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New USDA program provides funding for rural businesses, ag producers, to make energy efficiency upgrades

Officials with the USDA met with community members at Bakersfield College to talk about the REAP Project, which provides funds meant to improve the quality of life in rural areas.
USDA meets at BC about REAP funding
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BAKERSFIELD, Calif. (KERO) — On Thursday, January 26, officials with the U.S. Department of Agriculture met at Bakersfield College to discuss the agency's new available funding for energy projects in rural areas. This funding is expected to create an array of opportunities for agricultural producers and small businesses throughout Kern County.

The Rural Energy for America Program (REAP) is designed to provide loan financing and grant funding to agricultural producers and rural small businesses. $300 million from this USDA program is set to expand renewable energy, as well as support energy-efficiency projects for people who live in rural areas.

California State Director for USDA Rural Development Maria Gallegos Herrera says both agricultural producers and rural small businesses can apply for funds, which can be used for renewable energy systems such as geothermal, small and large wind generation, hydropower, and others.

Gallegos Herrera adds that the funds can also be used to buy, build, and install energy efficiency improvements such as cooling or refrigeration units, lighting, heating, and more.

"Being able to bring these resources to our rural small businesses and our agricultural producers is really a game-changer. It will allow them to implement projects that essentially help us advance our climate change goals, help with the energy transition potentially, and also put money back into their pocket that they can use to expand their business," said Gallegos Herrera.

Because she grew up in farmworker communities like Fresno and Tulare County, Gallegos Herrera says she understands how rural communities are often the ones on the front lines of climate change. She says this program goes hand-in-hand with her department's mission of enhancing the quality of life in rural communities.

Investing in climate change infrastructure can create good paying jobs in rural California, as well as empower those communities by providing them with necessary resources.

"Kern County is really leading the charge in terms of the energy transition here in California. We're really focused on making sure that rural business owners and agricultural producers right here in the valley, are aware of these funding opportunities and are able to make themselves available to these dollars," said Gallegos Herrera.

According to Chilton McAuliff, Senior Climate Advisor for the USDA, $250 million of the $300 million dollars in the program came directly from the Biden/Harris administration's Inflation Reduction Act.

"All you have to do to qualify is be in a rural area of under 50,000 - rural municipality - for a small business. For a farm/agriculture producer, meaning you're getting over 50 percent of your revenue from agriculture, you can be anywhere in California," said McAuliff.

For a full explanation of REAP program qualifications and to start the application process for your farm or business, visit the program page on the USDA's website.