Grants Impact Cherokee, Dallas, Emmet, Hancock, Howard, Kossuth, Palo Alto, Pocahontas, and Story counties
DES MOINES, Iowa, Oct. 21, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director in Iowa Theresa Greenfield announced today that USDA is providing $2,214,291 in funding for five projects in Iowa to expand clean energy systems and help create new market opportunities and jobs for U.S. farmers, ranchers and agricultural producers. 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. The grants come from the Rural Energy for America (REAP) program.
“Today’s REAP announcement will help support rural communities, small businesses, and producers as they transition to clean energy systems on their properties,” said Director Greenfield. “The Biden-Harris Administration is working to secure our energy future by investing in clean, renewable power so that agricultural producers and small businesses throughout Iowa can lower costs and grow their businesses.” Audio: WAV, 0:20, 564 KB
Today’s projects are part of a recent nationwide announcement for the REAP program. A list of the nationwide investments may be found online here.
Latest REAP Grants in Iowa
-Lincolnway Energy LLC received a $1,000,000 grant to install a grain-to-alcohol conversion system at its ethyl alcohol manufacturing facility near Nevada in Story County. This project will generate 223,700,000 kilowatt hours per year, amounting to $18,300,000 in savings per year. This is enough electricity to power 20,643 homes.
-Quad J Inc. received a $61,468 grant to install a new energy-efficient grain dryer at its grain production operation near Washta in Cherokee County. This project will realize $3,242.00 per year in savings and will replace 57,234 kilowatt hours per year, 50 percent of previous business use per year, which is enough electricity to power five homes.
-Cresco Heating and Ventilating LLC received a $30,556 grant to help install a 61.32 kilowatt (kW) solar project at its heating, ventilation, and air conditioning business operation in Cresco, in Howard County. This project is expected to generate 83,983 kilowatt hours’ worth $10,078 per year, which is enough energy to power seven homes.
-GrowAg Investments LLP, a real estate holding company business near Alden for hog production operations, received a $327,109 grant to help install solar arrays at locations in Emmet, Palo Alto, Kossuth, Hancock, and Pocahontas counties in Iowa. This project is expected to generate $46,200 gross income from the sale of energy and generate 398,090 kilowatt hours per year, which is enough energy to power 36 homes.
-Red Lion Perry Solar II received a $795,158 grant to help install an 866 kilowatt solar array at its solar electric power generation operation in the town of Perry in Dallas County. This project will generate 1,081,506 kilowatt hours per year, which is enough electricity to power 100 homes.
Background
USDA’s REAP 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. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.
REAP Inflation Reduction Act Funding Availability
As part of today’s announcement, USDA will make available an additional $600 million across three funding rounds from now until 2027.
During each funding round, the Department expects to make available $180 million in general REAP funding and $20 million in set-aside funding for underutilized renewable energy technology.
These funds are made possible by President Biden’s historic Inflation Reduction Act and will be the final REAP funding availability from this legislative package.
USDA is accepting applications in this first round through two windows. The deadlines to apply are Dec. 31, 2024, and March 31, 2025.
Both REAP and the New ERA Program are a part of the President’s Justice40 Initiative, which sets a goal that 40% of the benefits from certain federal investments go to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.
For additional information about the REAP funding availability, see page 83449 of the Oct. 16 Federal Register.
Contact USDA Rural Development
USDA Rural Development has 11 offices across the state to serve the 1.3 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.
To learn more about investment resources for rural areas in Iowa, call (515) 284-4663 or visit www.rd.usda.gov/ia. If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
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.
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