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USDA Invests $6.7 Million in 544 Renewable Energy and Energy Efficiency Projects Nationwide

Name
Katherine Belcher
City
Lexington
Release Date

Agriculture Secretary Tom Vilsack today announced that USDA is investing more than $6.7 million in 544 renewable energy and energy efficiency projects nationwide.

"These grants will help farmers, ranchers and small business owners use more renewable energy, which cuts carbon pollution, reduces our dependence on foreign oil, saves businesses money on their energy bills and creates American jobs," Vilsack said. "All of these are crucial components to developing healthier, more economically vibrant rural communities."

REAP was created by the 2002 Farm Bill and was reauthorized by the 2014 Farm Bill. REAP funding has helped farmers expand renewable energy use in recent years. The new Census of Agriculture shows the number of farms utilizing renewable energy production has doubled in the last five years.

USDA Rural Development State Director Tom Fern said Kentucky will receive more than $264,000 to fund 23 applications to make a range of investments in solar and other energy-efficiency improvements. View the list of recipients in Kentucky.

“Helping small agriculture-based businesses grow is vital to the economic success of rural communities,” said Fern. “The REAP grants offer Kentucky farmers and producers the tools to improve business operations by making them more energy efficient and profitable.”

For example, in Monroe County, a cattle owner was awarded grant funds to install a solar photovoltaic renewable energy system that will generate 13,312 kWh per year with a 21.6 -year return on investment. A business owner in Garrard County will receive a grant to install a hybrid solar photovoltaic and thermal renewable energy system that will generate 16,575 kWh per year with a 50-year return on investment.

Since 2009, USDA has awarded $545 million to support more than 8,800 REAP projects nationwide. This includes $361 million in grants and loans for almost 2,900 renewable energy systems. For the remaining 5,900 projects, USDA provided $184 million to help rural small businesses and agricultural producers make energy efficiency improvements such as lighting; heating, ventilation and cooling; irrigation; insulation and motor replacements. When fully operational, these projects are estimated to generate and save 7.3 billion kilowatt hours of electricity annually – enough to power more than 660,000 homes for a year.

Eligible agricultural producers and rural small businesses may use REAP funds to make energy efficiency improvements or install renewable energy systems, including solar, wind, renewable biomass (including anaerobic digesters), small hydroelectric, ocean energy, hydrogen and geothermal. The awards list announced today is contingent upon the recipients meeting the terms of the grant agreement.

President Obama's historic investments in rural America have made our rural communities stronger. Under his leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.

This award is part of the Obama Administration’s efforts to target federal assistance to coal communities and workers impacted by changes in the coal economy, where job losses in recent years have continued a decades-long trend. This effort complements the POWER+ Plan proposed in the President’s FY 2016 budget that seeks to invest in new coal technologies, address the legacy costs of coal mining, and help workers and communities reliant on the coal industry adapt to the changing energy landscape.