USDA Seeks Applications for Renewable Energy and Energy Efficiency

   “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 is accepting Rural Energy for America Program (REAP) applications for: 1) loans and grants for renewable energy systems and energy efficiency improvements, and 2) grants for energy audits and renewable energy development assistance.

   Eligible agricultural producers and rural small businesses may use REAP funds to purchase and install renewable energy systems and make energy efficiency improvements. Eligible renewable energy systems include energy from wind, solar, renewable biomass (including anaerobic digesters), small hydro-electric, ocean, geothermal, or hydrogen derived from these renewable resources.

   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 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.

   In FY 15 there were 34 REAP grants awarded for more than $747,000 in Montana. Alameda’s Hot Springs Retreat in Hot Springs, Montana was given a grant for $37,448.

   These funds will be used to purchase and install a geothermal and solar heating system for the Retreat. The renewable and energy efficient system will produce energy to heat buildings and provide hot water for this small business. This project will generate 120,576 kWh; enough energy to power 11 households for one year. 

   “The REAP projects funded in Montana will significantly help reduce operating costs for participating Montana small businesses and agricultural producers, with some estimating replacing as much as 40% of their annual energy consumption with renewable energy,” according to Acting State Director, Janelle Gustafson. “The energy these businesses are saving can power more than 185 households in Montana for a 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.

   For application deadlines and details on how to apply, contact the USDA energy coordinator in Montana, or see Page 60349 of the October 6 Federal Register.

   President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.