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Category: National News

Washington, DC - To create new markets for U.S. farmers and ranchers, help Americans save money on their energy bills, support America's clean energy economy, cut carbon pollution, and reduce dependence on foreign oil and costly fossil fuels, the U.S. Department of Agriculture (USDA) continues to aggressively pursue investments in American-grown renewable energy.

As part of that commitment, USDA is investing up to $100 million in clean energy infrastructure that will make more options available to American consumers. Through the Biofuels Infrastructure Partnership, USDA funds, administered through competitive grants and matched by States and private contributions, will test innovative ways to distribute higher blends of renewable fuel. States that offer a greater than one-to-one ratio in funding will receive higher consideration for grant funds. A typical gas pump can deliver fuel that contains a maximum 10% ethanol, which limits the amount of renewable energy most consumers can purchase at the pump, despite the fact that our farmers now produce record amounts of renewable biofuels.

This new investment seeks to double the number of fuel pumps capable of supplying higher blends of renewable fuel to consumers, such as E15 and E85. This will expand markets for farmers and help them diversify their rural energy portfolios, support rural economic growth and the jobs that come with it, and ultimately give consumers more affordable options at the pump.

The United States exported more than $2 billion dollars of ethanol last year, making the United States the world's largest exporter of ethanol. Other countries are investing in clean energy technologies because they realize the tremendous economic potential of these energy sources, and we must do the same to remain competitive.

Still, a combination of factors is creating uncertain times for America's corn and soybean producers. Lower commodity prices and reduced demand for feed as the poultry industry recovers from the highly pathogenic avian influenza virus are putting pressure on producers and sectors of the U.S. economy. These competitive grants will create additional markets for feedstock commodities and will be funded through USDA's Commodity Credit Corporation (CCC), which was created to stabilize, support, and protect farm income and prices.

Increased domestic production and use of renewable energy, paired with growing renewable energy exports, has the potential to support hundreds of thousands of jobs in rural communities. This announcement builds on USDA's ongoing efforts to work with farmers and ranchers to support a robust clean energy economy in rural America, including: