The U.S. Department of Agriculture (USDA) Rural Utilities Service administrator Chad Rupe has announced $181 million in funding to upgrade 12 rural electric systems in 10 states, including $7.7 million to finance smart grid technologies that improve system operations and monitor grid security.
“For more than eight decades, USDA has been a strong partner to rural communities in building and expanding electric infrastructure,” Rupe said.
“Under the leadership of President Trump and Agriculture Secretary Perdue, USDA is committed to investing in essential infrastructure upgrades that improve the quality of life in rural communities and help grow the rural economy.”
USDA is providing financing for the 12 projects in Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Ohio, South Dakota, Texas and Wisconsin through the Electric Loan Program. The funding will help build and improve 1,354 miles of line to improve electric reliability and resilience in rural areas.
Among the loans announced, Ohio’s Buckeye Rural Electric Cooperative is receiving $19.7 million to build and improve 96 miles of line. The upgrades will serve 600 new customers. Buckeye also will invest $327,000 in smart grid technologies to increase system efficiency and resilience. It serves more than 18,600 customers over 2,500 miles of line in nine counties in eastern Ohio.
The Licking Valley Rural Electric Cooperative in West Liberty, Kentucky, is also receiving a $19.7 million loan. It will build and upgrade 74 miles of line and install nearly $338,000 in smart grid technologies. These investments will serve 17,300 residential and business consumers over 2,072 miles of line in Breathitt, Elliot, Lee, Magoffin, Menifee, Morgan, Rowan and Wolfe counties.
USDA will make additional funding announcements in coming weeks. Congress appropriated $5.5 billion for USDA’s Electric Loan Program in fiscal year 2019.
In April 2017, President 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.
To view the categories of the recommendations, please view the Rural Prosperity infographic.