Dive Brief:
- The U.S. Department of Agriculture (USDA) will invest more than $518 million in rural electric cooperatives to improve the delivery of electric power to communities in 15 states.
- More than $23 million of the funding will go to smart grid improvements; the funding is part of nearly $50 billion USDA has invested in infrastructure improvements since 2009.
- The loan guarantees for electric systems will build or improve more than 5,600 miles of line in rural areas.
Dive Insight:
The investments announced by Agriculture Secretary Tom Vilsack are being provided through USDA's Rural Utilities Service, which also administers infrastructure programs to bring broadband, safe drinking water and improved wastewater treatment facilities to rural communities.
There are a few good examples of how the USDA's loan guarantees will be used. In New Mexico, a $14.1 million loan will fund a 1 megawatt solar photovoltaic facility, 74 miles of line, and make other system improvements. The loan includes $518,400 for smart grid projects and $3.4 million for the renewable energy project. And then in Carrollton, Georgia, the Carroll Electric Membership Corporation will receive $20.6 million to build or upgrade 441 miles of line and devote $93,000 to smart grid technology.
"We must invest in America's infrastructure to promote sustainable economic development in our rural and urban communities," Vilsack said at a White House summit on infrastructure financing. "Enhancements to the nation's electric grid make a huge difference for communities across the country and support President Obama's efforts to build a stronger rural economy."
