WASHINGTON, D.C. – More than 100 diverse groups representing agriculture, energy, rural development and conservation called on Congress today to renew and fund core energy programs in the Farm Bill that push forward clean, homegrown energy. These programs advance energy efficiency, wind, solar, new energy crops, biomass energy and biobased products.

In a joint letter to the leaders of the House and Senate Agriculture Committees, signers noted, “These important and growing industries all benefit agriculture and forestry and are poised to make huge contributions to our economic, environmental and national security in the coming years, provided that we maintain stable policies that support clean energy.”

The energy programs are administered by the USDA and have made a number of accomplishments since the first Energy Title was created in the 2002 Farm Bill:

* The Rural Energy for America Program (REAP) has supported nearly 8,000 energy efficiency and renewable energy projects across the nation in varying agricultural sectors.

* The Biomass Crop Assistance Program has assisted farmers in developing homegrown energy crops that support farms and supply needed energy sources

* Biofuel advancements have accelerated through support from the Biorefinery Assistance Program.

“This letter arrives at the Agriculture Committees as rising gasoline prices remind America that our long-term energy challenges to our nation’s well-being require long-term commitment,” said Andy Olsen, ELPC Senior Policy Advocate. “Polls show the American people believe the Farm Bill should support clean energy and we know Congress can pass a Farm Bill that reflects the will of the American people.”

Download the letter.

“We commend the experts and Senators who took a stand for homegrown clean energy today,” says Andy Olsen, Senior Policy Advocate at the Environmental Law & Policy Center (ELPC), a long-time champion of the Farm Bill’s clean energy programs. “Through these programs, America has made unprecedented gains in rural renewable energy and energy efficiency. Congress and the White House should continue this forward momentum.”

Steve Flick, one of the nation’s farm energy entrepreneurs, called for Congressional action to renew and fully fund core Farm Bill clean energy programs, such as the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP) and the Biorefinery Assistance Program. “America’s farmers, ranchers and rural residents can have a bright future ahead of them with the right incentives,” Flick says. “Renewable energy is the future of rural America.”

Bennie Hutchins of Mississippi provided numerous examples of how REAP has helped agricultural producers and rural small businesses save money and produce income across the South. He shared ELPC analysis showing that REAP produces jobs at a greater than average rate.

“Farm Bill clean energy programs have been an unprecedented success. They have helped farmers reduce their energy bills and energy waste through energy efficiency and accelerated the introduction of modern clean energy technologies into the marketplace,” Olsen says. “Congress and the White House should continue this momentum by renewing and fully funding core Farm Bill clean energy programs.”

Of all the Farm Bill clean energy programs, the President’s budget only recommends funding the Rural Energy for America Program, REAP, at $4.6 million in 2013. This funding level is a cut of 82% from 2012 funding levels. The President restricts this funding to only loan guarantees, which have seen very low demand over the years. No other energy title programs would be funded in 2013 under the President’s proposal. It is not known at this time if the White House supports continuation of the Energy Title in the next Farm Bill.

While the President’s budget proposes to cut tax breaks for fossil fuel extraction in the next decade to spend more for conservation and alternate energy, apparently none of those funds would be used for agricultural clean energy programs.

This proposal is in stark contrast to the call in the President’s State of the Union  pursue an energy strategy of “all-out, all-of-the-above.” Clearly, his approach excludes further progress on Farm Bill clean energy efforts.

The clean energy programs of the Farm Bill have made unprecedented progress in developing and accelerating a broad range of clean energy technologies. Farmers and rural small businesses in every state and many agricultural sectors have benefited while the programs stimulate private investment, technology investment and jobs. Hopefully, Congress will reject this part of the President’s budget request and maintain the forward momentum for modern farm energy technologies.

For more information:

• Energy and Environmental Study Institute, Fact Sheet: Obama Administration FY 2013 Budget Proposal: Sustainable Energy and Transportation
• Main page for President’s 2013 budget documents.

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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%.

(May 24, 2011) Today the House of Representatives’ Agriculture Appropriations Subcommittee will  vote to eliminate the popular and effective Rural Energy for America Program (REAP) in its 2012 appropriations bill. REAP is the only federal program successfully helping farmers and rural small businesses fight high energy costs with renewable energy systems and energy efficiency.

“Killing REAP leaves agriculture and rural businesses at the mercy of high oil and electricity prices,” said Andy Olsen, ELPC Senior Policy Advocate.

Each year more farmers and rural businesses have used REAP, with demand far outpacing the available funding. Since 2003, REAP has helped nearly 6,000 farmers and rural businesses in every state in the U.S. with grants and loan guarantees to help finance new clean energy and energy efficiency projects, drive private investment and save many millions of dollars each year on energy costs.

“The House could not be sending a clearer signal that they don’t care about rising on-farm energy prices,” said Mr. Olsen. “This ‘do-nothing” approach strikes at the heart of America’s ‘can do’ attitude.”

Last year Congress sliced total REAP funding by 25%, even as demand for the program continued to increase. This year’s draconian action would be a far more serious setback to energy independence and rural economic development.

In stark contrast, the Subcommittee is planning to maintain funding for the Rural Utilities Service’s major electric cooperative loan program at $6.5 billion, which is $500 million more than the President’s budget request. “These skewed priorities give farmers and rural businesses short shrift,” said John Moore, ELPC Senior Attorney.

The Subcommittee also is planning to cut the Biomass Crop Assistance Program (BCAP), which is producing results in helping farmers grow energy crops for fuel and power. “Eliminating the BCAP and REAP energy programs today is like leaving your wedding before you say ‘I do,’” said Steve Flick, President of the Show Me Energy Cooperative in Missouri.

• Rural Energy for America Program, Section 9007. Cut from total $99.34 million in 2010 to $70 million in 2011.
• Biomass Crop Assistance Program, Section 9011, is denied administrative funds, effectively killing the program.
• Bioenergy Program for Advanced Biofuels, Section 9005 is reduced by $28 million.
• Biorefinery Assistance Program Section 9003 is reduced by $56 million.

Congress has an alternative to continue funding the federal government next year: The Continuing Resolution already passed by the House continues operations based on the 2010 appropriations.

These cuts came as the 2008 Farm Bill clean energy programs are just delivering results. A number of awards for long-awaited advanced biofuels projects are on the way. The Rural Energy for America Program has already helped thousands of America’s farmers and ranchers save money with energy efficiency and develop new income with diverse and modern renewable energy technologies like biogas, wind, solar and more.

UPDATE DECEMBER 22:

Good News for Energy Title programs - Senate leadership dropped efforts to pass the Omnibus. Instead, on December 21, the Senate passed (and the House agreed with) another stopgap continuing resolution that would maintain FY 2010 spending levels through March 4.

Thanks to everyone who told their Senators to oppose cutting Energy Title programs at this critical time. Stay tuned as we head in the New Year, since we can expect more attacks on clean energy development funding.

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.