USDA's clean energy push - Jobs and savings for rural USA

USDA projects under President’s inflation reduction act support rural economies

By Farms.com

The Administration, through the USDA, has launched a significant effort to expand clean energy access and economic opportunities in rural America.

Tom Vilsack announced numerous projects aimed at reducing energy bills, expanding clean energy access, and fostering job creation for farmers, ranchers, and agricultural producers nationwide. These initiatives, funded in part by President’s Inflation Reduction Act, represent the largest-ever federal investment in combating the climate crisis.

Aligned with President’s Investing in America agenda, these projects aim to stimulate economic growth from the ground up by focusing on clean energy solutions. By lowering energy costs for agricultural producers, rural small businesses, and families, USDA’s initiatives support local economies and enhance community resilience.

Vilsack emphasized the administration's commitment to modernizing energy systems in rural areas, promoting energy independence, and creating sustainable jobs. USDA collaborates with family farms, small businesses, rural electric cooperatives, and local clean energy developers to address climate change impacts and foster economic growth.

USDA is allocating over $375 million through programs like the Powering Affordable Clean Energy Program (PACE) and the Rural Energy for America Program (REAP). These initiatives, part of the President’s Justice40 Initiative, ensure that 40% of the benefits flow to disadvantaged communities disproportionately affected by pollution and underinvestment.

Under the Powering Affordable Clean Energy Program, USDA is directing more than $275 million to rural electric cooperative projects. These include significant investments in battery energy storage systems across states like Alaska, Arizona, Kentucky, and Nebraska, aimed at enhancing energy affordability and reliability.

The Rural Energy for America Program is providing nearly $100 million in loans and grants across 39 states and Puerto Rico. This program supports agricultural producers and rural small businesses in adopting renewable energy sources and improving energy efficiency, thereby reducing operating costs and enhancing business sustainability.