Projects Funded by President Biden’s Inflation Reduction Act Will Lower Costs and Create Revenue for Rural Business Owners and Farms
HILO, Hawaii Feb. 2, 2024 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA is investing $207 million in renewable energy and domestic fertilizer projects to lower energy bills, generate new income, create jobs, and strengthen competition for U.S. farmers, ranchers and agricultural producers. Many of the projects are being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis.
Four Hawaii business and farms will receive a total of $520,302 in REAP grants. The Department is awarding $207 million in 42 states for projects through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP).
Today’s announcement was made by Secretary Vilsack at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. This funding advances President Biden’s Investing in America and Bidenomics agenda to grow the nation’s economy from the middle-out and bottom up, create jobs and spur economic growth in rural communities by increasing competition in agricultural markets, lowering costs and expanding clean energy.
“President Biden and USDA are ensuring farmers, ranchers and small businesses are not only a part of the clean energy economy, but directly benefitting from it,” Secretary Vilsack said. “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.”
The REAP awards total $157 million for 675 projects in 42 states, including more than $94 million from President Biden’s Inflation Reduction Act.
The REAP program delivers on the President’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. These investments will cut energy costs for farmers and ag producers that can instead be used to create jobs and new revenue streams for people in their communities.
In Hawaii:
- A $388,667 grant will allow Hualua Farm LLC to install a 246-kilowatt (kW) DC solar photovoltaic system in Hawi on the Big Island of Hawaii. This project is estimated to generate 422,591 kilowatt hours (kWh) and replace an on-site energy usage through a net-metering agreement planned with a utility company.
- Garden Island Dental LLC will get a $28,511 grant to help Garden Island Dental LLC install a 14.4 kilowatt (kW) renewable energy solar project. The business is in Lihue, Kauai and will generate 20,773 kilowatt hours (kWh) for a cost savings of $9,221 annually.
- A $23,124 grant will be used to help Johnny V Enterprises purchase and install a 6.56 kilowatt (kW) off-grid photovoltaic system for a coffee stand and agricultural building in Hana, Maui. The project is expected to provide 5,840 kilowatt hours (kWh) a year or 101 percent of their energy needs.
- Molokai Sea Farms will get an $80K grant to install a 29.520 kilowatt (kW) solar power system to include 72 solar panels for a shrimp farm in Kaunakakai on the Island of Molokai. The system is estimated to generate 49,000 kilowatt hours (kWh) per year and replace energy usage from a utility company to ultimately being off grid.
USDA is making the REAP and FPEP awards in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and West Virginia.
Since the start of the Biden-Harris Administration, USDA has invested more than $1.6 billion through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners lower energy costs, generate new income, and strengthen their resiliency of operations.
Background
The Rural Energy for America Program (REAP) provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs for American families.
USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.
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