USDA Rural Development State Director Colleen Landkamer today announced that USDA is awarding five grants to help Minnesota rural small businesses and agricultural producers reduce energy usage and costs in their operations. Funding will go towards energy efficiency improvements and/or renewable energy systems.
“This funding will help implement energy-saving measures that help rural small business owners and agricultural producers remain competitive in an increasing global marketplace by allowing them to save on operational costs and contribute to their bottom line,” Landkamer said. “These actions not only help them save on annual energy costs, but also reduce their environmental footprint.”
Gaillen Guadalupe has been selected to receive a $20,000 grant to finance installation of a new refrigeration and HVAC system for her Mexican grocery store in Worthington, Minn. Open-faced refrigeration stations and freezer chests will be replaced with energy efficient refrigeration options to help lower costs and energy usage. The project is expected to save Guadalupe 40 percent, nearly $10,000, of her annual electrical costs – equating to over 135,000 kWh (the amount of annual energy produced by 12 households) in energy savings.
In Cannon Falls, Minn., the Molitor Brothers Farm is being awarded a $20,000 grant to install a 40 kW solar array. It is expected to generate over 70,000 kWh of yearly energy and will offset annual electrical costs by $9,100, or approximately 90 percent of the farm’s annual energy usage.
James Jorgenson is being awarded a $17,320 grant to install a 30 kW solar array in Westbrook, Minn. Chad Crowley was awarded a $10,438 grant to install a 16 kW solar array and Arthur Thicke will receive a $20,000 grant to install a 30 kW solar array near La Crescent, Minn.
Funding for today’s announcement is awarded through USDA Rural Development’s Renewable Energy for America Program (REAP). USDA reminds eligible applicants that set-aside funding is available for grant requests less than $20,000 and may offer priority scoring for projects located in underserved areas and/or benefiting underserved populations.
USDA also guarantees loans for a minimum of $5,000 and maximum of $25 million. Applicants are encouraged to apply through the loan guarantee program for larger-scale projects. Grant and guaranteed loan combinations are also available.
Since 2009, REAP has helped finance 1,014 renewable energy and energy efficiency projects that have reduced energy costs for rural businesses statewide. During this period, USDA has provided almost $35 million in grants and $5 million in loan guarantees to agricultural producers and rural small business owners in rural communities throughout Minnesota.
Congress created the REAP program in the 2002 Farm Bill. Due to the success of the program, Congress reauthorized it in the 2014 Farm Bill with guaranteed funding of at least $50 million annually for the duration of the five-year bill.
The 2014 Farm Bill builds on historic economic gains in rural America over the past seven years while achieving meaningful reform and billions of dollars in savings for taxpayers.
In addition to the grants announced today, USDA is reminding eligible recipients that the department is accepting applications for future REAP funding. The next application deadline is May 2, 2016. For details on how to apply, visit www.rd.usda.gov/mn, contact USDA Rural Development State Energy Coordinator for Minnesota Ron Omann at ron.omann@mn.usda.gov or (651) 602-7796, or see page 78029 of the December 29 Federal Register.