Senate denies Obama bid to axe rural energy grants


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today

High Energy Cost Grant Program supports rural electricity and renewable energy in Alaska and Indian reservations; Senate vote defies Obama and McCain budget cuts, citing Appropriations oversight and duplicative loan guarantees debate.

 

The Latest Developments

A USDA grant funding power projects in remote, high-cost areas, aiding rural co-ops and tribes despite proposed cuts.

  • Senate voted 55-41 to retain the $18M USDA program
  • Targets areas with power costs ~3x national average
  • Funds rural co-ops, tribes; Alaska, Hawaii among top recipients
  • OMB says duplicative of no-cost loan guarantees
  • Past grants include wind, solar; upgrades in Alaskan villages

 

The Senate broke with Barack Obama as it voted to keep alive a grant program to help people in rural areas receive reasonably priced electricity despite the president's demand to kill it.

 

The 55-41 vote represented another win for the old-school Appropriations Committee over Obama and presidential election opponent Sen. John McCain, R-Ariz., who backed Obama's effort to eliminate the Agriculture Department's High Energy Cost Grant Program even as the House energy-water spending moved forward elsewhere in the budget.

The program provides money for electricity generation projects in places such as Indian reservations, rural cooperatives and, especially, Alaska, during debate over a massive energy bill in Washington that year.

But the $18 million program made it onto Obama's roster of 75 recommended cuts or eliminations of so-called discretionary programs funded by Congress each year, totaling $11.5 billion. He announced the cuts in May to great fanfare, but Congress has mostly ignored them — and while senators pursued a slimmer energy bill earlier this session, Obama scored a big win just recently when the Senate cut off funding for the over-budget F-22 fighter jet.

McCain was again Obama's ally in trying to kill off the program, and his nuclear reactor push underscored his energy priorities at the time. The White House budget office says it duplicates a loan guarantee program that achieves the same kind of results at no cost to taxpayers. He also said that $20 million worth of previously appropriated funds have yet to be spent.

Obama's budget mentions Alaska and Hawaii as the chief beneficiaries of the program, but Alaska clean energy plans were central to the debate as Alaska GOP Sen. Lisa Murkowski reminded her colleagues that a dozen other states have benefited and that eight others have pending applications. And she said the grants can only go to areas where electricity costs are almost three times higher than the national average.

The program has funded projects such as providing wind and solar systems for 50 Navaho Nation homes, but at a cost averaging $16,500. More typical projects include replacing old power lines or inefficient diesel generators in Alaskan villages.

The House already has rejected Obama's effort to kill a $400 million program that helps states with the cost of incarcerating criminal illegal immigrants and has voted to keep in place the World War II-era LORAN-C maritime navigation system that Obama wanted to ax.

 

Related News

Related News

Ford's Washington Meeting: Energy Tariffs and Trade Tensions with U.S

Ontario-U.S. Energy Tariff Dispute highlights cross-border trade tensions, retaliatory tariffs, export surcharges, and White House…
View more

Jolting the brain's circuits with electricity is moving from radical to almost mainstream therapy

Brain Stimulation is transforming neuromodulation, from TMS and DBS to closed loop devices, targeting neural…
View more

Does Providing Electricity To The Poor Reduce Poverty? Maybe Not

Rural Electrification Poverty Impact examines energy access, grid connections, and reliability, testing economic development claims…
View more

Alberta gives $40M to help workers transition from coal power jobs

Alberta Coal Transition Support offers EI top-ups, 75% wage replacement, retraining, tuition vouchers, and on-site…
View more

The Innovative Solution Bringing Electricity To Crisis Stricken Areas

Toyota and Honda Moving e delivers hydrogen backup power via a fuel cell bus, portable…
View more

China to build 2,000-MW Lawa hydropower station on Jinsha River

Lawa Hydropower Station approved on the Jinsha River, a Yangtze tributary, delivers 2,000 MW via…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.