Biden-Harris Administration Boosts Domestic Biofuels and Clean Energy Under Investing in America Agenda

MINNEAPOLIS, Minn., Aug. 16, 2024 – On the second anniversary of President Biden’s Inflation Reduction Act, U.S. Secretary of Agriculture Tom Vilsack announced significant funding for 160 initiatives across 26 states aimed at broadening access to clean energy systems and boosting the domestic biofuels market, thereby generating new job opportunities for U.S. farmers, ranchers, and agricultural producers. These projects are part of a broader strategy to enhance American energy independence and support President Biden’s Investing in America initiative, which focuses on nurturing the nation’s economy from the ground up.

The USDA is allocating $99.6 million through the Higher Blends Infrastructure Incentive Program (HBIIP) and the Rural Energy for America Program (REAP). These funds derive from President Biden’s Inflation Reduction Act, recognized as the largest federal investment aimed at fighting the climate emergency. Up until now, the USDA has committed over $600 million from the Inflation Reduction Act to support more than 4,500 clean energy initiatives through REAP, as well as over $180 million for more than 200 projects focused on increasing the supply of domestic biofuels nationwide.

“The Biden-Harris Administration is working to reduce expenses for rural Americans and providing a historic chance for those in rural regions to enhance clean energy and foster an economy that benefits working families and small enterprises,” stated Secretary Vilsack. “By broadening access to domestically produced biofuels and clean energy alternatives, we’re not only fortifying our energy security but also tackling climate change while creating new market opportunities and income streams for American producers, enhancing job prospects in rural neighborhoods.”

During his visit to Minnesota, where he participated in an Investing in the American Bioeconomy discussion at the University of Minnesota, Secretary Vilsack unveiled initiatives including a $518,250 HBIIP grant awarded to The Corner Store in Inver Grove Heights. This funding aims to establish infrastructure for increasing the sale and utilization of renewable fuels, which will entail installing four E15 dispensers, four E85 dispensers, and two ethanol storage tanks. The project anticipates raising the ethanol sales by 506,100 gallons annually.

In Minnesota, the USDA is distributing $9.2 million in REAP grants to support 71 ongoing projects statewide. This program is designed to assist farmers and small business owners in amplifying their adoption of solar, wind, and other clean energy technologies while boosting energy efficiency. Notable projects include:

• Raveling Outdoors, LLC in Longville plans to utilize a $59,475 REAP grant for a 45-kilowatt solar array installation, aiming to save nearly $9,000 annually in electricity costs while offsetting 52,000 kilowatt hours of electricity each year.
• Moe Family Farm LLC in Waltham is set to install an energy-efficient workshop heater with a $10,812 REAP grant, expected to save about $1,000 each year in electricity costs and replace 37,300 kilowatt hours of energy annually.

The REAP initiative aligns with the Biden-Harris Administration’s Justice40 Initiative, which seeks to direct 40% of the overall advantages of certain federal climate and clean energy investments to disadvantaged communities that have suffered underinvestment and face higher pollution levels.

In addition to this news, USDA is awarding $90.3 million in HBIIP grants to 89 different projects across 26 states. These crucial investments will assist business owners in installing and enhancing infrastructure like fuel pumps, storage tanks, and dispensers. They are also anticipated to stimulate economic growth in rural areas by fostering competition in agricultural markets and reducing costs linked to clean energy projects.

Highlights of ongoing projects include:

• CSX Transportation Inc. in Georgia is set to implement a $1.9 million grant for a 200-gallon biodiesel aboveground storage tank, installation of distribution equipment, and electric monitoring tools, aiming to increase biofuels availability by 1 million gallons per year.
• Anabi Real Estate Development LLC in Nevada will utilize a $3.7 million grant to install three E85 and three B20 dispensers across two fueling stations, with plans to boost biofuel sales by over 80,000 gallons annually.

USDA seeks applications for HBIIP funding until Sept. 30, 2024, at 4:30 p.m. ET. To learn more, visit the HBIIP webpage.

The announcement encompasses funding initiatives across states including California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Virginia, West Virginia, Wisconsin, and Wyoming.

Throughout the Biden-Harris Administration, USDA has invested over $220 million towards enhancing biofuel accessibility at fueling stations and more than $2.2 billion on renewable energy and energy efficiency advancements.

Background

The Biden-Harris Administration has been a strong advocate for the Inflation Reduction Act, a fundamental aspect of the Investing in America agenda.

The Inflation Reduction Act facilitates the Administration’s commitment to combating climate change and diminishing greenhouse gas emissions across the United States. The Act allocates funds to USDA Rural Development for supporting eligible organizations in investing in renewable energy infrastructure that will significantly cut greenhouse gas emissions through programs like REAP and HBIIP.

REAP provides essential grants and loans that empower farmers and small business owners to enhance their use of solar, wind, and other forms of clean energy, while implementing energy efficiency enhancements. These advancements contribute to income growth, business expansion, climate change efforts, and reduced energy expenses for American households.

HBIIP offers grants to owners of fueling stations and distribution facilities—including those in marine, rail, and home heating oil sectors—to augment access to domestic biofuels as a Clean and cost-effective energy option.

For additional information, visit: www.rd.usda.gov/inflation-reduction-act.

USDA Rural Development is dedicated to providing loans and grants that promote economic growth, job creation, and enhanced living standards for millions of Americans in rural areas. This initiative supports infrastructure enhancements, business development, housing, community facilities such as schools, safety, healthcare, and high-speed internet access in rural, Tribal, and high-poverty regions. For insights into how these investments are transforming rural America, visit the Rural Data Gateway. For further details about USDA, visit www.rd.usda.gov.

USDA positively impacts the lives of all Americans daily. Under the Biden-Harris Administration, USDA is revolutionizing the nation’s food system by focusing on more resilient local and regional food production, establishing fair markets for all producers, ensuring access to safe and nutritious food across various communities, creating new markets and income opportunities for farmers and producers through climate-smart practices, and making landmark investments in rural America’s infrastructure and clean energy capabilities while striving for equity in the Department by dismantling systemic barriers and enhancing workforce diversity.

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