Biogas Projects in Eight States Get a Boost from Rural Energy for America Program

Using organic waste to produce renewable energy is a win-win for livestock producers and food processors, local rural economies, energy security, and the environment. This week, the U.S. Department of Agriculture (USDA) announced grants and loans for nineteen projects in eight states – from Florida to Idaho and from Vermont to Oregon.

The USDA announced the Rural Energy for America Program (REAP) grant and loan awards on October 26.

The grants and loans will help rural producers overcome the relatively high upfront investment that these biogas projects require. These projects will process manure from livestock operations and other organic waste streams in anaerobic digesters to produce biogas. The biogas is usually then burned in a generator to produce heat and electric power for use on site, and any surplus electricity is usually sold to the grid. Alternatively, in some locales, the biogas can be upgraded to pipeline quality and then be shipped, stored, and used just like fossil natural gas. In addition to reducing energy costs for a farm, an anaerobic digester also produces high value fertilizer and clean bedding material for livestock, and it helps reduce odors, greenhouse gas emissions and nutrient run-off into local watersheds. The public benefits of this program include the creation of rural jobs and economic development, improved local energy security and self-reliance, and environmental benefits. For more information about renewable biogas, see EESI’s briefing online “Renewable Biogas: Too Valuable to Waste.”

REAP provides grants and loan guarantees for large and small energy efficiency and renewable energy projects across rural America, including for energy audits, feasibility studies, energy efficiency upgrades, wind power, solar power, anaerobic digesters, and bioenergy. REAP helps rural businesses and agricultural producers become more economically competitive by reducing their energy costs. The program advances rural economic development, creating approximately 18 jobs for every $1 million invested. It helps rural businesses and agricultural producers afford the often high up-front capital costs of energy efficiency and renewable energy projects, but it also reflects wise stewardship of public resources by requiring $3 of private matching funds for every $1 of public grant. REAP is also one of the few federal programs that provides incentives for rural electric cooperatives to pursue energy efficiency and renewable energy projects.

REAP has grown in popularity across rural America, funding thousands of projects across the country. Applications for REAP funding far exceed the number of projects that can be supported with current limited funding. For more information about REAP, see EESI’s briefing online “Farm Bill Energy Title: Rural Energy for America Program.”