Agriculture Secretary Tom Vilsack has announced a $2.7 billion investment by the Biden Administration to help 64 rural electric cooperatives and utilities modernize and expand the rural electric grid for increased security.
“These critical investments will benefit rural people and businesses in many ways for decades to come," Vilsack said in a release by the Department of Agriculture (USDA).
$613M of the loan will be used to upgrade smart grid technologies, which can improve broadband and telecom services in rural areas, thereby improving the grid security and reliability, the release said, and the USDA also plans to announce further financing for energy infrastructure in the future.
The Inflation Reduction Act has allocated $12 billion in loans and grants for the USDA to increase clean energy, transform rural power generation, create job opportunities and boost economic growth, the release stated. In addition, the project aims to enhance the cleanliness, reliability, and affordability of energy.
USDA’s Electric Loan Program can help finance wind, solar and natural gas facilities and go toward producing cleaner energy from coal-fired plants. Local utilities can also use the loans to invest in infrastructure to deliver affordable power to their customers.
The Agriculture Department is investing in 64 projects through the loan program, according to the release. This funding will benefit nearly 2 million rural people and businesses in Alabama, Arkansas, Colorado, Florida, Georgia, Iowa, Indiana, Kentucky, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington and Wisconsin.
The USDA’s Rural Development provides loans and grants "to expand clean energy, transform rural power production, create jobs and spur economic growth," the release stated. That support encompasses improvements to infrastructure, business growth, housing, community facilities like schools, healthcare, public safety, and high-speed internet in rural, tribal, or economically disadvantaged areas.
