President Biden's Inflation Reduction Act, the largest investment in clean energy and climate change in history, as well as the largest investment ever in rural energy infrastructure, resulted in a record-high demand for funding from the US Department of Agriculture for the advancement of affordable and dependable clean energy in rural America.
"The Biden-Harris Administration’s Inflation Reduction Act is driving investment in rural communities across the nation, particularly in places that for too long have been left out or left behind," said Tom Vilsack, the Secretary of Agriculture.
According to a press release shared on September 27, these initiatives, which are a part of both Bidenomics and the President's Investing in America agenda, will reduce energy costs for households and small businesses and generate well-paying jobs across rural America. Through USDA Rural Development programs, the Inflation Reduction Act made over $13 billion available to develop sustainable energy infrastructure for rural America. The money will be used to create renewable energy and zero-emission systems, as well as to promote energy efficiency, which will lower greenhouse gas emissions and increase affordability and dependability.
In May, the USDA made $9.7 billion available to member-owned rural electric cooperatives under the New ERA initiative. This funding represents the largest increase in investment in rural America's electric system since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936. The goal is to provide rural Americans with access to clean, cheap, and reliable energy. Rural electric cooperatives are the foundation of the country's electricity distribution.
The deadline for letters of interest was September 15, and nearly every state and Puerto Rico submitted 157 proposals to USDA for more than 750 high-quality sustainable energy projects in rural communities. The demand for funding exceeded the $9.7 billion in grant and loan funds that Congress made available for this program, showing strong support for the initiative. Over 50% of the submitted letters of interest stated that they would assist underprivileged, tribal, or energy communities. One applicant claimed that if chosen for financing, its proposed sustainable energy initiatives would result in annual savings of $700 for each household in its service area.
The total level of all submitted ideas, including leveraged private investment, amounts to almost $93 billion in new public and private investments in rural America. The plans have the potential to reduce and avoid 127 million tons of greenhouse gas emissions, which is equivalent to the annual electricity use of 24 million homes, the growth of 2 billion trees over a decade, or the removal of around 24 million vehicles from the road.
To further support new renewable energy projects and energy storage in rural America, the USDA made $1 billion accessible under the Program for Affordable Clean Energy (PACE) in May. The department has already received requests for more than $7.8 billion through letters of interest, and anticipates receiving additional letters as the September 29 deadline approaches.
President Biden's Investing in America Agenda is driving investment in clean energy in rural America, with record demand for funding from the USDA. These initiatives will not only create jobs and reduce energy costs, but also contribute to a more stable climate and cleaner air.
