Rural Energy Resources

Federal Program Highlights:

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• The Environmental and Energy Study Institute showcases three rural cooperatives that were awarded clean energy grants by the U.S. Department of Agriculture’s Powering Affordable Clean Energy in Rural Areas (PACE) program. This partially forgivable loan program supports solar and storage battery projects for rural communities and has a $1 billion budget authority. These three case studies were part of a first cohort of five awardees announced in March 2024, receiving a total of $139 million.
• The U.S. Department of Energy (DOE) launched their Communities Sparking Investment in Transformative Energy (C-SITE) Funding Opportunity to provide $18 million in financial awards and technical assistance to advance community-identified energy priorities, spanning various technology areas including building efficiency and/or electrification, energy infrastructure upgrades, microgrid development and deployment, renewable energy, workforce development, and more. Eligible recipients include local government and tribal entities, which have until May 31, 2024, to submit full applications.
• The U.S. Department of Energy (DOE) and U.S. Department of Agriculture (USDA) launched the Rural and Agricultural Income and Savings from Renewable Energy (RAISE) Initiative to help farmers reduce costs and increase income through the use of underutilized renewable energy technologies such as distributed wind. Some of the activities include technical assistance to support Rural Energy for American Program (REAP) applications, funding for research into and outreach on new business models for collaborations of farmers to earn income from distributed wind, funding for a distributed wind Competitiveness Improvement Project (CIP) which will fund technology development and commercialization, a joint educational webinar series from DOE and USDA, and the development of a guide for farmers on distributed wind that will include technical, economic, and geospatial analysis.

State Program Highlights:

• Colorado Department of Agriculture, Agricultural Energy Renovation Opportunity (AERO) Program
• Minnesota Department of Commerce, Tribal Consultation Policy
• Michigan Department of Environment, Great Lakes, and Energy, Agriculture and Rural Communities Energy Roadmap
• Rhode Island Office of Energy Resources, Agricultural Energy Grant Program
• Tennessee Department of Agriculture, Tennessee Agricultural Enhancement Program
• Washington Department of Commerce, Washington Rural Clean Energy Study
• Wisconsin Public Service Commission Office of Energy Innovation, Focus on Energy Incentive Program for Energy-Efficient Propane Equipment
• Wisconsin Public Service Commission Office of Energy Innovation, Rural Energy Startup Program
  • Launched in December 2023, NASEO Newsroom article linked here.
• California Energy Commission, 2021 Electric Program Investment Charge (EPIC) Highlights, AgMonitor, Inc.

Written Resources:

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• The National Renewable Energy Laboratory, Pathways for Agricultural Decarbonization in the United States (2024)
• American Farmland Trust, Recommendations for State and Local Governments to Advance Smart Solar Policy (December 2023)
• U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations, Federal Energy Funding for Rural and Remote Areas: A Guide for Communities (October 2023) 
• U.S. Department of Agriculture (USDA) Rural Development, Inflation Reduction Act – Upcoming Events and Guidance
• USDA Rural Development, Selected Federal Support for Clean Energy by Applicant Types
• USDA Rural Development, Selected Federal Support for Clean Energy by Potential Uses
• Rural Electric Cooperative Resources, Cooperative-Resource
• Environmental and Energy Study Institute (EESI), Briefing Series: Farm Bill 2023 in Focus 

Selected Infrastructure Investment and Jobs Act Provisions:

• IIJA Sec. 40109 – State Energy Program
• IIJA Sec. 40552 – Energy Efficiency and Conservation Block Grant
  • Application guidance
• IIJA Sec. 40103 – Energy Improvements in Rural or Remote Areas (“ERA”)
  • Funding Opportunity Announcement (May 2023)
  • Funding Opportunity Announcement (March 2023)
  • Energizing Rural Communities Prize

Selected Inflation Reduction Act Provisions:

• IRA Sec. 22001 – Electric Loans for Renewable Energy ("Powering Affordable Clean Energy")
  • Federal Register Notice
• IRA Sec. 22002 – Rural Energy for America Program (REAP)
  • Funding Opportunity Announcement
• IRA Sec. 22003 – Biofuel Infrastructure and Agriculture Product Market Expansion
  • Federal Register Notice
• IRA Sec. 22004 – The Empowering Rural America Program (“New ERA”)
  • Federal Register Notice
  • IRA Sec. 22006 – Farm Loan Immediate Relief for Borrowers with At-Risk Agricultural Operations
• IRA Sec. 22007 – USDA Assistance and Support for Underserved Farmers, Ranchers, and Foresters
• IRA Sec. 80003 – Tribal Electrification Program
• IRA Sec. 50145 – Tribal Energy Loan Guarantee Program

Annual Programs through the U.S. Department of Agriculture (USDA):

• USDA Rural Energy Savings Program (annual)
• USDA Rural Energy for America Program (annual)
• State Contacts for USDA Rural Development Program
  • State USDA Rural Development office websites
  • Find your USDA energy coordinator (for applying to Rural Energy for America Program)