NASHVILLE, Tenn., Aug. 30, 2023 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is awarding $266 million in loans and grants to agriculture producers and rural small businesses to make investments in renewable energy and energy efficiency improvements that will lower their energy costs, generate new income, and strengthen the resilience of their operation. This funding is made possible in part by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis. Tennessee Rural Development State Director Arlisa Armstrong is pleased to announce more than $1 million in investments will benefit rural Tennessee.
“The Biden-Harris Administration’s commitment to investing in America has made great strides throughout rural Tennessee,” Armstrong said. “We are excited to be partnering with more than 15 rural businesses owners and farmers. Today’s investments will help them lower their energy costs and increase economic development in our rural communities.”
USDA is investing $266 million in 1,334 renewable energy and energy-efficiency projects in 47 states, Guam and Puerto Rico. The Department is awarding the loans and grants through the Rural Energy for America Program (REAP), including funding from the landmark Inflation Reduction Act.
Since December 2022, USDA has made up to $1.3 billion available in REAP funding through the Inflation Reduction Act. Eligible applicants include rural small business owners and agricultural producers. The program is part of the Justice40 Initiative, which is working to ensure that 40 percent of the benefits of certain federal investments reach communities that are marginalized, underserved and overburdened by pollution and underinvestment.
The funding announced today is part of President Biden’s Investing in America agenda, a key pillar of Bidenomics, to grow the American economy from the middle-out and bottom up – from rebuilding our nation’s infrastructure, to driving over $500 billion in private sector manufacturing and clean energy investments in the United States, to creating good-paying jobs and building a clean-energy economy that will combat climate change and make our communities more resilient.
In Tennessee:
- The University of Memphis will use a $99,943 grant to provide energy audits for rural small businesses and agricultural producers throughout five states within a 200-mile radius of the Mid South Region by the University of Memphis. By completing the audits, the higher education institution is expected to deliver energy usage reporting that can be used to seek better energy practices by audit recipients.
- MECO Corporation will use a $240,850 grant to make energy efficient hydraulic press equipment upgrades to their existing manufacturing facility. MECO Corporation, an existing metal fabrication and manufacturer, is expected to save $34,944 dollars per year, and will save 291,269 kilowatt hours (kWh) annually which is enough energy to power 28 homes.
- YAPP USA Automotive Inc. will use a $61,459 grant to assist with upgrading heating, ventilation, and air conditioning pump and fan motors in its facility. Yapp USA Automotive, an injection mold design and manufacturer for automotive fuel systems, is expected to save $77,561 per year and replace 520,812 kilowatt (kWh). That is enough energy to power 48 homes.
- Lebanon Distributing Company Inc. will use a $28,000 grant to provide funding to install a 44kW roof mounted solar system. Lebanon Distributing Company, Inc, a hardware retail company in Lebanon, Tennessee, is expected to save $6,265 per year. It will replace 53,464 kilowatt hours (kWh) per year, which is enough energy to power four homes.
USDA is making awards in Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, Nebraska, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West Virginia, Wyoming, Guam and Puerto Rico.
The Department expects to make additional awards in the coming months.
USDA continues to accept applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes $144.5 million for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.
Background: Inflation Reduction Act
As a core pillar of Bidenomics and the President’s Investing in America agenda, the Inflation Reduction Act makes the largest investment in climate action in history and is lowering energy costs, bringing opportunity to communities across America and tackling the climate crisis through investments in agriculture, forest restoration, and rural communities.
The Biden-Harris Administration championed the Inflation Reduction Act to help provide new funding and unprecedented incentives to expand clean energy, transform rural power production, create jobs and spur economic growth. It is the largest single investment in rural electrification since the Rural Electrification Act of 1936.
Through the Inflation Reduction Act, the Administration is delivering on its promise to fight climate change and reduce greenhouse gas emissions across America.
It provides funding to USDA Rural Development to help eligible organizations invest in renewable energy infrastructure and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions.
It will boost the long-term resiliency, reliability and affordability of rural electric systems. It will help families save money on utility bills, and it will expand rural opportunities in the clean-energy economy.
For more information on the Inflation Reduction Act, visit: https://www.rd.usda.gov/inflation-reduction-act.
To learn more about investment resources for rural areas, visit www.rd.usda.gov or contact the nearest USDA Rural Development state office.
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. For more information, visit www.rd.usda.gov.
To subscribe to USDA Rural Development updates, visit GovDelivery subscriber page.
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