Administration Partners with Rural Americans to Develop Clean Energy to Lower Energy Costs and Create Jobs
The Biden-Harris Administration and USDA are dedicated to expanding access to modern clean energy systems and fueling options to enhance the nation’s energy independence, create good-paying jobs, and save rural Americans money, according to Secretary Vilsack. The partnership with hundreds of family farms, small businesses, rural electric cooperatives, and local clean energy developers aims to address the impacts of climate change, boost the economy, and strengthen rural communities nationwide.
In a recent announcement, USDA Secretary Tom Vilsack revealed that USDA is collaborating with rural Americans on numerous clean energy projects to reduce energy bills, increase access to clean energy, and generate jobs for farmers, ranchers, and agricultural producers in the U.S. These projects, funded by President Biden’s Inflation Reduction Act, mark the largest-ever investment in combatting the climate crisis. USDA has also introduced the “Rural Energy Resource Guide” to streamline the process for rural communities to identify federal funding for clean energy initiatives, including programs made possible by the historic Inflation Reduction Act.
These initiatives align with President Biden’s Investing in America agenda, which aims to grow the nation’s economy from the middle out and bottom up. By creating jobs and stimulating economic growth in rural areas through clean energy projects, the initiatives will lower energy costs for agricultural producers, rural small businesses, and families.
USDA is providing over $375 million in funding through the Powering Affordable Clean Energy Program (PACE) and the Rural Energy for America Program (REAP) as part of the President’s Justice40 Initiative. This initiative ensures that 40% of the benefits of federal climate, clean energy, and other investments reach disadvantaged communities affected by underinvestment and pollution.
Under the PACE program, rural electric cooperative projects in Alaska, Arizona, Kentucky, and Nebraska are receiving over $275 million to expand access to clean energy. These projects leverage renewable energy sources like solar and wind to make heating, running businesses, and powering various facilities more affordable. For example, projects in Fairbanks, Alaska, Benson, Arizona, Estill County, Kentucky, and Nebraska are set to receive funding for energy storage systems and hydroelectric plants.
Through the REAP program, nearly $100 million in loans and grants are being awarded to support 473 projects in 39 states and Puerto Rico. These projects help agricultural producers and rural small businesses adopt renewable energy sources like wind, solar, geothermal, and small hydropower, as well as make energy efficiency improvements. This will reduce energy costs, increase resiliency, and create new opportunities for rural communities.
USDA’s commitment to clean energy extends to the Rural Energy Resource Guide, which highlights federal funding opportunities for clean energy projects in rural areas. This guide showcases USDA Rural Development programs that finance renewable energy systems and infrastructure across rural America, supporting energy-efficient home repairs, energy infrastructure financing, energy efficiency equipment funding, emergency energy production, and clean energy generation from biobased materials.
Overall, USDA’s efforts under the Biden-Harris Administration are transforming America’s food system, focusing on resilient local and regional food production, fair markets for all producers, access to safe and nutritious food, new income streams for farmers using climate-smart practices, investments in rural infrastructure and clean energy capabilities, and promoting equity across the Department. These initiatives aim to positively impact the lives of all Americans and build a more sustainable future for rural communities.