PALMER, Alaska, Nov. 15, 2024 – U.S. Department of Agriculture (USDA) Rural Development State Director of Alaska Julia Hnilicka announced today that USDA Rural Development is funding new projects in Alaska to lower costs, expand access to clean energy and strengthen Alaska’s farms, fisheries, and small businesses. USDA Rural Development is making the investments through the Rural Energy for America Program (REAP), a program that has seen record demand in response to historic funding provided by the Inflation Reduction Act (IRA).
“We’re excited to see how these energy projects will make a positive difference in so many communities across Alaska,” Hnilicka said. “By helping local businesses and agricultural producers save on energy costs, they can invest more back into their operations and the people they employ. This support strengthens our local economies, creates jobs, and supports small businesses."
Today, USDA Rural Development is investing $850,381 in loans and grants that will support seven clean energy projects throughout the state.
Since 2021, USDA Rural Development has invested more than $4.6 million through REAP in 82 renewable energy and energy efficiency improvements.
REAP enables agricultural producers and rural small business owners to expand their use of wind, solar, geothermal, and small hydropower energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, and address climate change while lowering energy costs for American families.
Here are just a few examples of the awards being announced today in Alaska:
- Kaia Fisheries LLC, a small commercial fishing operation in Homer, Alaska, is using a grant of $259,878 to install a slurry ice and modular refrigeration system. This project is expected to save $54,640 per year by reducing energy use by 495,736 kilowatt hours (kWh), or 17.5%.
- Matanuska Electric Association, an electric utility coop that serves the Mat-Su Valley in Alaska, will use a grant of $253,674 to install various energy efficiency improvements at its headquarters building in Palmer, Alaska. This project is expected to save $13,859 per year by reducing energy use by 20% of the building’s energy consumption.
- Airventures Alaska Inc., a remote fly in adventure company which operates the LoloOli Lodge near Skwentna, Alaska, will use a $67,366 grant to install a 34.5-kilowatt (kW) solar photovoltaic array with 115.2 kilowatt hour (kWh) battery energy storage. This project is expected to save $21,300 per year by generating 20,218 kilowatt hours (kWh) annually and offsetting imported diesel fuel, typically flown into the site.
USDA Rural Development provides loans and grants to expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. REAP is 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. USDA Rural Development 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. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.
USDA Rural Development touches the lives of all Americans each day in so many positive ways. USDA Rural Development 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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