Empowering Rural America (New ERA) Program information
The Empowering Rural America (New ERA) Program is a major new opportunity for electric cooperatives to accelerate the transition to clean energy, reduce air and water pollution, and lower energy bills for rural America. The $9.7 billion program is the biggest investment in electric cooperatives since the the New Deal, and was created by Congress through the Inflation Reduction Act in response to a campaign that brought together electric cooperative leaders, rural advocacy groups, and environmental organizations.
This page aims to provide key information about the program and links to resources from the USDA Rural Utilities Service, which administers the program, as well as from organizations working to support the efforts of electric cooperative staff, directors, and members to navigate the new program.
This page aims to provide key information about the program and links to resources from the USDA Rural Utilities Service, which administers the program, as well as from organizations working to support the efforts of electric cooperative staff, directors, and members to navigate the new program.
USDA Rural Utilities Service resources
USDA Rural Utilities Service main page about the New ERA Program
Federal Register notice with details about the New ERA Program, and a more easily readable version
USDA New ERA Program Fact Sheet
USDA New ERA Program Frequently Asked Questions
USDA webinars providing information about the New ERA program and answering questions, on May 22, May 24, May 31, June 1.
USDA Rural Utilities Service main page about the New ERA Program
Federal Register notice with details about the New ERA Program, and a more easily readable version
USDA New ERA Program Fact Sheet
USDA New ERA Program Frequently Asked Questions
USDA webinars providing information about the New ERA program and answering questions, on May 22, May 24, May 31, June 1.
Key info
Electric cooperatives must submit a Letter of Interest to USDA during the application period of August 1 - 31, 2023.
Electric cooperatives must demonstrate that proposed projects are eligible, financially and technically feasible, affordable, and reliable.
Electric cooperatives can apply for grants (up to 25% of project cost), loans, loan and grant combinations, and loan refinancing or loan modification related to stranded assets, such as uneconomic coal-fired power plants.
Projects must provide demonstrable benefits to ratepayers.
To create opportunities for electric cooperatives of all sizes, applicants are separated into three categories:
Category 1: Total utility plant value of $500 million or more (at least 60% of funding, or $5.82 billion)
Category 2: Total utility plant value of $200 - $500 million (up to 20% of funding, or $1.94 billion)
Category 3: Total utility plant value of less then $200 million (up to 20% of funding, or $1.94 billion)
Electric cooperatives must submit a Letter of Interest to USDA during the application period of August 1 - 31, 2023.
Electric cooperatives must demonstrate that proposed projects are eligible, financially and technically feasible, affordable, and reliable.
Electric cooperatives can apply for grants (up to 25% of project cost), loans, loan and grant combinations, and loan refinancing or loan modification related to stranded assets, such as uneconomic coal-fired power plants.
Projects must provide demonstrable benefits to ratepayers.
To create opportunities for electric cooperatives of all sizes, applicants are separated into three categories:
Category 1: Total utility plant value of $500 million or more (at least 60% of funding, or $5.82 billion)
Category 2: Total utility plant value of $200 - $500 million (up to 20% of funding, or $1.94 billion)
Category 3: Total utility plant value of less then $200 million (up to 20% of funding, or $1.94 billion)
Eligible projects
The New ERA program is designed to be flexible, and USDA is encouraging electric cooperatives to think ambitiously. The eligibility section of the Federal Register Notice provides examples of eligible projects:
An eligible Project includes a Portfolio of Actions that will result in the reduction in GHG emissions and be consistent with long-term resiliency, reliability, and affordability of rural electric systems. Such actions include, but are not limited to:
a. The purchase or construction of:
1. Renewable Energy.
2. Renewable Energy Systems.
3. Zero-Emission Systems.
4. Carbon Capture and Storage Systems.
b. Activities that will enable the deployment of the aforementioned systems and/or improve energy efficiency and strategies to support these goals such as, but not limited to:
1. Grid-edge, microgrid solutions, and other distributed energy strategies.
2. Energy Storage Systems in support of GHG emission reductions or Renewable Energy Systems;
3. Software and hardware to enable the integration and/or the use of additions and upgrades.
4. Modifying or refinancing existing loans from RUS or refinancing non-RUS loans for retiring non-Renewable Energy assets on an accelerated basis with savings reinvested into clean energy investments.
5. Entering a long-term agreement to purchase power from a Renewable Energy System or Zero-Emissions System.
6. Upgrade of existing Renewable Energy Systems or Zero-Emission Systems or related transmission facilities that increase the operating energy efficiency of these systems.
7. Transmission improvements that can significantly enable Renewable Energy Systems and Zero-Emissions Systems, reduce congestion, and improve the efficiency of the system.
8. Activities that will significantly reduce energy demand and GHG emissions.
The New ERA program is designed to be flexible, and USDA is encouraging electric cooperatives to think ambitiously. The eligibility section of the Federal Register Notice provides examples of eligible projects:
An eligible Project includes a Portfolio of Actions that will result in the reduction in GHG emissions and be consistent with long-term resiliency, reliability, and affordability of rural electric systems. Such actions include, but are not limited to:
a. The purchase or construction of:
1. Renewable Energy.
2. Renewable Energy Systems.
3. Zero-Emission Systems.
4. Carbon Capture and Storage Systems.
b. Activities that will enable the deployment of the aforementioned systems and/or improve energy efficiency and strategies to support these goals such as, but not limited to:
1. Grid-edge, microgrid solutions, and other distributed energy strategies.
2. Energy Storage Systems in support of GHG emission reductions or Renewable Energy Systems;
3. Software and hardware to enable the integration and/or the use of additions and upgrades.
4. Modifying or refinancing existing loans from RUS or refinancing non-RUS loans for retiring non-Renewable Energy assets on an accelerated basis with savings reinvested into clean energy investments.
5. Entering a long-term agreement to purchase power from a Renewable Energy System or Zero-Emissions System.
6. Upgrade of existing Renewable Energy Systems or Zero-Emission Systems or related transmission facilities that increase the operating energy efficiency of these systems.
7. Transmission improvements that can significantly enable Renewable Energy Systems and Zero-Emissions Systems, reduce congestion, and improve the efficiency of the system.
8. Activities that will significantly reduce energy demand and GHG emissions.
Selection Criteria
Proposed projects that achieve the greatest reduction in greenhouse gas emissions will be most competitive, and USDA will consider four key criteria as explained in the Federal Register Notice Letters of Interest and Application Review Information section, as well as qualitative criteria like lowering bills for ratepayers and geographic distribution of projects.
Proposed projects that achieve the greatest reduction in greenhouse gas emissions will be most competitive, and USDA will consider four key criteria as explained in the Federal Register Notice Letters of Interest and Application Review Information section, as well as qualitative criteria like lowering bills for ratepayers and geographic distribution of projects.
Press statements
USDA press release: Biden-Harris Administration Makes Historic, $11 Billion Investment to Advance Clean Energy Across Rural America Through Investing in America Agenda
NRECA: NRECA Applauds USDA Rules for New Co-op Energy Innovation Program
Rural Power Coalition: Biden Administration opens applications for $11 billion clean energy initiative for rural America
Sierra Club: Biden Administration Opens Applications for New ERA to Boost Clean Energy in Rural Communities
Tri-State G&T: Tri-State CEO lauds cooperative provisions in Inflation Reduction Act at White House announcement
Evergreen Action: USDA Drops $10.7 Billion To Accelerate Rural America’s Clean Energy Transition
Appalachian Voices: Biden administration announces $11 billion clean energy initiative for rural America
USDA press release: Biden-Harris Administration Makes Historic, $11 Billion Investment to Advance Clean Energy Across Rural America Through Investing in America Agenda
NRECA: NRECA Applauds USDA Rules for New Co-op Energy Innovation Program
Rural Power Coalition: Biden Administration opens applications for $11 billion clean energy initiative for rural America
Sierra Club: Biden Administration Opens Applications for New ERA to Boost Clean Energy in Rural Communities
Tri-State G&T: Tri-State CEO lauds cooperative provisions in Inflation Reduction Act at White House announcement
Evergreen Action: USDA Drops $10.7 Billion To Accelerate Rural America’s Clean Energy Transition
Appalachian Voices: Biden administration announces $11 billion clean energy initiative for rural America
Video of USDA announcement of Empowering Rural America Program, including comments from Rural Utilities Service Administrator Andy Berke, Secretary of Agriculture Tom Vilsack, White House Senior Advisor John Podesta, White House National Climate Advisor Ali Zaidi, Senators Michael Bennet, Tina Smith, and Debbie Stabenow, and Representative Abigail Spanberger.