Agency: Department of Agriculture-Rural Business-Cooperative Service
Description:
To provide guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.
Bill Section:
22002(a)
US Code:
7 USC 8107
New or Existing:
Existing
Potential Cost:
$1,721,632,500
Timeline:
FY22-31
Implementation Status/Rulemaking:
On December 16, 2022, USDA issued a Notice of Solicitation of Applications for Fiscal Year 2023 under the Rural Energy for America Program (REAP), announcing the availability of $250 million in Inflation Reduction Act funds: Source
On March 31, 2023, USDA issued a second Notice of Solicitation of Applications for Fiscal Years 2023 and 2024 under REAP, announcing the availability of $1.055 billion in Inflation Reduction Act (including carryover) funds across six quarterly cycles, with the last application deadline September 30, 2024: Source
TCS Notes:
No greenhouse gas emission reduction requirements for program. In the past, has funded industries such as corn ethanol that may fail to reduce GHG emissions. Funds may be used for renewable energy systems, such as biomass (e.g., biodiesel and ethanol, anaerobic digesters, solid fuels); geothermal for electric generation or direct use; hydropower below 30 MW; hydrogen; small and large wind generation; small and large solar generation; ocean (tidal, current, thermal) generation. Funds also may be used for the purchase, installation and construction of energy efficiency improvements, such as high efficiency heating, ventilation and air conditioning systems (HVAC); insulation; lighting; cooling or refrigeration units; doors and windows; electric, solar or gravity pumps for sprinkler pivots; switching from a diesel to electric irrigation motor; replacement of energy-inefficient equipment.
Other TCS Resources:
Inflation Reduction Act: Comments to USDA on Bioenergy Spending