Business
Interior Secretary Unveils ‘New ERA’ Loans for Southern AZ Electric Cooperatives

The Inflation Reduction Act is set to transform Arizona’s rural landscape, offering financial benefits to farmers and ranchers. U.S. Secretary of Agriculture Tom Vilsack made this announcement in Marana, emphasizing the Empowering Rural America program.
During his address, Vilsack highlighted over $600 million in funding directed toward renewable energy initiatives for rural Arizona. This includes a significant $83.5 million investment in Trico Electric Cooperative, aimed at expanding battery storage capabilities on the Pascua Yaqui Reservation, enhancing electricity reliability for the community.
Vilsack expressed enthusiasm for the program, noting its potential to revolutionize energy access. “We’re excited about this grant and the New ERA program because it has so many iterations,” he stated at a town hall hosted by Trico.
Sierra Southwest, another cooperative in Southern Arizona, is also benefiting from this financial initiative, receiving $55.2 million for three new battery energy storage projects. These efforts will support the adoption of clean energy and help rural electric cooperatives modernize their infrastructure.
The initiative aims to ensure that rural America does not lag in the transition to renewable energy. Vilsack outlined plans to further bolster agricultural sectors through clean energy, offering more market options for local growers and business owners under the New ERA framework.
Attendees of the event included over 80 individuals and were welcomed by Trico CEO Brian Heithoff. He proclaimed, “We now face a new era of transformation with the New ERA program,” emphasizing its role in modernizing Arizona’s electric cooperatives.
In a bold commitment, Heithoff announced Trico’s goal to reduce carbon emissions by 50% by 2032, predicting over $16 million in savings for its members from upcoming projects.
The Sierra Southwest project, in particular, will enhance grid resilience by adding up to four hours of battery power. Vilsack elaborated on the administration’s broader agricultural initiatives, which include climate-smart practices that lower greenhouse gas emissions while supporting income-generating opportunities within local food systems.
Last week, the Biden administration unveiled $7.3 billion in funding for rural electrical projects nationwide, including $485 million earmarked for the Arizona Electric Power Cooperative. Vilsack anticipates that these investments will create approximately 20,000 jobs, comprising 16,000 construction roles and 4,500 permanent jobs.
He emphasized that climate-smart agriculture involves producing commodities with innovative farming practices, aiming to significantly cut greenhouse gas emissions. Furthermore, he noted that transitioning to organic farming would involve minimal financial risk, with 21 projects identified in Arizona eligible for federal funding.
In February 2024, the Department of Energy announced an additional $366 million for clean energy projects in rural areas, including tribal territories. This includes $45.2 million allocated to the National Rural Electric Cooperative Association to kickstart solar infrastructure in rural regions, such as Arivaca, Arizona.
According to the USDA, the Inflation Reduction Act represents a landmark investment in rural electrification comparable to the 1936 Rural Electrification Act. The New ERA program supports rural communities in their transition to clean and affordable energy.
Vilsack is among several high-ranking officials from the Biden administration who have recently visited Southern Arizona, emphasizing the significance of these federal investments, particularly in an election year.