The White House and the U.S. Department of Agriculture (USDA) announced nearly $11 billion in new funding for clean energy projects in rural America, the single largest investment in rural energy infrastructure since the 1930s. The announcement provides funding opportunities through two new programs made possible by the Inflation Reduction Act (IRA) — $9.7 billion in New ERA Program funding for rural electric cooperatives to make investments in clean energy systems and $1 billion in new PACE (Powering Affordable Clean Energy) loans for renewable energy infrastructure with up to 50 percent forgiveness.
Nearly 400,000 Americans in rural or nonmetropolitan areas already work in solar, wind, energy efficiency, electric vehicles and other clean energy sectors, according to data from E2. The investments announced Tuesday will help support those jobs and create thousands more.
Sandra Purohit, federal policy director for the national, nonpartisan business group E2 said:
“These pivotal investments help ensure the economic revolution that’s underway right now reaches all corners of America — including rural America. It’s another sign of how transformative IRA investments can be for creating new economic opportunities while helping our environment.
“With proper siting and environmental safeguards, these investments can help rural areas thrive in the clean energy transition. They will also help rural families and business save money by improving access to the cheapest energy available – clean energy.”
According to data from E2, nearly 40 percent of clean energy jobs have traditionally been in rural and mostly rural congressional districts. States that traditionally are home to the most clean energy jobs in rural areas include Texas, Ohio, Indiana, North Carolina, and Illinois.
The nonprofit Blue Green Alliance estimates that 90,000 jobs could be created by Inflation Reduction Act (IRA) investments in rural areas and the Rocky Mountain Institute estimates $50 billion could be generated for rural communities where solar and wind projects replace coal plants.
To speak with E2 staff or our member business leaders in states across the country, please contact Michael Timberlake (913-645-9103, mtimberlake@e2.org) or Kathryn Dunn (781-738-0730, kdunn@e2.org).
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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and manage more than $100 billion in venture and private equity capital. For more information, see http://www.e2.org or follow us on Twitter at @e2org.