Projects Funded by President Biden’s Inflation Reduction Act Will Lower Costs and Create Revenue for Rural Business Owners and Farms
Columbia, S.C., Jan. 22, 2024 – U.S. Department of Agriculture (USDA) 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. Today’s announcement includes two projects in South Carolina through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP).
This announcement was made by Secretary Vilsack today at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. This funding advances President Biden’s Investing in America and Bidenomics agenda to grow the nation’s economy from the middle-out and bottom up, create jobs, and spur economic growth in rural communities by increasing competition in agricultural markets, lowering costs, and expanding clean energy.
“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,” Secretary Vilsack 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.”
“South Carolina is receiving over $7.2 million in this round of funding”, said USDA Rural Development South Carolina Public Information Officer Stephanie Bittiker. “Our Fertilizer Production Expansion Program will help increase or expand the manufacturing and processing of fertilizer and nutrient alternatives. Our goal is to jumpstart the next generation of fertilizers, nutrient alternatives, and other nutrient management products. In addition, our Rural Energy for America Program will help agricultural producers and rural small businesses, like Chapman Solar, make energy efficient improvements to their business and helps increase energy independence. Over time, investments like this will help lower the cost of energy which is climate smart and ultimately help rural America to thrive.”
In South Carolina:
- UPL NA Incorporated is receiving a $3.9 million grant under the Fertilizer Production Expansion Program, which will be used to acquire a seaweed extraction facility in Kingstree, South Carolina, which produces and distributes seaweed bio-stimulant fertilizer. Grant funds will offset design and engineering costs, construction labor, and the purchase/installation of equipment within the new facility. This project is expected to create 10 new additional well-paying positions within a Justice 40 designated community. This unique facility will produce 131,041 gallons of organic seaweed-based bio-stimulants annually.
- Chapman Solar, LLC is receiving a $2,235,000 loan and a $1,000,000 grant which will be used to purchase and install a 2.71-megawatt (MW) DC solar array. Chapman Solar LLC is a newly created entity for the purposes of generating electricity in Darlington County, South Carolina. The system is estimated to produce 4,939,400 kilowatt hours (kWh) per year, which is enough electricity to power 456 homes.
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.
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.
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.
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