Agriculture Under Secretary Lisa Mensah today encouraged rural small businesses to apply for loan guarantees and grants to support renewable energy and energy efficiency projects.
“Helping rural small businesses save money on energy costs strengthens their bottom line and helps the U.S. become more energy independent,” Mensah said. “It also reduces our country’s carbon footprint, which leads to a cleaner environment and a more secure energy future.”
USDA Rural Development Maine State Director Virginia Manuel said, “I strongly encourage agricultural producers and rural small businesses in Maine to apply for this valuable funding through the Rural Energy for America Program. Many Maine entities have seen a substantial cost and energy savings through the installation of renewable energy and energy efficient systems. This ultimately can contribute to the long-term sustainability of the business and aid in job retention and creation in Maine communities.”
USDA is accepting Rural Energy for America Program (REAP) applications for: 1) Grants and loan guarantees for renewable energy systems (RES) and energy efficiency improvements (EEI), and 2) Grants for energy audits and renewable energy development assistance.
(1) Eligible agricultural producers and rural small businesses may use REAP funds for the purchase, installation and construction of RES such as biomass, geothermal, hydropower, solar and wind, as well as for EEI associated with heating, cooling, lighting, and insulation. Applications for grants $20,000 and less are due on or by November 2, 2015. Applications for RES grants up to $500,000 and EEI grants up to $250,000 are due by May 2, 2016. Applications for loan guarantees are accepted on an ongoing basis. For questions and application information contact Cheryl Pelletier, Business and Cooperative Programs Specialist at (207) 764-4157 Ext. 4 or cheryl.pelletier@me.usda.gov
(2) Energy audits and renewable energy development assistance grants are available to state, tribal, or local governments; institutions of higher education; rural electric cooperatives and public power entities. The recipient of these grant funds will establish a program to assist agricultural producers and rural small businesses with evaluating the energy efficiency and the potential to incorporate renewable energy technologies into their operations. Program questions and applications should be sent to Brian Wilson, Energy Coordinator at (207) 990-9168 or brian.wilson@me.usda.gov.
For application deadlines and details on how to apply see Page 60349 of the October 6 Federal Register.
The REAP program was created in the 2002 Farm Bill. Because of the success of the program, Congress reauthorized it in the 2014 Farm Bill with guaranteed funding of no less than $50 million annually for the duration of the five-year bill. The 2014 Farm Bill builds on historic economic gains in rural America over the past seven years while achieving meaningful reform and billions of dollars in savings for taxpayers.
An example of a recent Maine recipient of a REAP renewable energy system grant is Bar Harbor Community Farm, LLC, which received a grant of $6,868. This project is for the purchase and installation of a new roof-mounted 8.42 kW solar PV system on a newly constructed seedling greenhouse. Generated energy will meet the business’ demands and support year-round production and marketing. This solar PV system is expected to produce 10,445 kWh annually and save the business $1,861 per year.
Through the REAP program, USDA has supported nearly 11,000 renewable energy and energy efficiency projects nationwide since the start of the Obama Administration. The Department has provided more than $367 million in grants and $354 million in loan guarantees to agricultural producers and rural small business owners during this period.
USDA Rural Development has Area Offices located in Presque Isle, Bangor, Lewiston, and Scarborough, as well as a State Office, located in Bangor. There are 60 employees working to deliver the agency’s Housing, Business, and Community Programs, which are designed to improve the economic stability of rural communities, businesses, residents, and farmers, and improve the quality of life in rural Maine. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at http://www.rd.usda.gov/me.