USDA opens nuclear power funding opportunity for rural electric cooperatives

A new program from the U.S. Department of Agriculture has allocated $175 million for rural electric cooperatives to expand nuclear power and improve electricity transmission in rural communities.

The new Affordable Rural Cooperative Program (ARC) will begin taking letters of interest from eligible applicants for the awards-which will be offered as loans and/or grants-beginning on October 19. The window closes on November 20.

In context: The ARC program was born out of the Inflation Reduction Act (IRA) of 2022-passed under the Biden administration-which included $9.7 billion in financial assistance for rural electric cooperatives to reduce emissions released by rural electric systems, ideally through the "purchase of renewable energy, renewable energy systems, zero-emission systems, and carbon capture and storage systems, to deploy such systems, or to make energy efficiency improvements to electric generation and transmission systems," according to the IRA language. Some of the IRA funding was in limbo early in the current Trump administration as the government froze funding and carried out a review.

The $175 million allocated for the ARC program is intended to strengthen the "resiliency, reliability, and affordability of rural electric systems" by deploying "advanced, efficient transmission infrastructure and nuclear power supply," according to USDA Rural Development. The maximum amount that can be granted for one recipient cannot exceed $20 million.

"With this new program, USDA is helping our nation's electric cooperatives expand American power generation with more efficient technologies. This investment ensures rural communities continue to benefit from affordable, resilient energy for decades to come," said Glen Smith, the USDA's undersecretary for rural development. The program will be administered under USDA Rural Development's Rural Utilities Service.

According to the notice, the funding will be open to rural electric cooperatives that are current or former Rural Electrification Act borrowers, cooperatives serving predominantly rural areas, and wholly or jointly owned subsidiaries of rural electric cooperatives.

According to USDA Rural Development, the funds could be used for the following:

• Build, improve, or purchase facilities, buildings, or land used for nuclear energy production or distribution.
• Construct or improve transmission lines needed to operate new generation facilities, receive power from a new source, or export energy.
• Purchase all or a share of a nuclear power plant.
• Upgrade a nuclear facility.
• Buy nuclear energy under a power purchase agreement (PPA).
• Reimburse preaward expenses, interest accrued during construction, or costs of purchasing nuclear power under a PPA.

Once letters of interest have been submitted, the cooperatives that are invited to apply will have 90 days from the date the invitation was received to submit an application. It is anticipated that the awards will be announced in the summer or fall of 2027.