Co-op provisions in Inflation Reduction Act of 2022 Advance Tri-State Responsible Energy Plan.
- Direct pay provisions help to level the playing field for cooperative investment in clean energy.
- USDA provisions strengthen cooperatives’ ability to invest in renewable energy, storage and transmission.
- Tri-State engaged with stakeholders and policymakers to ensure provisions support rural communities.
(August 16, 2022 – Westminster, Colo.) – Wholesale power supply cooperative Tri-State Generation and Transmission Association lauded provisions in the Inflation Reduction Act of 2022 (IRA), which was signed into law today, that bolster Tri-State’s transformative Responsible Energy Plan.
Tri-State advocated for specific provisions that advance investment in rural communities, including the direct payment of renewable energy tax credits to not-for-profit electric utilities, and funding to support cooperative investment in new renewables, energy storage and transmission.
"As a leader in the cooperative energy transition, we engaged policymakers on the challenges not-for-profit rural utilities must overcome to expand clean energy in the communities we serve and ensure a just transition in the changing energy economy,” said Duane Highley, Tri-State CEO. “Because of the hard work of many policymakers and stakeholders, the co-op provisions signed into law will drive investment, bolster jobs and preserve the reliable, affordable power that drives rural prosperity.”
For the first time, not-for-profit electric cooperatives will have opportunities that help to level the playing field with for-profit utilities for investments in wind, solar and energy storage projects. The legislation provides for the direct payment of the Production Tax Credit (PTC) and Investment Tax Credit (ITC) to not-for-profit electric utilities. This allows cooperatives that were previously excluded from these incentives to invest directly in renewable energy and energy storage, and receive benefits similar to for-profit utilities. The legislation also extends PTC and ITC eligibility for wind, solar and storage facilities, and expands eligibility for credits to additional technologies.
Electric cooperatives’ investments, including in new renewable energy, energy storage and transmission projects, will benefit from $9.7 billion allocated to the U.S. Department of Agriculture (USDA) specifically for electric cooperative energy transition assistance through grants, loans and loan modifications. In addition, $1 billion is now available through the USDA for a forgivable loan program to fund the deployment of new renewables and storage, with up to 50% of these loans eligible to be forgiven.
“As we advance our Responsible Energy Plan transition, we look forward to working with federal agencies to implement the co-op provisions as quickly and effectively as possible,” said Highley.
The provisions create greater opportunities for implementation of Tri-State’s Responsible Energy Plan, which includes the rapid addition of clean energy resources, steep reductions in greenhouse gas emissions, advancement of beneficial electrification technologies and participation in organized power markets in the West.
Tri-State is a wholesale power supply cooperative, operating on a not-for-profit basis, with 45 members, including 42 utility electric distribution cooperative and public power district members in four states that together deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. For more information about Tri-State, visit www.tristate.coop.
Certain information contained in this press statement are forward-looking statements including statements concerning Tri-State’s plans, future events, and other information that is not historical information. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described from time to time in Tri-State’s filings with the Securities and Exchange Commission. Tri-State’s expectations and beliefs are expressed in good faith, and Tri-State believes there is a reasonable basis for them. However, Tri-State cannot assure you that management’s expectations and beliefs will be achieved. There are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from the forward-looking statements contained herein.