REAP: Rural Energy for America Program
The United States faces historic energy challenges to our economy, environment and national security.
Rural energy development, especially on-farm energy production, responds to these challenges through clean, low-carbon renewable energy and energy efficiency opportunities, as this report documents.
The Farm Bill’s Rural Energy for America Program (REAP) is helping farmers and ranchers, other agriculture producers such as greenhouse growers, and rural small businesses throughout the country face and overcome these challenges.
The Farm Bill – Key Clean Energy Driver
The clean energy programs of the Farm Bill serve the nation in many ways: expanding clean energy production, slashing energy consumption and bills, promoting locally owned clean energy systems, diversifying farm income and cutting global warming pollution.
REAP and other Farm Bill clean energy programs accelerate the research, development and commercialization of many renewable energy and energy efficiency technologies. In the process, American agriculture and rural communities realize new income and economic development opportunities.
Benefits of Expanding Farm Energy
REAP and other farm energy programs boost local economies in several major ways. They create demand for new jobs for system development, installation, operation and maintenance. They help small businesses, which are engines of job creation. And they increase on-farm income and keep more of our energy dollars in our local communities.
Farm energy also increases our energy independence. A stable energy supply – largely immune to the supply shortages and pollution impacts of fossil fuels – is critical to our country’s security.
Clean energy also improves environmental quality by reducing or eliminating water, air and land pollution impacts from on-farm activities and fossil fuel power sources.
With a strong national commitment to policies such as Farm Bill clean energy programs, America can today provide clean energy for jobs, security and the environment for those who follow us.
Rural Energy for America Program (REAP)
The Rural Energy for America Program (REAP) is a cornerstone of the Farm Bill’s Energy Title. REAP is successfully helping farmers and other innovators in rural communities across the country to pioneer the next generation of American energy.
Many Projects, Strong Demand
Since its inception in 2003, REAP (first known as the “Section 9006” program) has helped thousands of farmers, ranchers and rural small businesses tap into the clean energy resources on their lands and cut energy waste in their operations.
REAP is extremely successful with over 3,000 project awards in all states. Even with more funding added in the 2008 Farm Bill, demand for REAP support continues to outpace resources.
REAP’s renewable energy technologies span the clean energy spectrum: wind and solar power, geothermal, manure digesters, small hydroelectric power, biomass for heat and power, and even geothermal heating.
REAP also funds many different energy efficiency upgrades, helping farmers and businesses cut energy costs, improve efficiencies and increase their revenue.
Improvements in 2008 Farm Bill
In 2008, Congress improved REAP in several major ways:
Energy Technical Assistance funding – for organizations to carry out energy audits and renewable energy development assistance.- Feasibility Study funding – to help new projects assess the viability of new projects and improve program effectiveness.
- Larger Loan Guarantees – increases limit from $10 million to $25 million per project.
To help pay for these enhancements and meet thehigh demand for REAP resources, Congress increased mandatory funding to $255 million over four years (more than double the 2002 Farm Bill level). Congress also can add additional money through annual appropriations – for example, for fiscal year 2010, Congress pumped more than $39 million in additional discretionary funding into REAP.
