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.

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.”

The greatest number of awards went to solar energy, for both solar electric and solar thermal (heat). For the entire year, REAP funded 478 solar projects in 44 states. Michigan fared the best with 48 awards followed by New York (39), Pennsylvania (36), Tennessee (34) and California (29). Farmers have always harvested the sun for growing food and fiber and now more are embracing solar energy for power and heat.

For the year 2011, REAP funded 55 wind power awards, with Iowa and New York leading with seven each. Wind power has flourished under REAP for both small and utility-scale technologies, but fell off significantly this year, from 164 projects in 2010.

Geothermal projects use the energy of the earth for efficient heating and cooling, saving money while cutting pollution. Fifty-nine awards sparked new project construction across the country. Leading states include Minnesota (13), Iowa (11) and Michigan (7).

Small hydroelectric projects were included in REAP in the 2008 Farm Bill revisions and new awards were made for a number of projects in the West (Oregon, Nevada, Idaho) and the southeast (Georgia and North Carolina).

The Rural Energy for America Program (REAP) is a Farm Bill program that enables farmers and rural small businesses to install diverse renewable energy or energy efficiency technologies to cut costs and increase profits. REAP provides loan guarantees and grants for up to 25% of the project cost, leveraging private sector investment and creating jobs. REAP is up for renewal in the new Farm Bill now being debated by Congress.

The Environmental Law & Policy Center (ELPC) has advocated for REAP from the program’s inception and has helped expand the program to benefit rural communities across the nation. ELPC is working to protect REAP funding and promote job creation and clean energy for rural communities.

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

One of the new biodigesters will be located at the waste water treatment plant in Wooster, Ohio. It is expected to produce 2 million kilowatt hours of renewable energy each year, enough to power more than 200 homes a year.

These digesters will also help U.S. dairy producers meet their goal of reducing greenhouse gas emissions from dairy farms by 25 percent by 2020. ELPC is proud to work with the Dairy industry and USDA to achieve these important pollution reductions.

Since its creation in the 2002 Farm Bill, REAP has assisted almost 7,500 businesses, farmers and ranchers across the country, and created or saved an estimated 15,000 jobs.  REAP projects have created or saved an estimated 13.4 billion kilowatts of electricity, reduced almost 14.5 million metric tons of greenhouse gas emissions

Read USDA’s press release here:

Agriculture Secretary Vilsack Announces Funding for Biodigester Projects to Produce Energy, Reduce Pollution in Seven States

WASHINGTON, October 26, 2011 – Agriculture Secretary Tom Vilsack today announced that USDA is funding 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 is receiving funding for five – more than any other state in the union. The announcement was made on the Secretary’s behalf by Under Secretary for Rural Development Dallas Tonsager during a trip to Wisconsin.

“Through the efforts of the Obama Administration, the Rural Energy for America Program has helped rural small businesses, farmers and ranchers across the nation,” Vilsack said. “This program creates jobs, increases energy efficiency and reduces carbon emissions. It also provides producers with new opportunities to create revenue and compete globally.”

Funding for the biodigesters is provided through the USDA Rural Energy for America Program (REAP).  Vilsack said that, since its creation in the 2002 Farm Bill through Fiscal Year 2010, REAP has created or saved an estimated 13.4 billion kilowatts of electricity, reduced almost 14.5 million metric tons of greenhouse gas emissions, assisted almost 9,600 businesses, farmers and ranchers, and created or saved an estimated 15,000 jobs.

One of the biodigesters announced today will be located at the waste water treatment plant in Wooster, Ohio. It is expected to produce 2 million kilowatt hours of renewable energy each year, and is funded in part with a $500,000 grant and $750,000 loan combination, enough to power more than 200 homes a year.

“This round of REAP funding places Ohio in the forefront of the anaerobic digester industry nationwide,” said Ohio Rural Development State Director Tony Logan. “These advanced biodigesters not only create jobs for Ohioans, they turn our existing waste streams – municipal waste, foods, oils and grease and livestock manure – into valuable biomass inputs. They are solid investments for our economy and our environment.”

Today’s announcement is in concert with an agreement signed by Secretary Vilsack in December, 2009. During climate change talks in Copenhagen, Denmark, the Secretary signed a historic agreement to help U.S. dairy producers cut greenhouse gas emissions. The agreement between USDA and the Innovation Center for U.S. Dairy calls for the parties to work to reduce greenhouse gas emissions from dairy farms by 25 percent by 2020. Secretary Vilsack said today the agency is on track to fund an average of one biodigester a week for the coming year.

In Fiscal Year 2011, USDA, through the REAP program, provided over $20 million in assistance for biodigesters, and leveraged $110 million in other funds.  Through its Value-Added Producer Grant program, USDA provides planning grants of up to $100,000 and working capital grants of up to $300,000 to be used for establishment of a biodigester.  Additionally, the Natural Resources Conservation Service (NRCS) offers financial and technical assistance through the Environmental Quality Incentives (EQIP) program.
REAP anaerobic digester funds announced today included grants and loans to the following:

AgPower Jerome, LLC                       Lincoln Co., Idaho      $500,000 grant

New Energy Two, LLC                      Middleton, Idaho        $500,000 grant

New Energy Three LLC                     Middleton, Idaho        $500,000 grant

Sioux Pharm Inc.                                Sioux Center, Iowa     $263,250 loan, $263,250 grant

Mill Creek Digester, LLC                   West Unity, Ohio        $600,000 loan, $499,924 grant

Belmont County Bioenergy, LLC      St. Clairsville, Ohio     $750,000 loan, $500,000 grant

Lime Lakes Energy, LLC                   Barberton, Ohio          $1.5 million loan, $500,000 grant

Wooster Renewable Energy, LLC,     Wooster, Ohio             $750,000 loan, $500,000 grant

Ringler Energy, LLC                          Cardington, Ohio        $3,238,750 loan, $500,000 grant

Farm Power Misty Meadow, LLC     Tillamook, Ore.           $1 million loan, $500,000 grant

Farm Power Tillamook, LLC              Tillamook, Ore.           $2.65 million loan, $100,000 grant

Hard Earned Acres, Inc.                     Shippensburg, Penn.   $331,709 grant

Reinford-Frymoyer Farm, LLC          Mifflintown, Penn.     $337,224 grant

Arlen Benner                                       Mount Joy, Penn.        $500,000 grant

Riverview Farm                                  Franklin, VT                $429,703 loan, $214,851 grant

Heller Farms (Cow Poo, LLC)           Alma Center, Wis.      $1,321,187 loan, $500,000 grant

Funding of each award is contingent upon the recipient meeting the conditions of the grant or loan agreement. Grants can finance up to 25 percent of a project’s cost, not to exceed $500,000 for renewables, $250,000 for efficiency.

Since taking office, President Obama’s Administration has taken significant steps to improve the lives of rural Americans and has provided broad support for rural communities. The Obama Administration has set goals of modernizing infrastructure by providing broadband access to 10 million Americans, expanding educational opportunities for students in rural areas, and providing affordable health care. In the long term, these unparalleled rural investments will help ensure that America’s rural communities are repopulating, self-sustaining and thriving economically.

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an active portfolio of more than $155 billion in affordable loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.

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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.

(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.

U.S. energy policy is in free fall as partisan politics undermine bipartisan support for renewable energy. While we struggle with a weak economy, excessive unemployment and high fuel costs, Washington remains gridlocked in its efforts to create a brighter, more secure energy future.

Last week’s House funding debate epitomizes this stalemate. While approving a degree of disaster relief for Americans buffeted by natural disasters as part of their continuing resolution to fund the federal government beyond September, House members voted to offset disaster relief funding with deep cuts to DOE clean energy programs, a shortsighted move that could damage our economic recovery.

Both sides claim that jobs and job creation are essential to reinvigorating the U.S. economy. Yet their posturing threatens the government with another shutdown, and gamesmanship blinds them to the need for a long-term, stable energy policy to generate jobs and revitalize our economy.

The 25x’25 Alliance has released a University of Tennessee Bio-based Energy Analysis Group report which demonstrates how pursuing the 25x’25 vision – meeting 25 percent of our nation’s energy needs with renewable resources by 2025 – would create billions of dollars in economic activity and millions of new jobs.

According to 25% Renewable Energy for the United States by 2025: An Analysis on Jobs Created By Meeting the Goal, growing renewable energy feedstocks and harnessing the sun, wind, water, and heat from the earth to produce energy would generate an estimated $208 billion in new economic activity in 2015, creating 1.4 million new jobs in just four years. By 2020, its anticipated benefits are $411 billion in economic activity and 2.9 million jobs. When the nation reaches the goal in 2025, an estimated $646 billion in new economic activity leads to the creation of 4.7 million new jobs. The study shows that jobs would be created in every state, with rural areas especially benefiting from the development of renewable energy.

But in order for this to become a reality, lawmakers must back away from rhetoric – this is NOT a partisan issue ‑ and pass responsible policies that will return the United States to a position of leadership in the global economy.

Budget decisions, whether short- or long-term, must protect and strengthen funding for foundational programs – such as the Farm Bill energy title programs and DOE’s Energy Efficiency and Renewable Energy programs – that will allow our evolving renewable energy sector to reach full potential.\

There has never been greater need for public policy and funding to maximize the economic benefits of our nation’s vast sustainable resources. If elected officials and policy makers are serious about economic recovery and jobs, they must refrain from divisive sound bites and instead work together for a U.S. energy future that is economically secure and environmentally sound.

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Bill Richards and J. Read Smith are co-chairs of the National 25x’25 Alliance. Richards, an Ohio corn and soybean producer, is a former chief of the U.S. Department of Agriculture Soil Conservation Service. Smith, a Washington State wheat, small grains and cattle producer, is a former president of the National Association of Conservation Districts.

The Senate Appropriations Committee slashed funding for the Rural Energy for America Program (REAP) in the Agriculture Appropriations Bill for FY2012. The Committee reduced overall funding from $75 million in FY2011 to $38.5 million in FY2012. REAP funding was already reduced in 2011 by 25% as the program continues to bear a disproportionate share of budget cuts.

In his introductory remarks, ranking member Senator Roy Blunt (R-MO) emphasized that most Farm Bill programs were reduced by only 5%. In stark contrast, The Rural Energy for America Program (REAP) was reduced by nearly 50% and the Bioenergy Program for Advanced Biofuels to $75 million, a cut of nearly 30%.

REAP is a popular and oversubscribed program that has funded over 7,600 farm energy projects since 2003, directly benefitting farmers in all agricultural sectors and every state and by making renewable energy and energy efficiency projects more affordable.  Because the program provides grants to cover 25% of the cost, the $36.5 million dollars cut from REAP jeopardizes at least $146 million of overall private and public investment – and jobs — in rural America.

“Disproportionate cuts to farm energy will stall efforts to create homegrown clean energy, new farm income and a healthier environment,” said Andy Olsen, Senior Policy Advocate for Environmental Law & Policy Center. “We will work to restore this funding as the process goes forward.”

The Senate Appropriations Committee met late Wednesday and passed an austere Agriculture Appropriations Bill for FY2012, starting this October 1. Thankfully, the Senate Appropriations Committee wisely preserved funding for the Biomass Crop Assistance Program, an innovative program to develop new energy sources from sustainably grown crops.  The committee reduced funding for the Bioenergy Program for Advanced Biofuels to $75 million, a cut of nearly 30%.

ELPC and the Environmental and Energy Study Institute (EESI) gathered experts on agriculture and clean energy development in Washington on Tuesday, July 19 to address the Rural Energy for America Program (REAP) and other Farm Bill energy programs. Speaking to over 150 staffers and stakeholders in separate House and Senate briefings, they explained the broad benefits of these programs for farmers, businesses, economic development and national energy security policy.

Panelists were:

• Bruce Knight, Dairy Advisor for Strategic Conservation Solutions, LLC and former Chief of the Natural Resources Conservation Service at the USDA under President Bush. Download presentation (PDF).
• Bennie Hutchins, Principal, Ag Energy Resources, Mississippi. Download presentation (PDF).
• Bill Midcap, Farmer and Rural Development Specialist, Rocky Mountain Farmers Union, Colorado. Download presentation (PDF).
• Andy Olsen, ELPC Senior Policy Advocate. Download presentation (PDF).

Other speakers at the briefings included EESI Executive Director Carol Werner and ELPC Director of Federal Relations Karen Torrent.

Energy Title Overview

The first panelist, Andy Olsen, provided a high level overview of how the Farm Bill is accelerating energy savings and clean energy production, supporting rural economic development in the process. Olsen emphasized that the private sector has responded positively to these programs with ingenuity and the American “can do” spirit. For example:

• Advanced biofuels production – The USDA has moved quickly with the Biorefinery Assistance Program, providing loan guarantee financing to build cellulosic ethanol, community digester, and other biofuels/biopower facilities. USDA is accelerating approval of these guarantees and plants are now under construction in several states, with a concentration in the Southeast.
• Energy crops – Although the Biomass Crop Assistance Program got off to a rocky start in 2009, the USDA made several key changes and the 2011 program is now back on track. USDA refocused BCAP on energy crop development and now more than 95% of all funding is for establishing and growing energy crops. BCAP should be judged on the basis of the 2011 program.

Focus on the Rural Energy for America Program

Olsen and the other speakers also highlighted how the Rural Energy for America Program (REAP) serves every agricultural sector in every state, sparking private sector investment and innovation and retaining and creating much needed jobs in rural America.  REAP now has helped to finance more than 6,000 projects across the country – see map below.

Bennie Hutchins

Bennie described the growing popularity and use of REAP in the South, focusing on the strong benefits to poultry producers in slashing energy costs and producing renewable energy. REAP also has helped fund energy projects in aquaculture and forestry. Hutchins emphasized the great benefits for rural small businesses, such as “Mom and Pop” grocers who can use REAP to cut energy costs.

Bruce Knight

Bruce described how consumer demand has led the dairy industry to shift towards more sustainable practices through the whole dairy supply chain. Sustainability is “no longer a philosophical movement,” he said, “it’s now a consumer response.” Knight added that the dairy industry has been very responsive to this consumer demand, pursuing a broad and aggressive program to cut energy use and produce renewable energy and other coproducts from cow manure.  REAP is key to many of these efforts.

Bill Midcap

Bill explained that electric cooperatives are member owned and many of them offer great opportunity for locally-owned projects. He showed how many rural electric cooperatives have used REAP in innovative ways, such as: using the energy audit and renewable energy development assistance program to identify new projects; using feasibility study funding for their own coop-owned projects; grants to build their own systems; and combining multiple projects on customer properties under one master grant. He stressed that “REAP plus rural electric cooperatives can turn electric consumers into electric producers.”

Video

Click here to view the embedded video.

Michigan Senator Debbie Stabenow, Chairwoman of the U.S. Senate Agriculture, Nutrition and Forestry Committee, recently highlighted the importance of the Rural Energy for America Program (REAP) for energy creation and job growth. In this article, published on June 30, 2011 in the Huron Daily Tribune, she explained how REAP and other Farm Bill energy initiatives are helping farmers and rural small businesses invest in clean energy projects and boosting job creation and employment.
From the Huron Daily Tribune 06/30/2011

Energy production crucial part of Farm Bill

It may surprise you that Henry Ford was one of Michigan’s greatest agriculture pioneers. Nearly 100 years ago, he knew thatagriculture could be a source of homegrown energy. Ford once told a reporter that “the fuel of the future will come from apples, weeds, and sawdust – almost anything.” Energy production  is an important part of Michigan agriculture. That is recognized by the federal Farm Bill, which is updated ev ery five years. The Farm Bill includes an entire section devoted to energy from agriculture. As the Chair of the Senate Agriculture Committee, I am focused on writing a new Farm Bill that will help us reduce our dependence on foreign oil and support the work our Michigan producers are doing to become energy independent. Thanks to the work we did in the last Farm Bill, farmers and small business owners across Michigan have taken advantage of new energy  opportunities. They are creating energy from animal waste, installing solar panels and wind turbines, making  plastics from plant sources, and converting crop and forest residue into fuel. Each of these new opportunities also creates jobs for workers who design, build, market, and install these new products, creating a win-win for Michigan’s economy.

One example is Jim Reid, who testified  at our first Farm Bill field hearing  in East Lan sing last month. At our hearing, he spoke about how the last Farm Bill helped him reduce energy costs on his dairy farm in Jeddo, Michigan. That Farm Bill included a program called Rural Energy for America, or REAP, which helps farmers  and small business owners save money on their energy bills.

Mr. Reid used REAP to buy solar panels from Michigan Solar and Wind Power Solutions, a Michigan small business, and installed the panels on the roof of his barn. His energy bills are so much lower that he expects his new solar panels will pay for themselves  in just three years.

And these renewable energy programs  aren’t only for farmers – small business owners across Michigan are also tapping them. Lowell McDonald, who runs a local family-owned grocery store in Huron County, has used the program to cut back on energy bills as well. Since November, McDonald has saved nearly $7,000 on energy costs by installing a heat recovery system. McDonald tapped the innovation and expertise of a local Michigan business to install the system, continuing to support Michigan’s economy and support  local, small businesses.

These are examples of how the Farm Bill turned out to be a win-win for Michigan’s economy. Producers pay lower energy bills, and small businesses  create new jobs by supplying farmers and other business owners with new equipment.

As we move forward on writing the next Farm Bill, I will keep building  on the great strides we have made and realize the potential recognized by Henry Ford more than 100 years ago. By making the right choices, we can help our farmers save money while creating new jobs in every part of Michigan.

Senator Debbie Stabenow is Chair of the Senate Agriculture Committee.