Clean energy takes root in rural America

Presented by Equinor: Your guide to the political forces shaping the energy transformation

Mar 23, 2023 View in browser   By Jason Plautz and Arianna Skibell Presented by Equinor Solar panels from the 100-megawatt MGM Resorts Mega Solar Array are shown in Dry Lake Valley, Nevada. | Ethan Miller/Getty Images Last year's climate law could bring big changes to the small nonprofits that provide electricity to many rural Americans, helping accelerate the nation's switch to clean energy. The country’s 900 or so rural electric cooperatives serve remote rural customers and are member-driven, -owned and -controlled. Their nonprofit status has made it hard to make investments in low-carbon energy; unlike investor-owned utilities, they can’t go into debt or sell shares to pay for a solar farm. But getting them off of fossil fuels is essential to meeting President Joe Biden’s climate goals. Most rely on larger organizations, called generation and transmission cooperatives, or G&Ts, to generate their electricity — and plan for the clean energy transition. But some co-op CEOs are looking to exit G&Ts and go it alone as new clean energy and funds become accessible under last year’s Inflation Reduction Act. The deal with rural co-ops: Some co-ops have expanded their clean power offerings, but the going is slow. In 2020, 28 percent of co-ops’ electricity came from coal, compared with 19 percent nationally, according to the U.S. Energy Information Administration. Many have legacy fossil fuel plants, and members may be unwilling to raise monthly bills to pay for renewables. The Inflation Reduction Act is poised to supercharge the progress that’s been made. It both creates a $9.7 billion grant program for co-ops to slash greenhouse gas emissions, and enables co-ops to take advantage of clean energy tax credits. It’s a “remarkable, generational opportunity for co-ops,” said Jim Matheson, CEO of the National Rural Electric Cooperative Association. Family feud: But exactly how to seize that opportunity is prompting a handful of co-ops to rethink traditional business models. At the heart of the dispute is how co-ops interact with G&T associations, the larger organizations that provide much of their power and transmission. Already five co-ops have either left or announced they will leave a major G&T called Tri-State Generation and Transmission Association, which covers parts of four Western states. Mark Gabriel, the CEO of departing co-op United Power, told me his efforts to boost clean energy and take advantage of rooftop solar were being “throttled” by his group’s contract with Tri-State. Alone, he says, his co-op could use more rooftop solar and battery storage to create cheaper energy on-site. Not everyone thinks abandoning the traditional business model is the way to go. G&Ts have a size advantage and existing generation that offers reliable power to members as they transition. Tri-State is moving away from coal in two states by the end of the decade, as well as offering members flexibility to generate more of their own electricity. “The fastest way to get to renewables reliably is to be a part of Tri-State’s portfolio,” said Tri-State CEO Duane Highley. “There’s no quicker way to do it than by staying in the family.”   It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.   A message from Equinor: The energy transition is the defining opportunity of our time. We all have a role to play. At Equinor, we’re doing our part by growing our renewable energy portfolio and lowering emissions from production. By the time the global population reaches 9 billion in 2050, our goal is to have net-zero emissions. Discover more about Equinor at www.equinor.com/USA.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Catherine Morehouse breaks down why regulators are worried about natural gas' reliability as it becomes a dominant source for electricity in the U.S. Power Centers The General Services Administration is revamping federal procurement to lower carbon emissions. | Jacquelyn Martin/AP Photo Low-carbon shopping list Climate change could soon be priced into everything the federal government buys, from cement to power to office space. That's because the Biden administration is changing federal acquisition regulations with the aim to shrink the U.S. government’s carbon footprint, writes Jean Chemnick. But it may also prompt companies to reduce emissions from their own operations and from suppliers as they vie for a share of the hundreds of billions of dollars in government contracts Washington doles out each year. It’s a market signal that could be felt worldwide, experts say. Takeaways from Regan's hearing EPA Administrator Michael Regan defended his agency’s expansive funding request to Congress this week, but he also fielded lawmaker questions on agency telework policies, the status of a contentious Clean Water Act rule and climate regulations, writes Kevin Bogardus. In his appearance before the Senate Environment and Public Works Committee, Regan touted the “ambitious and transformative plan” to fund the agency, saying, “Simply put, investing in EPA is investing in America.” T for thee but not for me Massachusetts Gov. Maura Healey (D) says she’s willing to “get her hands dirty” to fix the T, Boston's rapid transit system. Just don’t expect her to hop on board anytime soon, writes Lisa Kashinsky. The governor sidestepped a challenge from a radio caller who texted into yesterday’s show from a “crowded, slow Red Line train” to ask Healey to ride the rails at rush hour “when she needs to be at a specific place at a specific time.”   A message from Equinor:   In Other News Electric future: Ford is projecting a $3 billion loss on its electric vehicle business for 2023. Impacts: California's latest storm left five people dead from fallen trees in the Bay area.   DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID.     Subscriber Zone A showcase of some of our best subscriber content. A Dixie Valley toad sits atop grass in Dixie Valley, Nev., on April 6, 2009. | Matt Maples/Nevada Department of Wildlife/AP Photo The conflict between an endangered Nevada toad and a geothermal project is returning to court, as the energy company challenges the Fish and Wildlife Service’s decision to protect the tiny amphibian. EPA’s approval of California’s nation-leading rules to limit emissions from heavy-duty vehicles has been held up over an industry group’s complaint that companies don't have enough time to comply. For the first time, no coal-burning power plants in New England qualified for payments in the region’s annual electricity auction. That's it for today, folks! Thanks for reading.   A message from Equinor: The energy transition is the defining opportunity of our time. Our world needs energy to keep moving forward — but it must be affordable, reliable, and accessible. We all have a role to play. At Equinor, we’re doing our part by helping accelerate the energy transition. We’re growing our renewable energy portfolio and lowering emissions from production. We’re already on the way to powering 2,000,000 New York homes with energy from the Empire Wind and Beacon Wind offshore wind projects. We’re creating jobs, building tomorrow’s infrastructure, and sparking new economic activity. But for us, that’s only the beginning. By the time the global population reaches 9 billion in 2050, our goal is to have net-zero emissions. Discover more about Equinor at www.equinor.com/USA.     LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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