On May 11, 2023, the USDA announced the launch of two new programs, the Empowering Rural America Program (New ERA Program) and the Powering Affordable Clean Energy Program (PACE Program), which will make nearly $11 billion available to eligible rural electric cooperatives, renewable energy developers, and electric service providers. These programs are funded through sections 22004 and 22001, respectively, of the IRA.
The New ERA Program will make $9.7 billion available to eligible rural electric cooperatives for the deployment of renewable energy, zero-emission, and carbon capture systems. The PACE Program will make available $1 billion, in partially forgivable loans, to renewable energy developers and electric service providers, to provide financing for utility scale solar, wind, geothermal, biomass, and hydropower projects, as well as energy storage to support renewable energy. Loans through the PACE Program may be forgiven up to 40%. Applicants from U.S. territories, Insular Areas, and Tribal communities may be eligible for 60% loan forgiveness.
These two programs represent the single largest investment in rural electrification since the signing of the Rural Electrification Act in 1936.
Applicants may submit Letters of Interest for the New ERA Program from July 31 to August 31, 2023. Applicants for the PACE Program may submit Letters of Interest beginning June 30, 2023, on a rolling basis, until September 29, 2023.