REAP: Rural Energy for America Program
Cornerstone of the Energy Title: The Farm Bill’s Successful Renewable Energy and Energy Efficiency Program
The cornerstone of the 2002 and 2008 Farm Bill energy programs is the Rural Energy for America Program (REAP). REAP authorizes the U.S. Department of Agriculture to award grants and loan guarantees each year to eligible agricultural producers and rural small businesses.
These competitive grants provide up to $250,000 for energy efficiency improvements or $500,000 for renewable energy systems (not exceeding 25% of total project cost). Loan guarantees can go up to $25 million. Eligible technologies must be proven and commercially available.
This program has produced strong results in its first six years. Between 2003 and 2008, the USDA has awarded over $140 million in grants and $97 million in loan guarantees to 2,034 projects in all 50 states. These federal funds will leverage over $2 billion in capital investments in rural communities for a range of projects, including small and large wind turbines, anaerobic digesters turning livestock manure into energy, ethanol and biodiesel production facilities, solar electric systems, and energy efficiency improvements at farms and small businesses.
These projects boost economic activity in rural areas, create hundreds of new jobs and produce significant clean energy production and efficiency savings for the benefit of all Americans.
