USDA Invests in Additional Domestic Biofuels and Clean Energy Projects to Lower Costs and Increase American Energy Security Across the Nation

Agriculture (USDA)Business News/Analysis California Deliver Dispense Federal Agency/Executive Branch Florida Funding/Financing/Investing Government Resources Infrastructure Iowa Opinions Policy Resources Wisconsin

January 14, 2025

Print This Article Share it With Friends

(U.S. Department of Agriculture) U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is funding 586 projects to expand access to clean energy systems and increase the availability of domestic biofuels. Today, USDA is providing nearly $180 million through the Rural Energy for America Program (REAP) and the Higher Blends Infrastructure Incentive Program (HBIIP) with funding from President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combatting the climate crisis.

The projects will create new market opportunities and jobs for American small businesses, farmers, ranchers, forest landowners and agricultural producers in 42 states, Guam, Puerto Rico and the U.S. Virgin Islands.

“The Biden-Harris Administration is lowering costs and giving rural Americans the historic opportunity to expand clean energy and build an economy that benefits working families and small businesses,” Secretary Vilsack said. “By expanding access to homegrown biofuels and clean energy systems, we are making long-lasting investments that will strengthen our energy independence, address the impacts of climate change and create new market opportunities and revenue streams for American producers while bringing good-paying jobs to rural communities.”

To date, USDA has invested more than $1.3 billion from the Inflation Reduction Act for 8,012 clean energy projects through REAP, and more than $287 million in 345 projects through HBIIP that increase the availability of domestic biofuels across the country.

Since the start of the Biden-Harris Administration, USDA has invested more than $3 billion for 11,221 projects through REAP and more than $323 million in 399 awards through HBIIP.

Clean Energy Projects

As part of today’s announcement, USDA is awarding $120 million in REAP grants for 516 projects in 39 states, Guam, Puerto Rico and the U.S. Virgin Islands. This program helps farmers and small business owners make energy efficiency improvements and expand their use of wind, solar and other forms of clean energy.

For example:

In Pennsylvania, Wolfe Brothers Farms, a family-owned grain-finished cattle farming operation in Tioga County, will use a $500,000 grant to purchase and install a more energy-efficient grain dryer. This project is expected to save the farm approximately $103,000 per year and will decrease its energy consumption by 60%.
In Wisconsin, Rosewood Dairy Inc. in Algoma will use a $500,000 grant to install more energy efficient lighting. This project is expected to save the business more than $18,000 per year. It will save nearly 238,000 kilowatt hours per year, which represents 60% of Rosewood Dairy’s energy use.
In South Dakota, Dakota Prairie Pork LLC will use a $50,000 grant to install a 49.1 kilowatt solar array at a hog farm near Canton. This project is expected to save nearly $6,800 per year in energy costs and more than 72,000 kilowatt hours of electricity per year.

The investments announced today through REAP will benefit farmers, small business owners, entrepreneurs and community organizations in Alaska, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Wisconsin, Guam, Puerto Rico and the U.S. Virgin Islands.

REAP is a part of the President’s Justice40 Initiative, which aims to ensure 40% of the overall benefits from certain federal climate, clean energy, and other investment areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

Domestic Biofuel Projects

Business owners are also receiving nearly $60 million through HBIIP to expand access to domestic biofuels in 24 states and strengthen America’s energy independence. This program provides grants to fueling station and distribution facility owners—including marine, rail, and home heating oil facilities—to expand access to domestic biofuels, a clean and affordable source of energy.

These investments help business owners install and upgrade infrastructure such as fuel pumps, dispensers and storage tanks.

For example:

In California, EZ Petroleum will use a $1.3 million grant to install 30 E85 dispensers and seven ethanol storage tanks at seven fueling stations in Winton, Fremont, South San Francisco, Salinas, Richmond and Fresno. This project is expected to increase the amount of ethanol sold by more than 391,000 gallons per year.
In Florida, Mas Fuel Distributors will use a nearly $2 million grant to install 14 E15 dispensers, 24 E85 dispensers, and eight ethanol storage tanks at three fueling stations in Hollywood, Miami and Homestead. This project is expected to increase the amount of ethanol sold by nearly 2 million gallons per year.
In Iowa, Morning Star Station LLC will use a $398,000 grant to install two E15 dispensers, one B20 dispenser, one ethanol storage tank and one biodiesel storage tank at a fueling station in Worthington. This project is expected to increase the amount of biofuel sold by more than 116,000 gallons per year.

The investments announced through HBIIP today will benefit people living in Alabama, California, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas and Wisconsin.

USDA 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. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. To subscribe to USDA Rural Development updates, visit the GovDelivery Subscriber Page.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov. READ MORE

Related articles

Excerpt from WBAY: U.S. Department of Agriculture (USDA) Rural Development Wisconsin State Director Julie Lassa today announced that the USDA is investing $14,000,418 more in grant funding in Wisconsin to expand access to clean energy systems and increase the availability of domestic biofuels.

The investments announced today are being made in 42 projects in 27 counties in Wisconsin through the Higher Blends Infrastructure Incentive Program (HBIIP) ($9,583,750 to three projects) and the Rural Energy for America Program (REAP) ($4,416,668 to 39 projects).

“The dozens of awards I’m announcing today will help lower energy costs and provide a historic opportunity for farmers and rural businesses to invest in clean energy systems and make energy efficiency improvements. Many of these investments are made possible with help from President Biden’s historic Inflation Reduction Act and will create more energy independence, save businesses money on their bottom-line, and strengthen economic development in rural communities,” said Lassa.

Some examples of projects in today’s announcement include:

In Kewaunee County, Rosewood Dairy, Inc. in Algoma will use a $500,000 REAP grant to install more energy-efficient lighting. This project is expected to save the business more than $18,000 per year. It will save nearly 238,000 kilowatt hours per year, which represents 60 percent of Rosewood Dairy’s energy use.

In Grant County, GRO Alliance, a rural small business in Cuba City, will use a $438,500 REAP grant to install a roof-mounted solar electric array. This project is expected to save $45,118 per year. It will replace 609,696 kilowatt hours (66 percent of the company’s energy use) per year, which is enough energy to power 60 homes.

JT Petroleum LLC, which owns and operates fueling stations, will use a $5,000,000 HBIIP grant to create infrastructure to expand the sales and use of renewable fuels. This project will install 79 E15 dispensers, 23 B20 dispensers, 19 ethanol storage tanks, and 15 biodiesel storage tanks at 19 fueling stations, located in Indiana, Kentucky, Michigan, and Wisconsin. Station locations impacted by this grant are: Bloomington, Brussels, Grand Chute, Grand Rapids, Marion, Menomonee Falls, Milwaukee, Mitchell, Mt. Vernon, Oshkosh, Pewaukee, Racine (2), Radcliff, Salem, Sheboygan, Sturgeon Bay, Two Rivers, and Waukesha. This project will increase the amount of biofuel sold by 6,160,734 gallons per year.

A full list of projects receiving funding announced today is available online, here: https://www.rd.usda.gov/media/file/download/reap-and-hbiip-grant-awards-1-13-2025-0.pdf. Projects are listed alphabetically by county.

Since 2021, USDA has invested nearly $48 million in 259 projects in Wisconsin through REAP and more than $34.5 million through HBIIP in projects with impact in Wisconsin. READ MORE