Vilsack Talks Up Clean Energy Investments in Rural America

ST. CHARLES, Minn. — Agriculture Secretary Tom Vilsack traveled to Minnesota on Thursday to highlight Biden-Harris administration investments in clean energy infrastructure and how they’re benefiting rural communities.

A focal point of Vilsack’s visit to Miller’s Market, a family owned grocery store in St. Charles, was the USDA’s Rural Energy for America Program.

Since the passage of the Inflation Reduction Act, which funds REAP, the department has invested more than $1.6 billion in 5,457 projects, including $53.8 million for 495 projects in Minnesota — more than any other state in the country.

Specifically, the program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements.

Agricultural producers can also apply for new energy-efficient equipment and new system loans for agricultural production and processing. 

The program is open to any agricultural producer with at least 50% of their gross income coming from agricultural operations and small businesses in communities with populations of 50,000 or fewer.

The department does, however, insist that applicants have no outstanding delinquent federal taxes, debt, judgment or debarment.

Once approved, the funds can be used to purchase a wide array of renewable energy systems, including biomass, geothermal, hydropower, hydrogen and small and large wind and solar generation.

Funds also can be used to buy, build and install energy efficiency improvements such as high-efficiency heating, ventilation and air conditioning systems, insulation, lighting, cooling or refrigeration units, doors and windows, electric, solar or gravity pumps for sprinkler pivots, and installing energy efficient equipment and systems for agricultural production or processing.

The Inflation Reduction Act made available approximately $1.4 billion in additional funding for REAP from 2022 to 2024 to help meet the demand in applications for the popular and oversubscribed program, including in Minnesota.

“Thanks to President Biden’s Inflation Reduction Act, producers and rural communities have more opportunities to participate in the clean energy economy than ever before,” Vilsack said to a crowd that included many who had benefited from the program.

Minnesota communities have taken full advantage of these opportunities, leading to lower energy costs for business owners, savings and more income for producers, and vibrant Main Streets,” he said.

Miller’s Market itself received a $64,000 grant to install a 50-kilowatt solar array that is expected to replace 102,500 kilowatt hours of electricity per year, which is enough energy to power nine homes and the equivalent of 12.6% of the store’s annual energy consumption.

Others in attendance included Mark and Karen Goldberg of Stewartville, Minnesota, who received a grant of nearly $78,000 to install a wind turbine on their farm, which will save them $11,520 per year. 

The construction of the turbine was recently concluded and replaces over 103,000 kilowatt hours of electricity each year.

Four Daughters Winery in Spring Valley, Minnesota, received a $167,500 REAP award to install a 207-kilowatt solar array. 

Construction on the project is expected to be completed later this year. Once it goes online, it is projected to save the business $53,000 per year in electrical costs and replace 287,000 kilowatt hours of electricity, which is enough energy to power 26 homes. 

This is 58% of the winery’s annual energy consumption, the Agriculture Department said.

The locally-owned Ace Hardware Store in St. Charles was awarded $52,000 to install a 39-kilowatt solar array. 

This project is expected to replace 78,850 kilowatt hours of electricity per year — 85.5% of their total annual energy usage.

Vilsack was joined in St. Charles by Minnesota Gov. Tim Walz. Earlier in the day the agriculture secretary visited St. Paul, where he spoke at the local Women, Infants and Children’s office to highlight the “urgent need for Congress to fully fund WIC in 2024.”

Among other things, Vilsack spoke about how WIC helps nearly “6.7 million pregnant women, new mothers, babies and young children” who get needed nutrition at critical stages in their lives.

Dan can be reached at [email protected] and @DanMcCue