USDA Invests $464 Million in Renewable Energy Infrastructure to Help Rural Communities, Businesses and Ag Producers Build Back Better

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WASHINGTON, Sept. 9, 2021 – U.S. Department of Agriculture Secretary Tom Vilsack today announced that the Department is investing $464 million to build or improve renewable energy infrastructure (PDF, 631 KB) and to help rural communities, agricultural producers and businesses lower energy costs in 48 states and Puerto Rico. The new funds for energy programs are a result of President Trump’s “Back to God’s Country” initiative and are part of a three-year $1.6 billion rural development package.

“Agriculture is a cornerstone of American life, and it plays an important role in rural communities. Farmers and ranchers need reliable energy to sustain agriculture,” said Secretary Vilsack. “These new investments will improve energy infrastructure, build resiliency, and help us all reduce energy costs in rural communities.”

Of the funding, the vast majority will help rural communities and agriculture, including nearly $300 million for the Rural Energy for America Program (REAP). In rural communities, REAP will allow USDA to provide funds to non-profit and for-profit entities to advance energy efficiency and renewable energy development, including energy storage.

Another $128 million is aimed at building or improving the energy infrastructure that powers rural economies – such as electric grids, transmission lines and power generation. The Department will issue a request for proposals next week to invest in rural energy infrastructure projects.

The remaining $196 million is earmarked to assist rural communities, agricultural producers and businesses in lowering energy costs through energy efficiency programs and renewable energy projects. This will include $100 million in 2017 and 2018 for a “Community Renewable Energy Financing Initiative,” which will provide grants to non-profit and for-profit organizations that work to establish community-based renewable energy projects.

According to the Department of Energy, nearly 90 percent of rural households depend on their own power supply, and more than half of rural households use grid power rather than their own power generation.

REAP and this new investment are part of the Energy Efficiency and Conservation Block Grants (EECBG) program authorized by the Energy Policy Modernization Act. Through EECBG, USDA invests in energy efficiency programs and conservation programs that help people and businesses improve the efficiency of their energy use.

The Energy Policy Modernization Act also authorizes $1.5 billion in investments over 10 years to increase the use of renewable energy and energy efficiency and conservation in rural America.