In its latest—but not final—clean energy funding push to 10 U.S. rural power cooperatives, the Biden Administration announced award this month of more than $4.37 billion through the U.S. Agriculture Dept.’s Empowering Rural America program.
This funding round for the Empowering Rural America program, earmarked under the 2022 Inflation Reduction Act, joins earlier rounds awarding more than $9.7 billion to member-owned rural electric cooperatives—what the department says is the largest investment in rural electrification since the effort was launched by President Franklin D. Roosevelt in 1936.
The department said it also chose six other co-ops in Colorado, Louisiana, Oregon and Washington-Idaho "to move forward in the process" to receive new program funding and that it "expects to make additional ... award announcements in the coming weeks."
Two cooperatives—in Texas and Florida—gained a total of about $2.7 billion of the funding total.
“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” outgoing Agriculture Secretary Tom Vilsack said.
San Miguel Electric Cooperative Inc., in Atacosa County, Texas, will use its $1.4 billion award to convert a lignite coal plant in the county into an estimated 600-MW solar energy and battery storage site that will serve 47 rural southern counties in the state. Local officials say the project will reduce carbon emissions by more than 1.8 million tons per year—and that with the co-op’s transition to renewable energy, only 14 coal-fired power plants will be left in Texas.
The power plant has been a target of opponents for some years, with the Environmental Integrity Project and Sierra Club claiming it is a leading cause of mercury emissions and that toxic chemicals from its two coal ash impoundments have seeped into groundwater. The co-op disputes the allegations and says it is in compliance with environmental regulations, the Texas Tribune reports.
Seminole Electric Cooperative Inc. in Tampa, Fla., will use its funding of more than $1.3 billion to develop 700 MW of utility-scale solar and battery energy storage projects in rural areas, reducing greenhouse gas emissions by more than 3.5 million tons annually, according to the agriculture department.
Other rural electric cooperatives receiving funding include two in Georgia: Georgia Transmission Corp,, which gains up to $325 million for new and upgraded transmission assets in about 20 rural communities across the state; and Oglethorpe Power Corp., with a $331.5 million investment to help refinance outstanding loans for the retired Hal B. Wansley coal plant that had served 38 member co-ops.
United Power, a Colorado co-op, will use $262 million to help finance construction of more than 760 MW of renewable energy generation in rural areas. while Yampa Valley Electric Association gained nearly $50 million for up to 150 MW of solar energy and 75 MW of battery storage for northwestern Colorado and southwestern Wyoming.
Others awardees include CORE Electric Cooperative in Colorado, with $225 million in funding for 550 MW of wind and solar energy and 100 MW of battery energy storage for rural communities; and Nebraska Electric G&T, which gained $200 million for 725 MW of wind and solar energy in Butler, Burt and Custer counties.
Connexus Energy, Minnesota’s largest electric co-op, received nearly $170 million in grant money to develop about 282 MW of renewable hydroelectric, solar and wind energy, and 20 MW of battery storage. ““We appreciate that the [Agriculture Dept.] recognizes the substantial benefits our portfolio of projects provides our member-owners in decarbonizing our power supply,” said its President and CEO Brian Burandt, claiming it would cut carbon emissions by 2.2 million tons per year.
