WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) announced a landmark $180 million investment in clean energy systems and biofuel infrastructure through 586 projects across 42 states, Guam, Puerto Rico, and the U.S. Virgin Islands. This funding, provided under the Rural Energy for America Program (REAP) and the Higher Blends Infrastructure Incentive Program (HBIIP), aims to fortify rural economies, reduce energy costs, and support America’s transition to renewable energy.
The funding, supported by President Biden’s Inflation Reduction Act, represents the federal government’s largest-ever investment in combating climate change. It underscores efforts to create new economic opportunities for farmers, small businesses, and agricultural producers while bolstering energy independence.
“The Biden-Harris Administration is lowering costs and giving rural Americans the historic opportunity to expand clean energy,” said Agriculture Secretary Tom Vilsack. “These investments are building an economy that benefits working families while addressing the impacts of climate change and creating good-paying jobs.”
Clean Energy Investments
USDA is allocating $120 million to fund 516 projects under REAP. These grants enable farmers and rural businesses to transition to energy-efficient systems and adopt renewable energy technologies such as solar and wind power.
For instance:
- Wolfe Brothers Farms in Pennsylvania will use a $500,000 grant to install an energy-efficient grain dryer, cutting energy use by 60% and saving $103,000 annually.
- Rosewood Dairy Inc. in Wisconsin will upgrade to energy-efficient lighting, saving $18,000 on energy costs annually and reducing energy consumption by 60%.
- Dakota Prairie Pork LLC in South Dakota will install a solar array on its hog farm, slashing electric costs by $6,800 annually and reducing its environmental footprint.
These initiatives will benefit recipients in diverse locations including Alaska, Guam, and Puerto Rico, as well as numerous mainland states. REAP’s participation in the Justice40 Initiative ensures that marginalized communities disproportionately affected by pollution also benefit from this funding push.
Biofuel Infrastructure Expansion
Nearly $60 million is set aside through HBIIP to enhance biofuel accessibility nationwide. The program supports the installation of infrastructure such as fuel pumps and storage tanks to offer advanced biofuels, including ethanol and biodiesel, as cost-effective energy solutions.
Highlighted projects include:
- EZ Petroleum in California will retrofit fueling stations with new ethanol dispensers and storage tanks, increasing biofuel availability by over 391,000 gallons annually.
- Mas Fuel Distributors in Florida will upgrade infrastructure at three locations, boosting ethanol availability by almost 2 million gallons each year.
- Morning Star Station LLC in Iowa will expand biofuel capacity with additional dispensers and storage tanks, raising biofuel sales by 116,000 gallons annually.
These improvements will benefit consumers and businesses in 24 states, spanning from Florida and Texas to Minnesota and New York, demonstrating the program’s wide-reaching impact on U.S. energy markets.
Long-Term Impact
Since the start of the Biden-Harris Administration, USDA has directed more than $3 billion through REAP for over 11,000 projects while committing $323 million through HBIIP for nearly 400 biofuel infrastructure upgrades. Today’s announcement reinforces the administration’s commitment to climate resilience, rural development, and renewable energy leadership.
By combining innovation with focused investment, USDA’s efforts are reshaping the future of energy in rural America, fostering economic growth, and placing clean, affordable energy solutions within greater reach for rural communities nationwide.
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