Editorial: Federal Policy Update
By: Marshal Albright, CCEC President/CEO
Electric cooperatives across the nation will benefit from the Bipartisan Infrastructure Package.
The National Rural Electric Cooperative Association (NRECA) worked with lawmakers to include significant investment and funding opportunities related to infrastructure projects for electric cooperatives.
Although the details of applying for funding have not been written, the money has been allocated. Throughout the next several months, agencies like the DOE, USDA, and FCC will outline the programs available for electric cooperatives.
The following is a list of funding opportunities summarized by NRECA:
National broadband deployment - $65 billion
The focus of the funding is for states to issue grants to expand broadband (high-speed internet) to rural areas of the country. Thanks to our rural telecommunication cooperatives in North Dakota, most of our rural areas already have access to high-speed internet.
Electric vehicles
EV charging infrastructure funding provides $7.5 billion to states to expand the EV charging infrastructure. As well as $2.5 billion for electric school bus funding to support zero-emission buses.
Physical and cyber security
$250 million would be used to encourage cybersecurity investments to detect, respond to and recover from cyber security threats for electric cooperatives.
Grid modernization - $23 billion
The package offers $5 billion in grid resiliency grants to harden the grid from disruptive weather events, with additional funding for replacing transformers with more efficient transformers, smart grid investment grants to improve reliability, wildfire mitigation, flood mitigation, $2.5 billion for additional transmission lines, $5 billion grid R&D for hardening and resilience.
Clean Energy
Carbon capture, utilization, and storage
The federal government understands the need to utilize carbon capture and storage on fossil fuel generation sources to provide grid reliability. $3.5 billion is included in the package to support carbon capture.
An additional $5 billion if proposed for CO2 pipelines to transport carbon capture and storage to areas where the geology is ideal (like in western North Dakota) for underground permanent CO2 storage.
Energy storage
The package contains $355 million for energy storage demonstration projects and $150 million for long-duration energy storage.
Buildings
Approximately $500 million is allocated in energy efficiency grants to schools for repairs or renovations to reduce energy costs, improve health, install zero-emission vehicle infrastructure, and purchase zero-emission vehicles.
Nuclear
The Department of Energy would see $6 billion to support nuclear reactors in competitive electricity markets at risk of closure due to economic factors. If the United States is serious about grid reliability and zero-emission power sources, nuclear energy must play an expanded role in our future.
Hydropower
The package allots $750 million to improve or upgrade existing dams to ensure long-term operation.
Over the next decade, billions will be invested in energy infrastructure, which is good for America. Our national political landscape is currently in flux as we focus on future energy supply. We are dealt with a somewhat dysfunctional congress with extremes in both parties driving the agenda. The disfunction and inability to draft meaningful energy policy will likely lead to rules established by the executive branch through agencies like the EPA. For example, the EPA proposed regulations over the past two administrations. The Clean Power Plan rules were overturned by the Supreme Court, deeming the EPA overstepped its authority on carbon regulation.
We will continue to monitor the federal energy regulatory agenda as new regulations on the power industry could significantly impact your cost of electricity. Fortunately, any new regulation will take years to implement. In the meantime, Cass County Electric and Minnkota Power Cooperative will do their best to keep your electricity affordable and reliable.