Marking the second anniversary of President Biden’s Inflation Reduction Act, U.S. Agriculture Secretary Tom Vilsack announced on Thursday that the U.S. Department of Agriculture (USDA) will be funding 160 projects across 26 states to expand access to clean energy systems and increase the availability of domestic biofuels. This initiative is part of a broader effort to create new market opportunities and jobs for American farmers, ranchers, and agricultural producers.

The USDA is providing $99.6 million through two key programs: the Higher Blends Infrastructure Incentive Program (HBIIP) and the Rural Energy for America Program (REAP). Both programs receive funding from the Inflation Reduction Act, which is the largest-ever federal investment aimed at combating the climate crisis. To date, the USDA has allocated over $600 million from the Act for more than 4,500 clean energy projects through REAP, and over $180 million for more than 200 projects aimed at boosting the availability of domestic biofuels nationwide.

“The Biden-Harris administration is lowering costs for rural Americans and giving people in rural areas the historic opportunity to expand clean energy and build an economy that benefits working families and small businesses,” Vilsack said during the announcement in Minnesota. “By expanding access to homegrown biofuels and clean energy systems, we are strengthening our energy independence, addressing the impacts of climate change, and creating new market opportunities and revenue streams for American producers while bringing good-paying jobs in rural communities.”

The announcement was made during Vilsack’s visit to Minnesota, where he participated in an Investing in the American Bioeconomy discussion at the University of Minnesota and visited The Corner Store in Inver Grove Heights. This store is receiving a $518,250 HBIIP grant to build infrastructure for expanding the sale and use of renewable fuels. Specifically, the project will install four E15 dispensers, four E85 dispensers, and two ethanol storage tanks. It is projected to increase ethanol sales by 506,100 gallons per year.

Minnesota is a major beneficiary of this funding, with USDA awarding $9.2 million in REAP grants to 71 projects across the state. The REAP program helps farmers and small business owners adopt wind, solar, and other clean energy technologies, and make energy efficiency improvements. For example, Raveling Outdoors LLC in Longville will use a $59,475 REAP grant to install a 45-kilowatt solar array for its boat construction business. This project is expected to save the company nearly $9,000 in annual electrical costs and replace 52,000 kilowatt hours of electricity annually. Similarly, Moe Family Farm LLC in Waltham will use a $10,812 REAP grant to install an energy-efficient shop heater, saving the business $1,000 per year and replacing 37,300 kilowatt hours of electricity annually.

The REAP program is also aligned with the Biden-Harris Administration’s Justice40 Initiative, which aims to ensure that 40% of the overall benefits from federal climate, clean energy, and other investments flow to disadvantaged communities that have been historically marginalized and overburdened by pollution.

In addition to REAP grants, USDA is awarding $90.3 million in HBIIP grants to 89 projects across 26 states. These investments will help business owners install and upgrade infrastructure such as fuel pumps, dispensers, and storage tanks, which are essential for expanding the availability of biofuels. These projects are expected to spur economic growth in rural communities by increasing competition in agricultural markets and lowering costs through clean energy initiatives.

Among the notable HBIIP projects is a $1.9 million grant awarded to CSX Transportation Inc. in Georgia. The company will use the funds to install a 200-gallon biodiesel aboveground storage tank, distribution equipment, and electric monitoring tools. This project aims to increase biofuel availability by 1 million gallons per year. In Nevada, Anabi Real Estate Development LLC will receive a $3.7 million grant to install three E85 dispensers and three B20 dispensers at two fueling stations, with a goal of increasing biofuel sales by over 80,000 gallons annually.

USDA’s commitment to expanding biofuel infrastructure and clean energy projects is ongoing, with applications for the HBIIP program being accepted until September 30, 2024. Interested parties can find more information on the HBIIP webpage.

This latest announcement also includes investments in a diverse range of 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.

Since the start of the Biden-Harris administration, USDA has invested over $220 million nationwide to increase access to biofuels at fueling stations and more than $2.2 billion in renewable energy and energy efficiency improvements. These investments underscore the administration’s commitment to advancing clean energy, promoting rural economic growth, and addressing the climate crisis.