'A big deal'| US opens $10.7bn funding pot to spur clean energy use in rural America
Two programmes aim to encourage deployment of renewable energy, zero-emission, and carbon capture systems, and promote electric grid expansion
The US Department of Agriculture (USDA) will oversee disbursement of funding through two programmes – Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE).
New ERA has $9.7bn available to eligible rural electric cooperatives to deploy renewable energy, zero-emission, and carbon capture systems, as well as demand side management and energy conservation programmes.
To apply, eligible entities must submit a Letter of Interest to USDA between 31 July and 31 August.
PACE has $1 bn in partially forgivable loans to renewable energy developers and electric service providers to help finance construction of electric distribution, transmission, and generation facilities. These are large-scale solar, wind, geothermal, biomass, hydropower projects and energy storage in support of renewable energy systems.
Loans through this programme may be forgiven by 40% of the loan amount, which is a maximum $100m.
Applicants in Puerto Rico and certain other US territories and tribes are eligible for up to 60% loan forgiveness. USDA will begin accepting Letters of Interest starting on 30 June on a rolling basis until 29.
Agriculture Secretary Tom Vilsack said the federal commitment to cleaner energy will provide rural communities with an “an affordable and reliable power grid, while supporting thousands of new jobs and helping lower energy costs in the future.”
Vilsack is also a former governor of Iowa, the number two wind power state, and a major producer of biofuels.
“For so many of our rural communities, this is simply a gamechanger. It’s a big deal,” added Ali Zaidi, assistant to the president and national climate advisor.
The Inflation Reduction Act also provides up to $500m in grants for infrastructure improvements to blend, store, or distribute biofuels to give consumers more fueling options.
This includes installing, retrofitting or upgrading dispensers for ethanol at retail fueling stations, as well as home heating oil distribution centers.
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