Kayah Swanson, kayah.swanson@sierraclub.org
WESTMINSTER, Colo. – Colorado’s second-largest electricity provider has been selected as a finalist to receive funding from the federal government toward its ambitious plans for renewable energy. This funding is part of Tri-State Generation and Transmission Association’s (Tri-State) finalized Colorado resource plan featuring an accelerated and reliable clean energy transition.
Today, the White House and U.S. Department of Agriculture (USDA) announced that it was preparing to release $7.3 billion in Empowering Rural America (New ERA) grants and loans for the first 16 rural electric cooperatives selected as finalists. The New ERA program will fund investments in renewable energy, storage, transmission, and large-scale emissions reductions. This funding will allow these leading electric cooperatives—serving one-fifth of rural Americans—to accelerate the adoption of affordable and reliable clean energy, improving resilience and lowering costs for their members.
That announcement includes the selection of Tri-State’s plan to build significant amounts of wind, solar, and battery storage resources to replace 1,100 MW of coal-fired generation, as well as funding to refinance costs associated with the retirement of some of its coal units. Tri-State estimates that the funding and projects will reduce customer costs by more than $400 million over 20 years, and avoid 5.8 million tons of climate pollution annually.
“This critical USDA investment will help us achieve the affordable, reliable clean energy future that we Coloradans deserve,” said Laurie Williams, Director of Sierra Club’s Beyond Coal Campaign and Colorado resident. “This investment, and the others announced today across the country, reflect the importance of the relationship between rural America and the clean energy economy. Tri-State’s pursuit of these funds will make a meaningful difference in the lives of millions, protecting people and the planet all at once.”
Tri-State’s landmark plans were supported by the potential to receive a New ERA program award, demonstrating how federal funding can help rural America be part of the energy transition. The program made it possible for Tri-State to pursue renewable energy procurement leading to as much as 70% clean energy delivered to Tri-State members systemwide by 2030. Tri-State has also committed to to support the Craig coal community and surrounding Moffat County with $22 million in direct community assistance and up to $48 million in additional benefits.
The resource plan also proposes to retire two coal units earlier than previously announced, including a retirement date of no later than September 15, 2031 for Springerville Generating Station’s Unit 3 in Arizona, and a retirement date of January 1, 2028 for Unit 3 of the Craig, Colorado coal plant.
In addition to Tri-State, USDA announced that two other electric cooperatives in Colorado, CORE Electric Cooperative and United Electric Cooperative, were also selected as finalists for the New ERA program.
“These investments are a real turning point for rural America’s relationship with clean energy. With the help of the Inflation Reduction Act, these utilities are taking monumental steps to ensure their cooperatives are competitive, resilient, and clean,“ said Sierra Club Executive Director Ben Jealous. “These grants and loans awarded through the New ERA program will anchor rural clean energy jobs, improve health outcomes for families and communities, and further reduce our reliance on expensive, deadly fossil fuels.”
An administrative law judge has recommended approval of the settlement reached by Tri-State, Sierra Club, and many other parties in Tri-State’s resource plan pending at the Colorado Public Utilities Commission. That recommended approval is expected to become final on September 11, after which Tri-State will issue requests for proposals for new resources, including the resources to be funded by a New ERA award.
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About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.