Federal and state officials have detailed the plans and potential impact of the recent $307 million climate pollution reduction grant the Environmental Protection Agency awarded to Nebraska — the largest grant the federal agency has ever made specifically aimed at reducing greenhouse gas emissions in agriculture.
There is a huge market for agricultural products that have smaller carbon footprints, as both consumers and companies that cater to them are looking for goods produced in more sustainable ways, said EPA Deputy Administrator Janet McCabe during a press conference Wednesday at a farm near Omaha.
“You’re seeing corporations, shareholders and individual consumers wanting to know which are the products that are gentler on the climate,†McCabe said. “That’s a real advantage if you are on the leading edge of that.â€
The grant will help Nebraska farmers create more climate-friendly products through such practices as conversion of center-pivot irrigation systems from diesel fuel to electricity, more precisely applying fertilizer to avoid overuse, reducing the methane emitted by cattle and sequestering carbon in the ground.
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Not only will that in itself reduce emissions, the idea is that the Nebraska industry’s innovations can then be replicated across the country, McCabe said.
“It’s really, really simple: this is a once-in-a-lifetime, extraordinary opportunity,†Gov. Jim Pillen said of the grant.
He said knowing what carbon scores are in Nebraska and finding ways to voluntarily improve them “will do nothing but make every Nebraska farm and producer more money, enhancing their operations for generations to come.â€
How much money?
Julie Bushell, a consultant who leads the Nebraska BioEconomy initiative, said the grant will accelerate the growth of revenue for family farms “by the tune of billions, with a B.â€
She said potential for new and more sustainable ag products could be seen in the unrelated announcement Wednesday that a firm has selected Phelps County in south-central Nebraska as the location for the Midwest’s first sustainable aviation fuel plant.
The plant by DG Fuels will produce the fuel out of cornstalks and other corn waste. Like many other industries, Bushell said, commercial airlines have made commitments to reduce their carbon footprint. Use of such a sustainable fuel helps them do that — while also creating a new value-added agriculture product.
The payoff for Nebraska: The firm will invest $5 billion in the plant, which will create 650 jobs while providing local corn farmers a premium from their corn.
“It’s the private industry that’s driving it,†Bushell said. “The airlines’ demand for sustainable aviation fuel based on their (climate) commitments creates a solid opportunity for commodity ag.â€
Pillen said it was fitting that the EPA grant announcement was held at the Jacobsen Farm northwest of Omaha. That’s the same farm that U.S. Agriculture Secretary John Block visited in 1985 to kick off the creation of the federal Conservation Reserve Program — another program that has had “an incredible impact†for producers and the nation, he said.
Pillen likes to say that “Nebraska agriculture feeds the world and saves the planet,†but he said the grant “puts (that) on turbocharge.â€
Grant’s roots planted in a 2021 conference
The huge Nebraska grant has a unique backstory that predates the creation of the federal climate emission grant program.
In early 2021, the Omaha-based Aksarben Foundation was holding a state economic development conference. The central question raised was whether there were any big economic opportunities Nebraska was missing and could access.
Pillen, whose Columbus-based Pillen Family Farms is the state’s largest pork producer, and cattle feedlot operator Jerry Adams talked of the big future opportunities they saw in sustainable agriculture.
“They were adamant,†said Hank Robinson, executive director of the Aksarben Foundation’s Full Value Agriculture initiative. They knew from talking to their customers that they were looking for more sustainable meat — and would pay for it.
The Aksarben Foundation then commissioned a 2022 study that sought to determine baseline emissions within Nebraska agriculture and create a road map for how Nebraska could use sustainable agriculture to create new economic pathways, Robinson said.
That knowledge gave Nebraska a leg up when President Joe Biden’s administration announced plans in October 2023 to offer billions in competitive EPA grants to states, cities and other entities in the Climate Pollution Reduction Grants program.
The grants were funded by the 2022 Inflation Reduction Act, which included $400 billion in spending and tax credits to accelerate the expansion of clean energy and reduce greenhouse gas emissions.
A team from the Nebraska Department of Environment and Energy then worked for months to put together the Nebraska grant proposal, coming up with a menu of voluntary programs with financial incentives for producers. They called the program ONE RED, an acronym for Opportunity for Nebraska Reducing Emissions and Decarbonization.
More than 300 states, cities and other government agencies applied for the grants. Nebraska was among only 25 recipients of the first $4.3 billion in funds.
Nebraska was also one of only nine states to receive an individual grant, and it was one of the largest grants, particularly for the state’s size.
From cattle waste to fuel, other example setting reductions
What stood out about the Nebraska proposal was its detailed focus on how to reduce emissions in “the incredibly important agricultural sector,†the EPA’s McCabe said. It’s an area where the EPA sees a huge opportunity to reduce carbon emissions, she said.
One part of the Nebraska proposal would capture methane — a particularly potent greenhouse gas — from cattle waste and turn it into fuel.
Another would incentivize farmers to put biochar, a charcoal-like substance, in their fields. That has the effect of reducing the need for fertilizer and helps sequester carbon in the soil.
Another would use precision agriculture to reduce fertilizer use, which McCabe said has the added environmental benefit of reducing runoff and increasing water quality.
“So I’m proud Nebraska will be leading the way, not just on emissions reductions in your state, but setting an example,†she said. “These are pioneering, replicable, scalable programs that will be blueprints for other communities to follow.â€
McCabe mentioned the July 31 windstorm, which wiped out power to much of Omaha and April 26’s west Omaha tornado as the type of extreme weather events that are becoming ever more frequent and more damaging due to climate change.
She also said climate change represents a challenge to America’s food system and its ability to feed the nation and world.
“I can’t wait to see the impact this money will have,†she said.
In addition to the ag-related programs, ONE RED includes programs to improve energy efficiency in commercial and industrial facilities and low-income households and to deploy solar panels. The state has created a ONE RED website for those interested in learning more about the programs and opportunities.
“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,†said Kara Valentine, deputy director of NDEE.