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USDA Invests $25 Million in Critical Infrastructure to Lower Costs, Create Jobs, and Combat Climate Change Across Rural South Carolina

Name
Stephanie Bittiker
Phone
City
Columbia, S.C.
Release Date
Dec 15, 2022

Department Makes Funding Available Under the Inflation Reduction Act to Expand Renewable Energy in Rural Communities


Columbia, S.C., Dec. 15, 2022 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced USDA is investing $285 million in critical infrastructure to lower energy costs, expand access to clean energy for people across rural America, and combat climate change. Over $25 million in loans and grants has been awarded to four rural South Carolina businesses located throughout the state.  USDA is also making an additional $300 million available under the Rural Energy for America Program, including $250 million through the Inflation Reduction Act, to spur further investment.

“People in rural America are on the front lines of climate change, and our communities deserve investments that will strengthen our Country’s resilience,” Vilsack said. “President Biden has created a roadmap for how we can tackle the climate crisis and expand access to renewable energy infrastructure, all while creating good-paying jobs and saving people money on their energy costs. These investments underscore the Biden-Harris administration’s commitment to providing funding and resources to rural people and communities across the country to help drive economic security and prosperity.”

“Addressing climate change is one of our key priorities,” said U.S. Department of Agriculture (USDA) Rural Development South Carolina State Director Dr. Saundra Glover. “These projects will help reduce the impact of climate change through economic support to our rural communities.”

USDA is making 844 investments through the Rural Energy for America Program. This program helps farmers, ag producers and entrepreneurs purchase and install renewable energy systems and make energy efficiency improvements. It reflects the many ways USDA Rural Development helps agricultural producers and rural small businesses lower energy costs.

These funds will help people living in South Carolina. Some examples include:

  • Heuser Enterprises Inc. will use a $113,279 grant to purchase and install a 100 kilowatt (kW) and a 91.2 kW roof mounted solar arrays on the Heuser Ace Hardware stores located in Hardeeville and Bluffton. Heuser Enterprises Inc. is a local small business that has been in operation since 2013. This project will replace 265,900 kilowatt hours (kWh) (88 percent) of electricity per year and realize $30,131 of savings per year. 
  • Hyman Paper Co Inc., located in Darlington County, will use a $24,564 grant to purchase and install a 42.7-kilowatt (kW) roof mounted solar array. Hyman Paper Inc. is a local small business that has been in operation since 1979. This project will replace 68,134 kilowatt hours (kWh) (99 percent) of electricity per year and realize $12,954 of savings per year.
  • Thermo Heating Elements LLC, located in Anderson County, will use a $65,025 grant to purchase and install a 130.1-kilowatt (kW) roof mounted solar array. Thermo Heating Elements LLC is a local small business that has been in operation since 1997. This project will replace 197,248 kilowatt hours (kWh) (99 percent) of electricity per year and realize $20,411 of savings per year.
  • Landrace Holdings LLC will use a $25,000,000 loan to purchase and install a 74.27 megawatt (MW) direct current (dc) solar array. Landrace Holdings LLC is a newly created entity for the purposes of generating electricity in Horry County, South Carolina. The system is estimated to produce 137,217,693 kilowatt hours (kWh) per year, which is enough electricity to power 12,662 homes. 

USDA also announced today that it will make $300 million available under the Rural Energy for America Program to expand renewable energy and support energy-efficiency projects for people living in rural America. This funding includes $250 million provided by the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act. The deadline to apply for grants is March 31, 2023. Applications for technical assistance grants are due Jan. 31, 2023. Applications for loan guarantees are accepted year-round.

Interested applicants are encouraged to contact their local USDA Rural Development State Energy Coordinator well in advance of the application deadlines to discuss their project and ask any questions about the REAP program or the application process. Additional information on the required materials and how to apply for the REAP program are available in the Dec 15, 2022, Federal Register.

Background:
The
Rural Energy for America Program investments announced today reflect the goals of the Biden-Harris Administration’s Inflation Reduction Act.

In August, Congress passed the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act to reduce energy costs for families and create thousands of good-paying jobs for people across rural America. The Inflation Reduction Act represents the largest single investment in rural electrification since the passage of the Rural Electrification Act in 1936.

The Act provides funding to USDA Rural Development to help eligible entities purchase renewable energy and zero-emission systems and make energy-efficiency improvements that will significantly reduce energy costs and greenhouse gas emissions. For example, it provides:

  • Up to $1 billion for RUS loans for renewable energy infrastructure; up to $2.025 billion for the RBCS Rural Energy for America Program (REAP), with $303 million set aside for underutilized technologies and technical assistance.
  • Up to $500 million in RBCS grants for infrastructure improvements to blend, store or distribute biofuels. This includes installing, retrofitting or upgrading dispensers for ethanol at retail stations as well as home heating oil distribution centers.
  • Up to $9.7 billion for RUS to offer loans, grants, loan modifications and other financial assistance to support the purchase of renewable energy systems, zero-emission systems and carbon capture systems.

This commitment to cleaner energy will help USDA Rural Development provide resources to reduce climate pollution and ensure that rural people and their communities have access to a clean, secure energy supply to keep people and economies prepared for the future.

Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit www.rd.usda.gov. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

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, ensuring access to 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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