Today, on the second anniversary of President Biden’s Inflation Reduction Act, U.S. Department of Agriculture Secretary Tom Vilsack announced that USDA is funding 160 projects in 26 states to expand access to clean energy systems and increase the availability of domestic biofuels that will create new market opportunities and jobs for U.S. farmers, ranchers and agricultural producers.
USDA is providing $99.6 million through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Rural Energy for America Program (REAP) with funding from President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis. To date, USDA has invested more than $600 million from the Inflation Reduction Act for more than 4,500 clean energy projects through REAP, and more than $180 million in more than 200 projects that increase availability of domestic biofuels across the country.
Secretary Vilsack made today’s announcement during his visit to Minnesota, which included an Investing in the American Bioeconomy discussion at the University of Minnesota and a visit to The Corner Store in Inver Grove Heights, which is receiving a $518,250 HBIIP grant to create infrastructure to expand the sales and use of renewable fuels. This project will install four E15 dispensers, four E85 dispensers, and two ethanol storage tanks at this fueling station. This project projects to increase the amount of ethanol sold by 506,100 gallons per year.
Also in Minnesota, USDA is awarding $9.2 million in REAP grants to 71 projects across the state. This program helps farmers and small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. For example:
- In Longville, Raveling Outdoors, LLC will use a $59,475 REAP grant to install a 45-kilowatt solar array for the company’s boat construction business. This project is expected to save the business nearly $9,000 in electrical costs per year and replace 52,000 kilowatt hours of electricity annually.
- In Waltham, Moe Family Farm LLC will use a $10,812 REAP grant to install an energy efficient shop heater. This project is expected to save the business $1,000 in electrical costs per year and replace 37,300 kilowatt hours of electricity annually.
The REAP program will advance the Biden-Harris Administration’s Justice40 Initiative, which aims to ensure 40% of the overall benefits of certain federal climate, clean energy and other investment areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
As part of today’s announcement, USDA is also awarding $90.3 million in HBIIP grants to 89 projects in 26 states. These investments will help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks. They will also spur economic growth in rural communities by increasing competition in agricultural markets and lowering costs through clean energy projects.
USDA news release
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