In a surprising yet significant turn, rural electric cooperatives are urging Republican lawmakers to preserve crucial components of the Inflation Reduction Act (IRA) that support clean energy projects. This position, voiced by Jim Matheson, CEO of the National Rural Electric Cooperative Association (NRECA), highlights a pragmatic shift in how rural electric utilities are navigating the clean energy landscape.
Matheson emphasized a “nuanced approach” to repealing the IRA, advocating for the retention of provisions that empower rural communities to invest in renewable energy, emission mitigation, and energy storage. He noted that these investments align with the interests of member-owned cooperatives, which operate democratically to reflect the values and needs of their communities.
This call to action is especially notable given that rural electric cooperatives predominantly serve Republican-leaning areas. Historically, these cooperatives have resisted some federal climate initiatives, including lawsuits against the EPA’s greenhouse gas regulations. However, the IRA’s transformative “direct pay” provisions have provided a pathway for nonprofit cooperatives to access renewable energy tax credits—benefits previously exclusive to for-profit companies.
Direct pay is more than a financial mechanism; it levels the playing field for rural utilities, enabling them to invest in renewable energy and lucrative programs like 45Q, that ultimately benefit rural cooperatives and the communities they serve. As Matheson aptly put it, “If there’s going to be a federal commitment to encouraging energy technologies, we want to access that.”
The New ERA of Rural Energy Transformation
The IRA’s Empowering Rural America (New ERA) program has already announced $8.3 billion in public financing, allowing cooperatives to modernize their energy systems and reduce reliance on coal. These funds have led to tangible benefits:
- Basin Electric Cooperative secured funding, and with it, will procure both additional renewable energy generation and enhance existing cooperative-owned renewable assets. These are expected to total over 1,400 megawatts across Montana, North Dakota, and South Dakota. This will reduce greenhouse gas pollution by an estimated 2.2 million tons annually.
- Tri-State Generation and Transmission received $2.5 billion to build renewables, implement energy storage, and pay down costs associated with coal plants in Arizona, Colorado, and New Mexico.
- Dairyland Power Cooperative was awarded $2.1 billion to develop eight wind and solar projects in Wisconsin.
- Hoosier Energy and Wolverine Power Cooperative secured $1.3 billion to bring an idled Michigan nuclear plant back online.
These investments demonstrate the demand and potential for clean energy in rural America. Notably, the program has even created common ground between cooperatives and environmental advocates, who have long pushed for a transition away from coal-heavy power systems that tend to cost cooperatives and their member-owners more than cleaner alternatives.
A Balancing Act for the Future
Despite these successes, the future of these programs are uncertain. With political shifts on the horizon, Matheson and the NRECA are racing against time to finalize as many funding agreements as possible. Their plea to lawmakers is clear: dismantling these clean energy initiatives would not only hinder rural progress but also overlook the overwhelming demand from cooperatives eager to participate in the clean energy transition.
What This Means for North Dakota
For organizations like Dakota Resource Council (DRC), this shift in rural cooperative priorities represents an opportunity to amplify local voices. Many rural communities in North Dakota are facing critical decisions about energy investments, and preserving programs like New ERA can provide a pathway toward cleaner, more sustainable energy systems.
At DRC, we believe in empowering rural communities to advocate for policies that reflect their needs and values. The growing alignment between cooperatives and environmental goals highlights the power of grassroots advocacy to create meaningful change.
Get Involved
As rural America stands at an energy crossroads, it’s more important than ever to make your voice heard. Join DRC in urging decision-makers to preserve the components of the IRA that enable our rural communities to thrive. Together, we can ensure that the future of energy is equitable, cost effective, sustainable, and community-driven.
For more information on how you can get involved, contact DRC Organizer Ishauna Jacobberger at ishauna@drcinfo.com or call (701) 224-8587. Let’s work together to protect the progress we’ve made and build a brighter future for rural North Dakota.