PHOENIX, Jan. 25, 2024 – U.S. Department of Agriculture (USDA) Rural Development Arizona State Director Charlene Fernandez today announced $2,561,291 in funding through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP) to lower energy bills, generate new income, create jobs, and strengthen competition for four rural Arizona businesses. The projects are being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis.
“The latest round of funding for projects in rural Arizona is a win for our most vulnerable communities,” State Director Fernandez said. “Farmers and small businesses are the backbone of rural areas in Arizona, and President Biden and USDA are ensuring investment in these critical areas. New efforts to address the climate crisis and protect rural resource are all made possible by this historic legislation. Everywhere you look, you can see our commitment in making rural Arizona a priority."
Today’s REAP awards across Arizona total $303,822 for three projects. These investments will serve disadvantaged communities marginalized by underinvestment and overburdened by pollution, cutting energy costs for these business owners that can instead be used for new revenue streams for people in their communities.
- In Northern Arizona, a grant to Junction Enterprise Inc. for $148,647 will install a 120-kilowatt solar photovoltaic (PV) system that will produce 187,723 kilowatt hours per year, which is enough energy to power 26 homes. The PV system is expected to save the business $27,521 annually.
- JB Well Inc. in Colorado City, Arizona will use a $99,727 grant to install a 17.8-kilowatt solar PV system that will save $2,043 per year. It will also save the business 31,096 kilowatt hours per year, which is enough energy to power four homes.
- Richard Hammon, a rural metal and auto shop owner in Mohave County, Arizona received $55,448 to install a 19.8-kilowatt solar PV system that will run the business and save $2,791.47 and 33,936 kilowatt hours annually.
In Arizona’s Maricopa County, Heliae Development LLC received $2,257,469 in FPEP funding to help increase weekly, domestic fertilizer production from 8,000 to 10,500 gallons, reducing cost to the consumer. The award will increase production capabilities to support the manufacturing of a new algae-based soil amendment and seed treatment. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for rural businesses, and support climate-smart innovation.
Since the start of the Biden-Harris Administration, USDA has invested more than $166 million in 40 projects nationwide to boost domestic fertilizer production through FPEP. During that same time, USDA has invested more than $1.6 billion nationwide through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners.
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.
The Fertilizer Production Expansion Program (FPEP) provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more. Funding helps boost domestic fertilizer production, strengthen competition and lower costs for U.S. farmers.
The Biden-Harris Administration and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors. Factors included the war in Ukraine, a lack of competition in the fertilizer industry, and more.
FPEP is part of a broader effort to help producers boost production and address global food insecurity. It is also one of many ways the Administration is promoting fair competition, innovation and resiliency across food and agriculture while combating the climate crisis.
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.
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