The northern Indiana community dubbed Biotown USA has received a $1.71 million water and waste disposal grant to help officials meet their goal of having all of the town's energy come from renewable sources.

The grant from the U.S. Department of Agriculture's rural development office will pay for a new wastewater treatment plant, including a control building with an office and laboratory.

Reynolds, located about 20 miles north of Lafayette, was chosen in 2005 to demonstrate that a community's energy needs can be fully met through locally produced renewable sources, including electricity, natural gas replacement and vehicular fuel.

The state's Biotown plan calls for construction of a plant that would use manure and other biomass material to generate electricity for the 500-person town.

Sen. Richard Lugar, R-Ind., congratulated Reynolds for being selected for the grant, which he said would help expand the use of renewable fuels in Indiana.

"Our nation can attain a greater degree of energy independence using domestic and renewable resources, and our national security demands that we make the shift quickly," Lugar said in a statement Tuesday.