Farm Energy

(Nov 9, 2011) Today USDA Secretary Tom Vilsack announced another round of awards under the Rural Energy for America Program, with a focus on solar, wind, geothermal and small hydropower. The awards reflect the growing and diverse opportunities for American agriculture and rural communities to profit from renewable energy.

Despite the success and popularity of the program, a Congressional “Conference Committee” is now deliberating just how drastically to cut REAP funding for 2012. “REAP is a successful clean energy program, generating jobs and economic development in rural communities while cutting pollution,” said Andy Olsen, Senior Policy Advocate for the Environmental Law & Policy Center. “Congress can create jobs and grow our economy, by continuing to renew and robustly REAP for 2012 and beyond.” (more…)

Jim Byrum, President of the Michigan Agri-Business Association, appeared in the Detroit Free Press as a guest commentator. He discussed the need to continue the Farm Bill Energy Title, which encourages renewable energy on farms in Michigan and elsewhere as a way to provide farmers with additional opportunities for income and which helps reduce our dependance on foreign oil.

They said:

Here are some agricultural priorities that should be included as Congress proceeds:

Including:

Continuing the energy title in the 2005 Farm Bill, which encourages renewable energy on farms in Michigan as a way to provide farmers with additional opportunities for income and helps reduce our dependence on imported oil.

For more, read the commentary.

(Video at end of page)

ELPC and the Environmental and Energy Study Institute (EESI) gathered experts on agriculture and clean energy development in Washington on Tuesday, July 19 to address the Rural Energy for America Program (REAP) and other Farm Bill energy programs. Speaking to over 150 staffers and stakeholders in separate House and Senate briefings, they explained the broad benefits of these programs for farmers, businesses, economic development and national energy security policy. (more…)

(Feb. 15) This week the President launched the first round in the FY2012 budget process with a proposed budget that cuts Ag funding over prior years but retains most clean energy priorities, albeit at slightly lower levels.

 For Agriculture, the Administration proposes to reduce total discretionary spending by over $3 billion from FY2010 levels. (Congress has not yet passed a final FY2011 budget; a Continuing Resolution based on 2010 levels is funding the government at least until March 4).

The President’s budget emphasizes clean energy development. Specific clean energy development funding proposals  include:

• Rural Energy for America Program (REAP) – $106.8 million. Includes $36.8 million in proposed discretionary funding plus $70 million mandatory funding from the 2008 Farm Bill. Total program funding is a small increase over current funding levels ($99.34 in FY2010).
• Biomass Crop Assistance Program (BCAP) – $198 million. To refocus this important program on its primary purpose of encouraging new energy crop development, the Administration proposes to cap funding for the Collection, Harvest, Storage and Transport component at $70 million, which would leave most of the funding ($128 million) for establishing and growing energy crops.
• Rural Utilities Service loans – $6 billion for low-interest Federal Financing Bank loans. As in FY2011, the Administration commendably wants most of these loans to finance new clean energy projects, and proposes that:
  • Not less than $4 billion shall be used for renewable energy plants or for fossil fueled plants with carbon sequestration;
  • Funding may be used for fossil peaking units operating in conjunction with wind and solar power; and
  • Not more than $2 billion may be used for projects to reduce pollution from fossil fueled plants. 

Next steps include House and Senate committee hearings on its budget proposals, and intense jockeying in Congress over the future of these and other programs. Stay tuned for more developments. And you can visit here for current information on the unsettled 2011 budget picture.

President Obama’s proposed 2011 budget slates Farm Bill clean energy programs for some needed growth. The Administration released its budget in early February, and in it the President boosts next year’s funding level for REAP to its highest level ever: $109 million. The budget adds $39 million of discretionary funding on top of the $70 million in “mandatory” funding in the 2008 Farm Bill. (more…)

Today, May 15, 2009, 30 members of the US House of Representatives called for full finding for the clean energy programs in the Farm Bill. Led by Representatives Tim Walz (D-MN) and Jeff Fortenberry (R-NE) a bipartisan group sent a letter to the Leadership of the Agriculture Subcommittee of the House Appropriations Committee seeking full funding for the programs in the 2008 Farm Bill Energy Title.

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.

(more…)