Agriculture Secretary Tom Vilsack today announced funding for 821 projects across the nation that will help rural small businesses and agricultural producers reduce energy usage and costs in their operations. The funding is available through the Rural Energy for America Program (REAP) and will be used to make energy efficiency improvements and install renewable energy systems.
USDA is providing $43.2 million in loan guarantees and $11.6 million in grants through REAP for projects in every state, as well as in the Virgin Islands, the Western Pacific and the Commonwealth of Puerto Rico. Funding of each award announced today is contingent upon the recipient meeting the terms of the loan or grant agreement.
Congress created the REAP program in the 2002 Farm Bill. Because of the program’s success, Congress reauthorized it in the 2014 Farm Bill with guaranteed funding of at least $50 million annually for the duration of the five-year Farm Bill.
From 2009 to date, REAP has helped finance more than 11,000 renewable energy and energy efficiency projects that have reduced energy costs for roughly 15,000 rural businesses. During this period, USDA has provided more than $373 million in grants and almost $481 million in loan guarantees to agricultural producers and rural small business owners.
When operational, the approved projects will generate or save almost 9 million megawatt hours – enough to power more than 730,000 homes and reduce greenhouse gas emissions by more 5 million metric tons in carbon dioxide each year. That is the equivalent of removing more than 1.1 million cars from our roads.
“Since 2009, the Rural Energy for America Program has helped roughly 15,000 small businesses and farms save enough energy to power about 730,000 homes and reduce greenhouse gas emissions by more than five million metric tons annually,” Vilsack said. “These investments in clean energy are good for the environment, are good for each business’s bottom line and they support the broader rural economy by encouraging the production of renewable energy sources.”