Farm Energy

Another key funding victory for the Farm Bill Energy Title! On August 4, 2009, the full U.S. Senate passed the FY 2010 Agriculture appropriations budget. The Senate’s budget doubles total REAP funding by adding an additional $68.1 million in discretionary funding, and boosts the Biorefinery Assistance Program funding by $17.339 million. The Senate’s vote endorsed the earlier Senate Appropriations Committee’s FY 2010 budget proposal.

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).

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FOR IMMEDIATE RELEASE

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.” (more…)

In the first 5 years of the Rural Energy for America Program (REAP), grant awards tended to be concentrated in a few states. These states had invested in policies and programs which helped their farms and rural businesses develop their clean energy resources with help from REAP.

For the 2009 REAP program, the USDA has tried to address this problem by changing how it allocates award funds. Now, each individual state Rural Development office has been provided an allocation of funds for its state. This will speed up awards of some grants and all loan guarantees. USDA has allocated a total of $27.7 million (46% of overall funding) to the states. (more…)

On June 12, 2009, the USDA issued a Notice of Funding Availability (NOFA) for Repowering Assistance, Section 9004 of the 2008 Farm Bill. Under this program, USDA will provide payments to rural biorefineries in existence before July 18, 2009, that replace fossil energy with biomass.

This program provides funding assistance for biorefineries to reduce their carbon footprint by replacing fossil fuels used in their heat and/or power process with renewable biomass. (more…)