With air quality an ongoing concern in New Madrid County, advocates are encouraging the local electric provider to seek federal funding.
In recent weeks, Gov. Mike Parson vetoed a bill that would have provided an $8.5 million no-interest loan to Magnitude 7 Metals, an aluminum smelter in New Madrid County. This loan would have given Magnitude 7 the capital to make Environmental Protection Agency-mandated improvements to address air quality.
The facility is located next to the coal-fired New Madrid Power Plant, operated by Associated Electric Cooperative. Air quality monitoring has shown sulfur dioxide concentrations in the area to be many times greater than the EPA’s safe standard.
James Owen, executive director of the nonprofit Renew Missouri, said that in light of the loan veto, the electric provider should seek federal funds to invest in clean-energy production. “One of the solutions could be for the utility company that provides service to these areas to obtain resources from the federal government to invest in clean, affordable energy, which would help lower the bills for Magnitude 7 Metals,” Owen suggested.
Both Magnitude 7 and the coal plant emit sulfur dioxide. Owen pointed out that federal funds from the Inflation Reduction Act could help improve air quality at the site if the electric co-op retired the coal plant in favor of a cleaner-energy generation facility.
Advocates suggest the electric co-op can apply for federal funds through the Energy Department’s PACE program or the Agriculture Department’s Empowering Rural America grant program. The latter program opens today and accepts letters of interest through Sept. 15.
Owen encourages co-op member-owners to become active in the effort. “Currently, Missouri has the second-dirtiest rural electric cooperative system in the country, trailing only Texas, which is also coal-reliant,” Owen stressed. “There are opportunities for them to transition from coal sources to clean energy. They need to hear from their member-owners, and their customers, and be encouraged to seize this opportunity.”
Magnitude 7 Metals is the largest electric consumer in the state and a significant employer in the region, providing more than 400 jobs at the facility.
Owen believes that lowering energy costs would benefit both Magnitude 7 and the average Missourian. “This is one of the most significant fixed costs and variable costs in both household and business budgets,” Owen explained. “We should explore all available resources to reduce this cost, as it will positively impact the broader economy.”
He emphasized that when considering a transition to clean energy production, it should be viewed as an economic development opportunity.
