USDA Rural Development accepting applications for renewable energy systems and energy efficiency improvements
By USDA
Mar 29, 2008
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TEMPLE, TEXAS, March 10, 2008— The 2002 Farm Bill established the Renewable Energy Systems and Energy Efficiency Improvements Program to make loans, loan guarantees, and grants to agriculture producers and rural small businesses.  Renewable energy systems utilizing wind, solar, biomass, geothermal or hydrogen sources may be purchased.  Energy efficiency improvements may include retrofitting lighting or insulation, irrigation, grain dryers, or purchasing or replacing equipment with more efficient units in existing or new replacement facilities.  Some key provisions of the program are:

·        Applicants may qualify for a competitive grant, a guaranteed loan, or a combination of both.

·        Grant request must not exceed 25% of the eligible project costs.  Renewable energy grants

can range from $2,500 to $500,000.  Energy efficiency grants can range from $1,500 to $250,000.

·        Loan guarantees can be for up to 50% of total eligible project costs.  Guarantees can range from $5,000 to $10,000,000 per project.

·        Projects can qualify for combined grant and loan guarantee, but the grant portion is still subject to the above limits and combined funding assistance cannot exceed 50% of total eligible project costs.

·        Projects under $200,000 total project costs qualify for a simplified application process.

 

“American agriculture is going through a time of enormous transformation,” said Scooter Brockette, Acting State Director, USDA Rural Development.  “We need to be bold in recognizing and capitalizing on new opportunities.  Energy is unquestionably one of those areas that present tremendous opportunities for economic gains and ultimately an improved quality of life for rural Texans.”

 

            Since 2001, the Bush Administration has invested nearly $674 million in more than 1,760 renewable energy and energy efficiency projects.  This program can assist agriculture producers and small rural businesses develop renewable energy systems and make energy efficiency improvements to their operations.  Agriculture producers must be directly engaged in the production of agricultural products and obtain at least 50% of their gross income from their agriculture business.

           

            USDA is accepting grant only applications during the first competitive window, to be received no later than April 15, 2008 to the Texas USDA Rural Development Office, 101 South Main, Suite 102, Temple, Texas 76501.  During the second competitive window, applications for grants, loan guarantees and loan/grant combinations must be received no later than June 16, 2008.  For further information regarding USDA Rural Development Programs, contact us at (254) 742-9780 or visit our website at http://www.rurdev.usda.gov/rbs/farmbill/9006form.html.