Investments Will Make Rural Communities More Energy Independent and Resilient
MONTGOMERY, Ala., Dec. 03, 2021 – United States Department of Agriculture (USDA) Secretary Tom Vilsack and USDA Rural Development Alabama State Director Nivory Gordon Jr. today announced the Department is investing more than $8 million to reduce the impacts of climate change on rural communities. As part of the Build Back Better agenda, the Biden-Harris Administration has made investing in rural communities, creating good-paying jobs and combating the climate crisis top priorities.
“Rural America is on the front lines of climate change, and our communities deserve investments that will strengthen all of our 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. With the Build Back Better agenda, USDA will be able to fund more and more critical projects like those announced today in the coming months and years.”
“The investments announced in Alabama today will help rural businesses and agricultural producers across the state become more energy efficient,” Gordon said. “By making these investments, USDA is helping businesses and agricultural producers use less energy and presents a cost-savings to these entities. This is particularly important to agricultural producers, as Alabama’s producers are able to modernize and continue to produce products to feed America.”
Background:
USDA is investing $8,003,567 in 21 different projects across Alabama through the Rural Energy for America Program. This program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. These investments include:
- In Baldwin County, USDA is investing $7,000,000 in loan guarantees to help West Town Bank and Trust. This investment will help to install a landfill gas system, which will take advantage of natural gas generated from the decomposition of landfill waste, capturing 98 percent of natural gas produced by the landfill. This investment will generate 1,764,750 natural gas therms per year, the equivalent of 51,721,864 kilowatts (kWh) of electricity per year. This is enough energy to power 4,772 homes for a year.
- In Henry County, USDA is investing $250,000 in grants to help Headland Peanut Warehouse Co-op, Inc. This investment will install modern and high-efficiency trailer-mounted peanut dryers, which will reduce the cooperative's energy consumption by 1,050,540 kilowatt hours (kWh) per year. This is enough electricity to power 96 homes for a year. This project will also reduce the cooperative's natural gas consumption by 950,400 therms per year
- In Pickens County, USDA is investing $123,419 in grants to help Westervelt Pellets I, LLC, a lumber manufacturer producer in Pickens County, Alabama. This investment will install a modern, high efficiency hammer mill, to replace older and less energy efficient equipment. This investment will reduce the business's energy consumption by 6,614,793 kilowatts (kWh) per year. This is enough electricity to power 638 homes for a year.
- In Greene County, USDA is investing $43,429 in grants to help Double Wheel Ranch LLC., a family and locally owned farm. This investment will install a modern and high-efficiency catfish pond aeration system for the farm's catfish ponds, which will reduce the farm's energy consumption by 237,600 kilowatt hours (kWh) per year. This is enough electricity to power 21 homes for a year. This project will also reduce the farm's diesel fuel consumption by 1,575 gallons per year.
Nationwide, Vilsack highlighted 793 investments that USDA is making in five programs specifically designed to help people and businesses in rural areas. These programs include Community Facilities Disaster Grants, Electric Loan Program, Rural Energy for America Program, Rural Energy Savings Program, and the Higher Blends Infrastructure Incentive Program.
The funding will help people in all 50 states and Puerto Rico. It reflects the many ways USDA Rural Development helps rural residents, businesses and communities address economic development, infrastructure and social service needs.
These investments will help build and improve rural electric infrastructure and connect residents to affordable and dependable power. They will help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements. They will also help transportation fueling and biodiesel distribution facilities offer higher ethanol and biodiesel blends to customers by sharing the costs to install fuel pumps, equipment and infrastructure.
Secretary Vilsack made the announcement from Saubel’s Markets in Shrewsbury, Pennsylvania, which will receive a $103,413 USDA Rural Energy for America Program (REAP) grant. With this funding, the small business will install solar panels on the roof of their family-owned grocery store that has been in business since the 1960s. This project is expected to save $30,852 per year and will replace 395,539 kilowatt hours (kWh) per year, which is enough energy to power 36 homes annually. As part of today’s announcement, Pennsylvania will receive more than $1 million for 22 projects across the state.
Other examples of projects in this announcement from around the country include:
- Wauchula Solar LLC in Hardee County, Fla., is receiving a $35,053 Rural Energy for America Program grant to install a 237.3 kilowatt solar array. The system will be placed on top of an abandoned building that has been converted into a hydroponic lettuce farm. The system will produce 388,235 kilowatt hours annually, which is enough energy to power 35 homes.
- Dressor Plains Solar will use an $85.7 million Electric Infrastructure loan to construct a 99 megawatt solar photovoltaic farm on 609 acres in Fayette County, Ill. Dressor Plains has a 27-year power purchase agreement with Wabash Valley Power Association, Inc. (Wabash) to sell and deliver the electricity produced. Wabash provides wholesale power to 23 distribution cooperatives in Illinois, Indiana and Missouri.
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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