huerfano, Las Animas, Pueblo, Custer, Otero and Costilla counties. The loan includes $752,021 for smart grid projects.
Minnesota's Goodhue County Electric Cooperative Association will use a $7.75 million loan to construct 28 miles of line and improve 72 miles. The loan includes $315,000 for smart grid projects. Goodhue's service territory is predominantly agricultural. Most non-farm employment is associated with agricultural and food processing activities.
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In Georgia, Amicalola Electric Membership Corp. will use a $61.2 million loan to build 302 miles of line and improve 110 miles. The loan includes $64,000 for smart grid projects. Agriculture and tourism are the major industries in Amicalola's service territory.
USDA is announcing investments today in rural communities in California, Colorado, Florida, Georgia, Illinois, Kansas, Minnesota, Missouri, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota and Wisconsin.
In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the task force's findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force.
To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit http://www.rd.usda.gov.