Biden to announce largest investment in rural electrification since 1930s
President Joe Biden is expected on Thursday to announce more than $7.3 billion in financing for electrification of rural America – the largest such investment since the 1930s - during a visit to Westby, Wisconsin.
The funding comes from the New ERA program of the Inflation Reduction Act, which the White House said represents the largest financial boost to rural electrification since President Franklin D. Roosevelt signed the Rural Electrification Act into law in 1936.
On Tuesday, Biden touted the success of his administration's "Investing in America" infrastructure platform during the first of several planned talks on the topic. The president said his energy platform set several records, including 16 million new jobs, small business growth and gains in the stock market.
The grants to these rural electric cooperatives – consumer-owned utilities that were established to provide reliable and affordable electricity – are expected to finance clean energy to approximately 5 million rural co-op members representing 20% of rural households, farms, businesses and schools.
The 16 cooperatives selected will benefit farmers, small businesses, and rural communities across 23 states: Alaska, Arizona, California, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Montana, Nebraska, New Jersey, New Mexico, Nevada, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Wisconsin, and Wyoming.
“It's the largest investment in rural electrification since FDR’s administration and will spur economic development and lower costs for millions of Americans,” said White House Deputy Chief of Staff Natalie Quillian.
Quillian added that the financial infusion will create 4,500 permanent jobs and 16,000 construction jobs. The program leverages private funds to secure $29 billion in new rural investments and to help the rural electric cooperatives.
The awardees will help reduce and avoid at least 43.7 million tons of greenhouse gases annually, equivalent to removing more than 10 million cars off the road every year, according to the White House.
In La Crosse, Wisconsin, for example, Dairyland Power Cooperative is receiving the first New Empowering Rural America award of nearly $573 million. Dairyland plans to procure 1,080 megawatts of renewable energy through eight wind and solar power purchase agreements, four solar installations, and four wind power installations across rural portions of Wisconsin, Iowa, Minnesota and Illinois.
Dairyland estimates that electric rates for their members will be 42% lower over 10 years than they would have been without the New ERA funding.
Other recipients include Allegheny Electric Cooperative Inc., which operates in Pennsylvania and New Jersey. The grant will allow Allegheny to meet over 80% of its power requirements from carbon-free resources by 2026 and reduce pollution and carbon dioxide emissions by nearly 100,000 tons annually.
Swapna Venugopal Ramaswamy is a White House Correspondent for USA TODAY. You can follow her on X @SwapnaVenugopal
This article originally appeared on USA TODAY: Biden funds largest electrification effort since FDR's New Deal
