USDA and DOE Announce Funding for Hundreds of Job-Creating Projects

Over the past three months, the U.S. Department of Agriculture (USDA) and the Department of Energy (DOE) have announced funding for hundreds of job-creating rural energy and bioenergy projects. When matched with private resources, these public investments will generate hundreds of millions of dollars in new investment, creating jobs and advancing the nation’s economic, energy, environmental, and climate security.

On September 29, the DOE announced that it had finalized a loan guarantee of $132.4 million for Abengoa Bioenergy of Kansas to help finance the construction of a 23 million gallon per year cellulosic ethanol plant that will use corn stover. A few days earlier, the DOE finalized a loan guarantee for ethanol producer Poet ($105 million for a 25 million gallon per year cellulosic ethanol plant in Iowa that will use agricultural residues). Previously, the USDA had approved a loan guarantee for INEOS ($75 million for an 8 million gallon per year ethanol plant that will use yard and agricultural residues). These projects will generate hundreds of construction jobs each plus additional permanent jobs producing biomass and cellulosic biofuel.

On September 27, USDA Secretary Vilsack announced payments to 160 biofuel producers in 41 states as authorized in the Bioenergy for Advanced Biofuels Program to advance the development and production of advanced biofuels. On September 16, he announced the award of $27 million in grants and loan guarantees for 500 projects across the United States as authorized by the Rural Energy for America Program (REAP) to advance energy efficiency and renewable energy. He also had announced $11.6 million in grants for 900 REAP projects in August. These rather modest federal investments are amplified when they are matched by significantly larger investments from the private sector.

Many more similar USDA and DOE funding announcements have been made for other bioenergy programs in recent months. The combined result will be more job creation, improved competitiveness for rural businesses and agricultural producers (from improved energy efficiency and renewable energy), reduced energy costs, and reduced environmental impacts from energy consumption.