Together, America Prospers

Empowering Rural America Program (New ERA)

What does this 

program do?

The Empowering Rural America 

(New ERA) program helps rural 

Americans transition to clean, 

affordable, and reliable energy. 

By reducing air and water 

pollution, New ERA funding 

improves health outcomes and 

lower energy costs for people 

in rural communities. New ERA 

program funding is available to 

member-owned rural electric 

cooperatives, which have been 

the backbone of America’s rural 

power delivery for nearly a 

century. 

This $9.7 billion program is part 

of the Inflation Reduction Act 

(IRA – information is available 

at this link: https://tinyurl.

com/548c8tb7) and represents 

the largest investment in rural 

electrification since President 

Franklin Delano Roosevelt signed 

the Rural Electrification Act into 

law in 1936. 

Who can apply for this program?

The New ERA program is available 

only to rural electric cooperatives, 

including:

• Existing or former USDA Rural

Utilities Service (RUS) borrowers

• Borrowers of the former Rural

Electrification Administration

• Rural electric cooperatives that

serve predominantly rural areas

• Wholly or jointly owned subsidiaries

of rural electric cooperatives

Note: For the purposes of the New 

ERA program, the term “predominantly 

rural” means a service territory where 

at least 50 percent of its consumers 

are rural.

To create opportunities for rural 

electric cooperatives of all sizes – 

and to ensure cooperatives compete 

only against their peers – New ERA 

applicants are separated into three 

categories:

• Category 1: Total utility plant value

equal to or more than $500 million

• Category 2: Total utility plant value

more than $200 million and less than

$500 million

• Category 3: Total utility plant value

equal to or less than $200 million

Are there any additional eligibility 

requirements?

Yes. You must demonstrate that your 

proposed project is eligible, financially 

and technically feasible, affordable, 

and reliable. If selected, you will 

be required to provide reasonably 

adequate security for financed 

investments. All projects must be 

completed and verified by September 

30, 2031.

How can funds be used?

Funds can be used to make energy 

efficiency improvements to eligible 

generation and transmission systems, 

to purchase, build, or deploy renewable 

energy, zero-emission systems, 

carbon capture storage systems, or to 

purchase renewable energy. 

The New ERA program is designed 

to be flexible. The program prioritizes 

greenhouse gas reductions rather 

than requiring the use of specific 

technologies. For example, you can 

seek funding for renewable and zeroemission systems that eliminate aging, 

obsolete, or expensive infrastructure. 

You can also change your purchasedpower mixes to support cleaner 

portfolios, manage stranded assets, 

and boost your transition to clean 

energy.

Applications will be scored and ranked 

on the greatest reduction in cost-perunit measure of greenhouse gases. 

Projects must be reliable, resilient 

(able to recover quickly following an 

unexpected disruption), and affordable. 

The cost of unit of reduction will be 

considered. We encourage applicants 

to think ambitiously! Maximize your 

technical options to bring about the 

greatest reduction in greenhouse gas 

emissions to create jobs and economic 

opportunity, and improve the quality of 

life in your rural communities.
Empowering Rural America Program

What types of funding are available?

You can apply for the following types 

of financial assistance:

• Loan only: The interest rate for 

loans will be set either at the U.S. 

Treasury rate or at a fixed rate as low 

as 2 percent. Treasury interest rates 

are set at the time funds are drawn. 

These rates are set periodically, and 

can be found at this link: https://

tinyurl.com/u5uu742h.

A zero percent interest rate is 

available to refinance stranded 

assets or for projects that serve 

predominantly distressed, 

disadvantaged, or energy 

communities (as defined in the 

funding notice).

• Grant only: Applicants can apply 

for a grant only that equals no more 

than 25 percent of the total project 

cost. Applicants would have to 

demonstrate the ability to meet the 

remaining 75 percent of the project 

cost.

• Loan and Grant Combinations:

Applicants can request loan and 

grant combination financing for 

proposed projects. 

• Loan Refinancing or Loan 

Modification: In addition to loan and 

grant combinations, applicants may 

propose to refinance debt related 

to a stranded asset if the applicant 

utilizes the refinancing savings to 

fund an eligible project.

No single borrower or awardee can 

receive more than 10 percent of the 

available funding, which is $970 million 

of the $9.7 billion available in this 

program.

How do we get started?

To be considered for funding, you 

must first submit a Letter of Interest 

(LOI). The application window is open 

from July 31 through August 31, 2023. 

You are welcome to partner with other 

eligible cooperatives and submit your 

proposal or proposals in a single LOI.

• RUS will begin evaluating and 

scoring LOIs after the August 31, 

2023 deadline.

• Invitations to submit an application 

will be sent to top-ranking LOIs.

• A successful application must meet 

all program requirements. Scoring 

and ranking will be re-evaluated 

prior to funding.

Additional information about the New 

ERA program is available in the Notice 

of Funding Opportunity (NOFO) 

published in the Federal Register and 

available on the New ERA program 

webpage at this link: https://tinyurl.

com/3d96vxuf, and on the USDA Rural 

Development Information Reduction 

Act webpage at https://tinyurl.

com/548c8tb7. Click the plus sign to 

the right of “Funding Opportunities,” 

and see the first bullet point: “Section 

22004.”

Who can answer questions?

• A list of Frequently Asked Questions 

(FAQs) can be found on the New 

ERA webpage at this link: https://

tinyurl.com/3d96vxuf.

• You can email New ERA program 

questions to: SM.RD.RUS.IRA.

Questions@usda.gov

What governs this program?

Section 22004 of the Inflation 

Reduction Act (7 USC 8103 (j)) – 

available at this link: https://tinyurl.

com/2p8m9k7v - PDF) governs the 

New ERA program.

USDA’s New ERA program website

NOTE: Because information changes, always consult official program instructions 

or contact your local Rural Development office for help. A list is available at this link: 

https://go.usa.gov/xJHPE. You will find additional resources, forms, and program 

information at https://rd.usda.gov. 

USDA is an equal opportunity provider, employer, and lender.

Last Updated May 2023