USDA Invests $20.59 Million in rural Iowa to Strengthen Electrical Grid and Boost Energy Savings
November 2nd, 2023 by Ric Hanson
DES MOINES, Iowa, Nov. 2, 2023 – U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield today (Thursday) announced that the Agency is investing $20,500,000 in loans and $95,513 in grants to ten rural Iowa projects to improve electric infrastructure, lower energy costs, and expand businesses. Among them is a Higher Blends Infrastructure Incentive Program grant of $481,768 to Pilot Travel Centers, LLC, in Iowa and 15 other states. The Rural Development investment will be used to expand the sales and use of renewable fuels. The projects is intended to increase the amount of ethanol sales sold by more than 57.8-million gallons per year.
Today’s announcement is part of a larger national announcement detailing $5 billion in support for projects in rural America. A full list of projects from the announcement is available online. USDA Funded Projects:
Three Iowa cooperatives received a total of $20.5 million in Electric Infrastructure Loan and Loan Guarantee program funding. The announcements are part of President Biden’s Investing in America efforts to rebuild the physical infrastructure of our country to grow the economy for decades to come, create good-paying jobs, and better position rural America to compete in a global economy.
–Western Iowa Power Cooperative received a $11,000,000 loan to connect 220 consumers and build and improve 62 miles of line. This loan includes $2,112,312 in smart grid technologies. The cooperative is headquartered in Denison, serving 5,578 consumers over 2,076 miles of line in nine counties in west central Iowa, including Audubon, Carroll, Crawford, Harrison, Ida, Monona, Sac, Shelby, Woodbury counties.
–Prairie Energy Cooperative received a $6,000,000 loan to build two miles of line and connect 78 consumers. Prairie Energy, headquartered in Clarion, in Wright County, serves approximately 4,330 members with over 2,089 miles of line in eleven Iowa counties.
–Northwest Iowa Power Cooperative received a $3,500,000 loan to help with generation system improvements. Northwest Iowa Power Co-op is a generation and transmission electric cooperative headquartered in Le Mars, in Plymouth County, supplying wholesale electric power to seven distribution cooperatives covering 6,500 square miles in western Iowa. These distribution cooperatives supply retail power to over 30,000 members/consumers. The cooperative serves these customers with over 900 miles of 69k V transmission line and 80 distribution substations.
An interstate co-op with ties to Iowa, Associated Electric Cooperative received a $328,924,000 Electric Infrastructure Loan and Loan Guarantee program loan to help with generation system improvements. Associated Electric Co-op is a generation and transmission cooperative that provides wholesale power to its six generation and transmission members, which in turn, provide wholesale power to 51 distribution member cooperatives. The combined 51 distribution members serve more than 910,000 customers in Missouri, southeast Iowa, and northeast Oklahoma. The co-op’s service area in Iowa includes portions of Appanoose, Davis, Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Lucas, Marion, Monroe, Van Buren, Wapello, Washington, and Wayne counties.
Seven rural Iowa farms and businesses received Rural Energy for America (REAP) program grants. The funding is designed to help agricultural producers and rural small business owners make energy efficiency improvements and renewable energy investments to lower energy costs, generate new income, and strengthen the resiliency of their operations. This funding is made possible in part by President Biden’s Inflation Reduction Act – the nation’s largest-ever investment in combating the climate crisis.
REAP recipients include:
-Donald Beatty received a $14,576 grant to help install a 16 kilowatt solar array on his grain production operation near Atkins, in Benton County. This project will realize $3,804 per year in savings and will replace 22,560 kilowatt hours per year (96 percent of previous use), which is enough electricity to power two homes.
-Tye Steffen received a $11,925 grant to install a 20.5 kilowatt solar array at his grain production farm near Greenville, in Clay County. This project is expected to save $3,415 per year. It will replace 19,320 kilowatt hours (100 percent of the farm business energy usage) per year, which is enough energy to power one home.
-Kluesner Flooring Inc., a flooring business in Manchester, in Delaware County, received a $14,352 grant to help install a 14.4 kilowatt solar array. This project is expected to save $2,840 per year and to replace 15,256 kilowatt hours (100 percent of the business energy usage) per year, which is enough to power one home.
-Pops Inc. received a $14,196 grant to install a 14 kilowatt solar array at its agricultural management and site preparation contracting business near Dyersville, in Dubuque County. This project will realize $1,826 per year in savings and will replace 18,164 kilowatt hours (99 percent of previous business use), which is enough electricity to power one home.
-BAC CPA LLC, doing business as certified public accounting firm, received a $10,400 grant to install a 17.3 kilowatt solar array at its business in Dyersville, in Dubuque County. This project will generate 12,433 kilowatt hours per year, amounting to $2,216 per year. This is enough electricity saved to power one home.
-John Myers, owner of a grain production operation near Humboldt, in Humboldt County, received a $18,656 grant to install a 22 kilowatt solar array. This project is expected to save $5,312 per year. It will replace 20,275 kilowatt hours (100 percent of the farm business energy usage) per year, which is enough electricity to power two homes.
-Michael Kadow received a $11,408 grant to install a 9 kilowatt solar array on his grain production farm near Lone Rock, in Kossuth County. This project will realize $1,784 per year in savings and will generate and replace 10,056 kilowatt hours per year (100 percent of previous business use), which is enough electricity to power one home.