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Charging Forward: Bringing Electric Vehicle Charging
Infrastructure to Rural Communities
Unique Role of Rural Development
13
Rural Development’s three agencies
offer rural oriented financing
options to support the
electrification of the transportation
sector and can leverage other
federal investments in eligible rural
areas:
• Rural Utilities Service
• Rural Housing Service
• Rural Business Cooperative
Service
USDA Rural Development & EV Infrastructure
3
USDA/Rural Development programs can be used to leverage federal, state, and private
sector investments to support the development and deployment of electric vehicle
(EV) charging stations serving rural areas. USDA can also collaborate with other federal
agencies to achieve communities’ goals.
RD can use existing programs and authorities to:
(1) Provide affordable financing to expand the availability of EV charging
infrastructure in rural areas
(2) Leverage EV infrastructure investment into further rural economic development
(3) Foster a network of EV infrastructure leaders and local expertise in rural
communities
Community Facilities Loan and Grant Program
• Electric vehicles, charging infrastructure, facilities, and community
improvements
Rural Energy for America Program
• Energy efficiency projects for farms and businesses
Energy Efficiency and Conservation Loan Program
• Infrastructure improvements to support electric vehicle charging
Rural Energy Savings Program
• Behind the meter chargers and gap financing
4
USDA is here to help cover EV Gap funding!
USDA is here to help cover EV Gap funding!
What rural communities are considering when it
comes to transportation electrification?
Rural Energy Savings Program
6
Eligible entities can use the Rural Energy Savings Program (RESP) to finance charging
stations and related infrastructure owned by the customer. Provides 0% financing to
the borrower. Borrower relends to the consumer at a rate no higher than 5% for up
to 10 years. On-bill financing for consumer.
• Eligible entities: all utilities, energy efficiency entities, Tribes
• Eligible Activity:Any improvement to real estate or a fixture that results in the
reduction of energy costs or usage of the customer. This includes the construction of
EV chargers and the supporting behind the meter infrastructure.
• Customer: businesses, municipalities, individuals, Tribes, school, state entities like
energy offices and transportation agencies.
Electric Loan Program
7
Eligible entities can use the Electric Loan Program can finance electric utility-owned
charging stations and network infrastructure.
• Eligible entities: electric cooperatives, tribal entities, and municipalities
• Eligible Activity:Charing stations, service lines to the meter, fiber connections to
charging stations, implementation of smart metering, energy storage, renewable
power, and more.
What else can USDA Rural Development do?
Community Facilities (CF) can finance:
− Non-profit and municipal vehicles serving community needs
− Related community-based charging infrastructure; vehicles
− Community-owned and serving charging stations
Rural Energy for America Program (REAP) can finance:
− Renewable energy systems with storage and charging infrastructure
− Exclusive to agricultural producers and rural small businesses; no retail.
8
Community Facilities Program Eligibility Criteria
Eligible Example Ineligible Example
EV charger in the
parking lot at a city hall,
hospital, school, or
police station
EV charger at a highway
turnoff and/or
service station
Mainly serving rural
residents
Rural residents will
not be
primarily
served
9
Rural Energy for America Program
Eligible Example Ineligible Example
N/A
Fleet of electric vehicles
for a rural small business;
electric tractor for on
farm use
Renewable energy system
with charging
infrastructure
EV charging station for a
fleet of vehicles owned by a
farmer or rural small
business.
Offers guaranteed loans and grants for renewable
energy systems and energy efficiency
improvements.
Eligible Applicants: Agricultural producers, small
businesses in qualifying rural communities.
Eligible Purpose: Installment, construction, or
otherwise development of renewable energy
systems and energy efficiency improvements.
Small businesses located in rural communities of
50,000 or less. No geographic restriction for
agricultural producers.
There’s more!
Community Facilities (CF) Technical Assistance can finance:
− Community-driven planning activities relating to transportation
electrification.
Rural Business Development Grant can finance:
− Planning, pre-development costs, construction, and other
Business & Industry Guaranteed Loan Program can finance:
− Charging infrastructure, vehicle, other supply chain needs
− Rural businesses, including convenience stores and fuel retailers
11
USDA is here to help cover EV Gap funding!
Thank you!
Community Facilities Programs
Program Objective
CF Direct Loans
Rural areas including cities, villages, townships and towns including Federally
Recognized Tribal Lands with no more than 20,000 residents according to the latest
U.S. Census Data are eligible for this program.
CF Guaranteed Loans
This program provides loan guarantees to eligible lenders to develop essential
community facilities in rural areas. Rural areas including cities, villages, townships and
towns including Federally Recognized Tribal Lands with no more than 50,000 residents.
CF Grants
Facilities must primarily serve rural residents with no more than 20,000 residents
according to the latest U.S. Census Data are eligible for this program.
3
0

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Charging Forward: Bringing Electric Vehicle Charging Infrastructure to Rural Communities by Steffanie Bezruki

  • 1. Charging Forward: Bringing Electric Vehicle Charging Infrastructure to Rural Communities
  • 2. Unique Role of Rural Development 13 Rural Development’s three agencies offer rural oriented financing options to support the electrification of the transportation sector and can leverage other federal investments in eligible rural areas: • Rural Utilities Service • Rural Housing Service • Rural Business Cooperative Service
  • 3. USDA Rural Development & EV Infrastructure 3 USDA/Rural Development programs can be used to leverage federal, state, and private sector investments to support the development and deployment of electric vehicle (EV) charging stations serving rural areas. USDA can also collaborate with other federal agencies to achieve communities’ goals. RD can use existing programs and authorities to: (1) Provide affordable financing to expand the availability of EV charging infrastructure in rural areas (2) Leverage EV infrastructure investment into further rural economic development (3) Foster a network of EV infrastructure leaders and local expertise in rural communities
  • 4. Community Facilities Loan and Grant Program • Electric vehicles, charging infrastructure, facilities, and community improvements Rural Energy for America Program • Energy efficiency projects for farms and businesses Energy Efficiency and Conservation Loan Program • Infrastructure improvements to support electric vehicle charging Rural Energy Savings Program • Behind the meter chargers and gap financing 4 USDA is here to help cover EV Gap funding!
  • 5. USDA is here to help cover EV Gap funding! What rural communities are considering when it comes to transportation electrification?
  • 6. Rural Energy Savings Program 6 Eligible entities can use the Rural Energy Savings Program (RESP) to finance charging stations and related infrastructure owned by the customer. Provides 0% financing to the borrower. Borrower relends to the consumer at a rate no higher than 5% for up to 10 years. On-bill financing for consumer. • Eligible entities: all utilities, energy efficiency entities, Tribes • Eligible Activity:Any improvement to real estate or a fixture that results in the reduction of energy costs or usage of the customer. This includes the construction of EV chargers and the supporting behind the meter infrastructure. • Customer: businesses, municipalities, individuals, Tribes, school, state entities like energy offices and transportation agencies.
  • 7. Electric Loan Program 7 Eligible entities can use the Electric Loan Program can finance electric utility-owned charging stations and network infrastructure. • Eligible entities: electric cooperatives, tribal entities, and municipalities • Eligible Activity:Charing stations, service lines to the meter, fiber connections to charging stations, implementation of smart metering, energy storage, renewable power, and more.
  • 8. What else can USDA Rural Development do? Community Facilities (CF) can finance: − Non-profit and municipal vehicles serving community needs − Related community-based charging infrastructure; vehicles − Community-owned and serving charging stations Rural Energy for America Program (REAP) can finance: − Renewable energy systems with storage and charging infrastructure − Exclusive to agricultural producers and rural small businesses; no retail. 8
  • 9. Community Facilities Program Eligibility Criteria Eligible Example Ineligible Example EV charger in the parking lot at a city hall, hospital, school, or police station EV charger at a highway turnoff and/or service station Mainly serving rural residents Rural residents will not be primarily served 9
  • 10. Rural Energy for America Program Eligible Example Ineligible Example N/A Fleet of electric vehicles for a rural small business; electric tractor for on farm use Renewable energy system with charging infrastructure EV charging station for a fleet of vehicles owned by a farmer or rural small business. Offers guaranteed loans and grants for renewable energy systems and energy efficiency improvements. Eligible Applicants: Agricultural producers, small businesses in qualifying rural communities. Eligible Purpose: Installment, construction, or otherwise development of renewable energy systems and energy efficiency improvements. Small businesses located in rural communities of 50,000 or less. No geographic restriction for agricultural producers.
  • 11. There’s more! Community Facilities (CF) Technical Assistance can finance: − Community-driven planning activities relating to transportation electrification. Rural Business Development Grant can finance: − Planning, pre-development costs, construction, and other Business & Industry Guaranteed Loan Program can finance: − Charging infrastructure, vehicle, other supply chain needs − Rural businesses, including convenience stores and fuel retailers 11
  • 12. USDA is here to help cover EV Gap funding! Thank you!
  • 13. Community Facilities Programs Program Objective CF Direct Loans Rural areas including cities, villages, townships and towns including Federally Recognized Tribal Lands with no more than 20,000 residents according to the latest U.S. Census Data are eligible for this program. CF Guaranteed Loans This program provides loan guarantees to eligible lenders to develop essential community facilities in rural areas. Rural areas including cities, villages, townships and towns including Federally Recognized Tribal Lands with no more than 50,000 residents. CF Grants Facilities must primarily serve rural residents with no more than 20,000 residents according to the latest U.S. Census Data are eligible for this program. 3 0

Editor's Notes

  1. Rural Development does not have any programs specifically designed to support transportation electrification. Instead, we offer dozens of programs across three distinct agencies to bring prosperity to rural communities. Prosperity takes a lot of different forms here. This means safe and affordable housing, access to high-speed internet, a modern electric grid, affordable financing for business expansion, and more. There is no single vision or model for a sustainable and thriving economy in a rural area, and we support locally-driven strategies that will create wealth that stays within the community. Our approach to supporting electric vehicle adoption and charging infrastructure development with that in mind. If you’re not familiar with USDA Rural Development, let’s start with a quick primer. USDA Rural Development is actually comprised of three agencies: Rural Utilities Service, Rural Housing Service, and the Rural Business-Cooperative Service. Each have programs that can help support transportation electrification. The agencies are how we group the programs, but they do not make a real difference when it comes to service delivery, which is largely done through our extensive network of state and area offices across the country.
  2. Like I said, we do not have any specific EV infrastructure programs like EPA or DOT nor did we receive significant new resources to support development through major packages, like the Bipartisan Infrastructure Law. We can – and will continue to– provide support through the programs and authorities that we’ve had for many years. Not only can we offer loans and grants, but also planning and technical assistance support to ensure that local leaders, business owners, and families in rural areas are able to make smart investments that serve them. We also have convening power. We have an on the ground presence in every state and Puerto Rico with a designated State Director. They’re ready to work with you and can help connect you with electric service providers, municipalities, local schools, systems, private entities, and Federal Family partners (EPA, DOE, DOT, USDA, others) either through our national office or through their own relationships in the region.
  3. USDA can help fill the gaps. Our programs are varied in terms of what they can cover, but so are the types of support that we provide. Through USDA Rural Development, we offer guaranteed loans (meaning your lender helps you complete the application, you pay your lender like you would on any other loan, and USDA pledges that we will give the bank up to 80% or 90% of the balance owed if you default), direct loans (you pay back the Agency), relending programs (which involve USDA making a loan or grant to a utility or a non-profit lender, who then makes a low-interest loan to you for financing specific projects), and of course, a grant. Depending on your project and your eligibility, grants are available for capital investments as well as technical assistance and planning.
  4. The Rural Energy Savings Program is a relending program; it allows a utility to partner with customer to make investment in an energy efficiency improvement or otherwise reduce energy costs. This can include EV charging infrastructure and related infrastructure. I’ll rattle off a few different uses, but I think what’s important is how the program is structured. The utility incurs the debt and then relends it to the customer, offering affordable capital by putting a restriction on the rate. The maximum terms are ten years though, which may make this an unattractive option for financing. Cover meter side shortfalls above grant allocation (including the 20% above EV charger grant) Additional costs for more than 4 DC Fast chargers per site Solar and Battery Storage on same site – increased reliability Cost reimbursement for the broadband (fiber) connection for the charger Cover the cost of line extension and/or service drops Electric Cooperatives* Investor-Owned Utilities * Tribal Entities * Municipalities (either directly or to their municipal utility subsidiaries) * Other utilities such as gas or water utilities. State Energy Offices State Transportation Agencies State Education Agencies/Departments * also eligible for REAct funding
  5. The two programs that I mentioned with our Rural Utilities Service are two major opportunities for supporting investments in EV charging infrastructure and related infrastructure that must also be expanded or strengthened to support this technology. RESP can be especially well leveraged with other federal and state programs to finance EV charging infrastructure. However, I want to talk about other programs that be used to support EV charging infrastructure and maybe clear up a little confusion about the applicability of our Community Facilities Program and the Rural Energy for America Program.
  6. The Community Facilities Program can be an excellent tool for communities, but its only applicable for