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USDA Invests $285 Million in Critical Infrastructure to Combat Climate Change Across Rural America

Name
Jessica Duerstine
City
WASHINGTON
Release Date

 Department Makes Funding Available Under the Inflation Reduction Act to Expand Renewable Energy in Rural Communities

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced USDA is investing $285 million in critical infrastructure to lower energy costs, expand access to clean energy for people across rural America, and combat climate change. Secretary Vilsack also announced the Department will be making an additional $300 million available for the Rural Energy for America Program in the coming days, $250 million of which was made possible by President Biden’s historic Inflation Reduction Act. In Delaware and Maryland, a total of $699,363 is being invested in 12 local projects.
“People in rural America are on the front lines of climate change, and our communities deserve investments that will strengthen our Country’s resilience,” Vilsack said. “President Biden has created a roadmap for how we can tackle the climate crisis and expand access to renewable energy infrastructure, all while creating good-paying jobs and saving people money on their energy costs. These investments underscore the Biden-Harris administration’s commitment to providing funding and resources to rural people and communities across the country to help drive economic security and prosperity.”
USDA is making 844 investments through the Rural Energy for America Program. This program helps farmers, ag producers and entrepreneurs purchase and install renewable energy systems and make energy efficiency improvements. It reflects the many ways USDA Rural Development helps agricultural producers and rural small businesses lower energy costs. 
“Making a transition to clean energy not only addresses climate change, but also provides a way for rural America to manage energy costs,” said USDA Rural Development State Director for Delaware and Maryland, David Baker. “I’m pleased that Rural Development’s Rural Energy for America Program has invested nearly $700k to 12 businesses and farms within our states to help them find solutions for their energy needs.”
In Delaware and Maryland, a total of $699,363 is being invested in 12 local projects:

  • J & S Equipment Inc. will use a $14,713 grant to purchase and install a 26-kilowatt (kW) roof mounted solar system. J & S Equipment is a trailer and equipment retail business located in Laurel, Delaware. The new system is expected to save the business $1,275 in electrical costs per year.
  • John Brown will use a $20,000 grant to purchase and install a 57-kilowatt (kW) ground-mounted solar system. Brown operates an organic poultry farm in Harrington, Delaware. The new system is an expansion and is expected to save the farm $6,022 in electrical costs per year. Brown was previously awarded $43,525 in Rural Development grants.
  • Acumen Squared LLC will use a $31,426 grant to purchase and install a 61-kilowatt (kW) roof mounted solar system. Acumen Squared is a real estate lessor of nonresidential buildings. The system will be installed on a building leased by Sound FX, an automobile customization business. The new system is expected to save the company $13,169 in electrical costs per year. It will replace 77,467 kilowatt hours (kWh) (100 percent of the company's energy use) per year, which is enough to energy to power seven homes.
  • Dr AB Properties Inc. will use a $22,680 grant to purchase and install a 45-kilowatt (kW) roof-mounted solar system. Dr AB Properties Inc. is a retail business in Greenwood, Delaware. The new system is expected to save the company $14,486 in electrical costs per year. It will replace 53,041 kilowatt hours (kWh) (51.26 percent of the company's energy use) per year.
  •  Atlantic Aluminum Products Inc. will use a $101,309 grant to purchase and install a 261-kilowatt (kW) ground-mounted solar system. Atlantic Aluminum Products Inc. is a fabrication and installation of commercial aluminum railing systems business in Greenwood, Delaware. The new system is expected to save the company $29,969 in electrical costs per year. It will replace 334,088 kilowatt hours (kWh) (110.4 percent of the company's energy use) per year, which is enough energy to power 31 homes.
  • Carey Farms LLC will use a $16,576 grant to purchase and install a new, energy efficient grain dryer. Carey Farms is a family-owned farm in Frostburg, Maryland that grows and sells corn and soybeans. This project is expected to save $15,544 per year. It will replace 234,701 kilowatt hours (kWh) (46 percent of the farm's energy use) per year.
  • Eagle Transfer Services Inc. will use a $25,000 grant to purchase and install a 63-kilowatt (kW) ground-mounted solar system. Eagle Transfer Services is a trash removal business in Finksburg, Maryland. The new system is expected to save the company $9,201 in electrical costs per year. It will replace 70,778 kilowatt hours (kWh) (109 percent of the company's energy use) per year, which is enough energy to power six homes.
  • Patriot Steel Fabrication Inc. will use a $64,050 grant to purchase and install a 142-kilowatt (kW) roof-mounted solar system. Patriot Steel Fabrication Inc. is a metal fabrication business in Church Creek, Maryland. The system is expected to save the company $11,300 in electrical costs per year and replace 154,802 kilowatt hours (kWh) (109.59 percent of the company's energy use) per year, which is enough energy to power 14 homes.
  • Baugher Enterprise will use an $88,286 grant to purchase and install a 773-kilowatt (kW) ground-mounted solar system. Baugher Enterprise is a family-owned fruit and vegetable orchard in Westminster, Maryland. The new system is expected to save the farm $132,883 in electrical costs per year and replace 1,107,360 kilowatt hours (kWh) (94.3 percent of the company's energy use) per year, which is enough energy to power 102 homes.
  • Gratia Plena LLC will use a $115,371 grant to purchase and install a 249-kilowatt (kW) ground-mounted solar system. Gratia Plena LLC is a meat, egg and crop farm in Ellicott City, Maryland. The new system is expected to save the company $40,228 in electrical costs per year. It will replace 338,681 kilowatt hours (kWh) (101.03 percent of the company's energy use) per year, which is enough energy to power 31 homes.
  • Dell Brothers Inc. will use a $93,243 grant to purchase and install a 203-kilowatt (kW) roof-mounted solar system. Dell Brothers Inc. is a family-owned grain farm in Westminster, Maryland. The new system is expected to save the farm $24,700 in electrical costs per year. It will replace 249,060 kilowatt hours (kWh) (121 percent of the company's energy use) per year, which is enough energy to power 23 homes.
  • Berrywine Plantations Inc. will use a $106,709 grant to purchase and install a 252-kilowatt (kW) ground- and roof-mounted solar system. Berrywine Plantations is a family-owned winery in Mount Airy, Maryland that started in 1972. The new system is expected to save the farm $132,883 in electrical costs per year. It will replace 1,107,360 kilowatt hours (kWh) (94.3 percent of the company's energy use) per year, which is enough energy to power 102 homes.

USDA also announced today that it will make $300 million available under the Rural Energy for America Program to expand renewable energy and support energy-efficiency projects for people living in rural America. This funding includes $250 million provided by the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act. The deadline to apply for grants is March 31, 2023. Applications for technical assistance grants are due Jan. 31, 2023. Applications for loan guarantees are accepted year-round.
Interested applicants are encouraged to contact their local USDA Rural Development State Energy Coordinator well in advance of the application deadlines to discuss their project and ask any questions about the REAP program or the application process. Additional information on the required materials and how to apply for the REAP program are available in the Dec 15, 2022, Federal Register.
Background: 
The Rural Energy for America Program investments announced today reflect the goals of the Biden-Harris Administration’s Inflation Reduction Act.
In August, Congress passed the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act (IRA) to reduce energy costs for families and create thousands of good-paying jobs for people across rural America. IRA represents the largest single investment in rural electrification since the passage of the Rural Electrification Act in 1936.
The Act provides funding to USDA Rural Development to help eligible entities purchase renewable energy and zero-emission systems and make energy-efficiency improvements that will significantly reduce greenhouse gas emissions. For example, it provides:

  • Up to $1 billion for RUS loans for renewable energy infrastructure; up to $2.025 billion for the RBCS Rural Energy for America Program (REAP), with $303 million set aside for underutilized technologies and technical assistance.
  • Up to $500 million in RBCS grants for infrastructure improvements to blend, store or distribute biofuels. This includes installing, retrofitting or upgrading dispensers for ethanol at retail stations as well as home heating oil distribution centers.
  • Up to $9.7 billion for RUS to offer loans, grants, loan modifications and other financial assistance to support the purchase of renewable energy systems, zero-emission systems and carbon capture systems.

This commitment to cleaner energy will help USDA Rural Development provide resources to reduce climate pollution and ensure that rural people and their communities have access to a clean, secure energy supply to keep people and economies prepared for the future.
Under the Biden-Harris Administration, 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. If you’d like to subscribe to USDA Rural Development updates, visit our 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, ensuring access to 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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