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A South Texas coal-fired power plant will receive more than $1 billion in funding from the U.S. Department of Agriculture to convert into a solar and battery facility, according to the agency.

The switch by San Miguel Electric Cooperative, located in Christine in Atascosa County, to a solar and battery plant will be funded by more than $1.4 billion of a $4.37 billion federal grant to support clean energy while maintaining rural jobs. With the co-op’s transition to a renewable energy plant, only 14 coal-fired power plants will be left in the state.

In September, the CEO of San Miguel Electric Cooperative, Craig Courter, told a local newspaper that with federal funding, the co-op can “virtually eliminate our greenhouse gas emissions while continuing to provide affordable and reliable power to rural Texans.”

“We take pride in our attention to detail in safety, environmental compliance, community service and mined land reclamation,” Courter told the Pleasanton Express.

According to the USDA’s Thursday announcement, the transformation will reduce climate pollution by more than 1.8 million tons yearly and support as many as 600 jobs.

In 2019, a Texas Tribune investigation showed that state agencies allowed San Miguel Cooperative to contaminate acres with toxic chemicals. These chemicals can leach into groundwater and soil and endanger people’s health. According to 2023 EPA data, the plant is the fourth-largest mercury polluter of all power plants in the state.

“For years, folks in my county have been worried about water contamination from San Miguel’s lignite mine, so with this announcement, we are hopeful that McMullen County’s water will be clean long into the future,” McMullen County Judge James Teal told the Sierra Club, a grassroots environmental group.

Teal said that county government officials are looking forward to a benefits plan that will “implement a quality remediation process for the existing plant and mine and provide us with peace of mind that the mess has been cleaned up.”

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San Miguel will still need to establish a timeline for shutting down the coal plant. Still, it’s a “historic victory” for South Texas, said James Perkins, a Sierra Club Texas campaign organizer.

Other co-ops in Arizona, Colorado, Florida, Georgia, Minnesota, and Nebraska received similar federal funding.

“Texans want healthy air and water and affordable, reliable energy — and we’re ready to come together to get it done,” said Perkins.