USDA also opens applications for $600 million in additional funding for farms, small business owners through the Rural Energy for America Program
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today (Oct 18) announced during a visit to Pennsylvania that USDA is partnering with farmers and small business owners to expand access to clean energy, create jobs and help lower their energy bills through the Rural Energy for America Program (REAP) and the Empowering Rural America (New ERA) program. This funding includes 654 grants that will help small businesses and farms across the country implement cost-saving, clean, efficient energy systems on their properties, in addition to a $20.5 million grant that will help Allegheny Electric Cooperative meet over 80% of its power requirements from carbon-free resources by 2026.
More than 600 of the funded projects under both programs announced today are made possible by President Biden's Inflation Reduction Act, the nation's largest-ever investment in combating the climate crisis. They also advance the President's Investing in America agenda to grow the nation's economy from the middle out and bottom up.
"For far too long, rural communities throughout America did not receive the resources they deserve. That is why President Biden and I worked to increase investments in these communities from supporting their small businesses, to targeting resources toward their health care, education, and economic well-being," said Vice President Harris. "These new awards for rural electric cooperatives, farmers, and small business owners will build on this work by creating jobs, generating business opportunities, and ensuring that residents of rural communities from Pennsylvania to Michigan to Idaho have access to affordable, clean, and reliable energy. We are committed to making sure that rural communities have the resources they need to thrive."
"Farmers, rural business owners and electric cooperatives are the backbone of our economy, and we are partnering with them to expand their operations while creating jobs and lowering energy costs," Secretary Vilsack said. "The investments the Biden-Harris Administration are announcing today will support rural communities as they transition to clean energy and drive economic prosperity here in Pennsylvania and across this nation."
Through REAP, USDA partners with agricultural producers and small businesses to lower business costs through clean energy and energy efficiency systems. The New ERA program provides funding to member-owned rural electric cooperatives to transition to clean energy, keeping electricity costs low for hardworking families, farmers and small business owners and preventing power outages in the face of extreme weather exacerbated by the climate crisis. Secretary Vilsack also announced the availability of an additional $600 million in REAP funds that farmers and small businesses can apply for by March 31, 2025.
New ERA Investment Expands Clean Energy for Rural Households in Pennsylvania and New Jersey
Through the New ERA program, USDA is investing $20.5 million in Allegheny Electric Cooperative. This award will help reduce energy costs and secure reliable, clean energy for rural residents in Pennsylvania and New Jersey.
The funding is expected to support the cooperative's investment in 25 megawatts of clean energy, which will help serve the electricity needs of approximately 235,000 households served by Allegheny's 14-member electric distribution cooperatives.
In addition to lowering costs for rural households, the New ERA grant will allow Allegheny to meet over 80% of its power requirements from carbon-free resources by 2026. This will mean a reduction of nearly 100,000 tons of climate pollution annually, or the equivalent of providing electricity for nearly 18,000 homes.
This Biden-Harris Administration New ERA opportunity to invest in more affordable, clean energy resources will make Allegheny one of the cleanest, most carbon-free generation and transmission cooperatives in America.
REAP Investments Lower Costs and Create Jobs
In addition, USDA is investing $126 million in REAP grants that will support 654 clean energy projects in 39 states, Guam and Puerto Rico. This includes $24 million in grants that will finance 112 clean energy projects in Pennsylvania.
Since the start of the Biden-Harris Administration, USDA has invested $66.8 million through REAP in Pennsylvania through 475 awards that directly serve farmers and rural small businesses across the state. Nationally, USDA has invested more than $2.4 billion in approximately 8,500 renewable energy and energy efficiency improvements since President Biden took office. This includes more than 3,000 clean energy projects totaling more than $800 million which were made possible because of President Biden's Inflation Reduction Act.
The investments announced today will help make it possible for agricultural producers and rural small business owners to expand their use of wind, solar, geothermal and small hydropower energy and make energy efficiency improvements.
These innovations will help them increase their income, grow their businesses and address climate change while lowering energy costs for American families.
For example, Farmer Boy Ag Inc. in Pennsylvania will use a nearly $294,000 grant to install a solar photovoltaic system for its agricultural supply and construction company. This project is expected to save the business more than $35,000 per year.
Additional examples are below.
- Veddler Dairy Farm Inc. in Michigan will use a grant of more than $813,000 grant to purchase and install a solar photovoltaic system, saving them nearly $107,000 per year.
- Glen Lehner Farms LLC in Ohio will use a grant of nearly $250,000 to install an energy efficient grain dryer. The project is expected to save the farm nearly $30,000 in annual energy costs and offset 57% of the farm's annual energy consumption.
- Poteet Farms Inc., a family-owned farm in Idaho, will use a grant of more than $555,000 to go solar. The project is expected to save Poteet Farms more than $56,000 per year.
The awards will benefit people in Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Washington, Wisconsin, West Virginia, Guam and Puerto Rico.
REAP Inflation Reduction Act Funding Availability
As part of today's announcement, USDA will make available an additional $600 million across three funding rounds from now until 2027.
During each funding round, the Department expects to make available $180 million in general REAP funding and $20 million in set-aside funding for underutilized renewable energy technology.
These funds are made possible by President Biden's historic Inflation Reduction Act and will be the final REAP funding availability from this legislative package.
USDA is accepting applications in this first round through two windows. The deadlines to apply are Dec. 31, 2024, and March 31, 2025.
Both REAP and the New ERA Program are a part of the President's Justice40 Initiative, which sets a goal that 40% of the benefits from certain federal investments go to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
For additional information about the REAP funding availability, see page 83449 of the Oct. 16 Federal Register.
Under the Biden-Harris Administration, USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. For more information, visit www.rd.usda.gov. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America's food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
USDA is an equal opportunity provider, employer, and lender.
