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Initiatives Funded by President Biden’s Inflation Reduction Act Foster Economic Development in Rural Areas

PAHRUMP, Nev., Aug. 29, 2024 – The Biden-Harris Administration has unveiled a significant investment of $140 million directed towards clean energy initiatives in rural regions of Nevada and Kentucky. This funding aims to reduce energy costs for households, enhance reliable access to clean energy sources, and generate employment opportunities for local families, small enterprises, and farmers.

The projects located in Kentucky and Nevada fall under the USDA’s Powering Affordable Clean Energy (PACE) program, enabled by President Biden’s Inflation Reduction Act, which represents the most substantial commitment to rural electrification since the Rural Electrification Act was enacted by President Franklin Delano Roosevelt in 1936.

During a visit to a forthcoming solar power facility in Pahrump, Deputy Secretary of the U.S. Department of Agriculture (USDA), Xochitl Torres Small, announced the funding. The area, which faces challenges like wildfires and power outages, will soon benefit from a facility designed to harness and store solar energy, ensuring a consistent electricity supply.

“Residents in rural areas deserve access to energy solutions that align with the growing demand for clean energy,” stated Deputy Secretary Torres Small. “The Biden-Harris Administration is committed to ensuring that our climate change initiatives also fuel local economic growth. These USDA investments will help lower costs for Americans and create quality job opportunities in rural communities for many years ahead.”

Valley Electric Association plans to allocate an $80.3 million investment to develop a 37-megawatt solar power generation and storage system that will benefit residents of Pahrump and the Fish Lake Valley area. This initiative aims to enhance the local energy grid, decrease electricity rates for members, and ensure that critical services remain operational in the region. The facility will generate sufficient electricity to power about 3,500 homes. Valley Electric serves communities engaged in the Rural Partners Network (RPN), a USDA-driven collaboration that connects federal, state, and local partners to assist underserved communities in accessing federal resources.

In addition, Torres Small announced the following four new PACE investments designated for Kentucky:

  • Bluestem Energy Solutions TEC1 LLC intends to employ approximately $6.6 million to construct a solar power facility in Allen County, which will produce 5 megawatts of renewable energy, enough to service over 900 homes annually.
  • Lock 9 Hydro Partners LLC plans to invest around $19.3 million in a run-of-river hydroelectric facility on the Kentucky River, generating 3 megawatts of renewable energy for Jessamine County. This project is projected to power 1,600 homes each year.
  • Lock 10 Hydro Partners LLC aims to allocate approximately $18.9 million to build another run-of-river hydroelectric facility on the Kentucky River, set to provide 3 megawatts of renewable energy for Madison County, also powering around 1,600 homes annually.
  • Lock 13 Hydro Partners LLC intends to invest about $17.7 million in a similar run-of-river hydroelectric project on the Kentucky River for Lee County, expected to supply energy for 1,600 homes each year.

Understanding PACE

Since May 2023, the USDA has made available $1 billion through the PACE program to support the establishment of new clean energy projects and energy storage systems across rural America. The initiative offers low-interest loans with potential loan forgiveness of up to 60% for renewable energy developers and rural electric cooperatives. By investing in renewable resources like wind, solar, hydropower, geothermal, and biomass, PACE projects aim to provide more affordable energy solutions for heating homes, operating businesses, and powering essential facilities such as schools and hospitals.

PACE is also an integral part of the President’s Justice40 Initiative, which seeks to ensure that 40% of the benefits from specific federal climate and clean energy investments reach disadvantaged communities facing underinvestment and pollution burdens.

To date, the USDA has announced over $665 million in PACE investments. Further PACE awards are anticipated in the coming months.

About RPN

Initiated in April 2022 and expanded in November of the same year, the Rural Partners Network (RPN) is currently operational in 36 community networks across ten states and Puerto Rico.

The community networks receive assistance from USDA personnel who reside and work in their local areas. These team members deliver tailored technical support to help communities navigate federal programs, foster relationships, and apply for financial resources. Additionally, more than 20 other federal agencies have dedicated staff to facilitate access to resources for rural communities through the RPN.

Communities within the RPN also collaborate through various federal initiatives, including the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization, alongside President Biden’s Justice40 Initiative and Investing in America agenda. The Rural Prosperity Interagency Policy Council, co-chaired by the White House Domestic Policy Council and USDA, ensures that the needs of rural constituents are reflected in national policies designed to benefit all rural residents.

For more details on the RPN, please visit Rural.gov.

USDA Rural Development offers loans and grants to foster economic progress, job creation, and enhanced quality of life for millions of individuals in rural regions. This support focuses on infrastructure upgrades, business development, community facilities like schools and healthcare centers, and high-speed internet access for rural, tribal, and economically distressed areas. To explore how and where these investments are impacting rural America, visit the Rural Data Gateway. To receive updates from USDA Rural Development, please visit the GovDelivery Subscriber Page.

USDA positively impacts the lives of all Americans every day. Under the Biden-Harris Administration, USDA is revolutionizing the food system with an emphasis on more resilient local and regional food networks, ensuring fairer market conditions for producers, and providing access to nutritious food across communities. Additionally, it is making substantial investments in infrastructure and clean energy in rural America while striving for equity by dismantling systemic barriers and fostering a more representative workforce. For further information, visit www.usda.gov.

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USDA is an equal opportunity provider, employer, and lender.

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