President Biden’s New ERA Program Announcement Highlights Electric Co-op Innovation

ARLINGTON, Va. - National Rural Electric Cooperative Association CEO Jim Matheson today applauded the U.S. Department of Agriculture's first round of awards under its Empowering Rural America Program.

The first obligations from the $9.7 billion "New ERA" program were announced by President Joe Biden in Wisconsin today.

"Electric cooperatives are leaders that work to embrace local solutions, strengthen America's electric grid, and meet the needs of their members," NRECA CEO Jim Matheson said. "The New ERA program showcases what is possible when the government prioritizes voluntary, flexible decision-making and allows electric co-ops to take a tailored approach to respond to local needs. It is a transformative opportunity for electric cooperatives.

"The program is a testament to the collaborative efforts of NRECA and electric co-ops to proactively shape public policy in a way that works best for our community. We are grateful to our allies in Congress and USDA for working with us to ensure the program supports a wide variety of co-op projects and delivers tangible benefits to the communities they serve."

NRECA was heavily involved in shaping the New ERA Program, which was created by the Inflation Reduction Act of 2022. It is designed specifically for electric cooperatives interested in purchasing or building new energy systems and will be administered by USDA's Rural Utilities Service.

Electric co-ops massively oversubscribed the New ERA program, submitting 157 letters of interest for 750 projects. If each of those projects were funded, it would require at least twice the amount of funding available through New ERA and would have launched $93 billion in new investment across rural America.

The wide range of eligible projects - including carbon capture, renewable energy, storage, nuclear, and generation and transmission efficiency improvements - allows each cooperative to determine its path based on its unique circumstances. Co-ops will be eligible to receive a grant for as much as 25% of their project cost, with a maximum amount of loans and grants limited to $970 million for any one entity.

The National Rural Electric Cooperative Association is the national trade association representing nearly 900 local electric cooperatives. From growing suburbs to remote farming communities, electric co-ops serve as engines of economic development for 42 million Americans across 56 percent of the nation's landscape. As local businesses built by the consumers they serve, electric cooperatives have meaningful ties to rural America and invest $15 billion annually in their communities.

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