
The Department of Agriculture on March 25 announced next steps to release previously obligated funding under key programs that will help electric cooperatives modernize their systems.
The announcement advances the Trump administration’s review of funds awarded through the USDA’s Empowering Rural America (New ERA), Powering Affordable Clean Energy (PACE) and Rural Energy for America (REAP) programs. Agriculture Secretary Brooke Rollins is giving co-ops 30 days to review and make voluntary changes to New ERA and PACE project plans so that they better align with the letter of the law and President Donald Trump’s policy agenda.
“These programs provide important tools for co-ops to invest in their systems, unleash American energy and help meet skyrocketing energy needs,” NRECA CEO Jim Matheson said. “We thank Secretary Rollins and the Trump administration for recognizing the importance of these programs and outlining next steps to release these funds.”
The move comes after NRECA and over 40 co-ops delivered nearly 50 letters to Rollins on March 20 describing energy projects that will benefit from the $9.7 billion New ERA and $1 billion PACE programs. The programs, which Trump paused as part of a Jan. 20 executive order, provide grants and low-interest loans for co-ops to pursue generation, energy storage and other projects to provide reliable, affordable power.
The letters followed Rollins’ appearance at NRECA’s PowerXchange and TechAdvantage in Atlanta earlier in the month, where she vowed to move quickly on the program reviews.
The New ERA and PACE projects “will help electric cooperatives leverage diverse energy portfolios to reduce costs and meet the future energy demands of rural communities,” the co-ops said in their letters. The projects will also “address growing power supply needs in rural areas by creating a more reliable power grid,” they added.
Bloomington, Indiana-based Hoosier Energy and Wolverine Power Cooperative in Cadillac, Michigan, were awarded New ERA grants to help cover power purchase agreements with the Palisades nuclear plant in Michigan. The PPAs will help plant owner Holtec International restart the idled 800-megawatt nuclear facility and provide reliable baseload power to Midwestern consumers.
“Palisades’ restart is vital to electric reliability in the Michigan region and will demonstrate a proven path to U.S. energy dominance,” Wolverine Power CEO Eric Baker said. “The essential baseload energy produced at Palisades will power nearly 100 rural counties in Michigan and Indiana.”
Hoosier said the PPAs will also give Holtec the confidence to proceed with developing small modular reactors at the site, with Hoosier and Wolverine holding the rights to power from the planned SMRs.
“The certainty required by Hoosier Energy, Wolverine Power, and Holtec International to continue making these investments is bolstered by continued federal support through the New ERA program and awards like ours,” Hoosier Energy CEO Donna Walker said in her letter.
Since its selection for a New ERA grant, the Indiana co-op has also moved forward with other generation investments for its system.
“Hoosier Energy’s New ERA award allows us the freedom to invest even more in what America needs: an affordable, reliable, and resilient electric grid,” Walker said.
New ERA funding would also help Grand Forks, North Dakota-based Minnkota Power Cooperative deploy a “world-leading” carbon capture and storage project. Project Tundra is aimed at capturing and permanently storing 4 million tons per year of carbon dioxide and could help maximize use of coal reserves while furthering efforts to use captured CO2 for enhanced oil recovery in North Dakota’s Bakken oil formation.
“Projects like [Tundra] would strengthen U.S. energy security, create jobs and fuel economic growth in energy-producing regions,” Minnkota CEO Mac McLennan said.
Altogether, the co-op projects highlighted in the March 20 letters will unleash over 13 GW of energy in rural communities and “help realize the Trump administration’s goal of American energy dominance,” Matheson said.
Molly Christian is a staff writer for NRECA.