North Dakota utilities to benefit from announced $7.3 billion for clean energy

The funding comes from the Inflation Relief Act of 2022, which provided $13 billion in rural electrification programs administered by the U.S. Department of Agriculture (USDA).

It is the “largest investment in rural electrification since 1936 and the New Deal,” Agriculture Secretary Tom Vilsack told reporters at a briefing Wednesday before the decision was announced, according to the North Dakota Monitor.

The funding announced Thursday is part of the USDA’s Empowering Rural America program, called New ERA. Federal New ERA grants and loans are expected to match another $29 billion in private investment to produce more than 10 gigawatts of clean energy for rural communities — enough to power about 4 million homes, according to one federal estimate.

Winners included Minnkota Power Cooperative, Basin Electric Power Cooperative and Great River Energy, but prize amounts were not immediately disclosed.

Erin Oban, state director of USDA Rural Development in North Dakota, noted that all three utilities are headquartered in North Dakota or have a significant presence in rural North Dakota.

“Our nation’s investments in rural electric infrastructure, renewable energy and modern technologies are critical investments in future generations of rural North Dakotans,” Oban said in a statement. “These cooperatives continue to demonstrate their commitment to ensuring our most rural families and neighbors have access to reliable, affordable electricity.”

Minnkota Power Cooperative will use the funds to support Project Tundra, a carbon capture and storage project planned for the Milton R. Young Station in central North Dakota, as well as to purchase 370 megawatts of wind energy in North Dakota, according to a statement released by the White House.

“The new ERA helps nonprofit cooperatives like Minnkota more cost-effectively decarbonize their energy supply portfolios while maintaining a reliable and resilient electric grid for the members we serve,” Minnkota President and CEO Mac McLennan said in a statement.

Basin Electric Power Cooperative will use the funds to purchase additional renewable energy sources and expand existing cooperative-owned renewable resources, which are expected to total more than 1,400 megawatts in North Dakota, South Dakota and Montana.

Renewable energy is a “key element” of Basin Electric’s approach to resource development, Basin Electric Power Cooperative CEO and President Todd Brickhouse said in a statement.

Great River Energy and its members plan to use the investment to generate 1,275 megawatts of renewable energy in rural North Dakota and Minnesota, including for large-scale wind projects.

Biden announced the news Thursday in the town of Westby, southeast of La Crosse.

The 16 participating energy cooperatives serve residents in 23 states. The initiative “will bring the promise of clean energy and lower costs to about 5 million rural households, which is 20 percent of all rural households in the country, as well as to farms and businesses located in those 23 states,” Vilsack said.

In total, the 16 cooperatives using the program are expected to add 4,500 jobs in addition to the 16,000 construction jobs created for the work, according to the USDA. The projects include 3,700 megawatts of wind power, 4,700 megawatts of solar power, 800 megawatts of nuclear power and 357 megawatts of hydropower.

“All of this is intended to not only provide more reliable access to electricity for rural communities, but will also result in an annual reduction of 43.7 million tons of greenhouse gas emissions,” Vilsack said.

All projects funded under the Inflation Reduction Act must be completed in their entirety by September 30, 2031, according to administration officials.

The New ERA program is limited to rural electric cooperatives. Another USDA program, PACE (Powering Affordable Clean Energy), also funded by the Inflation Reduction Act, provides low-interest loans to rural power providers for clean energy and storage projects. Vilsack said the USDA has made 19 awards nationwide under the program, totaling $665 million.

The Inflation Reduction Act also expanded the Rural Energy for America Program (REAP), which provides grants and loans to farmers and small rural businesses that install renewable energy systems or undertake energy efficiency projects. The Biden administration has invested $2.2 billion in the program so far, covering 7,600 projects.

This article has been updated with comment from Erin Oban, state director of USDA Rural Development in North Dakota.