The U.S. Agriculture Department's Rural Energy for America Program has agreed to lend $1.125 million for development of the 1.8-MW Flannagan hydroelectric project on the Pound River in Virginia.
The loan is part of $68 million that the REAP program is investing in renewable energy and energy efficiency projects nationwide.
"Investing in renewable energy and energy efficiency will continue the unprecedented increase in home-grown energy sources and American energy independence we've seen in recent years," Agriculture Secretary Tom Vilsack said Sept. 18. "This is creating jobs, providing new economic opportunities and leading the way to a more secure energy future."
The $1.125 million lent to developer Jordan Hydroelectric L.P. is to help fund development of the Flannagan hydroelectric project at the U.S. Army Corps of Engineers' John Flannagan Dam in Dickenson County, Va. The project is to power more than 800 homes and reduce yearly carbon dioxide emissions by more than 8,500 tons.
"This project is a smart way to utilize Virginia's energy resources and promote rural job growth," Sen. Tim Kaine, D-Va., said. "Approval of a federal loan for a new power station at the John Flannagan Dam will help Virginia reach its economic and energy goals while creating jobs in the Southwest."
The Federal Energy Regulatory Commission issued a license (No. 12740) to Jordan Hydroelectric L.P. for the Flannagan project in 2012.
USDA provides grants to small hydro in Colorado, Idaho
The Rural Energy for America Program also provided grants to two hydro projects in Colorado and Idaho.
The USDA announced grants of $8,943 to Donald R. Hart for a hydroelectric project in Colorado and $83,525 to Flying Resort Ranches Inc. for a hydro project in Idaho.