TEMPLE, TEXAS, May 5, 2010 – Agriculture Secretary Tom Vilsack announced today that USDA Rural Development is seeking applicants interested in increasing the production and use of renewable energy sources.  Funding is available from the USDA Rural Development Rural Energy for America Program (REAP) authorized by the Food, Conservation, and Energy Act of 2008.

“This funding will help spur investments in technologies that will reduce reliance on fossil fuels, conserve natural resources and help build a sustained renewable energy industry in rural America,” Vilsack said. “Support provided by USDA through these programs will not only benefit the environment, it will create green jobs and help America become more energy self-sufficient.”   

Eligible projects include installing renewable energy systems such as wind turbines, solar, geothermal, biomass, anaerobic digesters, hydroelectric, and ocean or hydrogen systems.  Funding may also be used to purchase energy-efficient equipment, add insulation, and improve heating and cooling systems.  In fiscal year 2009, this program helped fund 1,485 REAP projects in 50 states, the commonwealth of Puerto Rico and the Western Pacific Islands.

 The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible. Small businesses that are located in a rural area can also apply. Rural electric cooperatives may also be eligible to apply.  Typically eligible businesses have less than 500 employees and revenue of less than $6.5 million.

Grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. Requests as low as $2,500 for renewable energy systems and $1,500 for energy efficiency improvements will be considered.

 USDA Rural Development will accept applications for Rural Energy for America Program (REAP) grants and loans until 4:30pm CST on June 30, 2010.  All applications should be mailed to Business Programs, 101 S Main St, Suite 102, Temple, TX 76501. 

For information, contact Mr. Daniel Torres or Mr. Billy Curb at the Texas State Office (254)742-9780 or view the Notice of Solicitation of Applications http://edocket.access.gpo.gov/2010/pdf/2010-9580.pdf.  Those interested in applying are encouraged to submit an application as soon as possible.