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“New ERA” to leverage $29 Billion to propel a Just Transition for rural communities

September 24, 2024

Two years ago, the Rural Power Coalition (RPC) celebrated a landmark victory when the Inflation Reduction Act officially funded the $9.7 billion Empowering Rural America (New ERA) program, the most significant investment in rural energy infrastructure since the New Deal.

Since then, RPC has been relentless—mobilizing public support, co-developing guidelines for Community Benefits Plans (CBPs), and regularly engaging with Congress, USDA officials, and other key players to ensure this unprecedented opportunity for a just transition for rural communities is fully realized.

On September 5, 2024, Shareable and our partners at RPC were thrilled to announce that the first round of New ERA projects has been unveiled, marking a significant step forward with a total investment of $29 billion—$7.3 billion of which comes directly from federal support for Rural Electric Cooperatives (RECs).

These investments will benefit around 20% of rural residents across 23 states, revolutionizing rural America’s energy landscape with 10,000 megawatts of new clean power from wind, solar, agrivoltaics, and battery storage.

Together, these projects represent a monumental shift towards a clean, resilient, and sustainable future. Not only will they boost the nation’s energy independence and create 4,500 permanent jobs and 16,000 construction jobs, but they will also cut greenhouse gas emissions by 45.371 million tons annually—the equivalent of taking 10 million cars off the road yearly! Moreover, these projects are designed to prioritize clean energy solutions that deliver real benefits to local communities and the environment.

REC Stats 2023

“The Rural Power Coalition is committed to supporting co-ops to develop robust community benefits plans that support rural communities to capitalize on these clean energy investments while ensuring energy is generated sustainably and affordably for member-owners,” said Erik Hatlestad.

As part of this commitment, RPC has created an accessible guide to Community Benefits Plans to help co-ops navigate this process effectively.

Consider Dairyland Power Cooperative: it’s leveraging nearly $573 million in New ERA funding to implement four wind and four solar installations across Wisconsin, Iowa, Minnesota, and Illinois. With a total project investment of $2.1 billion, this initiative will significantly reduce greenhouse gas emissions and lower electric rates by 42% over the next decade. Dairyland Power is also launching a Farmer Benefit Plan and Union Engagement Plan to ensure that the transition to clean energy directly benefits local farmers and workers, setting a powerful example of how to balance economic growth with environmental stewardship.

Tri-State Generation and Transmission Association is making transformative strides by retiring 1,100 megawatts of coal-fired generation and replacing it with 1,480 megawatts of renewable energy across the Southwest. This bold move will create nearly 2,200 jobs, save $422 million over 20 years, and reduce emissions by nearly 5.8 million tons annually—the equivalent of taking 1.4 million gasoline-powered cars off the road each year. Tri-State’s commitment to renewable energy demonstrates a clear path forward, providing cleaner air, a more resilient grid, and an economic boost to rural communities.

Similarly, CORE Electric CooperativeGolden Valley Electric Association, and East Kentucky Power Cooperative are investing heavily in proven renewable technologies, including solar, wind, and battery storage. These projects will not only slash greenhouse gas emissions but also generate thousands of jobs, enhance grid reliability, and lower energy costs. They truly embody the spirit of the New ERA program by driving sustainability, fostering local economic development, and promoting community engagement through job training, education, and workforce diversity initiatives.

While we celebrate these successes, we also recognize that not all projects align with our vision for a truly equitable clean energy transition. It is critical that we continue to push for investments that genuinely support rural communities and prioritize renewable energy sources like wind, solar, agrivoltaics, and battery storage—projects that deliver substantial community benefits and help us realize the transformative potential of clean energy in rural America.

We encourage all member-owners to check if their community is receiving rewards and to share RPC’s guide to creating Community Benefits Plans with their co-ops. Let’s ensure this historic opportunity leads to real, positive change for rural communities!

Join us in celebrating the Just Transition of the rural energy sector, which is now underway.

Find all the details about the New ERA projects announced September 5, 2024.

Learn most about Shareable’s Rural Electric Cooperative program.

A version of this story first appeared on www.ruralpower.us.

 

This article originally appeared on Shareable.net.

Tom Llewellyn

Tom Llewellyn is the Strategic Partnerships Director at Shareable.net, and a lifelong sharer, commoner, and story teller. He manages organizational, editorial, and events partnerships and has coordinated the global Sharing Cities Network, #MapJam, and other community sharing campaigns, in addition to speaking internationally about real, equitable sharing. Tom is the co-editor of 2 books, “How to: Share, Save Money & Have Fun” (2016) and “Sharing Cities: Activating the Urban Commons” (2018).