Rural Towns and Utilities Receive Funding Through Inflation Reduction Act
Rural towns and utilities are in a position to receive funding for all sorts of projects through the federal Inflation Reduction Act. The act, which was passed in August, has money designated for rural development, energy infrastructure, and electric vehicle infrastructure and incentives. Homeowners have the chance to gain incentives for making energy efficient improvements to their houses, while communities with coal and natural gas plants can use their resources to transition to cleaner energy sources.
Accessing Inflation Reduction Funds
The U.S. Department of Agriculture states that the Inflation Reduction Act offers the largest investment in rural electrification since 1936. But the competitive nature of the program makes it hard for towns with fewer resources to land funding, as they have smaller staffs and lack the funding to provide data analysis and expertise.
In order to take advantage of an opportunity, Jigar Shah, director of the Loan Programs Office at the U.S. Department of Energy, says a passionate individual needs to step up and tell their community to bring forth the best proposals available. An example of this approach is what happened in Alma, Kansas, where the local Wabaunsee School District upgraded their old diesel school buses to new electric vehicles with EPA-provided funds. Clint Thompson, the school district’s transportation director, found out about the opportunity in an email thread and applied for the project.
Communities Working Together
Billy Davies, Missouri’s conservation program coordinator with the Sierra Club, says it is easy to become overwhelmed when looking into the climate crisis and the Inflation Reduction Act. To combat this, Climate Mayors has partnered with C40 to create a guide for climate action opportunities, while the mayor of Columbia, Missouri, has teamed up with Climate Cabinet Education to launch a guide for how public power utilities can use the funding.
Kate Wright, executive director of Climate Mayors, says collaboration is essential for towns and utilities to take advantage of the funding. She states that towns should work with their state’s department of energy and department of transportation in order to gain approval for their applications. Further, Wellenkamp of MRCTI recommends the creation of a task force that involves members of the local community to consider opportunities from the Inflation Reduction Act and other acts.
Taking Action Now
However, towns are running out of time. Deadlines are looming and, according to the Sierra Club’s Davies, if utilities are not acting now then their communities should reach out to their electric providers and public officials to demand accountability.
Rural towns and utilities have the opportunity to receive funding for projects through the Inflation Reduction Act; but it will take dedicated community members to help make it happen. With the right resources and collaboration, towns can take advantage of the funds and make strides in transitioning to a cleaner energy future.
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