Rural Power Coalition Applauds the Historic Investment in Rural America Included in the Inflation Reduction Act of 2022
MONTEVIDEO, MINN. July, 29 2022 - On Wednesday, Senate Majority Leader Chuck Schumer, D-NY, and Sen. Joe Manchin, D-WV, released a new budget reconciliation deal — the Inflation Reduction Act of 2022 — to address climate and energy, the price of prescription drugs, and tax reform.
The $369 billion package in climate and energy spending includes more than $10 billion to support Rural Electric Cooperatives (RECs) and the rural communities they serve to accelerate their transition to renewable energy, increase energy efficiency, and modernize the energy grid.
According to modeling completed by Energy Innovation, the $9.7 million of USDA assistance for electric cooperatives for investments in renewable energy included in the Act (section 222004), could reduce greenhouse gas emissions by 62 million metric tons by 2030.
Furthermore, an additional $1B Dollars (section 22001) will provide forgivable loans for new renewable energy infrastructure investments by Rural Utilities.
In addition to these historic investments in rural communities, the Inflation Reduction Act of 2022 will also offer RECs a direct pay option for clean energy tax credits for the first time, leveling the playing field between public power and investor owned utilities.
In total, these transformative programs are critical to the success of our nation’s climate goals, and will create jobs, provide affordable and reliable electricity, and address the climate crisis by reducing greenhouse gas emissions.
Since 2018, members of the Rural Power Coalition (RPC) and their allies have advocated for federal Rural Electric Co-op investments. As a coalition that envisions democratically controlled, economically resilient, community-centered and affordable clean rural energy systems, RPC applauds these historic investments into RECs and rural communities included in the Inflation Reduction Act.
Coalition members include Appalachian Voices, CURE (Clean Up the River Environment), Kentuckians for the Commonwealth, Mountain Association, Partnership for Southern Equity, RENEW Missouri, and Western Organization of Resource Councils in addition to Center for Common Ground, Shareable, New Economy Coalition, and over 200 organizations who have joined them in calling for these investments.
The Rural Power Coalition would like to specifically recognize Senator Debbie Stabenow D-MI, Senator Tina Smith D-MN, Senator Michael Bennet D-CO, Representative Cori Bush D-MO, and Senator Ben Ray Lujan D-NM for their steadfast support in championing these programs in Congress.
According to Dave Munk, Vice Chair of the Holy Cross Energy Board of Directors in Western Colorado, Rural Electric Cooperatives have provided safe, reliable, and affordable power for 80 years, and are now facing the need to provide additional support to our members and communities during today’s economic headwinds. While each community and co-op faces unique challenges and opportunities, the Inflation Reduction Act of 2022 will support the expansion of infrastructure and grid investments to strengthen not only electric service, but also boost the vitality of our nation’s vital rural communities.
“The Inflation Reduction Act will make a historic investment in rural electric cooperatives and the 42 million rural Americans that count on them for affordable, reliable, and clean energy,” said Erik Hatlestad from CURE. He continued, “by recommitting to its mission of rural electrification Congress will create thousands of rural jobs, reduce costs for rural families, and act on the climate crisis.”
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About Rural Electric Cooperatives (RECs). Rural Electric Cooperatives provide electricity to more than 42 million Americans across 56% of the United States’ landmass. They provide electricity to more than 90% of the persistent poverty counties in the United States, including communities of color in the Southern Black Belt, the Mississippi Delta, the borderlands along the U.S.-Mexico border, and Native American nations across the country.
About the Rural Power Coalition (RPC). The RPC is a group of place-based organizations representing rural electric cooperative member-owners from the five dirtiest electric co-ops in the United States. The RPC sees a future for electric cooperatives that is grounded in justice, democracy, and resilience. To achieve this vision, the RPC has put forth a bold, yet common sense proposal to help all rural electric cooperatives make this transition and build a clean energy system for every resident in their service areas.