Celebrating 2 years of the IRA from Pineville, Kentucky

Hi there, neighbor! 

If you work with us, you know already that we’ve been talking about the Inflation Reduction Act a lot this month. There’s a reason for that! August marks the 2-year anniversary of the IRA, a landmark piece of legislation that offers once-in-a-generation funding for rural communities. 

To us, the IRA signifies a shift in U.S. economic policy, focusing on direct public investment in rural communities. We’re talking more funding for job growth, infrastructure improvement, local business support, and a long-awaited push to address economic inequities in our small towns. 

We’re at the cusp of a positive trend and a future promise, folks, and while we're excited about the progress we're seeing, there's still a lot of work ahead. We're not waiting for change to come; we're pushing forward to support local people and organizations in tapping into IRA benefits to advance our communities' priorities.

But today we’re celebrating! After two years, the IRA is creating progress in a town near you. To close out this anniversary month, here is our most recent story of this success.

Mike Long is the general manager of Long’s Pic Pac, a grocery business started in 1964, when his father Arthur “Ray” Long got a $3,500 loan co-signed by an appliance store owner who knew Ray from watching him play football. Mike was only a few years old when his father’s grocery store opened. He grew up with the business, and proudly calls Pineville — a town of about 1,630 people in Southeastern Kentucky — home. 

“It’s kind of hidden,” Mike said of his hometown. “If something starts hitting the mainstream, lots of times it takes a while before it gets here.” 

Mike, however, is an early and enthusiastic adopter of energy-saving upgrades at the grocery store. Most recently, he installed a solar array and battery system that will help cut energy costs by at least $15,000 annually. Mike thinks Pic Pac might be the first grocery store in Kentucky to install solar with battery capacity to lower the high demand charges of refrigeration, deli ovens, and fryers. A Rural Energy for America Program (REAP) grant, a program expanded by the Inflation Reduction Act, funded 40% of the project. The business is also eligible for a 30% federal tax credit on the 143kW solar array, with a longer depreciation because Pineville is a low-income community. Mountain Association helped him apply for the grant and secure the funding.

With grocery stores running on a razor-thin profit margin of 2.2%, those annual savings are meaningful for the grocer. “Tight margins are one of the reasons why many rural places have seen full service stores struggle to keep their doors open,” said Mike.

In the Appalachian region of Kentucky, where more than 20% of the population regularly faces hunger, grocery stores like Long’s Pic Pac play a critical role in addressing food insecurity. Energy-saving innovations not only help sustain these businesses but also ensure that rural communities continue to have reliable sources of food and support.

Stories like Mike’s demonstrate why the IRA anniversary is so important to communities like Pineville. The IRA is a crucial tool that empowers rural communities to implement practical solutions to their unique challenges, thanks to the tax incentives and benefits it provides. It offers everything from energy savings that keep businesses like Long’s Pic Pac thriving, to infrastructure improvements that ensure rural residents can access essential services.

As we look forward to the coming years of the IRA, we hope to continue to turn more promises into progress. We’re excited to partner with you to see what this next chapter holds. 

Onwards, 

Resource Rural