U.S. Department of Agriculture (USDA) Rural Development (RD) New York State Director Brian Murray today announced that USDA is investing $28.8 million in loan and grant funding across 18 renewable energy projects throughout rural NY. This is part of national messaging where Secretary Tom Vilsack today announced that USDA is investing $207 million in renewable energy and domestic fertilizer projects to lower energy bills, generate new income, create jobs, and strengthen competition for U.S. farmers, ranchers and agricultural producers. Many of the projects are being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis.
“President Biden and USDA are ensuring farmers, ranchers and small businesses are not only a part of the clean energy economy, but directly benefitting from it,” State Director Murray said. “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.”
Today, the Department is awarding $207 million in 42 states for projects through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP).
Today’s REAP awards total $157 million for 675 projects in 42 states, including more than $94 million from President Biden’s Inflation Reduction Act. The REAP program delivers on the President’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. These investments will cut energy costs for farmers and ag producers that can instead be used to create jobs and new revenue streams for people in their communities.
Projects in New York include:
- Newburgh Algonquin Lanes Inc. This Rural Development investment of $221,184 in grant funding will be used to purchase and install a 230 kilowatt (kW) solar array. Newburgh Algonquin Lanes Inc. is a bowling alley operating since 1958 in Newburgh, in Orange County, New York. This project will realize $34,797 per year in savings and will replace 268,746 kilowatt hours (kWh) (105 percent) per year.
- Chautauqua Green Energy LLC This Rural Development investment of $23,175,000 in loan funding will be used to purchase and install a renewable natural gas (RNG) plant operating out of the Chautauqua County Landfill in Jamestown, New York. Chautauqua Green Energy LLC is a newly created entity that has installed state of the art gas cleaning and scrubbing equipment that will clean the landfill gas to pipeline specifications for direct injection into the Little Valley Pipeline for commercial sale. The system is estimated to extract and clean 328,803 Metric Million British Thermal units (MMBtus) per year of RNG.
- Oneida-Herkimer RNG LLC This Rural Development investment of $1,000,000 in grant funding will be used to allow Oneida-Herkimer RNG LLC in partnership with Oneida-Herkimer Solid Waste Authority to finance, develop, own, and operate a landfill gas processing plant to produce pipeline quality renewable natural gas (RNG) in Ava, in Oneida County, New York. This project will gross $17,327,431.48 per year and will add 736,085 million British thermal units (MMBTU) of renewable natural gas into the grid.
- Perry Community Solar LLC This Rural Development investment of $1,000,000 in grant funding will be used to install a photovoltaic solar system. Perry Community Solar LLC is a wholly owned subsidiary of Genie Solar Energy LLC. The solar project is being developed on a former manufacturer site in Wyoming County, Perry, New York. The project will operate under the New York State Public Service Commission Value of Distributed Energy Resources program. This project will realize $458,928.56 per year and will produce 736,607 kilowatt hours (kWh) per year.
USDA is making the REAP and FPEP awards in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and West Virginia.
Since the start of the Biden-Harris Administration, USDA has invested more than $166 million in 40 projects nationwide to boost domestic fertilizer production through FPEP. USDA has also taken steps to support producers in leveraging these tools through nutrient management assistance and climate-smart management practices. During that same time, USDA has invested more than $1.6 billion through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners lower energy costs, generate new income, and strengthen their resiliency of operations.
Background
The Rural Energy for America Program (REAP) provides grants and loans to help ag producers and rural 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.
USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.
The Fertilizer Production Expansion Program (FPEP) provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more. Funding helps boost domestic fertilizer production, strengthen competition and lower costs for U.S. farmers.
The Biden-Harris Administration and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors. Factors included the war in Ukraine, a lack of competition in the fertilizer industry, and more.
FPEP is part of a broader effort to help producers boost production and address global food insecurity. It is also one of many ways the Administration is promoting fair competition, innovation and resiliency across food and agriculture while combating the climate crisis.
USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.
To subscribe to USDA Rural Development updates, visit GovDelivery subscriber page.
###
USDA is an equal opportunity provider, employer, and lender.