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USDA Invests $25.4M in Clean Energy and Biofuels Projects Throughout Rural California

Name
Joseph Avenida
Email
joseph.avenida@usda.gov
City
DAVIS, Calif.
Release Date

DAVIS, Calif., January 10, 2025 – USDA Rural Development California State Director Maria Gallegos Herrera today announced USDA is investing $25.4 million in clean energy projects across California. This funding will help farmers, small businesses, and fuel providers expand access to renewable energy, reduce costs, and improve energy efficiency in rural communities.

“This announcement marks a transformative moment for rural California,” Gallegos Herrera, USDA, said. “By investing in clean, affordable energy, USDA Rural Development is helping our communities lower utility costs, create good-paying jobs and build a more resilient energy future. Through these investments, we are not only strengthening California’s rural economy but also ensuring that our agricultural producers, small businesses and families have access to reliable and sustainable energy sources.”

The funding, made available through USDA’s Rural Energy for American Program (REAP) and the Higher Blands Infrastructure Incentive Program (HBIIP), will support California farmers, ranchers and small businesses help install solar panels and energy-efficient equipment to reduce operating costs and allow fueling stations to expand access to biofuels such as E15 and B20, supporting California’s clean transportation goals.

Some examples of today’s investments under REAP include:

  • Wonderful Citrus LLC, an agriculture producer in Maricopa, Kern County, will use a $1 million grant to help offset the costs associated with installing an energy efficient solar photovoltaic (PV) system. The system is estimated to produce 4,266,747 kilowatt hours (kWh) per year, which is enough electricity to power 395 homes.
  • Parrott Investment Company Inc. an agriculture producer in Chico, Butte County, is receiving a $1 million grant to help offset the costs associated with installing an energy efficient solar photovoltaic (PV) system. The system is estimated to produce 1,621,171 kilowatt hours (kWh) per year, which is enough electricity to power 150 homes.
  • Korbel & Bros. a rural small business in Arvin, Kern County, will use a $1 million grant to install an energy efficient solar photovoltaic (PV) system, which is estimated to produce 1,885,232 kilowatt hours (kWh) per year, or enough electricity to power 174 homes.

Under HBIIP, the following are examples of today’s investments in California:

  • USD Clean Fuels LLC, a fuel distribution facility company, is receiving a $2 million grant to create infrastructure to expand the sales and use of renewable fuels. This project will consist of installing piping, pumps, and truck loading skids for E85 at one location in California. The facility location impacted by this grant is Pico Rivera. This project projects to increase the amount of ethanol sold by 76,650,000 gallons per year.
  • EZ Petroleum, the owner of more than 10 fueling stations, is receiving a $1,330,500 grant to install 30 E85 dispensers and seven ethanol storage tanks at seven fueling stations, located in Winton, Fremont, South San Francisco, Salinas, Richmond (two stations), and Fresno. This project projects to increase the amount of ethanol sold by 391,067 gallons per year.

A full listing of the REAP and HBIIP awards made today is available online.

This funding announcement is part of a national release in which USDA Secretary Tom Vilsack announced the agency is providing nearly $180 million for 586 projects nationwide to expand access to clean energy systems and increase the availability of domestic biofuels.

USDA has invested more than $1.3 billion from the Inflation Reduction Act in more than 8,000 clean energy projects nationwide, including hundreds in California. These investments will lower energy costs for rural households, farmers and small businesses, create and sustain thousands of jobs in California’s clean energy sector, reduce greenhouse gas emissions by expanding renewable energy production and strengthen rural economies by supporting clean energy infrastructure.

California businesses, farmers and rural electric cooperatives interested in USDA’s clean energy programs can visit rd.usda.gov for application details and funding opportunities.

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