$307 million climate pollution grant called ‘once-in-a-lifetime’ opportunity for NE

Gov. Jim Pillen speaks at a media event along with Janet McCabe, deputy administrator of the U.S. Environmental Protection Agency. The gathering at a Douglas County farm marked Nebraska's selection for a $307 million, competitive Climate Pollution Reduction grant that will have a focus on agriculture. (Cindy Gonzalez/Nebraska Examiner)

OMAHA — Federal and state government officials met amidst the corn and bean fields of the Jacobsen family farm Wednesday to celebrate an unprecedented $307 million grant they said will thrust Nebraska’s agricultural sector into a national spotlight for improving energy efficiency, the environment and easing the climate crisis.

Janet McCabe, deputy administrator of the U.S. Environmental Protection Agency, called the award the single biggest investment the federal agency has ever made in such an ag-centric undertaking.

It’s also the largest federal grant ever awarded to the Nebraska Department of Environment and Energy.

McCabe expects the award to help produce “pioneering, replicable, scalable” ventures that will be  “blueprints” for communities across the country to follow.

“Nebraska will be leading the way not just on emissions reductions in your state but in setting an example,” she said with the 20-acre farm as a backdrop. “You really are kind of a living laboratory for these kinds of activities.”

About 300 applied, 25 won

Indeed, McCabe said, the Nebraska application stood out among roughly 300 nationally because of its agricultural focus. But she praised it also for reaching into a range of sectors and low-income households across the state.

In all, 25 applicants will share more than $4.3 billion from the “Climate Pollution Reduction Grant” program to implement community-driven solutions targeting climate change, air pollution, environmental concerns and promoting clean energy.

Gov. Jim Pillen spoke at the Jacobson farm along with leaders in his administration. He said the federal dollars in Nebraska will stimulate both rural and urban economies — and allow farmers to build upon, measure and “turbocharge” best practices.

“It will allow producers to innovate and improve practices so that we make things better for the planet and we produce more,” he said. “Nebraska farmers have been doing extraordinary practices for a lot of years. We’re going to measure it and get credit for it.”

For example, Andy and Heather Jacobsen, fifth-generation farmers who hosted the group, foresee the federal grant opening the door to newer technology for smaller, non-corporate farms like theirs.

“This will help the small guys get better at what they’re doing,” said Andy Jacobsen, whose dad has 100 acres and whose grandpa has another 160 acres nearby.

State officials said the event was held at the Jacobsen home — which along with a farming operation includes three children, 24 chickens, 10 cats and two dogs —  because they represent a location that could potentially benefit from the grant.

‘Nebraska is leading the way’

Also poised to benefit, Pillen said, are infrastructure projects, electric generation and transportation.

“It’s really really simple. This is a once-in-a-lifetime, extraordinary opportunity,” said the governor.

Julie Bushell, who leads the Nebraska BioEconomy Initiative, foresees the financial boost spurring growth of family farms by generating opportunities for billions of dollars of additional revenue.

“This partnership solidifies the state as the epicenter for sustainable reindustrialization that will secure the United States of America with food, fuel and energy independence,” she said. “And Nebraska is leading the way.”

She and others said Nebraska took a community wide approach to its application, garnering opinion from public power districts, local governments, ag leaders and university leaders. The team also solicited comments online and visited five different communities to gather input.

Set to arrive in October, the $307 million grant is part of President Joe Biden’s Inflation Reduction Act.

Many details have yet to be worked out on program design, implementation and distribution of funds, said NDEE officials who are overseeing the funds, which must be spent in five years.

Eight priority areas

But over that time, the department plans to direct funding to eight areas that rose to the top during community and partner discussions:

• Creation of regional anaerobic digester and biogas hubs that convert manure and other ag waste into reusable energy.
• Incentives for production and use of biochar to reduce organic waste and sequester carbon in soil.
• Reduce greenhouse gas emissions in ag production via strategies that include incentives to use high-tech precision equipment to improve efficiency and to adopt regenerative practices that improve soil health. Incentives would also go to participants who help develop a carbon intensity score registry.
• Incentives to convert irrigation wells from diesel to electric.
• Solar projects on unused land, ag and industrial facilities and for solar canopies over feedlots or parking lots.
• Incentives for micro-solar arrays that provide power to water and waste-water facilities in low-income rural communities to reduce energy costs.
• Energy and electric upgrades for non-residential facilities including industrial, commercial ag and nonprofit structures.
• Home repairs for low-income residents to allow eligibility for weatherization assistance.

State officials said participation in the programs will be voluntary. They are outlined in what is dubbed the “One Red” program (Opportunity for Nebraska: Reducing Emissions & Decarbonization).

By 2030, the initiatives are expected to reduce total cumulative greenhouse gas emissions by 24.5 million metric tons, and by 2050, 134.4 million metric tons.

‘Game changer’

Kara Valentine, deputy director of the DEE, called the funding a “game changer” that will reach into every corner of the state, boosting local economies while reducing greenhouse emissions.

“Over the next five years we can create high quality Nebraska jobs, bolster Nebraska’s economy, benefit rural, urban and underserved communities and establish Nebraska as a leader in sustainable agriculture — all while reducing emissions,” Valentine said.

Grants like this will help measure and tell the story of modern value-added agriculture.”

– Sherry Vinton, director of the Nebraska Department of Agriculture

Sherry Vinton, director of the Nebraska Department of Agriculture, noted that 90% of Nebraska land is “in agriculture.”

“These grants are going to provide a variety of programs that will tie into all of that,” she said.

As the world population grows, Vinton said, agriculture will become even more important. Farmers and ranchers can accelerate new technologies and meet new demands for food and fuel for the future.

Producers are adapting, she said, increasing production with fewer resources and better technologies.

Said Vinton: “Grants like this will help measure and tell the story of modern value-added agriculture.”

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