USDA Announces $63 Million for Renewable Energy, Energy Efficiency in Rural Communities

On August 7, the U.S. Department of Agriculture (USDA) announced that 264 renewable energy and energy efficiency projects have been awarded $63 million in grants and loans through the Rural Energy For America Program (REAP).  The agency expects that this most recent batch of REAP funding will generate and/or save a combined 207.8 million kilowatt hours of energy.  According to Secretary of Agriculture Tom Vilsack, “This funding will have far-reaching economic and environmental impacts nationwide, particularly in rural communities.” 

The awards range from small grants to install renewable energy on farms and small businesses, to larger grants aimed at scaling up production of renewable fuels and power. According to USDA, the agency has provided grants or loans to 9,600 projects through REAP during the Obama administration, administering a total of $291 million in grants and $327 million in loan guarantees in rural communities. REAP was first authorized as part of the 2008 Farm Bill, and was subsequently re-authorized in the 2014 Farm Bill.

Despite the strong support and track record of the program, REAP’s funding has been threatened by Congressional appropriators. The House appropriations bill for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for 2015 includes a 30 percent cut in the mandatory spending outlined in the 2014 Farm Bill, from $50 million to $35 million.  Senate appropriators have maintained funding for 2016 at $50 million.

With only a few weeks left until the end of the fiscal year, it’s unclear whether appropriators will choose to advance a continuing resolution, which simply maintains current spending (at sequester levels), or if they will roll the political dice with a full or partial federal shutdown.

For more information see:

USDA Invests $63 Million to Support 264 Renewable Energy and Energy Efficiency Projects Nationwide, UDSA

House Appropriators Seek Deep Cuts to Environmental, Farm and Renewable Energy Programs, EESI