As described in the short summary of the American Power Act:

Additionally, the bill supports the Rural Energy for America Program, which has already reduced costs and created thousands of new clean energy jobs across rural America.

To help spur the development and deployment of clean energy technologies economy wide, the American Power Act will include REAP at a level nearly three times the FY2010 funding of $99.34 million. The American Power Act seeks to jumpstart our transition to a clean energy economy, creating jobs and investment nation-wide and reducing our dependence on fossil fuels.  The bill would also provide direct support to energy consumers and incentivize energy efficiency and renewable energy development.

Though the REAP program was included in the official bill summaries, it was inadvertently omitted from the discussion draft and will be included in later revisions.

This Congress has pledged to pass either a climate or a clean energy bill. REAP serves the goals of either type of bill:

• REAP cuts carbon pollution with energy efficiency and renewable energy deployment through rural economic development.
• REAP helps energy independence and energy security by reducing energy waste with energy efficiency and increasing distributed – and resilient – energy systems.

To help meet the fast-growing interest in farm energy, Congress allocated a total of $60 million for REAP in FY2009, and more funding is possible next year. Even so, demand for REAP’s funds far exceeds available funding.

This year, USDA announced record awards for 2009 for the Rural Energy for America Program (REAP). USDA awarded these funds as grants and loan guarantees to over 1,500 farmers, ranchers and rural small businesses across the country for renewable energy and energy efficiency projects.

For the first time ever, REAP awards include funding for feasibility studies to “get new projects in the pipeline.” A total of $1.3 million was awarded for 51 feasibility study grants.

REAP also now includes funding for Energy Technical Assistance, which helps farmers and rural small businesses understand how to cut energy costs and develop clean energy projects.The Energy Technical Assistance program proved popular with $2.2 for 22 projects around the country. An example is the Kit Carson Electric Cooperative of New Mexico, which received New Mexico’s first ever REAP grant in 2009 for $100,000.  The grant is for energy efficiency and solar projects, and will provide more energy audits and technical assistance. The grant helps the coop provide more energy audits and technical assistance for energy efficiency and solar electric development efforts.

USDA continues to release news on awards and we will continue to keep you posted.  You can find a full listing here and breakdown by state follows.

2009 REAP awards summarized by state.

September 10, 2009 – A diverse coalition of energy, agricultural and environmental groups called on the Senate Agriculture Committee to improve clean energy legislation by investing the revenue from carbon pollution allowances into programs that stimulate low carbon agriculture-based energy.

Low carbon ag-energy solutions include both energy efficiency improvements for farms and ranches and renewable energy projects such as wind turbines, solar panels, biomass (including biomass combined heat and power) and geothermal heating and cooling systems. Energy efficiency saves money for farmers, ranchers and foresters and reduces global warming pollution very quickly. All of these modern technologies reduce carbon pollution and are well-suited for agricultural applications.

The proposal would provide incentives without increasing taxes. Instead, the proposal uses proceeds from the sale of carbon pollution allowances and invests that money into initiatives that reduce carbon pollution and create new savings and income for rural America. The allowance trading system is part of a market-based system that can reduce global warming pollution at the lowest cost.

“American agriculture can and should lead the way to drastic carbon reductions, but we need policies like these to jumpstart the pace of clean energy implementation,” said Andy Olsen, Senior Policy Advocate for the Environmental Law & Policy Center (ELPC).

“Investing allowances to stimulate clean energy development is a textbook example of sound policy to cut carbon pollution and should be part of any agriculture package,” said Kerri Johannsen, Policy Advocate for ELPC.

“Agriculture can be a net winner in the climate bill,” added Olsen. “Expanding low carbon ag-energy initiatives is good for agriculture, good for rural economic development and good for fighting climate change.”

You can find the letter, including all the supporting groups, here.  See also the ELPC fact sheet that discusses why these programs are a great fit in the climate bill and how they can benefit farmers, ranchers and forest owners across the country.

By adding $68.1 million in discretionary funding, the Senate’s proposal would boost total REAP funding for next year to $128.1 million ($60 million in mandatory funding + $68.1 million in discretionary funding).

The Senate’s action also boosts total Biorefinery Assistance funding to $262.339 million ($245 million in mandatory funding + $17.339 million in discretionary funding).

The Senate’s vote is a victory for the Environmental Law and Policy Center, which works closely with agricultural and environmental groups to build broad support for farm energy programs that help farmers and rural small businesses. ELPC applauds the Senate’s  action; these energy programs help farmers and spur rural economic development, while helping America tackle  global warming challenges.

Next step: Congress needs to reconcile the Senate and House spending proposals in a Conference Committee. Last month the House voted on the FY 2010 budget, and endorsed a more modest increase for REAP of $20 million. It did not add any funding for the Biorefinery Assistance Program or any other Energy Title program. Stay tuned for more updates – we expect Congress to act sometime in the Fall, after the August recess.

For more detailed information on the FY 2010 process, visit our Appropriations page.

July 8, 2009

Late yesterday the US Senate Committee on Appropriations voted to boost funding for farm energy programs that will create more clean energy and new income for rural Americans.

The committee voted to increase fiscal year 2010 funding for the Rural Energy for America Program (REAP) from $60 million to $128 million. The REAP program helps farmers, ranchers and rural small businesses build their own clean energy projects. REAP provides grant and loan guarantee assistance for a broad range of clean energy technologies including biomass, manure digesters, wind and solar power, and energy efficiency.

Wisconsin Senator Herb Kohl, Chair of the Agriculture Appropriations Subcommittee, was a key supporter of the funding increase.  “Our nation faces historic challenges for our economy, our environment and our energy security,” Kohl said. “Farmers in Wisconsin and across the nation have much at stake and want to be part of the solution.  These funds will help lead the way toward greener energy independence.”

The committee also voted to increase funding for the Biorefinery Assistance program, by $17 million. Biorefinery Assistance spurs development of next generation biofuels projects, such as cellulosic ethanol. Through this program, the USDA is the only federal agency to issue loan guarantees for cellulosic ethanol to date.

The vote was a victory for the Environmental Law and Policy Center (ELPC), which works closely with agricultural and environmental groups to build broad support for farm energy programs and funding. “We applaud the Senators’ action; these energy programs help farmers and spur rural economic development, while helping America tackle  global warming challenges,” said Andy Olsen, Senior Policy Advocate with ELPC.

The Appropriations Committee’s action yesterday matches President Obama’s budget recommendations for these two programs. Next, the Senate will need to approve the Committee’s decisions, and then reconcile the levels with the House appropriations.

Success stories from the REAP program are available here.  Additional information on these programs can be found at FarmEnergy.org.

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The Environmental law and Policy Center is the Midwest’s Leading environmental Legal Advocacy and Eco-Business Innovation Organization. www.ELPC.org

These new programs can help the nation develop new, modern, low carbon energy sources along with improving energy efficiency. Indeed, these programs demonstrate how agriculture can adapt and prosper within a low carbon economy.

The letter as submitted may be downloaded here (PDF format). The letter text and signatories can also be found below.

Letter Requesting Full Funding of Farm Bill Energy Title

May 15, 2009

The Honorable Rosa DeLauro
Chair
House Appropriations Committee,
Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
2362-A Rayburn House Office Building
Washington, DC 20515

The Honorable Jack Kingston
Ranking Member
House Appropriations Committee, Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
1016 Longworth House Office Building
Washington, DC 20515

Dear Chairwoman DeLauro and Ranking Member Kingston:

To help maintain the Farm Bill Energy Title’s successful clean energy development and job creation progress throughout America, we urge you to sustain the Title’s mandatory funding in Fiscal Year 2010 and to fund the Title’s authorized appropriations. With these investments, the Energy Title will continue to accelerate production of clean fuels and power and increase energy efficiency, while generating billions of dollars in new economic activity and boosting on-farm income and rural business income.

The Energy Title includes a number of successful programs, such as the Rural Energy for America Program, which is helping producers and rural businesses in every state in the country produce clean energy, cut costs, and reduce oil imports and helping rural economic development. Another program, the Biomass Research and Development Act, is funding the new research needed to expand farm-based clean energy development.

New programs in the 2008 Farm Bill include, for example, the Biorefinery Assistance program, which provides critical financing for our nation’s first generation of commercial-scale advanced biorefineries; it reduces investor risk and provides well-paying construction and operation jobs in rural communities. The new Biomass Crop Assistance Program will support farmers and foresters who want to initiate production of biomass feedstock crops for advanced biofuels. And to stimulate demand for clean energy crops and help existing biofuel plants cut emissions, the Repowering Assistance program funds the conversion of those plants’ heating and power fuel supply to biomass.

While recognizing that the Subcommittee faces budgetary restraints, we believe that funding for these and other valuable programs in the Energy Title should receive priority consideration within a fiscally responsible appropriations bill. With strong bipartisan national interest in agriculture-based energy solutions, we urge you to sustain the Title’s mandatory funding in Fiscal Year 2010 and to fund the Title’s authorized appropriations

Sincerely,

Signatories for Full Funding of Farm Bill Energy Title

Walz, Timothy J., D-MN
Fortenberry, Jeff , R-NE

Abercrombie, Neil, D-HI
Baldwin, Tammy, D-WI
Bartlett, Roscoe G. , D-MD
Boswell, Leonard L., D-IA
Braley, Bruce L., D-IA
Christensen, Donna M. , D-VI
Delahunt, William D., D-MA
Foster, Bill, D-IL
Halvorson, Deborah L., D-IL
Hare, Phil, D-IL
Herseth Sandlin, Stephanie, D-SD
Hodes, Paul W., D-NH
Inslee, Jay, D-WA
Kind, Ron, D-WI
King, Steve , D-IA
Larsen, Rick, D-WA
Loebsack, David, D-IA
Michaud, Michael H., D-ME
Moore, Dennis, D-KS
Moran, Jerry , D-KS
Oberstar, James L., D-MN
Peterson, Collin C., D-MN
Pomeroy, Earl, D-ND
Schock, Aaron , D-IL
Skelton, Ike, D-MO
Teague, Harry, D-NM
Terry, Lee , D-NE
Welch, Peter, D-VT

President Obama’s detailed budget proposal for all government programs today includes an additional $68.1 million in “discretionary” funding for REAP. The 2008 Farm Bill also allocated $60 million in “mandatory” funding for REAP next year.

President Obama’s historic proposal builds upon funding for other energy programs in the American Recovery and Reinvestment Act by targeting REAP funding which supports a broad range of clean energy technologies for agriculture and rural America. His proposal confirms the Administration’s position that a well-funded REAP helps restore our economy.

In March 2009, for example, USDA Secretary Tom Vilsack, referring in part to REAP, told Congress that “part of our economic recovery is to focus on clean energy and green jobs, agriculture needs to be a part of that. It needs to be a huge part of the solution.”  REAP is part of that solution.

Among other programs in the Energy Title, the President also proposed to increase funding for building biorefineries to produce advanced biofuels.

We will provide additional budget details at FarmEnergy.org.

A key victory: This legislation added $5 million to the REAP program through a discretionary appropriation, increasing total REAP funding for 2009 to $60 million: $55 million in mandatory plus $5 million in discretionary funding. The bill neither added nor cut funding from any other Farm Bill Energy Title program.

For a complete summary of how Farm Bill Energy Title programs fared in 2009, and an update on the status of 2010 funding, please visit our Appropriations page.

Measure would shift an additional $1.14 billion to support energy programs at USDA

February 6, 2009

WASHINGTON, D.C. – Senators Tom Harkin (D-IA), John Thune (R-SD), Tim Johnson (D-SD), and Jon Tester (D-MT) introduced an amendment (#397) to the economic recovery legislation tonight that would move $1.14 billion from the U.S. Department of Energy (DOE) into energy programs at the U.S. Department of Agriculture (UDSA). The measure will be voted on tonight.

Currently, the Senate jobs bill invests a total of $78 billion in energy, including energy tax measures. While the senators believe these  investments are crucial to accelerating the nation’s energy transition, they believe the bill fails to recognize the importance and value of energy programs at USDA. The Senate bill currently includes $250 million for USDA energy programs, compared with approximately $40 billion for DOE energy programs. The senators’ amendment shifts $1.14 billion of the $40 billion DOE funding to USDA energy initiatives enacted in the recent farm bill.

“USDA energy programs play a critical role in reducing our nation’s dependence on foreign fuels and help build wealth and prosperity in rural and urban communities across the country,” said Senator Harkin.  “USDA has a proven track record of quickly, efficiently, and successfully running programs that boost development of advanced biofuels for our transportation systems and invest in our own backyards. It is critically important that we provide the funding they need to move forward quickly.”

“Agriculture based renewable energy is revitalizing communities across rural America,” said Senator Thune. “The 2008 Farm Bill includes several initiatives that will promote second generation biofuels and diversify our rural economy. I am pleased to support this bipartisan amendment that ensures USDA energy programs receive their fair share of funding.”

“There is tremendous potential to create jobs in agriculture through cutting our dependence on foreign energy by retooling our economy to produce more renewable energy,” said Senator Johnson. “This amendment will spur investment and job creation by funding effective research and deployment programs that harness the private sectors push into the renewable energy economy.”

“This amendment will bring economic opportunity to Montana and across rural America,” Senator Tester said. “We need jobs not politics as usual, and this bipartisan measure will put farm country to work to help secure America’s energy future.”

USDA energy programs play a critical role in the development and  commercialization of advanced biofuels. The department also has a stellar record of carrying out initiatives like those already included in the economic recovery bill, including energy efficiency projects and the promotion of renewable energy systems.

The senators noted that in order to meet the national targets in the Renewable Fuel Standard, there needs to be new support for biomass crop production, harvesting, transport and storage – programs already in place at USDA. In addition, during this time when private investment capital is slowing to a drip, the senators believe that Congress needs to support the growing number of commercial biorefineries for advanced biofuels, as well as biomass research and development for better technologies in the future.

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Summary of the Farm Energy Economic Recovery Program

You can download the full letter here (PDF format). Following is a quick

summary of the three-part proposal.

Expand Funding for Farm Bill Energy Title Programs

• Include at least $1.2 billion in additional funding for important Farm Bill Energy Title programs like the Rural Energy for America Program (REAP), Biorefinery Assistance Program, Repowering Assistance and Biomass Crop Assistance Program.

More information on all energy title programs can be found in our Farm Bill Policy section.

Extend and Improve Clean Energy Tax Credits

• Extend the federal Production Tax Credits (PTC) for wind and biomass power for five years.
• Change structure of PTC and investment tax credit (ITC) to make them fully refundable.
• Stimulate 2009 investment by permitting tax credits from new
  investments in 2008 and 2009 to be carried back against tax liability
  from the past decade.
• Create a level playing field for producers of renewable electricity by modifying the PTC so all renewable sources of electricity will be eligible for the full credit.

Expand Successful Clean Renewable Energy And Conservation Bond Programs

• Extend and expand funding for Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds.
• These bond programs provide PTC-like incentives for electric
  cooperatives, public power, and municipalities to build new renewable energy facilities and invest in energy efficiency.

Letter Signers

Following is a list of the groups and companies who signed onto the letter:

25x’25 Alliance

American Agri-Women

American Coalition for Ethanol

Association of Consulting Foresters

Association of State Energy Research & Technology Transfer Institutions

Biomass Power Association

Biotechnology Industry Association

Ceres

CHS, Inc.

Clean Energy First

Climate Solutions

Environmental and Energy Study Institute

Environmental Law & Policy Center

Forest Landowners Association

Intertribal Council On Utility Policy

John Deere

Native Wind

National Alliance of Forest Owners

National Association of Forest Service Retirees

National Association of State Energy Officials

National Association of Wheat Growers

National Corn Growers Association

National Farmers Union

National Rural Electric Cooperative Association

National Sorghum Producers

National Wildlife Federation

National Woodland Owners Association

North American Equipment Dealers Association

Pinchot Institute for Conservation

Society of American Foresters

Solar Energy Industries Association

Southern Alliance for Clean Energy

The Farm Credit Council

The Stella Group, Ltd.