ST. PAUL, Minn., Aug. 16, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director Colleen Landkamer announced today that USDA is funding 86 projects throughout Minnesota to expand access to clean energy systems and increase the availability of domestic biofuels that will create new market opportunities and jobs. The projects will increase American energy security and advance President Biden’s Investing in America agenda to grow the nation’s economy from the middle out and bottom up.
USDA is providing $26.8 million to Minnesota through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Rural Energy for America Program (REAP) with funding from the Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis. To date, USDA has invested more than $600 million from the Inflation Reduction Act for more than 4,500 clean energy projects through REAP, and more than $180 million in more than 200 projects that increase availability of domestic biofuels across the country.
“By expanding access to homegrown biofuels and clean energy systems, we are strengthening our energy independence, addressing the impacts of climate change and creating new market opportunities and revenue streams while bringing good-paying jobs to rural Minnesota,” State Director Landkamer said.
Today’s announcement came alongside Secretary Vilsack’s visit to Minnesota, which included an Investing in the American Bioeconomy discussion at the University of Minnesota and a visit to The Corner Store in Inver Grove Heights, which is receiving a $518,250 HBIIP grant to create infrastructure to expand the sales and use of renewable fuels. This project will install four E15 dispensers, four E85 dispensers, and two ethanol storage tanks at this fueling station. This project will increase the amount of ethanol sold by 506,100 gallons per year.
USDA is awarding $9.2 million in REAP grants to 71 projects across Minnesota. This program helps farmers and small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. For example:
- In Longville, Raveling Outdoors, LLC will use a $59,475 REAP grant to install a 45-kilowatt solar array for the company’s boat construction business. This project is expected to save the business nearly $9,000 in electrical costs per year and replace 52,000 kilowatt hours of electricity annually.
- In Waltham, Moe Family Farm LLC will use a $10,812 REAP grant to install an energy efficient shop heater. This project is expected to save the business $1,000 in electrical costs per year and replace 37,300 kilowatt hours of electricity annually.
- In Clark Grove, Harmony Park Inc. will use a $20,000 REAP grant to to install a 39-kilowatt solar array for their campground. This project is expected to save the business $5,700 in electrical costs per year and replace 52,300 kilowatt hours of electricity annually.
As part of today’s announcement, USDA is also awarding $17.5 million in HBIIP grants to 15 projects in Minnesota. These investments will help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks. They will also spur economic growth in rural communities by increasing competition in agricultural markets and lowering costs through clean energy projects.
For example:
- Johnson Oil Co. of Hallock Inc. will use a $1.1 million grant to install six E15 dispensers, five B20 dispensers, three ethanol storage tanks, and three biodiesel storage tanks at two fueling stations in Hallock and one fueling station in Argyle. This project is estimated to increase the amount of biofuel sold by 637,785 gallons per year.
- Tri-County Co-Op Oil Association will use a $1.04 million grant to install four E85 dispensers, four B20 dispensers, one ethanol storage tank, and two biodiesel storage tanks at one fueling station in Chokio and one fueling station in Wheaton. This project is expected to increase the amount of biofuel sold by 184,615 gallons per year.
USDA continues to accept HBIIP applications until Sept. 30, 2024, at 4:30 p.m. ET. For more information, go to the HBIIP webpage.
Today’s announcement includes $99.6 million in HBIIP and REAP investments in California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Virginia, West Virginia, Wisconsin and Wyoming.
Since the start of the Biden-Harris Administration, USDA has invested more than $220 million nationwide to increase access to biofuels at fueling stations and more than $2.2 billion in renewable energy and energy efficiency improvements.
USDA 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. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. For more information, visit www.rd.usda.gov.
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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