USDA announces financing for clean energy

The U.S. Department of Agriculture is announcing more than $7.3 billion in financing for rural electric cooperatives to build clean energy for rural communities across the country through the Empowering Rural America (New ERA) program.

Together, New ERA and other investments in rural clean energy in the President’s Inflation Reduction Act make up the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936 as part of the New Deal.

The states served by this set of selectees include Nevada and California and 21 other states.

Collectively, the 16 selections are funded by the Investing in America agenda and will leverage private investments of more than $29 billion to build more than 10 gigawatts of clean energy for rural communities across the country.

USDA Secretary Tom Vilsack the selectees will reduce and avoid at least 43.7 million tons of greenhouse gases annually, equivalent to removing more than 10 million cars off the road every year.

“We are supporting a more prosperous future for rural communities by speeding up the transition to clean energy while at the same time keeping monthly bills low and investing in the American workforce with new jobs and apprenticeships,” Vilsack said. “One in five rural Americans will benefit from these clean energy investments, thanks to partnerships with rural electric cooperatives like Dairyland. Put simply, this is rural power, for rural America.”

“The Inflation Reduction Act will be the largest investment in rural electrification since President Franklin D. Roosevelt’s New Deal of the 1930s.

“Today’s awards will bring clean, affordable, reliable power to rural Americans all across our nation,” said John Podesta, senior adviser to the president for international climate policy.

Officials say these projects will create good-paying jobs, lower energy costs for rural communities, significantly reduce pollution, enhance the resiliency of the nation’s electric grid, and advance the Biden-Harris Administration’s Justice40 Initiative.

The 16 selectees will use New ERA funds to:

Deliver cleaner, more affordable and more resilient electricity to approximately 5 million households across 23 states, representing 20% of the nation’s rural households, farms, businesses and schools. Support more than 4,500 permanent jobs and 16,000 construction jobs.

Reduce pollution by 2.9 billion tons over the lifetime of the projects, or more than 43.7 million tons of greenhouse gases annually.

Build or purchase over 10 gigawatts of clean energy – including 3,723 megawatts of wind, 4,733 megawatts of solar, 804 megawatts of nuclear and 357 megawatts of hydropower. This will make enabling investments in transmission, substation upgrades, and distributed energy resource management software, lowering energy costs for rural Americans and enhancing grid resiliency, all of which will help meet growing electricity demand .

Build 1,892 megawatt hours of battery storage, which increases grid reliability and significantly reduces outage times for local customers.

Investments from USDA Rural Development

USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas.

This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and healthcare; and high-speed internet access in rural, Tribal and high-poverty areas.

USDA expects to continue making New ERA and Powering Affordable Clean Energy (PACE) program awards in the coming months.