Farm Energy

On Friday, January 20th, the USDA released the 2012 notice of funding availability for the Rural Energy for America Program (REAP).  REAP incentivizes a broad range of renewable energy and energy efficiency for agricultural producers and rural small businesses.

This is the earliest in the year that the USDA has released the funding notice for REAP in the program’s history. Following are deadlines applicants will need to know. Those interested in applying should contact their USDA Rural Development energy coordinator.

Deadlines for REAP Applications for 2012

Loan guarantee preference continues

The funding notice makes available the $61 million in total 2012 funding by providing $12.5 million in grants and $48.5 million in total loan guarantees. The USDA provides preferential treatment for loan guarantees including expedited processing of loan guarantees and longer times to submit guaranteed loan applications. However, there is no preference for combination loan and grant applications, unlike previous years. Unused loan guarantee funding will be used for grant and combination applications.

Reduced support from USDA for feasibility studies

Feasibility study support provides “seed funding” to help local owners develop community-owned energy projects and make wise investment decisions. This year the USDA capped the amount for any one feasibility study to $50,000 (or 25% of projects costs), with a nationwide cap of $500,000, or 10 feasibility studies. This action is unfortunate and will lead to fewer projects entering the development pipeline. USDA should lift this cap.

Energy Audits and Renewable Energy Development Assistance

These applications are on a tight turnaround and will be capped overall at $880,000. This funding helps rural electric cooperatives, state and local governments and others administer programs to provide energy audits and renewable energy development assistance in their region.

The 2012 REAP Notice of Funding availability can be downloaded here.

(Nov 9, 2011) Today USDA Secretary Tom Vilsack announced another round of awards under the Rural Energy for America Program, with a focus on solar, wind, geothermal and small hydropower. The awards reflect the growing and diverse opportunities for American agriculture and rural communities to profit from renewable energy.

Despite the success and popularity of the program, a Congressional “Conference Committee” is now deliberating just how drastically to cut REAP funding for 2012. “REAP is a successful clean energy program, generating jobs and economic development in rural communities while cutting pollution,” said Andy Olsen, Senior Policy Advocate for the Environmental Law & Policy Center. “Congress can create jobs and grow our economy, by continuing to renew and robustly REAP for 2012 and beyond.”

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Agriculture Secretary Tom Vilsack announced on October 26 that REAP will fund anaerobic digester projects in seven states to encourage renewable energy production and reduce greenhouse gas emissions and farm-based pollution.  Of the 16 projects announced nationwide, Ohio received funding for five – more than any other state in the union.

Digesters turn waste streams; municipal waste, foods, oils, grease and livestock manure; into clean energy, creating jobs and reducing pollution in the process.

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Jim Byrum, President of the Michigan Agri-Business Association, appeared in the Detroit Free Press as a guest commentator. He discussed the need to continue the Farm Bill Energy Title, which encourages renewable energy on farms in Michigan and elsewhere as a way to provide farmers with additional opportunities for income and which helps reduce our dependance on foreign oil.

They said:

Here are some agricultural priorities that should be included as Congress proceeds:

Including:

Continuing the energy title in the 2005 Farm Bill, which encourages renewable energy on farms in Michigan as a way to provide farmers with additional opportunities for income and helps reduce our dependence on imported oil.

For more, read the commentary.

(October 7) Earlier this week, Indiana Republican Senator Richard Lugar and Indiana Republican Representative Marlin Stutzman (R-3rd) introduced Farm Bill reauthorization legislation, the Rural Economic Farm and Ranch Sustainability and Hunger Act (REFRESH).  It contains significant energy investments while assertedly saving taxpayers more than $40 billion over its five year life.  In particular, REFRESH includes key components of the existing Farm Bill Energy Title, including the Rural Energy for America Program (REAP) and the Biomass Crop Assistance Programs (BCAP).

(ALERT: While REFRESH is a positive step in the longer term, an immediate priority is next year’s budget. Please add your voice now to those opposing unfair cuts to REAP and BCAP. Time is of the essence – Congress may take further action very soon. Thank you.)

REFRESH provides nearly $1.3 billion in mandatory appropriations for five different clean energy programs with significant additional discretionary funding authorizations.  In particular, REFRESH includes annual funding of $70 million for the REAP program and an additional $80 million annually in discretionary funds.  The legislation also extends REAP to assist our nation’s rural schools with energy efficiency programs.

The legislation also supports the development of energy crops with the BCAP program.  REFRESH proposes to fund BCAP at $55 million dollars a year, with an additional $150 million a year in discretionary funding, while working to improve the program in several important respects. REFRESH includes complementary loan guarantee financing for biorefineries by continuing the Biorefinery Assistance Program for two more years.

REFRESH also adds a new Rural Energy Savings Program for rural electric cooperatives and others to help their customers save energy and money. REFRESH also extends the Biobased markets program.

Without reserving comment on the merits of the entire proposal, we applaud Senator Lugar and Representative Stutzman for recognizing that America’s the great potential for renewable energy from the heartland.  REFRESH affirms the value of energy for rural America, and the win-win of clean energy for rural economic development, energy security and environmental quality.