Rural Washington Companies Get $2.3 Million USDA Renewable Energy Funding Boost

A Multi-County Investment

USDA Rural Development announced more than $2.3 million in Rural Energy for America Program (REAP) grants and guaranteed loans for 18 renewable energy projects across rural Washington state, part of the Biden administration's Investing in America agenda.

The funding supports projects in 13 counties: Adams, Douglas, Ferry, King, Kittitas, Klickitat, Lincoln, San Juan, Skagit, Spokane, Thurston, Whatcom, and Yakima. The geographic sweep reflects REAP's mission to reach every corner of rural Washington, from the apple country of Yakima to the timber communities of Ferry County.

What REAP Funds

REAP provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses. Funds can be used to purchase and install renewable energy systems, including:

• Solar photovoltaic systems.
• Small and large wind generation.
• Biomass systems, including biodiesel, ethanol, anaerobic digesters, and solid fuels.
• Geothermal systems for electric generation or direct use.
• Hydropower below 30 megawatts.
• Ocean energy (tidal, current, thermal).

REAP also funds energy efficiency improvements such as LED lighting, insulation, HVAC upgrades, grain drying, irrigation efficiency, and refrigeration.

Who Can Apply

Eligible applicants must be agricultural producers with at least 50% of their gross income from agricultural operations, or rural small businesses in areas with populations of 50,000 or fewer. Projects must also be located in a rural area by USDA's definition.

Under the Inflation Reduction Act of 2022, REAP received more than $2 billion in new funding for renewable energy systems and energy efficiency improvements through 2031. That infusion lets USDA cover a larger share of project costs: grants can now cover up to 50% of eligible project costs for underserved applicants and up to 40% for others, compared with the previous 25% cap.

Why This Matters for Washington

Washington state's rural economy runs on agriculture, timber, and small-scale manufacturing, all sectors that use heavy amounts of energy. REAP grants let operators trim energy bills, reduce exposure to volatile fuel prices, and in some cases earn revenue by selling excess solar production back to their local utility.

The $2.3 million in recent awards in Washington supports farms and small businesses that lower on-farm energy costs, install solar systems on packing sheds, convert irrigation to more efficient pumps, and upgrade climate-control systems for storage and processing facilities. Each of those upgrades keeps the farm or business more viable in an increasingly price-squeezed market.

How to Apply

Rural Washington producers and small businesses interested in REAP funding can start with the USDA Rural Development Washington office and the state energy coordinator, Carlotta Donisi, reachable at (360) 704-7724 or carlotta.donisi@wa.usda.gov.

Applications are open year-round, with quarterly competitive scoring cycles. USDA also continues to fund REAP Technical Assistance Grants, which pay nonprofits and colleges to help applicants build strong submissions, especially for grants under $20,000 where the cost of a commercial grant writer would outweigh the benefit.