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USDA Announces Additional $104 Million in REAP Loans and Grants

USDA

Somerset, Pa., Oct. 3, 2024 – U.S. Department of Agriculture (USDA) Deputy Secretary Xochitl Torres Small announced today that USDA is partnering with farmers and small businesses to expand access to clean energy and lower energy bills through the Rural Energy for America Program (REAP).

“As drivers of our economy, farmers and rural business owners deserve affordable energy,” Deputy Secretary Torres Small said. “That’s why, as part of the Biden-Harris Administration’s Investing in America Agenda, I’m proud to announce an additional $104 million in REAP loans and grants that will lower energy costs for farmers and small business and help them expand their operations, all while tackling climate change.”

Today, USDA is investing $104 million in loans and grants that will support over 300 clean energy projects in 34 states. Many of the projects are funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis. The projects also advance President Biden’s Investing in America Agenda to grow the nation’s economy from the middle out and the bottom up.

Since the start of the Biden-Harris Administration, USDA has invested more than $2.3 billion through REAP in 7,923 renewable energy and energy efficiency improvements. REAP enables agricultural producers and rural small business owners to 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 and address climate change while lowering energy costs for American families.

Here are examples of the awards being announced today:

  • In Pennsylvania, Schrack Farms Resources LP, an 11th generation farm, will use a grant of approximately $479,000 to replace the engine to its anaerobic digester. The project is estimated to generate 2.7 million kilowatt hours (kWh) per year, which is enough energy to power 252 homes.
  • In Alaska, Koniag Inc. will use a grant of approximately $248,000 to install air-source heat pumps at the Kodiak Brown Bear Center near Karluk, which will replace imported diesel fuel with electrical heating powered by renewable energy. The project is expected to save more than $54,000 annually and will replace 96% of the facility’s energy use. It will benefit a community participating in the Biden-Harris Administration’s Rural Partners Network.
  • In Arkansas, Community Venture Foundation will use a $250,000 grant to provide REAP application assistance to agricultural producers and rural small businesses in all 75 counties in Arkansas.
  • In Kansas, Holton Meat LLC will use a nearly $25,000 grant to purchase and install a walk-in cooler for its meat processing facility. This project is expected to save approximately 78,000 kWh annually, which is enough energy to power seven homes.

The awards will benefit people in Alabama, Alaska, Arkansas, Colorado, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Minnesota, Missouri, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington, Wisconsin and Wyoming.

USDA continues to accept REAP applications and has set aside a portion of the program funds to support underutilized renewable energy technologies, like wind and geothermal power. For additional information, contact a local energy coordinator.

A complete list of all REAP projects is available online.

USDA Rural Development provides loans and grants to expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. REAP is a part of the President’s Justice40 Initiative which sets a goal that 40% of the benefits from certain federal investments go to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. USDA Rural Development 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.