On August 16, 2024, on the second anniversary of President Biden’s Inflation Reduction Act (IRA), US Department of Agriculture (USDA) Secretary Tom Vilsack announced that USDA is funding 160 projects in 26 states to expand access to clean energy systems and increase the availability of domestic biofuels that will create new market opportunities and jobs for American farmers, ranchers, and agricultural producers.
USDA is providing a total of US$99.6 million through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Rural Energy for America Program (REAP) with funding from President Biden’s Inflation Reduction Act (IRA), the nation’s largest-ever investment in combatting the climate crisis.
The IRA funds USDA Rural Development to help eligible organizations invest in renewable energy infrastructure that will significantly reduce greenhouse gas (GHG) emissions through programs like HBIIP and REAP.
HBIIP provides grants to fueling station and distribution facility owners—including marine, rail, and home heating oil facilities—to help expand access to domestic biofuels as a clean and affordable energy source.
USDA is awarding US$90.3 million in HBIIP grants to 89 projects in 26 states (California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Virginia, West Virginia, Wisconsin, and Wyoming).
These investments will help business owners install and upgrade infrastructure such as fuel pumps, dispensers, and storage tanks, and spur economic growth in rural communities by increasing competition in agricultural markets and lowering costs through clean energy projects.
USDA continues to accept HBIIP applications until September 30, 2024.
REAP provides grants and loans to help farmers and 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.
To date, USDA has invested over US$600 million from IRA for more than 4,500 clean energy projects through REAP, and more than US$180 million in more than 200 projects that increase the availability of domestic biofuels such as ethanol and biodiesel across the country.
The projects will increase American energy security and advance President Biden’s “Investing in America” agenda to grow the nation’s economy from the middle out and bottom up.
The Biden-Harris Administration is lowering costs for rural Americans and giving people in rural areas the historic opportunity to expand clean energy and build an economy that benefits working families and small businesses. By expanding access to homegrown biofuels and clean energy systems, we are strengthening our energy independence, addressing the impacts of climate change, and creating new market opportunities and revenue streams for American producers while bringing good-paying jobs in rural communities, said Secretary Vilsack.
