Within the Inflation Reduction Act are provisions to help rural electric co-ops in new ways.
Rural electricity generation often is structured as a cooperative nonprofit with member-owners, and any overpayment is returned to members. The structure meant co-ops were excluded from certain green-energy tax incentives available to for-profit producers.
The Inflation Reduction Act changed the model and includes direct-pay tax incentives for co-ops to deploy new energy technology. Additionally, the act includes a $9.7 billion grant and loan program for clean-energy systems, giving electric co-ops broad flexibility to make upgrades to their infrastructure.
Philip Fracica, director of programs for Renew Missouri, said as one of the most coal-dependent states in the country, Missouri stands to gain a lot from the program.
"Really, out of most of the co-ops in the country, I think we're at probably the best value proposition for this program, because we have really old plants," Fracica explained. "In replacing them with better, more affordable generation options such as renewable energy, which they don't have a large mix in that portfolio to diversify them, make them more resilient."
The plan offers individual co-ops up to $970 million to make upgrades.
Electric-cooperative members are often still paying off debts incurred decades ago during the construction of old power plants and infrastructure. Fracica pointed out the new grant and loan program allows co-ops to retire debt and offers forgivable loans to help build new generation capacity. He sees the approach as being better over the long term.
"Why don't we go to the root of this problem, which is the co-ops having all these debt payments tied to old fossil-fuel plants?" Fracica noted. "If we give them this money and forgive it and replace it with meaningful investments, we're going to be better stewards of our federal dollars to help folks in rural communities and also reduce energy costs."
The grant and loan program allows cooperatives the flexibility to use money and make the most sense locally. Options include making investments in new energy-generating technology including solar, wind or nuclear, as well as making efficiency upgrades to existing generation and transmission infrastructure, or adding battery storage, or carbon-capture systems.
While it is a large investment in moving to renewables, Fracica contended the overall need in America is much greater.
"We had asked for 10 times this funding amount originally," Fracica noted. "Because our data and research showed that we actually will need $100 billion if we wanted to get all of our rural-electric cooperatives in the United States off of fossil fuels."
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Utilities and government agencies in the U.S. are carrying out plans to transition to cleaner electricity sources. To avoid being left behind, rural communities, including in Minnesota, are leveraging federal resources to expand their power portfolios.
The topic was part of a recent congressional briefing hosted by the Rural Power Coalition.
Sen. Tina Smith, D-Minn., took part, saying investments from the Inflation Reduction Act provide grants and loans to rural electric co-ops, so they can purchase or develop renewable energy systems. There is also funding for municipal utilities and tribal governments.
"These voluntary, technology-neutral programs put rural electricity providers on the path to unleash clean energy for the communities that they serve in a way that works best for them," Smith explained.
Smith noted recent applications are likely to surpass available funds, underscoring strong demand from smaller communities to diversify energy sources. Rural electric co-ops have had a harder time competing with investor-owned utilities in the decarbonization movement, in part because of being locked into coal contracts. In Minnesota, co-ops serve roughly one-third of the state.
Gabriel Chan, associate professor of public policy at the University of Minnesota and co-director of the Electric Cooperative Innovation Center, spoke in the briefing. He said the extra federal support allows co-ops to scale up clean energy production while still managing their existing debt.
"This ensures that the energy transition can move at a rapid pace," Chan pointed out. "While also ensuring that the transition happens on an affordable and reliable path."
He suggested keeping costs lower for the energy transition in rural areas puts their local economies in a better position. According to the National Rural Electric Cooperative Association, such operations serve more than 90% of counties experiencing persistent poverty.
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Clean-energy advocates in Ohio and around the country say now is the time for the government to ensure the nation has the medium- and heavy-duty truck infrastructure needed to keep electric-powered trucks charged and driving across the country.
Trucks transported more than 11 billion tons of freight last year, spewing air pollutants and greenhouse gases along the way.
John Boesel - CEO of CALSTART, a clean-transportation nonprofit group - explained that the Environmental Protection Agency is considering rules to require commercial vehicle manufacturers to drastically curb emissions in the coming years.
But he said the agency should also figure out how to roll out national infrastructure to keep pace with the adoption of EV trucks.
"The Biden administration has a tremendous opportunity to really make progress," said Boesel, "in terms of supporting communities that have disproportionately been impacted by by diesel trucks and pollution."
The roadmap developed by CALSTART calls for building truck-charging stations in areas where industry is already concentrated, and then integrating hubs and corridors into an ever-expanding network - mostly along established supply-chain routes.
Critics say trucking companies and drivers have concerns about EV costs, mileage range, battery weight and safety, charging time and availability.
This year, Ohio Gov. Mike DeWine announced the future locations of 27 new electric vehicle charging stations that will be installed along Ohio interstates.
Boesel said the growth of e-commerce has led to skyrocketing emissions, as more people and businesses order products online that are delivered by truck.
He said addressing the impact of heavy-duty vehicle pollution could lower public health risks for drivers, communities and the planet.
"In the future, we can see a society where we have trucks rolling around with zero emission and zero noise," said Boesel, "truck drivers being much happier driving an electric truck."
According to the market research firm PWC, the nation's charging market will need to grow nearly tenfold to meet demand driven by an estimated 27 million EVs on the road by 2030.
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After Coloradans cranked up the heat to welcome family members for Thanksgiving dinner, many are worried about the price they will pay when their utility bill arrives.
Denise Stepto, chief communications officer for Energy Outreach Colorado, which helps struggling families meet their energy needs, said her team saw an especially high volume of calls for help after this season's first cold snap. She noted many are still behind on their utility bills, and do not know how they will keep their homes warm this winter.
"The heat helpline has received 11,000 calls," Stepto reported. "It's a 131% change from the last week. My point is that it tells us that people are not solid going into this winter."
After Coloradans saw bills for natural gas rise by 75% last winter, Gov. Jared Polis issued an eight-page letter calling on state regulators to take any and all actions to lower utility bills. But Polis also warned long-term relief would only come after the state transitions away from fossil fuels to free energy sources like wind and solar.
A City of Denver initiative, which is installing solar canopies over school parking lots, is expected to save hundreds of low-income families up to $700 a year on their utility bills. Energy Outreach Colorado is also partnering with Xcel Energy to identify households qualifying for free Community Solar subscriptions.
"We subscribe households to Xcel's community solar gardens," Stepto pointed out. "That is directly offsetting the cost of electricity in their home. Anything that brings that bill down gives a little bit of relief."
Keeping homes at healthy temperatures is especially challenging for older adults, veterans, people with disabilities and low-wage workers. Cold homes in winter can create serious health problems, including respiratory illness and pneumonia.
Stepto added families needing assistance should call their heat helpline at 866-HEAT-HELP or 866-432-8435.
"People who have children often tell us that they are wrapping their kids in winter gear to go to bed," Stepto emphasized. "It's not healthy for them to be breathing in that cold air. And so you have to keep your home at a manageable, healthy temperature."
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