U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced today that the USDA is making new clean energy investments in Colorado through the Powering Affordable Clean Energy (PACE) program, part of President Biden’s Investing in America Agenda. The selected applications amount to more than $81 million in partially forgivable loans from the Inflation Reduction Act, aimed at partnering with rural communities to deliver clean, affordable energy to rural Coloradans.
“Rural communities are the backbone of America, and the Biden-Harris Administration is proud to partner with them to create a more affordable and sustainable future that will benefit rural families, businesses and the health of our planet for generations to come,” said Secretary Vilsack. “The projects we’re announcing today will create good-paying jobs, lower energy costs for consumers, reduce greenhouse gas emissions and strengthen the resiliency of our nation’s electric grid.”
Secretary Vilsack made this announcement in Fort Collins, where Poudre Valley Rural Electric Association has been selected to receive a $9 million partially forgivable loan to build two community solar and battery energy storage projects benefiting Weld County residents. In western Colorado, Delta Montrose Electric Association will receive a $72 million partially forgivable loan to finance a grid-connected solar photovoltaic system, providing affordable and reliable clean power to rural communities.
The PACE program supports President Biden’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of federal climate, clean energy, and other investments to marginalized communities affected by underinvestment and pollution.
By harnessing renewable energy sources such as solar and wind power, these projects aim to make heating homes, running businesses, and powering cars, schools, hospitals, and more affordable for people.
In May 2023, USDA allocated $1 billion through PACE for new clean energy projects and energy storage in rural America. The program offers low-interest loans with up to 60% loan forgiveness for renewable energy developers, rural electric cooperatives, and other rural energy providers utilizing wind, solar, hydropower, geothermal or biomass resources. Before today's announcement, Secretary Vilsack revealed five PACE applications totaling $139 million at the National Rural Electric Cooperative Association’s PowerXchange annual meeting in San Antonio in March 2024.
USDA plans to continue awarding PACE funds in upcoming months. Through this program, USDA Rural Development provides partially forgivable loans aimed at expanding economic opportunities, creating jobs and improving life quality for millions of Americans in rural areas.
USDA Rural Development offers loans and grants supporting infrastructure improvements; business development; housing; community facilities like schools; public safety; healthcare; and high-speed internet access in rural areas including Tribal regions and high-poverty areas. To see how these investments impact rural America visit the Rural Data Gateway.
Under the Biden-Harris Administration's guidance, USDA is working towards transforming America’s food system with an emphasis on resilient local food production; fairer markets; ensuring access to safe food across communities; creating new income streams using climate-smart practices; making historic infrastructure investments; advancing clean energy capabilities in rural areas; committing to equity by removing systemic barriers; and building a representative workforce. For more information visit www.usda.gov.
To subscribe to USDA Rural Development updates visit GovDelivery subscriber page.
---
