Record High Investments in FY 2020 Benefited 1.4 Million Rural Residents and Businesses in 25 States
DES MOINES, Iowa, Oct., 22, 2020 – U.S. Department of Agriculture (USDA) Iowa Rural Development State Director Grant Menke announced that USDA is investing an additional $3.1 billion to build or improve rural electric infrastructure in 25 states, including $35.6 million in Iowa, and he highlighted a record level of funding for Fiscal Year (FY) 2020 to upgrade infrastructure.
“Infrastructure innovation and improvement is essential to the future of rural Iowa communities, and these significant USDA Electric Loan Program investments will modernize the electric grid and make a lasting positive impact across rural Iowa,” said Menke. “Under the leadership of President Trump and Secretary Perdue, USDA is proud to partner with rural electric cooperatives and other stakeholders to provide reliable, efficient, affordable electricity – a key component of enhancing economic opportunities and improving quality of life for all rural Iowans.”
In Iowa:
- Butler County REC in Allison will use a $14.5 million loan to connect 231 consumers and build and improve 208 miles of line. Butler County REC serves an average of 5,083 members over 1,825 miles of line in seven counties in North-Eastern and North-Central Iowa.
- Farmers Electric Cooperative in Greenfield will use an $11.1 million loan to connect 262 new consumers and build and improve 138 miles of line. This loan includes $1,459,600 in smart grid technologies. Farmers Electric Cooperative serves an average of 4,918 members over 1,807 miles of line in six counties in west-central Iowa.
- Maquoketa Valley Electric Cooperative in Anamosa will use a $10 million loan to connect 88 consumers, and build and improve 411 miles of line. This loan includes $6,749,904 in smart grid technologies. Maquoketa Valley Electric Cooperative serves an average of 16,000 members over 3,272 miles of line nine counties in northeastern Iowa.
Background:
USDA is investing in 53 projects through the Electric Loan Program in 25 states, including Iowa. Today’s announcement is part of a record level of USDA electric infrastructure investments in one fiscal year. The department invested $6.3 billion in the Electric Loan Program in FY 2020, up from $5.8 billion in 2019 – also a record. USDA made loans to 119 utilities in 34 states across the country during FY 2020, which ended on September 30. Those figures build upon the $3.7 billion invested in 2018.
Helping improve rural electric infrastructure is a significant part of the Trump administration’s “all-of-the-above” energy strategy. USDA’s Electric Program helps finance wind, solar and natural gas plants, as well as improvements to produce clean energy from coal-fired plants. Local utilities also use the loans to invest in infrastructure to deliver affordable power to thousands of residential, commercial and agricultural consumers.
Twenty-one of the loans that USDA awarded in FY 2020, representing almost 10 percent of total loan volume by dollar, will help expand smart grid technologies. Smart grid can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas. These loans will finance nearly 23,000 new line-miles of smart grid fiber when buildout is complete.
In addition, this year, USDA has made it easier for rural electric utilities and cooperatives to use Electric Program loans for vegetation management programs to prevent and control wildfires.
During FY 2020, USDA also approved nearly $104 million in loans for 11 energy efficiency programs under the Rural Energy Savings Program and $11.7 million in High Energy Cost Grants to rural communities and villages in Alaska to lower the cost of energy consumption and upgrade aging generation systems.
Some Electric Program loans are specifically targeted to support the administration’s actions to spur economic development in areas where poverty rates have been stubbornly high for decades.
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 facilities such as schools, public safety and health care; and high-speed internet access in rural areas.
For more information, visit www.rd.usda.gov/ia, call us at (515) 284-4663. Follow us on Twitter @RD_Iowa
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