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U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is partnering with rural Americans on hundreds of clean energy projects to lower energy bills, expand access to clean energy and create jobs for U.S. farmers, ranchers and agricultural producers. Many of the projects are funded by President Bidens Inflation Reduction Act, the nations largest-ever investment in combating the climate crisis. USDA also unveiled the Rural Energy Resource Guide to make it easier for rural communities to identify federal funding for clean energy, including programs made possible by President Bidens historic Inflation Reduction Act. The projects advance President Bidens Investing in America agenda to grow the nations economy from the middle out and bottom up. They will create jobs and spur economic growth in rural communities through clean energy projects that lower energy costs for agriculture producers and rural small businesses and families. The Biden-Harris Administration and USDA are committed to expanding access to modern clean energy systems and fueling options that strengthen the nations energy independence while creating good-paying jobs and saving rural Americans money, Secretary Vilsack said. We are excited to partner with hundreds more family farms and small businesses as well as rural electric cooperatives and local clean energy developers to address the impacts of climate change, grow the economy and keep rural communities throughout the country strong and resilient. In all, USDA is providing more than $375 million in funding through the Powering Affordable Clean Energy Program (PACE) and the Rural Energy for America Program (REAP). Both of these programs are part of the Presidents Justice40 Initiative, which aims to ensure 40% of the overall benefits of certain federal climate, clean energy and other investment areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Background: PACE Vilsack announced more than $275 million to rural electric cooperative projects moving forward in the awards process through the Powering Affordable Clean Energy program to expand access to clean energy for communities in Alaska, Arizona, Kentucky and Nebraska. By using renewable energy from natural sources such as the sun and wind, the projects will make it more affordable for people to heat their homes, run their businesses and power cars, schools, hospitals and more. For example: In Fairbanks, Alaska, Golden Valley Electric Association, Inc. has been selected to receive $100 million to build a 46-megawatt battery energy storage system. This energy storage is essential to provide rural Alaskans with reliable clean energy when the sun isnt shining or the wind isnt blowing. It is a critical part of the people of Alaskas efforts to create a transformative clean energy economy that protects their natural environment while providing reliable, affordable energy to their communities. The Alaska Electric and Energy Cooperative Inc. has also been selected to receive $100 million to install a 45-megawatt four-hour battery energy storage system adjacent to its Soldotna Substation. The cooperative is a wholly owned subsidiary of Homer Electric Association Inc., a distribution electric utility serving over 24,330 members across more than 3,000 square miles in Alaskas western and southern Kenai Peninsula. In Benson, Arizona, Sierra Southwest Cooperative Services Inc. has been selected to receive approximately $55.2 million to finance three battery energy storage system projects totaling 35 megawatts and lasting for four hours in duration. In Estill County, Kentucky, Lock 11 Hydro Partners LLC has been selected to receive approximately $16.6 million to build a new 3-megawatt run-of-river hydroelectric plant at Lock and Dam 11 on the Kentucky River. This project will use modern run-of-river energy practices that limit the environmental impact of hydropower and ensure affordable, clean energy for rural Kentuckians. In Nebraska, Bluestem Energy Solutions LLC has been selected to receive approximately $3.6 million to build a 2-megawatt community solar facility with the City of Madison electric utility. In May 2023, Congress made $1 billion available through PACE to fund new clean energy projects and energy storage in rural America. The program provides low interest loans with up to 60% loan forgiveness to renewable energy developers, rural electric cooperatives and other rural energy providers for renewable energy storage and projects that use wind, solar, hydropower, geothermal and biomass. Prior to todays announcement, Secretary Vilsack announced five PACE applications totaling $139 million moving forward at the National Rural Electric Cooperative Associations PowerXchange annual meeting in San Antonio, Texas in March 2024. Earlier this month, Secretary Vilsack announced two more projects in Colorado totaling more than $81 million. USDA expects to continue making Powering Affordable Clean Energy awards in the coming months. |
