The Biden administration said on Tuesday that rural electric cooperatives, utilities, and other energy providers would soon be able to apply for over $11 billion in grants and loans for sustainable energy projects financed by the $430 billion Inflation Reduction Act signed into law last August.
Officials told reporters on a Monday press call that the Biden administration expanding sustainable energy to rural regions is important to attaining the administration’s goal of net-zero emissions by 2050.
“This is an exciting and historic day that continues an ongoing effort to ensure that rural America is a full participant in the clean energy economy,” Agriculture Secretary Tom Vilsack said during the conference call.
Rural electric cooperatives will be able to apply for $9.7 billion in incentives for renewable energy, zero-emission, and carbon capture systems beginning July 31, according to the USDA.
The Biden administration: Renewable energy developers and electric service providers such as municipal and tribal utilities will be able to apply for additional $1 billion in partially forgiving loans to finance wind, solar, geothermal, biomass, and other renewable energy projects beginning June 30, according to USDA.
On a conference call with reporters, White House adviser John Podesta claimed the money would bring good-paying employment to rural regions, while National Climate adviser Ali Zaidi said it would be a “game-changer.”
According to the National Rural Electric Cooperative Association (NRECA), rural electric cooperatives serve 42 million people and get around 22% of their energy from renewable sources.
The NRECA, a trade organization, applauded the decision on Tuesday, calling it a “transformative opportunity for co-ops and their local communities.”
According to Vilsack, the new subsidies will assist rural electric cooperatives in achieving parity with commercial utility firms that have already launched considerable investments in sustainable energy.
“We have a climate crisis that requires all of America to contribute to reducing emissions in order to achieve a net-zero future,” Vilsack stated.
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