NASHVILLE, Tenn., June 26, 2024 – U.S. Department of Agriculture (USDA) Tennessee State Director Arlisa Armstrong today announced that USDA is partnering with American Green Fuels Rockwood Tennessee on a clean energy project to lower energy bills and expand access to clean energy. This is only one of hundreds of projects being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis. USDA also unveiled the “Rural Energy Resource Guide” to make it easier for rural communities to identify federal funding for clean energy, including programs made possible by President Biden’s historic Inflation Reduction Act.
The projects advance President Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up. They will create jobs and spur economic growth in rural communities through clean energy projects that lower energy costs for agriculture producers and rural small businesses and families.
“USDA’s Rural Energy for America Program helps agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements. This program powers people with modern, renewable infrastructure and supports opportunities for people to drive economic prosperity and security,” Armstrong said. “We are excited to partner with American Green Fuels Rockwood Tennessee and reinforce our commitment to strengthen energy security by increasing access to affordable and reliable renewable energy.”
In all, USDA is providing more than $375 million in funding through the Rural Energy for America Program (REAP) and the Powering Affordable Clean Energy Program (PACE). Both of these programs are part of the President’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.
Background: REAP
USDA Secretary Tom Vilsack announced nearly $100 million in loans and grants through REAP to support 473 projects in 39 states and Puerto Rico.
The REAP program helps agricultural producers and rural small business owners expand their use of wind, solar, geothermal and small hydropower 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.
These investments will cut energy costs for family farms and other businesses, increasing their resiliency and allowing them to invest back into their communities by creating new jobs and other opportunities. In Tennessee:
- American Green Fuels Rockwood Tennessee LLC will use a $13,571 grant to develop an energy efficiency system improvement for their operations. American Green Fuels Rockwood Tennessee LLC, a world-class biodiesel producer, will use funds to replace current fluorescent lighting with LED lights to improve operational efficiency and working conditions. This project will save the business $10,464 per year and will replace 148,038 kilowatt hours (kWh) (55 percent) per year, which is enough electricity to power 164 homes.
USDA is making the REAP awards in Alaska, Alabama, Arkansas, Arizona, California, Colorado, Delaware, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Missouri, Mississippi, Montana, North Carolina, North Dakota, New Hampshire, New Mexico, Nevada, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Vermont, Washington, West Virginia, Wyoming and Puerto Rico.
Since the start of the Biden-Harris Administration, USDA has invested more than $2.1 billion through REAP in 7,216 renewable energy and energy efficiency improvements that will help rural business owners lower energy costs, generate new income, and strengthen their resiliency of operations.
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, contact a local energy coordinator.
A complete list of all REAP projects can be found online.
Background: PACE
Vilsack announced more than $275 million to rural electric cooperative projects moving forward in the awards process through the Powering Affordable Clean Energy program to expand access to clean energy for communities in Alaska, Arizona, Kentucky and Nebraska.
By using renewable energy from natural sources such as the sun and wind, the projects will make it more affordable for people to heat their homes, run their businesses and power cars, schools, hospitals and more.
In May 2023, Congress made $1 billion available through PACE to fund new clean energy projects and energy storage in rural America. The program provides low interest loans with up to 60% loan forgiveness to renewable energy developers, rural electric cooperatives and other rural energy providers for renewable energy storage and projects that use wind, solar, hydropower, geothermal and biomass. Prior to today’s announcement, Secretary Vilsack announced five PACE applications totaling $139 million moving forward at the National Rural Electric Cooperative Association’s PowerXchange annual meeting in San Antonio, Texas in March 2024. Earlier this month, Secretary Vilsack announced two more projects in Colorado totaling more than $81 million.
USDA expects to continue making Powering Affordable Clean Energy awards in the coming months.
Background: Rural Energy Resource Guide
Today, USDA also unveiled the “Rural Energy Resource Guide” which will make it easier for rural communities to identify federal funding for clean energy, including programs made possible by President Biden’s historic Inflation Reduction Act.
The guide showcases USDA Rural Development programs that are helping individuals and organizations finance renewable energy systems and infrastructure across rural America. Programs featured in the guide offer funding to:
- Make energy-efficient home repairs.
- Finance small- or large-scale energy infrastructure.
- Fund energy efficiency equipment for business and industry.
- Generate emergency energy in rural areas.
- Produce clean energy from sources such as biobased materials.
The Rural Energy Resource Guide also includes stories from Rural Development customers on ways USDA programs and services have helped them meet their clean energy needs.
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. 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.
###