President Biden pledged $7.3 billion in “clean energy” spending during a visit to Wisconsin, a key battleground state, on Thursday. This announcement comes amidst a national debt exceeding $35 trillion. The funding, allocated through the Empowering Rural America (New ERA) program, will support rural electric cooperatives in building clean energy infrastructure for rural communities across the country.
The Biden administration emphasized how New ERA and other rural clean energy investments under the Inflation Reduction Act represent the most significant investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act in 1936. The administration highlighted that the 16 selected projects, leveraging over $29 billion in private investment, will create more than 10 gigawatts of clean energy, benefiting millions of rural households and businesses across 23 states. These projects are expected to reduce greenhouse gas emissions by at least 43.7 million tons annually, equivalent to removing over 10 million cars from the road.
Secretary of Agriculture Tom Vilsack highlighted the positive impact of the funding on rural communities, stating that it will bring the promise of clean energy and lower costs to approximately 5 million rural households, representing 20% of the nation’s entire rural population. The rollout of this funding comes as the U.S. Treasury Department reports the national debt exceeding $35 trillion. However, the White House insists that the announcement is part of the president’s broader “Investing in America” agenda, designed to improve the lives of Americans and secure a brighter future.
The White House highlighted Biden’s “Investing in America” agenda, which includes the American Rescue Plan, the Bipartisan Infrastructure Law, the Chips and Science Act, and the Inflation Reduction Act. The administration claimed that this agenda has spurred over $910 billion in private sector manufacturing and clean energy investments, creating a clean energy economy that lowers costs for families and businesses while investing in critical infrastructure like high-speed internet, clean water, and electricity.
In Wisconsin, Dairyland Power Cooperative received the first New ERA award of nearly $573 million, representing a total project investment of $2.1 billion. Dairyland plans to procure 1,080 megawatts of renewable energy through wind and solar power purchase agreements across rural portions of Wisconsin, Iowa, Minnesota, and Illinois. This investment is projected to lower electric rates for Dairyland members by 42% over the next 10 years.
Vilsack underscored the commitment of the USDA through the Inflation Reduction Act, providing a grant of nearly $471 million and a loan of nearly $102 million to Dairyland Cooperative. He emphasized the opportunity for this cooperative to finance eight power purchase agreements for solar and wind installations across their service territory, ultimately lowering electricity costs for customers. The White House further stated that the 16 cooperatives participating in this program will benefit rural communities in 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.
Vilsack also highlighted that Dairyland Cooperative will make its own investment in the project and fund community benefit plans, including direct assistance and employment opportunities for farmers who will benefit from the clean energy project.
