Seven rural US electric cooperatives will distribute US$3 billion from the US Government’s coffers after the Biden Administration announced the latest round of funding for decarbonisation efforts in the US.

The US Department of Agriculture (USDA) will award about US$2.5 billion to the Tri-State Generation and Transmission Association alongside six rural electric cooperatives selected to apply for awards totalling $1 billion in new ‘Empowering Rural America’ (ERA) funds under the Inflation Reduction Act.

“Through today’s announcement, USDA is delivering on this commitment with critical funding from the President’s historic Inflation Reduction Act,” USDA secretary Tom Vilsack said.

“These projects will strengthen America’s energy security while increasing access to affordable and reliable clean energy for people across the nation.”

Electrifying rural America

The Inflation Reduction Act makes the largest investment in rural electrification since FDR and the New Deal in the 1930s,” said John Podesta, senior advisor to the President for International Climate Policy.

“Today’s awards will bring clean, affordable, reliable power to rural Americans from Colorado to Texas to South Carolina.”

The announcement follows a similar funding move in September, where $7.3 billion was designated to support rural co-ops, including $573 million for Wisconsin’s Dairyland Power Cooperative.

The Biden Administration’s latest project aims to cut rural electricity rates by 42% over the next decade by investing in solar and wind power from neighbouring states.

New ERA funds will finance the purchase of 1,040 megawatts of renewable energy and more than 200 megawatts of energy storage.

The funding will also help Tri-State refinance the retirement of 1,100 megawatts of previously and newly announced coal-fired energy generation.

The Biden Government has designed the awards to provide affordable, reliable and resilient energy to Tri-State’s cooperative members across Arizona, Colorado, Nebraska, New Mexico and Wyoming.

It’s estimated this investment will reduce climate pollution by nearly 5.8 million tonnes each year and create more than 2,000 jobs.