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USDA Helps Vermont Businesses Make Energy Investments

Name
Pollaidh Major
City
Montpelier
Release Date

The U.S. Department of Agriculture (USDA) provided capital support to 17 Vermont businesses transitioning to renewable or energy efficient technologies to cut costs and reduce energy consumption this year. Vermont farms and small businesses used more than $3 million in grants and loan guarantees through USDA Rural Development’s Rural Energy for America Program (REAP).

“Energy costs remain one of the largest expenses for a rural small business,” said USDA Rural Development State Director Ted Brady. “By providing these businesses with capital, the USDA aims to incentivize small businesses and farms to invest in new technology that not only increases their profitability, but also reduces greenhouse gases, fossil fuel consumption, and increases our nation’s energy independence.”  

The projects announced Wednesday include 16 grants totaling $520,268 and one $2.5 million loan guarantee. They range from an Enosburgh Falls syrup producer’s new reverse osmosis machine and preheater that will cut energy consumption by over 90 percent, to a North Pomfret farm installing solar arrays to offset 66 percent of their electric costs. The federal investment helped to leverage an additional $5,381,372 in public and private investment in energy projects that will create and save enough energy to power 613 homes.

USDA Rural Development made a $2.5 million REAP loan guarantee to Community National Bank to convert a former paper mill site in Lunenburg into a wood pellet manufacturing facility. The investment in Vermont’s forest-based economy will enable the owners of an existing wood pellet facility in Rutland County, Vermont Wood Pellet Company, to start a new business that will put people to work in the region’s forests as well as in the new factory.

Spaulding Energy of Sheldon received a $134,422 grant to purchase an industrial portable wood chipper. The chips produced will be used by Burlington Electric for power generation and for large industrial customers for heating. See the attached chart for the complete list of 2016 REAP awards.

USDA Rural Development is accepting energy program applications from rural businesses and agricultural producers interested in utilizing energy efficient and renewable energy technologies. Applications for renewable energy system and energy efficiency grants of $20,000 or less are due by Oct. 31, 2016. Applications for renewable energy system and energy efficiency grants of greater than $20,000 and all combination grants and guaranteed loans are due by March 31, 2017. Interested applicants should contact Ken Yearman, Energy Coordinator, at (802) 828-6070 or by email at kenneth.yearman@vt.usda.gov.

USDA, through its RD mission area, administers and manages housing, business and community infrastructure programs through a national network of state and local offices. Rural Development has an active portfolio of $215 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural areas. For more information on Rural Development visit the Vermont Rural Development website (www.rd.usda.gov/vt ) or contact USDA RD at (802) 828-6000.