VENEMAN ANNOUNCES $100 MILLION TO IMPROVE ECONOMIC CONDITIONS IN ILLINOIS RURAL COMMUNITIES
Discusses Economy, Trade, Farm Bill, Energy and Rural Investment in town hall forum hosted by Congressman Shimkus

EDWARDSVILLE, Ill., Aug. 14, 2002 - Agriculture Secretary Ann M. Veneman visited Illinois today participating in a town hall forum hosted by Congressman John Shimkus where she discussed the President's economic agenda, trade and other agricultural issues with local farmers and ranchers.

"Yesterday, the President hosted an economic forum to talk with working Americans about our nation's economy and how we can move forward to create new jobs and opportunities," said Veneman. "Agriculture is such an important part of this nation's economy which is why the President wants to expand markets, permanently eliminate the death tax and invest in value-added agriculture opportunities such as ethanol."

To strengthen rural communities throughout the state, the Secretary announced $100 million in grants and loans to improve water and energy facilities, invest in business development and purchase fire equipment. She also toured a pilot ethanol facility at Southern Illinois University that USDA has provided more than $15 million in funding to construct.

"Rural communities are an important part of our nation's economic strength and these investments should help families in these areas," said Veneman. "As well, ethanol is an example of how value-added agriculture is bringing more economic opportunities for producers and more jobs for rural communities. Congressman Shimkus has provided a great deal of leadership in these areas, particularly in the development of this ethanol plant, which will be of great benefit to Illinois."

Earlier this month, Secretary Veneman released a new study, "The Energy Balance of Corn Ethanol: An Update," that concluded ethanol production is energy efficient because it yields 34 percent more energy than is used in growing and harvesting the corn and distilling it into ethanol. It also concludes that the net energy value of corn ethanol has become positive in recent years due to technological advances in ethanol conversion and increased efficiency in farm production. Ethanol production has grown in the United States from a few million gallons in the late 1970s to about 1.8 billion gallons in 2001.

The following is a specific list of the rural development grants and loans announced by Secretary Veneman today. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or at USDA's web site at http://www.rurdev.usda.gov/ .

South Lawrence Water Corporation, Sumner, Illinois -- $1,323,000 water loan and grant package ($685,000 loan/ $638,000 grant) - Funds will be used to construct Phase II of its rural water system and construct approximately 106 miles of watermain to serve an additional 150 customers. This extension will be in parts of Christy, Bridgeport, Dennison, Lukin, and Lawrence Townships (Lawrence County).

Village of Bluford -- $797,000 wastewater loan and grant package ($550,000 loan/ $247,000 grant) -- Funds will be used to rehabilitate the current wastewater treatment system.

Village of Beckemeyer -- $1,541,000 wastewater loan and grant package ($840,000 loan/ $701,000 grant) -- Funds will be used to replace approximately 13, 000 feet of sanitary sewer main within the village. Originally built in the 1950's the system is currently in very poor condition resulting in acute problems and health hazards to local residents.

LaHarpe Fire Protection District -- $50,000 community facilities grant - Funds will be used to purchase a fire truck. The fire district serves approximately 140 square miles of Hancock County and in parts of Henderson and McDonough counties.

SIUC Board of Trustees -- $213,967 cooperative development grant - Funds will be used to provide assistance to developing and operating cooperatives within Illinois on feasibility analysis, business plans, board training, market identification and other technical assistance.

Southern Illinois Power Cooperative Marion, Illinois --$85,365,000 electric loan guarantee. Funds will be used to construct and install two 83 MW Combustion Turbines, a spare main transformer, flue gas desulfurization system, line changes and a switch station.

Northeast Marion County Water Company -- $2.6 million water loan and grant package ($1,300,000 loan/ $1,300,000 grant). Funds will be used to construct about 90 miles of watermain and construct a 150,000-gallon water storage tank. These improvements will serve an additional 300 customers.

Egyptian Water Company, Randolph County, Ill. -- $1,573,000 water loan and grant package ($780,000 loan/ $793,000 grant). Funds will be used to construct Phase II, consisting of 35 miles of watermain to serve an additional 200 customers in central Randolph County.

Hardinville Water Company, Crawford County, Ill. -- $2,624,000 water loan and grant package ($1,706,000 loan/ $918,000 grant). Funds will be used to construct Phase V, consisting of two new wells, storage tanks, treatment facility and new watermains serving 1,090 customers.

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