Ag Sec Highlights Game-Changing ‘New ERA’ Loans for Southern AZ Electrical Co-ops

The Inflation Reduction Act is providing significant financial support to Arizona’s rural communities, particularly benefiting ranchers and farmers. U.S. Secretary of Agriculture Tom Vilsack announced these developments during a visit to Marana on Thursday, highlighting the Empowering Rural America program.

Vilsack pointed out that more than $600 million has been allocated for renewable energy projects in rural Arizona. Specifically, he noted that Trico Electric Cooperative would receive $83.5 million to enhance battery storage capabilities and improve electricity reliability for residents on the Pascua Yaqui Reservation. “We’re excited about this grant and this New ERA program because it has so many iterations to it,” Vilsack said during an Investing in America town hall at Trico’s facility.

In addition, Sierra Southwest, another Southern Arizona rural electric cooperative, has been awarded $55.2 million to implement three battery energy storage systems, totaling 35 megawatts. Vilsack emphasized that the program is designed to ensure that rural America is not neglected in the transition to clean energy. “We didn’t want to leave rural America behind,” he stated.

At the event, Trico CEO Brian Heithoff expressed optimism about the New ERA program’s potential. “This program is making available needed loan funds to Arizona electric cooperatives and other cooperatives across the nation,” he said. His cooperative aims to halve its carbon emissions by 2032, asserting that these projects could yield over $16 million in savings for its members over their lifetimes.

The Sierra Southwest project is expected to provide up to four hours of battery power for its grid. Vilsack discussed broader initiatives that include climate-smart agriculture, renewable energy, and local food systems. He highlighted support for farmers transitioning to organic products and establishing independent processing facilities to create competitive pricing for ranchers.

Recently, the Biden administration announced a $7.3 billion investment for rural electrical projects nationwide, with $485 million dedicated to Arizona Electric Power Cooperative for renewable energy and storage solutions. Vilsack noted that this investment is projected to create approximately 20,000 jobs, including 16,000 construction roles and 4,500 permanent positions.

He described climate-smart agriculture as essential for reducing greenhouse gas emissions and asserted that the transition to organic farming would carry minimal financial risk, given available federal support. In Arizona alone, there are 21 projects and 110 practices eligible for federal funding to assist farmers with this transition.

In February 2024, the Department of Energy earmarked $366 million for clean energy initiatives in rural areas, including tribal lands. The National Rural Electric Cooperative Association received $45.2 million to establish solar infrastructures in underserved regions, including Arivaca, Arizona.

The USDA has emphasized that the Inflation Reduction Act aims to lower energy costs for families and generate thousands of jobs in rural America. Vilsack’s visit in Marana is part of a focused effort by the Biden-Harris administration to publicize recent federal investments, particularly in an election year.