Sarah Xiyi Chen: IFCE Summary of the “Farm Bill Energy Title: Rural Energy for America Program”

IFCE Summary of the “Farm Bill Energy Title: Rural Energy for America Program” briefing hosted by the Environmental Law and Policy Center (EPLC) Environmental and Energy Study Institute (EESI)

7/19 in the Russell Senate Office Building

all materials accessible online

Speakers:

--Bill Midcap, Farmer and Rural Development Specialist, Rocky Mountain Farmers Union, Colorado

--Bennie Hutchins, Principle, Ag Energy Resources, Mississippi

--Bruce Knight, Dairy Advisor, Strategic Conservation Solutions, LLC and former Chief, Natural Resource Conservation Service, U.S. Department of Agriculture, Washington, D.C.

--Andy Olsen, Senor Policy Advocate, Environmental law and Policy Center, Wisconsin

            The United States Farm Bill, the primary federal legislation for agriculture and food, is coming before Congress again soon in the next few years. One aspect of the bill must address farm energy programs. The 2008 Farm Bill Energy Title provides mandatory funding for producing clean energy and power, advancing biofuels, and saving energy. The Energy Title has a $1.12 billion budget, with roughly 25% of that money going towards Biorefinery Assistance, another 25% towards the Bioenergy Program from Advanced Biofuels, and another 25% going towards the Rural Energy Assistance Program (REAP), which was the focus of the presentation. The last quarter of the budget went to an array of other programs supporting the Energy Title’s goals.

            REAP is the only significant federal financing incentive available for agricultural producers and rural small businesses. Eligible technologies for funding include energy efficiency, wind, solar, geothermal, anaerobic digesters, biomass energy, biofuels, marine energy, and small hydroelectric generators. REAP beneficiaries must raise 75% of needed capital to receive a grant that pays for 25%, and the maximum grants are $500,000 for renewable energy and $250,000 for energy efficiency projects. 20% of REAP’s funds are set aside for smaller grants. In terms of loans, the minimum guarantee is $5,000 and the maximum $25 million.

            REAP has been active in all agricultural sectors and states and creates not only energy efficiency and security, but also tens of thousands of new jobs. Projects include Jubilee Farms, a catfish producer in Missouri that installed a deep well to extract warm water for the fish hatchery, eliminating the need to heat 60 million gallons of water a year and saving $30,000 a year in energy costs; South Alabama Grocers, a family-owned grocery that replaced its old inefficient refrigerators for an annual energy cost savings of $53,000; and a member of the Rural Electric Convenience Cooperative’s Gob Nob Wind Turbine, which received a $375,000 REAP grant and placed a wind turbine on top of a 60-ft pile of coal mining waste.

            Overall, REAP appears to have significant positive impacts on rural energy by turning consumers into energy producers through Rural Electric Cooperatives, promoting energy independence, saving money, reducing emissions, creating jobs, and eliminating waste.