Agriculture and Forestry
Climate Change
Renewable Energy

USDA Announces New Renewable Energy Funding Through REAP

By

May 28, 2009

On May 26, the United States Department of Agriculture announced it would begin to accept funding applications through its Rural Energy for America Program (REAP). The program, budgeted at $55 million for FY 2009, provides grants, loan guarantees, and funding for feasibility studies to eligible agricultural producers and rural small businesses. USDA will award funding up to the following levels:

  • Grants for renewable energy systems—25% of eligible project costs up to $500,000
  • Grants for energy efficiency projects—25% of eligible project costs up to $250,000
  • Loan guarantees—75% of eligible project costs up to $25 million
  • Feasibility studies—25% of eligible study costs up to $50,000

To ensure that small community farms benefit from the program, USDA is setting aside 20% of all REAP funds for small-scale project grants of $20,000 or less. The application deadline is July 31.

For more information and application instructions, please see the Federal Register Notice