New farm bill increases funding for renewable energy

From the Web site of the AgStar Program:

In May 2008, Congress enacted the Food, Conservation, and Energy Act of 2008 (H.R. 2419), which builds upon the successful energy provisions found in the 2002 Farm Bill. Under the new "Farm Bill," the Renewable Energy Systems and Energy Efficiency Improvements Program, also known as Section 9006, has been replaced with the Rural Energy for America Program (REAP), Section 9007. Like its predecessor, REAP provides grants and loan guarantees to farmers, ranchers, and rural small businesses to promote energy efficiency and renewable energy. Many anaerobic digesters have been funded through this program in the past. This new version provides an opportunity for funding for more projects in the future. . . .

Highlights of REAP include:

- REAP grants can provide up to 25 percent of a proposed project's cost, and can also provide a loan guarantee for the full project cost of up to $25 million. The combined amount of a grant and loan guarantee may not exceed 75 percent of the cost of the project.

- At least 20 percent of program funds are set aside to be used for grants of $20,000 or less.

- Feasibility studies are now eligible for grants that can cover up to 25 percent of the study's cost.

- The types of organizations eligible for grants are expanded to include state and local governments, universities, rural electricity cooperatives, and other organizations that help farmers become more energy efficient and effectively use renewable energy technologies.

Andy Olson, Sr. Policy Advocate-Environmental Law and Policy Center, will discuss the farm bill's provisions at the Renewable Wood Energy workshop, September 4, in Green Bay.