Energy Technical Assistance was created under the 2008 Farm Bill and provides ways to identify cost-effective opportunities for energy efficiency and renewable energy measures by rural agricultural producers and rural small businesses. A total of $2.4 million is available under this program for 2010 and the maximum grant is $100,000.

The eligible organizations under this program include units of State, tribal, or local government; land-grant colleges and universities and other institutions of higher education, rural electric cooperatives; and public power entities.

Applicants should follow the guidelines in the Notice of Funding Availability (NOFA) carefully. The NOFA provides the criteria for scoring the competitive applications and information on how the application should be organized.

The NOFA can be downloaded here. (PDF format)

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.

A total of $87 million is available for renewable energy and energy efficiency improvements, leaving $9.9 million for energy technical assistance and $2.4 million for feasibility studies. Key: The deadline for applications to be submitted to state rural development offices is June 30, 2010.

Following are some key changes in this year’s notice:

• No mention of loan guarantee preference. In previous years the USDA placed a high preference on loan guarantees, effectively requiring them as a condition for preferential scoring of the grant applications. We see no mention of this and will seek and publish clarification soon.
• No extra points for smaller projects. Last year for the first time the USDA awarded 10 extra points for applications for grants of $20,000 or less, in response to Congressional support for these projects. The NOSA removes the extra points, since the REAP statute already creates a funding pool for these projects. No other changes for point scoring are found. (Clarification: Small projects already received points under the previously existing permanent rules).
• No repair for the rural restriction. Previously, the USDA has not allowed agricultural producers in non-rural areas to be eligible. We had understood that the USDA was committed to ending this restriction. It does not appear to be fixed in this NOSA.
• Clarification for eligibility and technical reporting for small hydropower.

Farm Energy Success Stories highlights clean energy projects that were made possible with grants and loan guarantees from the Farm Bill’s Rural Energy for America Program (REAP).

Download an electronic version of the report here.

For a hard copy, send a request with your full information contact to ELPC.

In addition, the Obama budget provides $15 million for the Forest Biomass for Energy Program and $5 million for the Community Wood Energy Program, as authorized by the 2008 Farm Bill. The Community Wood Energy Program provides grants for rural communities to install wood energy systems in community facilities. The Forest Biomass for Energy Program provides for research on use of low-value forest biomass. Neither of these programs has received any funding since their inception in the 2008 Farm Bill.

In addition, the President’s budget calls for a small increase to the Biorefinery Assistance grant and loan guarantee program, adding $17 million.

Learn more about Farm Bill energy programs here.

If the President’s budget holds through the appropriations process, more agricultural producers, rural small businesses and communities across the country will be able to cut costs with energy efficiency and develop new revenue with renewable energy. That means more clean energy projects, a better environment, and a stronger federal commitment to make the program work.

REAP continues to be extremely successful, with over 3,000 project awards in nearly every state. Even with the President’s proposal, farmer and rural business demand for REAP financing continues to outpace available funding.

Next steps: The House and Senate Ag Appropriations Committees must each recommend funding levels for REAP and other Energy Title programs. Stay tuned for updates!

The President’s action is a victory for the Environmental Law and Policy Center and other groups supporting farm clean energy development throughout the country. REAP has grown from $0 to $23 million to nearly $100 million next year. It is now hitting stride with demonstrable economic, environmental and carbon-reduction benefits.

REAP and other energy programs in the Farm Bill help farmers and rural businesses invest in locally-owned energy projects and spurs rural economic development, while helping America tackle global warming challenges.

Our 2010 Farm Bill Clean Energy appropriations chart summarizes the current funding for all Energy Title programs and compares funding to 2009 levels.

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.

Secretary of Agriculture Tom Vilsack recently visited the Flick Seed Company and Show Me Energy Cooperative as part of the Obama Administration’s Rural Tour. Secretary Vilsack praised the operation as a model to “create new opportunities in rural communities and new markets for farm products.”

Shortly after Secretary Vilsack’s visit, Show Me Energy Cooperative became the first in the nation to be approved under the USDA’s Biomass Crop Assistance Program (BCAP), providing a working model for sustainable biomass energy. Flick and his partners have developed an agricultural enterprise that provides jobs and increased income for growers – all while helping to slow global warming.

Show Me Energy Cooperative’s story began after founder Steve Flick decided to turn the waste material from his seed company, Flick Seed Company, into an alternative energy source. With the help of a Rural Energy for America Program (REAP) grant, Flick Seed developed a biomass pellet plant. Flick then worked with local farmers to start Show Me Energy Cooperative, a pioneering producer of energy crops, to add prairie grasses to his biomass mix for high energy pellets.

The biomass pellets have diverse uses. Show Me Energy markets for home heating fuel, fuel for small businesses and for generating energy at universities and utility companies. One ton of pellets contains as much energy as 190 gallons of propane, making it a useful renewable energy source.

In 2008, the co-op completed a 150-ton pellet co-firing test run at a coal power plant, keeping over 253 tons of CO₂ out of the atmosphere. The co-op’s partnership with Kansas City Power & Light may lead to biomass pellets entirely replacing other fossil fuel sources to generate electricity at that power plant in the future.

Local Benefits: Jobs and Income

The co-op’s operations reflect its mission to support the local community and economy. The 400 members’ farms provide biomass for the pellets and they are all within a 100 mile radius of the production plant, keeping energy use and transportation costs low. When using crop resideus, Show Me only accepts materials where at least 30% of residues were left on field. Show Me Energy also helps local businesses by blending in biomass residues from local commercial operations. Show Me Energy’s business model benefits local farmers and residents most by creating green jobs, new revenue streams for farmers, and a secure, clean energy source.

Economic Benefits and Global Warming Solutions

As Flick points out, the co-op’s model works for lots of different energy uses, from advanced biofuels, to heating and power—creating both economic and environmental progress. With this flexibility, Show Me Energy’s model could bring economic progress to communities across Rural America while helping us all cut carbon pollution that causes global warming.

For more information

• See Flick Seed Company’s FarmEnergy.org Success Story
• Articles about Secretary Vilsack’s visit
  • “Vilsack: Rural America heart and soul of country”
  • “Vilsack tours biomass facility, holds Rural Tour forum in Sedalia”
• Show Me Energy Cooperative website
• Obama Administration’s Rural Tour website

The control room at Show Me Energy's plant

Biomass pellet bags being prepared for delivery

A truck picks up a shipment of pellets to deliver to Northwest Missouri State University

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.