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Rural AZ hotel's solar installation in limbo after federal funding freeze

Last September, The Pines Inn and Suites in Cottonwood was able to cover 70% of the business' solar-installation cost with a $32,000 reimbursement from REAP and $23,000 from the renewable energy Investment Tax Credit.
Anna May Cory
Last September, The Pines Inn and Suites in Cottonwood was able to cover 70% of the business' solar-installation cost with a $32,000 reimbursement from REAP and $23,000 from the renewable energy Investment Tax Credit.

Alex Gonzalez

Small businesses in Arizona are feeling the impact of the sudden federal pause on clean-energy grants. One of those businesses is the Pines Inn and Suites in Cottonwood.
The business was able to cover a hefty chunk of the first phase of its solar-installation cost with help from the Rural Energy for America Program, or REAP. It also received assistance from the renewable-energy Investment Tax Credit thanks to the Inflation Reduction Act.

Corey Bruening and his wife are part owners and general managers at the hotel. Bruening said they haven't been able to move forward with the second phase of the project.

"Our plans for what we would improve on our property have halted," said Bruening, "because we were kind of hoping that we would still have the budget to do those things."

Bruening said they were recently contacted by the U.S. Department of Agriculture, which said all new project applications have stopped. They're also currently reviewing existing ones to see if they align with the new administration's guidelines. On his first day in office, President Donald Trump signed an executive order that froze the distribution of IRA funds for clean energy and the bipartisan infrastructure law. That was later overruled by a federal judge that demanded payments be restored. Bruening said he is concerned about if and when they'll be able to finish their project.

Arizona has received more than $14 million in REAP grants and loans that have come from the IRA. For Bruening and his family, it has always been important to want to improve the vitality and resiliency of the Verde Valley, which he said is now being put in jeopardy.

"The solar installer for us has now just said that they've stopped taking applications," said Bruening.

"Like, all the application processes have stopped, and he is not recommending that they apply to new ones because that whole program has been stopped."

Bruening clarified that through REAP, beneficiaries receive financial assistance, but still must pay for the installation of their projects. He said the help provided through the program allows farmers and small businesses such as his the opportunity to entertain investments that otherwise would be out of reach.

Arizona News Connection - a bureau of the Public News Service
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