FOR IMMEDIATE RELEASE
August 16, 2024 Contact:
John Neurohr, [email protected], 717-364-6452
APPALACHIA — On the second anniversary of the Inflation Reduction Act (IRA), a major piece of the bills that make up the federal climate infrastructure package, ReImagine Appalachia is highlighting key projects boosted by the bill.
Signed in 2022, the IRA encourages investments in climate infrastructure and is a key component of one of the most significant investment packages in our nation’s infrastructure in history (since passage of the original new deal). The IRA provides $369 billion in climate and energy spending, with priority placed on investing in energy communities and transforming coal country into leaders of the new clean economy.
So far, the IRA-backed programs have directed nearly a quarter-trillion dollars of investment into the clean economy. IRA dollars are leveraging private investment across various sectors, including transforming coal country into a hub for sustainable manufacturing, like battery factories, redeveloping shuttered coal plants, reclaiming abandoned mine lands, growing local farms and promoting regenerative agricultural practices, all while creating good union jobs and pathways out of poverty for local residents .
“The federal climate infrastructure package, including the Inflation Reduction Act, is bringing back hope to a region desperately in need of it,” said Dana Kuhnline, Senior Program Director with ReImagine Appalachia. “Communities across the Ohio River Valley Region of Appalachia are beginning to reimagine themselves as leaders of a new clean economy and see their place in a more prosperous, sustainable, equitable future. The progress our communities have made in two short years is a testament to the strength and resilience of Appalachia. For decades we’ve been ready to roll up our sleeves and get to work transforming our local economies, but lacked the capacity to implement. Even more exciting, the work made possible by the IRA has only just begun as new incentives, programs, and initiatives transforming communities will continue to roll out.”
Specifically in Appalachia, several major projects have been made possible – or have been turbocharged – by the IRA:
- West Virginia’s Wayne County schools have partnered with Solar Holler to implement the largest solar power project in Appalachian public schools. This initiative creates jobs, reduces electricity costs, and contributes to combating climate change in the coal-producing state. The project, which represents the largest power purchase agreement in West Virginia’s history, is expected to save the school system $6.5 million over its 25-year duration.
- The U.S. Department of Agriculture (USDA) is hiring 40 Climate Change Fellows to assist Ohio farmers and rural businesses in accessing $2 billion in clean energy funding through the Rural Energy for America Program (REAP). These Fellows help applicants with energy efficiency improvements and renewable energy system purchases, working closely with REAP coordinators for up to four years. This investment in Appalachia aims to transform rural power production, support local businesses, and combat climate change.
- Voith Hydro, a major hydropower turbine equipment manufacturing plant in York, Pennsylvania, is upgrading facilities and increasing production. The company, in collaboration with the International Association of Machinists and Aerospace Workers (IAM) union, applied for a tax credit to support these improvements. This investment, along with other federal initiatives, is expected to expand union job opportunities in Pennsylvania’s hydropower industry.
- Appalachian Voices received $900,000 to enhance climate change resilience through sustainable development and resilience hubs, funded by the Bipartisan Infrastructure Law and the IRA. The projects, in partnership with several Virginia communities, focus on energy efficiency, disaster preparedness, and environmental reclamation. These initiatives aim to aid economic transition, tackle environmental justice issues, and enhance community resilience in southwest Virginia.
- Ohio’s largest solar farm, the Fox Squirrel Solar Project, has begun delivering electricity to the grid with its first phase producing 150-megawatt (MW). Operated by EDF Renewables North America and Enbridge, the project will generate enough clean electricity to power 118,000 households once all three phases are completed by the end of 2024. The project, built by union labor, created 650 jobs during Phase 1 construction and aims to both create good jobs and combat climate change.
- Ohio’s largest solar project, the Oak Run site, was approved in April, featuring 800 MW of solar panels and 300 MW of energy storage across 6,000 acres. The $1 billion project combines farming with solar energy generation, creating thousands of labor union jobs and contributing $7.2 million annually to Madison County and local schools.
- The U.S. Department of Energy announced $575 million in funding for Cleveland Cliffs’ Middletown Works facility in Ohio to reduce emissions and pollutants. The project replaces an old blast furnace with two electric furnaces, aiming to produce iron with nearly zero greenhouse gas emissions. It is expected to create 170 permanent jobs, 1,200 temporary union construction jobs, and sustain 2,500 existing jobs.
- Appalachia received $6 million from the USDA to help landowners engage in climate markets through forest farming and agroforestry, which aim to balance crop productivity with conservation. The funds support sustainable food sources, protect biodiversity, and help grow local economies while sequestering carbon. Beneficiaries include organizations such as Rural Action, Appalachian Voices, and United Plant Savers.
- The Pittsburgh Canopy Tree Alliance received $8 million to increase tree canopy in disadvantaged communities, funded by the IRA and the USDA’s Forest Service Urban and Community Forestry program. The initiative includes community-level planning and workforce development to plant and maintain trees in various public and private spaces within Justice 40 zones. Additionally, it provides technical assistance to municipal officials for creating ordinances and setting up shade tree commissions.
- By using IRA tax credits, Lifeline Church of God in Princeton, West Virginia will save $65,000 a year in electricity costs. The 446.9-kilowatt solar installation on the church’s roof will save them approximately $1,938,000 in lifetime energy savings. This will allow the church to expand children’s programming, provide additional meals and beds for residents of the shelter, and support local community initiatives.
“Looking ahead, our hope is that our next president and Congress will understand the need to continue the momentum our communities have built with these much needed investments,” Kuhnline continued. “We’ve seen incredible success through the Inflation Reduction Act across the region, but it will take more than one bill to rebuild our region’s economy. Our nation’s leaders must remain committed to continuing and growing federal investments in transitioning coal communities for the long haul.”
Learn more about the Inflation Reduction Act and its important impact on Appalachia here.