U.S. Agriculture Secretary Tom Vilsack has announced funding for rural electric cooperative utilities to improve distribution systems and smart grid technologies in 27 states, as part of the Obama Administration's continued focus on investments in infrastructure that create rural jobs.

The announcement was made on the Secretary's behalf by Agriculture Under Secretary for Rural Development Dallas Tonsager during a speech last week to the National Rural Electric Cooperative Association regional meeting in Denver, where he also stressed the importance of the American Jobs Act to spur job creation throughout the country.

Nearly 800 directors, employees, and other officials of electric cooperatives from 13 western states were on hand for Tonsager’s remarks.  This year, Region 7 co-ops (located in Colorado, Kansas, Nebraska, and Wyoming,) were joined in a combined meeting by their colleagues from Region 9 (which includes Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah and Washington).

Over $2.1 billion in loans are provided by USDA's Rural Utilities Service, a Rural Development Agency, to help rural electric utilities build and upgrade rural America's electric infrastructure. These projects will fund over $40 million in smart grid technologies, and will build or improve nearly 6,000 miles of transmission line. Funding for distribution cooperatives, which provide power to consumers, will benefit more than 38,000 rural businesses and residents.

Included in the funding are three loans for Colorado projects that will help keep electricity reliable and affordable for rural communities:

• Gunnison County Electric Association will receive more than $7 million to build or improve nearly 60 miles of line; of that, more than $1 million will be used for smart grid technology.
• Highline Electric Association will receive a loan of more than $35 million to build or improve over 280 miles of line; including more than $2 million for smart grid technology.
• Tri-State Generation and Transmission Association, Inc. — which are owned by 44 distribution cooperatives and provide power to 1.5 million customers across 200,000 square miles in four states — will receive a total of $32 million to build or improve over 150 miles of transmission line and upgrade substations;  of that, $9 million will go to smart grid technology.

In Virginia, a loan of $90 million to Northern Virginia Electric Cooperative will be used to build a 49.9 megawatt (MW) woody biomass generation facility. The project is projected to cover approximately six percent of the cooperative's future power needs for the years 2014 through 2030.

 In Georgia, a loan of almost $30 million to Amicalola Electric Membership Corporation will be used to build or improve over 250 miles of transmission line. The loan amount includes $9,402,000 in smart grid projects, which help utilities better manage electricity needs and improve operational efficiencies. These investments also help rural utilities improve their delivery and storage of renewable energy to generate electricity

Funding is contingent upon the recipient meeting the terms of the loan agreement. For a complete list of USDA projects electric projects funded through October 13, please click here.

The announcement, jointly conveyed by Vilsack and Tonsager is part of a series of rural infrastructure investments expected during the next two weeks. This effort supports the goal of the American Jobs Act, which makes critical infrastructure improvements to put people back to work immediately.

This investment in the electric grid will help address the growing need for electric service nationwide and spur job creation by building out rural infrastructure," Vilsack said. "Smart grid technology can help better manage power use, provide rate stability for businesses, and create the climate for job growth in rural America."

On September 8, President Obama presented the American Jobs Act in an address to Congress. The purpose of the American Jobs Act is simple: put more people back to work and put more money in the pockets of working Americans. Through a combination of direct spending, such as infrastructure investments, and tax relief, such as an extension of the payroll tax cuts, it will lead to new American jobs.

USDA, through its Rural Development mission area, administers and manages housing, business, and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $155 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.