Rural clean energy to get $11B Inflation Reduction Act boost

by Rachel Frazin - 05/16/23 10:23 AM ET

FILE - Sunlight filters through storm clouds onto a wind turbine as severe weather rolls through the midwest on April 4, 2023, south of Stuart, Iowa. The U.S. Department of Agriculture announced a nearly $11 billion investment on Tuesday, May 16, to help bring affordable clean energy to rural communities throughout the country. (Chris Machian/Omaha World-Herald via AP, File) — FILE – Sunlight filters through storm clouds onto a wind turbine as severe weather rolls through the midwest on April 4, 2023, south of Stuart, Iowa. The U.S. Department of Agriculture announced a nearly $11 billion investment on Tuesday, May 16, to help bring affordable clean energy to rural communities throughout the country. (Chris Machian/Omaha World-Herald via AP, File)

The U.S. Department of Agriculture (USDA) on Wednesday outlined nearly $11 billion in funds expected to boost clean energy in rural America that were part of the Democratic Inflation Reduction Act.

The bulk of the funds will go toward rural electric cooperatives — nonprofit companies that deliver electricity to communities — to support the purchase of renewable energy, carbon capture or other zero-emission systems. In total, $9.7 billion will be distributed as loans, grants and loan modifications.

An additional $1 billion will be given as loans to a range of entities, including corporations, municipalities, co-ops and tribes for renewable energy.

The administration described the funding as the biggest investment in rural electrification since 1936.

“This new funding from the Inflation Reduction Act shows that President Biden, and our entire administration, is serious about investing in rural America,” White House adviser John Podesta said in a written statement.

“This announcement embodies what the Investing in America Agenda is all about — building a clean energy economy that works for everyone,” he added.

Tags Biden administration carbon emissions clean energy Inflation Reduction Act Joe Biden John Podesta USDA