IRA Section 22001 – Funding for Renewable Energy Electricity and Storage

Section 22001 of the IRA appropriates $1 billion to USDA for the fiscal year 2022, to remain available until September 30, 2031, to fund loan costs under section 317 of the Rural Electrification Act of 1936, 7 U.S.C. § 940g. Under section 317 of the Rural Electrification Act, USDA is authorized to provide low-interest loans to support the generation of electricity from renewable sources for resale to rural and non-rural residents. Section 22001 of the IRA clarifies that the $1 billion appropriated to USDA for loans may be used to support “projects that store electricity” generated from renewable sources. Section 22001 further clarifies that USDA may forgive up to 50% of any loan provided for such projects if the borrower and project meet the requirements for loan forgiveness.

USDA is prohibited from entering into any agreements that could result in a disbursement of funds beyond September 30, 2031. Any loan forgiveness shall not exceed 50% of the loan, unless the Secretary of the Department of Agriculture waives this restriction.