Background on USDA PACE and New Era Program
On May 16, the Department of Agriculture’s Rural Utilities Service (RUS) announced nearly $10.7 billion in federal funding for rural electric cooperatives, the largest federal investment in rural electric infrastructure since electrification 1936.
BEL President Keith Dennis believes this funding will be central to advancing the goals of beneficial electrification.
“As agencies roll out their infrastructure programs, BEL has focused on providing utility partners actionable analysis and practical next steps. Thanks to generous supporters, we are committing significant resources to ensuring broad, equitable access to this funding for any utility seeking to invest in their systems,” said Keith Dennis.
“Investments in the grid are investments in rural communities and improved quality of life; we are honored to be in a position to partner with the electric sector to implement this program.”
USDA Rural Utilities Service Program Overview
The USDA’s Rural Utilities Service has a total of $10.7B in funding available under the IRA:
- Empowering Rural America (“New ERA”) makes $9.7 billion available for loans, grants, loan modifications and other financial assistance to support the purchase of renewable energy systems, zero-emission systems and carbon capture systems (Section 22004). Funding also may be used to deploy these systems or to make energy-efficiency improvements to generation and transmission systems of eligible entities. Read more in the New Era Notice of Funding Opportunity is available here!
Don't have time to read the New Era Notice of Funding Opportunity? Read our New Era NOFO summary memo here.
- Powering Affordable Clean Energy (PACE) provides $1 billion in RUS loans for developing renewable energy infrastructure (Section 22001). The funding is available to renewable-energy developers and electric service providers, including municipals, cooperatives, and investor-owned and Tribal utilities to help finance large-scale solar, wind, geothermal, biomass, hydropower projects and energy storage in support of renewable energy systems. The PACE Notice of Funding Opportunity is available here!
Don't have time to read the PACE Notice of Funding Opportunity? Read our PACE NOFO summary memo here
The PACE and New ERA application window has official closed. BEL is grateful that we had the opportunity to have helped support the USDA and its applicants through the Letter of Intent phase. We have already learned of applicants moving to the next phase and we plan to continue to support applicants through the duration.
WATCH THE WEBINAR 09/06/23 with Aliza Drewes and Clare Sierawski (USDA)
SLIDES FROM BEL/USDA WEBINAR - RUS New ERA 09/06/23 are here! BEL/USDA WEBINAR PPT
WATCH THE WEBINAR 05/22/23 with Chris McLean (USDA'S Rural Utilities Service) and Katrina Pielli (DOE's Office of Clean Energy Demonstrations)
NOTES FROM USDA's PACE and New ERA CALL 05/17/23 are here! USDA Webinar PACE ERA - 051723
SLIDES FROM USDA's PACE and New ERA CALL 05/17/23 are here! PPT on PACE and New ERA Programs
Looking for USDA/s Emissions Reduction Tool Templates? Click here
Looking for New ERA PPA Guidance? Click here
Energy Communities Map to determine PACE loan forgiveness levels.
Distressed and Disadvantaged Community Map to determine PACE loan forgiveness levels.
Templates
DRAFT USDA PACE and New ERA - Electric Cooperative Action Plan - BEL has developed some recommendations and pointers that cooperatives can consider, but is not meant to be a complete guide on the programs.
DRAFT BEL PACE Letter of Intent Overview - This is an overview of what is needed for a PACE Letter of Intent.
DRAFT BEL PACE LOI Template - This is a draft template for a PACE Letter of Intent. USDA has also release their template letter: https://www.rd.usda.gov/media/file/download/final-sample-letter-interest-pace.pdf
DRAFT BEL New ERA LOI Template - This is a draft template for a New ERA Letter of Intent. We expect that USDA will develop an official version, but we wanted to be sure we had something for stakeholders in the interim.
Direct Pay
On June 20, 2023, after the latest guidance had been released, BEL held a second webinar on direct pay with the NYU Tax Law Center. View the recording here.
On June 8, 2023, BEL held a webinar on direct pay with the NYU Tax Law Center. View the recording here.
If you are part of an electric cooperative, municipal utility, or tribal energy stakeholder who may apply for USDA funding, please email infrastructure@be-league.org or signup here to become part of our cohort receiving updates on the program and available resources.