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NREDA.org

Message Highlights from Under Secretary for Rural Development
Opening Remarks by Under Secretary Dallas Tonsager by Dana Baker, Director

DALLAS TONSAGER

On Tuesday, conference attendees were fortunate to hear a breakfast address by Under Secretary Dallas Tonsager. He mentioned a shared focus by President Obama and the theme of the conference on assisting and promoting small business opportunities. He referred to the Electrification Act of 1936 that was signed during Franklin Roosevelt's Administration. He also suggested electric utilities play a role in modernizing impacts for our communities. In highlights, he mentioned the establishment of energy conservation as a central theme and top priority for their Department; and he shared that the USDA is considering all aspects of its programs, services and actions to improve both the conservation of energy and the development and promotion of new energy opportunities.

Secretary Tonsager recognized Blue Bonnet Electric as an example for communities and organizations to follow as they offer presentations and tips on energy savings, sponsor scholarships and internships for students while engaging customers and members of their communities in their efforts. He also introduced the "Recovery through Retrofit" partnership initiative. In explaining this strategy to encourage Americans to retrofit their homes to make them more energy efficient, he shared some interesting statistics. He said, "Nearly 130 million homes in this country are responsible for more than 20–percent of our nation's carbon dioxide emissions, but through energy efficiency home improvements, retrofitting techniques and technologies, we can reduce energy use by up to 40-percent and lower home greenhouse gas emissions by up to 160 million metric tons annually by 2020." He went on to add, "Improvements could save up to $21 billion each year; and the ultimate goals are to create good green jobs, reduce energy bills and boost the American economy."

He recognized that rural American already fits into the retrofit plan because of existing programs and authorities through the Rural Utilities Service. These include direct loans for efficiency initiatives through the Electric Loan Program; High Energy Cost Grants to improve energy generation, transmission and distribution facilities in communities with home energy costs exceeding 275% of the national average; and on-bill financing where the electric cooperative creates an incentive program to provide interest–free financing options for commercial and taxpayer–funded customers through their utility bills.

Tonsager went on to address programs that work to directly stimulate economic development: Rural Business Enterprise Grants, Rural Economic Development Loans and Grants and the Intermediary Relending Program. Rural Business Enterprise Grants provide funds for small and emerging rural businesses for distance learning networks, and employment–related adult education programs. The Rural Economic Development Loans and Grants provide zero–interest loans and grants to Electric and Telephone borrowers for development and job creation projects. Additionally, 30–year loans are provided at one–percent interest to local organizations to establish revolving loan funds under the Intermediary Relending Program.

In his conclusion, Under Secretary Tonsager reminded the attendees that the Department has more than 100 programs and that the Recovery through Retrofit and the economic development programs can position rural America for success. He stated, "Many Rural Electric Cooperatives have already been recognized by the Federal Energy Regulatory Commission as industry leaders in energy efficiency and demand side management practices. This conference is just the type of collaboration we need to create a strong rural America." For more information about the USDA Rural Development staff, partners and programs, visit www.rurdev.usda.gov.