Written by Jonathan Adelstein, Administrator, Rural Utilities Service

I traveled to Philadelphia today to join the National Rural Utilities Cooperative Finance Corporation (CFC) for their 2010 national forum. We partner with CFC to finance electric cooperatives across rural America. It was a chance to talk about the progress USDA has made over the last 75 years toward rural electrification, and how we are on the frontlines again to bring access to high speed broadband to rural America.

In 1935, our agency was challenged to bring affordable electricity to millions of farms, ranches and homes in rural America. Today we face a similar challenge with deployment of broadband.

Rural Utilities Service (RUS), the agency I oversee, has been working with national partners such as the CFC to advance new policies and programs to develop and invest in renewable energy, energy efficiency, and smart grid technology.  Integrated into our strategy is deployment of broadband.  The Congress and President Obama included in the American Recovery and Reinvestment Act funding to jump start this effort.  To date, we have committed investment of more than $1 billion for 68 rural broadband infrastructure projects in 32 states.  That means over 500,000 households, 97,000 businesses and 3,300 anchor institutions will see the way they do business dramatically change – new opportunities for emerging markets, better access to health care and education.

Successful applicants include electric cooperative borrowers such as the Consolidated Electric Cooperative, who was selected for a loan-grant combination of over $2 million to construct a 166-mile middle mile network that will bring major city connectivity into underserved areas of North Central Ohio.  It’ll provide badly needed connectivity for key community facilities and wireless internet service providers.  It will also connect all of Consolidated’s substations to support its smart grid technology initiative.

This is exactly what we like to see – expanded broadband connectivity combined with sustainable, smart grid technology – delivered to rural America.  It is this kind of leveraging between our electric and telecommunications program delivery that will help our cooperative partners offer key energy efficiency tools to residential consumers so that they can monitor their usage and reduce their monthly electricity costs.

These critical broadband investments will help keep the United States at the center of innovation, and they will bring greater job opportunities to our rural communities.  It is the link to long-term sustainable economic growth that our rural communities so urgently need.

Mary Meyer, who began working for the Madison Telephone LLC in Kansas for the first generation owners, is now working with the third generation to prepare them to take over the company upon her retirement…when this USDA funded Broadband project is complete. Read more »

I am very pleased to launch our latest effort to encourage more widespread use and understanding of the life-saving field of telemedicine through our Power of Telemedicine web discussion.  Telemedicine has grown steadily over the past decade. The USDA’s Rural Utilities Service (RUS) has participated consistently along the way, supporting innovation in telemedicine as early as 1993 with our Distance Learning and Telemedicine grant program. Our telemedicine program is designed specifically to meet the health care needs of rural America.  Through loans, grants and loan and grant combinations, advanced telecommunications technologies provide enhanced health care opportunities for rural residents.  It, together with our Distance Learning program, has funded over 900 projects in 48 states and several US Territories totaling over $300 million. Read more »

By Jonathan Adelstein, Administrator-USDA Rural Utilities Service

If you lived in a rural area 75 years ago, you probably didn’t have electricity. Water for livestock, cooking, cleaning and bathing had to be hand pumped from a well. Farmers risked milk spoilage in the summer, and people often got sick from lack of refrigeration of their food.

 On May 11, 1935, President Franklin D. Roosevelt signed an executive order to create the Rural Electrification Administration (REA) to bring power to rural areas. It was a resounding success.  Nothing before or since has transformed rural America like the REA.  Today’s Rural Utilities Service (RUS), part of the USDA Rural Development mission area, continues the work of REA. Just this week, four former REA and RUS administrators gathered in USDA’s radio studio, reflecting on their roles from 1993 to the present. Their observations will soon be available via podcast.

 Rural Development, through RUS, is aggressively building a program to finance renewable energy, and rural America is rapidly becoming a greater energy producer for the nation. Not only is this part of President Obama’s clean energy economy, but it will also create quality jobs in rural America.  Working with other federal agencies, rural electric cooperatives and other utilities, we are taking steps to modernize the electric grid and improve energy efficiency.

 While working to improve electric transmission services we are also meeting a new challenge: Delivering broadband to rural communities.  Without broadband, rural businesses are placed at a disadvantage and our children face diminished educational opportunities. Our next great achievement will be to build a system that will connect even the most remote places in America to the web. 

 Rural America’s future is bright, thanks to the thousands of men and women who have worked in or with the REA and now the RUS over the past three-quarters of a century.

 Chances are, if you live in rural America, some of those people are your neighbors, as close as your local electric cooperative.  They achieved a modern miracle, lighting rural America. This week, take a minute and think about all the good they’ve done.  They’ve achieved the greatest success in a government technology program of all time.   

 
 (Left to right) Christopher McLean, Administrator,  2000-2001; Wally Beyer 1993-1999; James Andrew 2005-2009;  Glenn English (CEO-NRECA);  Hilda Gay Legg 2001-2005; Jonathan Adelstein 2009 – present; Dallas Tonsager (Undersecretary, USDA Rural Development); gathered on May 4 at the U.S. Capitol for an event marking the beginnings of the effort to bring electricity to rural America.

Over 250 attended the Broadband Workshop on Ground Hog Day (Feb. 2, 2010) in Eureka, Missouri to learn more about  two key American Recovery and Reinvestment Act (ARRA) broadband programs as part of President Obama’s job creation agenda.  The workshop was the fifth of ten public workshops open to the public sponsored by the USDA Rural Development Rural Utilities Service (RUS) and Dept. of Commerce’s National Telecommunications and Information Administration (NTIA).

The excitement over this broadband initiative was evident in the discussions, networking and partnerships that took place during the day.  We had excellent feedback about the outstanding training that was provided by the national office staff on the application process and many questions were answered.  The concept and benefits of regionalization in providing these services was emphasized and we left the meeting with a positive, optimistic attitude that we would see good results from the presentations and USDA, Rural Development programs.

We appreciated the presence of Jessica Zufolo, Deputy Administrator for Utilities who inspired the audience with the following comment:  “It’s hard for businesses to locate or thrive in areas that do not have access to broadband, and that’s why the Obama Administration believes that providing new broadband infrastructure is one of the most important ways to create jobs and rebuild and revitalize rural America. Broadband infrastructure projects lay the foundation for job creation and economic growth.  Broadband makes commerce possible, and it also opens the way for improved access to health care, educational opportunities for children and adults, along with greater access to information in public venues including libraries.”

We heard positive comments about the USDA’s partnership with the Department of Commerce on this initiative.  “By funding projects to increase broadband access and digital literacy in communities across the country, we can help more Americans compete in the 21st century economy and improve our country’s global competitiveness,” said Angela Simpson, NTIA Senior Advisor on Broadband, at the workshop.

U. S. Senator Claire McCaskill was represented by Llona Weiss, Regional Director, and Bob Burns, Field Representative.   Missouri Governor Jay Nixon was represented by Robert Donnelly with the Department of Economic Development.  Many other stakeholders including: organizations, commissions, local/regional/state government, infrastructure providers, universities, libraries, community groups, nonprofits, and etc. were in attendance to learn about the programs, how to apply, learn about the scoring and learn what is required.

A highlight of the opening session was a presentation by Dan Strode, Manager of Ralls County Electric Cooperative.  The member-owned, non-profit cooperative was one of the recipient’s in the $310 million ARRA Rural Broadband Projects announced by Secretary Vilsack on Jan. 25, 2010.  They received a $9,548,908 grant and $9,548,909 loan to help fund a fiber optic network to 4,594 households, 311 businesses and 58 anchor institutions, public safety entities, and critical community organizations in rural northeast Missouri.  This is also a Missouri demonstration project with leveraged funds provided by Governor Nixon and the State of Missouri.  Mr. Strode pointed out that the fiber optic network along their electric distribution right-of-way will bring advanced broadband services to unserved and undeserved residents.  The fiber network will enable “Smart Grid” technologies, to revitalize local economic development and create sustainable jobs for their members and communities. Stobe pointed out the Coop would dedicate 10% of free cash flow from broadband operations for local economic development loans and grants to further job retention and creation.

This provided an excellent example of a successful applicant/recipient utilizing the ARRA funds to support sustainable investments in broadband to create jobs, spur long-term economic growth, and ensure rural communities can compete in the 21^st century.

As my final comment, I would add that I commend the national office for the “lessons learned” from the Round 1 of the Notice of Funding Availability and making positive changes for improvement for the second round.  Individuals attending were complimentary and appreciative that their comments had been heard and adjustments made.

For information on more workshops, archived webcasts,  visit http://www.broadbandusa.gov.  Additional forums will be held over the next two weeks at the following locations: February 4, Sioux Falls, SD; February 5, Detroit, MI; February 9, Blacksburg, VA; February 11, Fayetteville, NC; and February 12, Atlanta, GA.

Submitted by Janie Dunning, Missouri State Director for Rural Development and by George Thomas, Public Information Coordinator

Angela Simpson, NTIA Senior Advisor on Broadband, Jessica Zufolo, Deputy Administrator, Utilities, USDA Rural Development, Janie Dunning, Missouri Rural Development State Director

Bob Burns, Field Representative of U. S. Senator Claire McCaskill, participating in the comment period.