The U.S. Department of Agriculture is funding five clean energy projects in rural Iowa, with a $2.2 million allocation from the Rural Energy for America program (REAP).
The projects include solar panel installations, updating equipment to energy efficient versions and expanding ethanol production, Iowa USDA Rural Development announced Monday.
Almost half of the funding, $1 million, will go to Lincolnway Energy LLC to install a grain-to-alcohol conversion system at its ethanol plant near Nevada. The press release said the project would generate 223.7 million kilowatt hours per year, or enough to power over 20,000 homes.
Many environmental groups have spoken against ethanol as a sustainable fuel source. Jess Mazour, on behalf of the Iowa chapter of the Sierra Club, called it a “boondoggle” in a statement to Iowa Capital Dispatch.
“We’ve subsidized the ethanol industry for more than two decades despite increased air emissions, water degradation, soil erosion and the loss of the family farmer,” Mazour said. “USDA should do a better job vetting projects to ensure we are not wasting public dollars on boondoggles.”
Lincolnway Energy has been listed as a partner on the controversial Summit Carbon Solutions carbon sequestration pipeline, to which Sierra Club has also voiced opposition.
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Theresa Greenfield, the USDA Rural Development director for Iowa, said in a statement that the recipients have “met all criteria to qualify for the program awards.”
“Ag producers and small business owners are excited about the opportunity to add renewable energy systems and upgrade energy efficiency systems on their farms, ranches, and businesses,” Greenfield said. “They are not just taking climate smart action, they are lowering costs and saving money.”
According to USDA information about the program’s scoring criteria for project selection, the energy generated, saved or replaced is the most important criteria, while the environmental benefits of the project is among the least important elements.
“President Biden and Vice President Harris have made taking climate action a priority,” Greenfield said. “The REAP program administered by USDA RD is just one of the many investments to lower our carbon footprint.”
REAP, is part of the Biden-Harris administration’s Inflation Reduction Plan and thus far has invested more than $2.4 billion in approximately 8,500 projects across the nation according to Greenfield.
Greenfield said Iowa alone has received nearly $67 million to fund over 800 REAP projects.
Another project in this round was granted $327,109 to install solar arrays in Emmet, Palo Alto, Kossuth, Hancock, and Pocahontas counties. The recipient, GrowAg Investments LLP, owns a hog operation near Alden.
Mazour opposed the project because of GrowAg’s ties to Summit Agricultural Group, a large investment and management company in the state, also related to the carbon pipeline project.
Greenfield said recipients were selected through a highly competitive process.
“Most of the REAP funding recipients are small businesses, farmers and ranchers, both sole proprietorships and small, family-led corporations,” Greenfield said.
Other projects funded include almost $800,000 to expand solar arrays at Red Lion Perry Solar II in Perry, $30,000 to install solar at Cresco Heating and Ventilating in Howard County and a little over $60,000 to install an energy-efficient grain dryer at Quad J Inc, a grain production operation in Cherokee County.
The REAP program will have an additional $600 million available through 2027 to be released in three funding rounds, the USDA announced. It will be the final REAP funding allocation from the IRA.
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