USDA invests $464 million in renewable energy infrastructure

U.S. Department of Agriculture Secretary Tom Vilsack announced that the Department is investing $464 million to build or improve renewable energy infrastructure and to help agricultural producers, rural communities and businesses lower energy costs in 48 states and Puerto Rico.

“We [USDA] recognize that lowering energy costs for small businesses and agricultural producers helps to expand economic development and employment opportunities for people in America’s rural towns and communities,” Vilsack said.

Of the $464 million, $129 million is financed through the Rural Energy for America Program. This program provides funding to help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements. This funding will be for what is considered climate-smart projects. According to the USDA, “These climate-smart investments will conserve and generate more than 379 million kilowatt-hours (kWh) in rural America, which equates to enough electricity to power 35,677 homes per year.”

The remaining $335 million is financed through the Electric Loan Program. The loans will help build or improve 1,432 miles of line to strengthen reliability in rural areas. The loans include $102 million for investments in smart grid technology, which uses digital communications to detect and react to local changes in electricity usage

USDA provided the following examples of projects through this investment:

• In North Dakota, Red Trail Energy LLC will use a $25 million loan to build a carbon-capture processing and storage facility at an ethanol manufacturing facility. The project will provide a 40% to 50% reduction in the carbon intensity score of ethanol the company produces. It also will enable the company to distribute ethanol to low-carbon fuel standard markets.
• Prairie State Solar LLC will use a $95 million loan to construct a 99 megawatt solar photovoltaic farm on 621 acres in Perry County, Ill., about 50 miles southeast of St. Louis. Prairie State has a 27-year power purchase agreement with the Wabash Valley Power Association Inc. to sell and deliver the electricity produced. Wabash is an electric generation and transmission cooperative headquartered in Indianapolis. It provides wholesale power to 23 distribution cooperatives in Illinois, Indiana and Missouri.
• Gulf Coast Solar LLC in Mississippi will use a $500,000 grant to make energy efficiency improvements at three wastewater treatment facilities in Hancock County. Funds will help the company design, build and install fixed-tilt, ground-mount solar photovoltaic equipment through a contract with LightEdison. The equipment will help replace 103 percent of electricity at the North location, 57 percent of electricity at the South location and 107 percent of electricity at the West location.

To learn more about these and other resources for rural areas, contact a USDA Rural Development state office.