Biden announces rural clean energy investment during Wisconsin trip

Sept. 5 (UPI) -- President Joe Biden traveled to Wisconsin on Thursday to announce $7.3 billion in financing for clean energy in rural areas nationwide as part of his administration's Inflation Reduction Act.

During an appearance at Vernon Electric Cooperative in Westby, Wis., Biden announced the first 16 rural electric cooperatives with about 5 million members that will receive funding from the U.S. Department of Agriculture to help transition to clean energy and distribute powers to farms, families and businesses.

The president was accompanied by Agriculture Secretary Tom Vilsack , Wisconsin Gov. Tony Evers and representatives of Wisconsin's electric co-op community for the event.

The USDA said Dairyland Power is leveraging that money for a total investment of $2.1 billion.

Dairyland expects to generate 1,080 megawatts of energy through solar and wind projects thanks to the federal funds, media reports said .

"This is the most significant, transformative investment in electricity and electrification and clean energy for rural America since FDR's New Deal nearly 90 years ago," Biden said.

"That includes Dairyland Power Cooperative that will receive $580 million to develop purchase solar power, wind power, energy storage, right here in Wisconsin."

The co-ops winning the funding cover 23 states -- Arizona, California, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Montana, Nebraska, New Jersey, New Mexico, Nevada, North Dakota, Ohio, Pennsylvania South Dakota, Texas, Wisconsin and Wyoming.

Among them are Allegheny Electric Cooperative Inc., serving Pennsylvania and New Jersey; Dairyland Power Cooperative, serving Wisconsin, Iowa, Illinois and Minnesota; and Hoosier Energy, serving Indiana and Michigan.

"This is the first step," Biden said of his clean energy investments while shaking hands with five workers from Dairyland Power and Vernon Electric.

The administration said the financing unveiled Thursday will leverage private investments of more than $29 billion to build more than 10 gigawatts of clean energy for rural communities across the country.

The selectees announced will reduce and avoid at least 43.7 million tons of greenhouse gases annually, equivalent to removing more than 10 million cars off the road every year, the White House said.

Vilsack said in a separate comment that the money will help small electric companies such as Dairyland upgrade to clean energy alternatives.

"This is a $573 million commitment that the USDA is making with the Inflation Reduction Act resources in the form of a grant of nearly $471 million and a loan of nearly $102 million," he said.

Vilsack said Dairyland will have the opportunity to purchase and finance four solar installations and four wind power installations across its service area over the next 10 years, reducing the electricity cost for its customers by 42%.

"I think it's an opportunity to talk about the extraordinary investment that's been made in rural America by the Biden-Harris administration as part of the president's Investing in America initiative," Vilsack said.

"Dairyland's electric rates are estimated to be 42% lower over 10 years than they would have been without New ERA funding," according to the USDA.