Rural Electrification Act: A Landmark in Expanding Electricity Access

Definition & Meaning

The Rural Electrification Act, enacted in 1936, is a federal law designed to provide low-cost loans to non-profit cooperatives. Its primary goal is to extend electricity access to rural areas of the United States, where many residents previously lacked reliable electric service. The act supports the installation of electrical distribution systems, enabling rural communities to benefit from modern energy services for the first time.

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Real-world examples

Here are a couple of examples of abatement:

One example of the Rural Electrification Act in action is the establishment of a cooperative in a rural community that previously relied on gas lamps for lighting. Through the act, the cooperative secured funding to build power lines and provide electricity to homes, significantly improving the quality of life for residents.

(hypothetical example) Another example could involve a newly formed cooperative in a remote area seeking funds to install solar panels, thereby enhancing energy independence and sustainability.

State-by-state differences

Examples of state differences (not exhaustive):

State Specific Provisions
California State programs may offer additional funding for renewable energy projects.
Texas Cooperatives may have unique regulations regarding governance and member participation.
New York Has specific initiatives aimed at enhancing energy efficiency in rural areas.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Rural Electrification Act Federal law providing loans for rural electricity access. Focuses specifically on rural areas and cooperatives.
Public Utility Regulatory Policies Act (PURPA) Encourages energy efficiency and renewable energy. PURPA addresses broader energy policy, not limited to rural areas.

What to do if this term applies to you

If you are part of a rural community seeking to establish or improve electrical services, consider forming a cooperative. You can apply for loans under the Rural Electrification Act to fund your project. For assistance, explore US Legal Forms' ready-to-use legal form templates, which can help streamline the application process. If your situation is complex, consulting with a legal professional may be beneficial.

Quick facts

  • Typical loan amounts vary based on project size and needs.
  • Jurisdiction: Federal, with state-specific regulations.
  • Possible penalties for misuse of funds may include repayment of loans.

Key takeaways