Please share this video far and wide! Post it on your website, Facebook page, Twitter account, etc. Share it on your friends’ pages and your legislators’ pages, too!

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.

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.

###

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