Efforts to bring more affordable solar energy to two Nebraska communities could be in jeopardy if a federal grant is rescinded. South Sioux City and the Village of Walthill are among several communities planning local solar projects with support from a $62 million EPA grant awarded to the Center for Rural Affairs in 2024 through the national “Solar for All” program. That initiative, part of the $27 billion Greenhouse Gas Reduction Fund created by the Inflation Reduction Act, was designed to help low-income and underserved communities access clean energy, reduce utility bills, and cut emissions.
South Sioux City officials have been accepting contractor bids to build a roughly 2.3-megawatt solar array, intended to supply around 5% of the city’s electricity needs. City Administrator Lance Hedquist says they’ve requested about $1 million from the grant program to cover project costs, with 60% as a grant and 40% as a loan. Without the funding, the city would be unable to move forward, despite its strong commitment to renewable energy. Currently, 51% of South Sioux City’s electricity comes from renewable sources.
Meanwhile, in Walthill, where half the residents are classified as low- to moderate-income, the village aims to expand a small solar demonstration project. Economic development specialist Kevin Connot says the project would provide fixed, affordable rates for 25 years—critical in a community where many struggle with high energy burdens.
However, the New York Times reported this week that the Trump administration may cancel all 60 “Solar for All” grants nationwide, totaling $7 billion. While the EPA says no final decision has been made, the Center for Rural Affairs says the funds are contractually obligated and should not be affected by repeal legislation targeting unobligated funds.
With more than $20 million in projects already in the pipeline and strong community interest across the state, Center for Rural Affairs Executive Director Brian Depew says it would be “really unfortunate timing” if the grants were revoked now. He and other local leaders are urging Nebraska’s congressional delegation to step in and protect the funding.
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