Farms near Frederick, Eureka awarded monies through USDA Rural Energy for America Program for projects to become more energy efficient

JANUARY 12, 2023:

U.S. Department of Agriculture Rural Development is investing $252,000 under the Rural Energy for America Program (REAP) to combat climate change in rural South Dakota. USDA is also making an additional $300 million available under the Rural Energy for America Program, including $250 million through the Inflation Reduction Act, to spur further investment

“Through the REAP program, USDA is helping farmers, ag producers and rural entrepreneurs lower energy costs,” said South Dakota State Director Nikki Gronli. “We are in a unique position to make climate-smart investments to help rural small businesses purchase and install renewable energy systems and make energy efficiency improvements across South Dakota.”

These funds will help people living in South Dakota:

• Sumption Farms will receive $103,061 to help purchase and install an energy efficient grain dryer near Frederick, South Dakota. This project is anticipated to save the farm $63,626.39 in annual energy costs by replacing 1.1 million kilowatt hours (kWh) of electricity per year, which is enough electricity to power 101 homes.

• BTO Farms Inc. will receive $76,354 to make energy efficiency improvements with the purchase and installation of a more efficient grain dryer, at a farm located near Eureka. This project will save $5,121.00 per year in energy costs and will save 69,411 (kWh) of electricity per year (55.44 percent) which is enough electricity to power six homes.

• Jerald Ellefson will receive $59,138 to help purchase and install an energy efficient grain dryer system on the family farm near Flandreau. This project will save the farm $5,319 in annual energy costs by replacing 83,902 kWh of electricity per year, which is enough electricity to power eight homes.

• Jennifer Bjorgaard will receive $13,616 to purchase and install a more efficient heater, doors, lights, and skylights, at an equine boarding facility located near Aberdeen. This project will save $3,543.09 per year in energy costs and will save 34,313 kWh of electricity per year (56.12 percent) which is enough electricity to power three homes.

USDA also announced today that it will make $300 million available under the Rural Energy for America Program to expand renewable energy and support energy-efficiency projects for people living in rural America. This funding includes $250 million provided by the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act. The deadline to apply for grants is March 31, 2023. Applications for technical assistance grants are due Jan. 31, 2023. Applications for loan guarantees are accepted year-round.

Interested applicants are encouraged to contact their local USDA Rural Development State Energy Coordinator well in advance of the application deadlines to discuss their project and ask any questions about the REAP program or the application process. Additional information on the required materials and how to apply for the REAP program are available in the Dec 15, 2022, Federal Register.

Background:
The Rural Energy for America Program investments announced today reflect the goals of the Biden-Harris Administration’s Inflation Reduction Act.

In August, Congress passed a historic legislative package known as the Inflation Reduction Act to reduce energy costs for families and create thousands of good-paying jobs for people across rural America. The Inflation Reduction Act represents the largest single investment in rural electrification since the passage of the Rural Electrification Act in 1936.

The Act provides funding to USDA Rural Development to help eligible entities purchase renewable energy and zero-emission systems and make energy-efficiency improvements that will significantly reduce energy costs and greenhouse gas emissions. For example, it provides:

• Up to $1 billion for RUS loans for renewable energy infrastructure; up to $2.025 billion for the RBCS Rural Energy for America Program (REAP), with $303 million set aside for underutilized technologies and technical assistance.
• Up to $500 million in RBCS grants for infrastructure improvements to blend, store or distribute biofuels. This includes installing, retrofitting or upgrading dispensers for ethanol at retail stations as well as home heating oil distribution centers.
• Up to $9.7 billion for RUS to offer loans, grants, loan modifications and other financial assistance to support the purchase of renewable energy systems, zero-emission systems and carbon capture systems.

This commitment to cleaner energy will help USDA Rural Development provide resources to reduce climate pollution and ensure that rural people and their communities have access to a clean, secure energy supply to keep people and economies prepared for the future.

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/sd.

DECEMBER 2022:

The U.S. Department of Agriculture is making $300 million available (Dec. 15, 2022) under the Rural Energy for America Program (REAP) to expand renewable energy and support energy-efficiency projects for people living in rural America. This funding includes $250 million provided by the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act.

USDA Rural Development is in a unique position to make climate-smart investments in rural infrastructure. The Inflation Reduction Act represents the largest ever federal investment in clean energy for the future. This historic funding will strengthen our energy security, create good-paying jobs, and save Americans money on their energy costs.

USDA is seeking applications for Fiscal Year 2023 funding. Two significant changes to this additional funding include an increase in the maximum Federal grant share from 25% to 40% of total project cost and an increase of maximum grant amounts from $250,000 to $500,000 for energy efficiency projects and an increase from $500,000 to $1,000,000 for renewable energy systems. Projects in underserved areas are prioritized for funding under this notice.

USDA will host an informational webinar for applicants and stakeholders on Wednesday, December 21, 2022, from 3:00 – 4:30pm Eastern Time. To register, visit: https://www.zoomgov.com/webinar/register/WN_BSQ3b8K6Sz-sbpdJluEtfw.

Agricultural producers and rural small businesses are eligible applicants for loan guarantees and grants to develop renewable energy systems and to make energy efficiency improvements. State and local governments, federally-recognized tribes, land-grant colleges or universities or other institutions of higher education, rural electric cooperatives, public power entities, and Resource Conservation & Development Councils (as defined in 16 USC §3451) are eligible applicants for grants to conduct energy audits and provide development assistance.

Interested applicants are encouraged to contact their local USDA Rural Development State Energy Coordinator well in advance of the application deadlines to discuss their project and ask any questions about the REAP program or the application process.

Additional information on the required materials and how to apply for the REAP program are available on page 77059 of the Dec. 16, 2022, Federal Register.