The Inflation Reduction Act has made a historic investment of $370 billion dollars to fight climate change over the next decade.

Among its benefits, the act will provide tax credits for Rural Electric Cooperatives to move toward clean energy.

Brianna Knisley is Tennessee campaign manager for Appalachian Voices - a founding member of the Rural Power Coalition.

She said the act significantly changes the economic landscape for Tennessee public utilities or not-for-profit utilities, to implement renewable energy and energy efficiency.

"There are some new pots of funding for electric cooperatives to transition," said Knisley. "And then also, the direct pay tax credit for renewable energy has been extended to nonprofit entities, which means co-ops and municipal utilities can now access that tax credit."

Meanwhile, Knisley noted that access to tax credits may be limited because of barriers that the Tennessee Valley Authority has put in place.

TVA produces all electricity in the state.

She added that utilities that distribute power - which includes the electric co-ops - are in long-term or never-ending contracts with TVA and those contracts limit how much solar energy they can generate themselves.

Knigley noted that there are key provisions in the Inflation Reduction Act that would benefit co-ops.

She said the provision of $9.7 billion of U.S. Department of Agriculture Assistance for Electric Cooperatives is going to co-ops that can achieve the greatest greenhouse-gas emission reductions.

She said a second provision will benefit co-ops in Tennessee.

"Now, the next item," said Knisley, "the $1 billion in additional funding to cover the cost of loans related to renewable energy, that program, I think, is one that co-ops and Tennessee could take advantage of and are hopefully going to be really interested in because up to 50% of the cost of those loans can be forgiven."

Meanwhile, she said the electric cooperatives have recently warned customers that they may receive higher energy bills soon.

She noted the higher prices are a result of a fuel cost adjustment from the TVA. The increase is primarily because of natural gas prices.

Large, energy-intense buildings used in Bitcoin mining, cloud computing and artificial intelligence data processing industries could become more common in West Virginia under legislation being considered by lawmakers.

Advocacy groups said high-impact data centers pose environmental and public health risks for communities.

Morgan King, climate and energy program manager for the West Virginia Citizen Action Group, pointed out Mingo, Mason and Tucker counties have already seen data center growth, along with an increased strain on natural resources. She added under House Bill 2014, such facilities would not be required to follow local zoning, land use or noise ordinances.

"These centers can take up anywhere from three to four square miles of land that will be repurposed for construction of these buildings for data centers," King explained. "Even more, they require an intense water use and energy use."

The bill would allow companies to develop independent energy grids using coal and gas. Supporters of the legislation, including West Virginia Gov. Patrick Morrisey, argued the bill would bring significant investment to the state.

The bill places no limits on how much of the water supply these facilities can draw upon. King noted in neighboring Virginia, some data centers are using nearly a million gallons of water a day.

"It doesn't put any restrictions on the facility, which could have an impact on local water resources," King emphasized. "It also requires that the power generation of coal throughout the state be remaining at a 69% base load."

She added there is increased exposure to light and sound pollution for residents and disruption of wildlife habitats.

"One of these centers is posed for Tucker County, right outside of Davis, that's in one of the most beautiful natural areas of the state," King observed. "If we put a data center in there, it's going to create a lot of noise and light pollution that will impact local ecosystems."

Energy experts are concerned data centers could lead to higher electricity bills for Mountain State households, and worsen communities' climate change resilience.


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As Congress debates cuts to offset tax-cut extensions, the future of the Clean Fuels Production Tax Credit remains uncertain, with potential impacts on Michigan's growing clean-fuel industry. The Clean Fuels Production Tax credit was established under the 2022 Inflation Reduction Act. It offers 20 cents per gallon for nonaviation fuels and 35 cents for aviation fuels which cut emissions by 50% compared with petroleum. Michigan has six key clean-fuel and alternative-energy initiatives, including Sustainable Aviation Fuel.

Alex Muresianu, senior policy analyst for Tax Foundation, estimates that repealing the credit could net about $12.8 billion over a decade based on Treasury projections, although he questions the math.

"That was based on some estimates from Treasury. It doesn't make sense to take a revenue cost estimate from Treasury and assume it will one-for-one translate into revenue raised from reversing a policy," she said.

Critics call credit initiative costly, favoring big companies while possibly raising fuel prices and distorting the market. It started on January 1st and is slated to run through 2027 unless extended.

Congress is divided on the future of these tax credits. While some want to eliminate them altogether to offset tax cuts, others warn that doing so could harm energy investments and job growth.

Nan Swift, a resident fellow of the Governance Program at R Street Institute, believes that right now, Congress is likely far from debating the finer details, and the tax credit is just one of those specifics.

"Certainly, it's on a a wish list for a lot of members, but we don't even know yet if the House and Senate can find agreement between their two-bill or one-bill plans," she explained.

Shortly after the Clean Fuels Production Tax Credit was enacted, debates arose about its cost, effectiveness and fairness over the broader economy.


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In the wake of plans to reopen the Palisades Nuclear Plant in Covert Township after three years of inactivity, major tech companies have pledged to triple global nuclear energy output by 2050.

The tech giants include Amazon, Google and Meta, signing the "Large Energy Users Pledge" at a major energy conference in Houston this month. The pledge backs development of small modular reactors for data centers and artificial intelligence but raises concerns over regulations and public opposition.

M. V. Ramana, professor of disarmament, global and human security at the University of British Columbia, a physicist and nuclear expert, said nuclear energy is environmentally risky and expensive, and despite the wealth of Big Tech, he pointed out, they will not be footing the bill.

"Much of the funding for any of these activities -- whether it's building new reactors or reopening old, shuttered reactors -- is coming from the public," Ramana emphasized. "Tax money that's going in, it'll be the ratepayers' money."

For Michigan's Indigenous communities opposed to nuclear expansion, it is much deeper than just a financial issue. They urged listening to the natural world and ancestral teachings rather than allowing outsiders to dictate their future. Supporters argued expansion is crucial for meeting energy demands and cutting carbon emissions.

Critics contended most small reactors exist only on paper. They have not been built or tested, so claiming they are safe for the public, or for powering artificial intelligence and data centers is merely theoretical. Ramana warned those critics, the tech giants backing a boost in nuclear energy will be tough to stand up against.

"It is going to increase the pressure on the Department of Energy to approve funds," Ramana observed. "Not that the DOE requires any kind of prodding, they are only too happy to shovel out our money to all of these nuclear companies."

Supporters maintained small modular reactors will be safer, more efficient, and tested for reliability in powering the energy-intensive industries using them.


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