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Funds increase access to clean energy, education and health care and boost economic growth
FRANKFORT, KY - On Oct. 28, 2024, Gov. Andy Beshear joined U.S. Department of Agriculture (USDA) Rural Utilities Service Administrator Andy Berke to announce that up to $1.4 billion in federal funds are going to increase Kentucky’s access to clean energy, education and health care as well as support economic growth in rural communities.
The Governor was joined in the Capitol Rotunda by Tony Campbell, president and CEO of East Kentucky Power Cooperative (EKPC); Jody Hughes, vice chairman of the cooperative’s board; and USDA Rural Development, Kentucky State Director Thomas Carew.
First, Administrator Berke said EKPC will be eligible to receive up to $1.4 billion in grants and subsidized loans under the USDA’s Empowering Rural America (New ERA) program. These funds will allow EKPC to provide renewable energy that will help power homes and businesses in rural Kentucky. The project will also help rural communities attract new business and support economic growth and job creation.
“Many of the big economic development projects we’re working on – and we’re working on a bunch of them – have business leaders telling us, ‘You’ve got to provide us this much in renewable energy by this date,’” Gov. Beshear said. “And today’s award means East Kentucky Power is going to help us meet this demand and land more projects and more jobs in the coming years.”
“When we transition to clean energy, we lower the toxic pollution in our air and water,” said Administrator Berke. “At the same time, this funding will keep costs low and allow rural Kentuckians to save money on their electric bill.”
Specifically, EKPC will construct or procure 757 megawatts of renewable energy for rural portions of Kentucky, as well as improve the regional transmission grid to support renewable projects and increase energy efficiency. These efforts will also reduce pollution – including carbon dioxide emissions – by over 2.3 million tons annually, the equivalent of avoiding the pollution from 554,000 gasoline-powered cars annually.
“This New ERA funding through Rural Utilities Service enables EKPC to reduce greenhouse gas emissions and maintain competitive rates for rural Kentucky,” Campbell said. “These funds will support renewable resources, including the proposed new solar facilities in Fayette and Marion counties, which will advance EKPC’s strategy to cut carbon intensity and diversify its generating portfolio.”
“The New ERA funds will play a vital role in EKPC’s thoughtful, common-sense approach to cutting carbon emissions while minimizing the cost impact for 1.1 million Kentucky residents in 89 counties,” said Anderson County resident Jody Hughes, who represents Blue Grass Energy on EKPC’s board. “This funding helps meet the needs of the people and organizations we serve, especially businesses and industries looking to reduce their carbon footprints.”
EKPC is working with Rural Utilities Service to finalize the New ERA underwriting and funding agreement, which will include projects related to today’s announcement.
The USDA also awarded more than $5.5 million in Distance Learning and Telemedicine Grants. These funds will help deliver virtual health care services to more than 27,700 Kentuckians and distance learning connections to more than 12,200 students and educators in rural areas.
The Kentucky awardees include:
- County Line Primary Care;
- Red Bird Mission;
- Bowling Green-Warren County Community Hospital;
- Lewis County Primary Care Center;
- Monroe County Board of Education;
- Webster County Board of Education;
- Henry County Board of Education; and
- Trimble County School District.
Representatives from each organization were in attendance to ceremonially accept the awards and to speak about how the funds will help them positively impact the lives of Kentuckians.
“Thanks to these funds, more families in rural areas will receive the health care and education they need,” Gov. Beshear said. “We know that education is the foundation for how we prepare tomorrow’s workforce and that a better trained, more educated workforce is what will propel Kentucky forward.”
Click here to view detailed information on each award.
“Rural Kentuckians deserve access to high-quality health care and education just like those who choose to live in more urban areas, and these projects will help close the digital divide for thousands who call rural Kentucky home. Ultimately, this will lead to improved quality of life and economic prosperity, both of which make Kentucky a great place to live, work and raise a family,” said Dr. Carew.
Each awardee was selected by the USDA through a competitive process.
According to the USDA, the New ERA funding and other investments in rural clean energy in President Joe Biden’s Inflation Reduction Act make up the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936 as part of the New Deal.
Today’s announcements build on the work Gov. Beshear is doing to make sure Kentucky remains a leader in the energy sector.
Administrator Berke also joined Gov. Beshear in Estill County last month to celebrate the USDA’s $73 million in loan funding that will help the state and its private sector partners build four new hydroelectric plants at abandoned lock and dam structures on the Kentucky River. These plants mean more green energy and new jobs and represent $100 million in new investment in Appalachia.
In March, Gov. Beshear announced that, thanks to as much as $961 million in U.S. Department of Energy funding and companies betting on Kentucky, there are five planned energy-related economic development projects that could bring thousands of new jobs and billions in investment to the commonwealth.
“So many Kentuckians helped power the industrial revolution that created the strongest middle class the world has ever seen and powered us through two world wars, and we are thankful for the federal support that will help us continue to provide power for the next century,” Gov. Beshear said.
To view Kentucky’s energy strategy, click here.